Bangladesh sports shoe manufacturers appeal for extra government incentives
Bangladesh’s sports shoe manufacturing sector has called upon the government to implement export incentive schemes, similar to those that apply in neighbouring countries, to help the industry stave off imminent collapse. They are looking for 25% cash incentives and waiving of interest charges on government credits.
According to the Bangladesh Export-Oriented Sports Shoe Manufacturing Association (BESSMA), the sector is facing the worst crisis in its history. The problem, says the Association, is the various government incentives being given to rival producers in other countries, which have severely weakened its own members’ ability to compete in the global marketplace. The Association says that if parity is not restored through similar incentives being granted to its members, they will effectively be put out of business.
The Association says the figures reflect this decline. In 1997-98 export earnings from sport shoes stood at Tk3 billion ($56 million). The target earnings figure for the current financial year is Tk700 million, though many industry-watchers doubt that even this figure will be achieved.
