Hong Kong Shoe Association Eyes Investment in Bangladesh Footwear Sector

TBS Report, Gazipur — A six-member delegation from the Hong Kong Shoe Association has explored investment opportunities in Bangladesh's footwear sector and signed a memorandum of understanding (MoU) that could pave the way for direct investment and joint ventures — a strategic engagement that could help Bangladesh diversify its export base beyond readymade garments.

Led by Hong Kong Shoe Association President Eddie Lam, the delegation visited Bangladesh Shoe City Limited (BSCL) in Gazipur on 25 August 2026 at the invitation of Nasir Khan, Chairman and Founder of BSCL, according to a statement issued by the company on 31 August 2026.

👕 Visit Objectives

The visit focused on:

• 🏗 Assessing Shoe City's industrial and factory facilities
• 💰 Exploring investment opportunities in Bangladesh footwear sector
• 🤝 Discussing prospects for joint investment and partnerships
• 👥 Engaging with BIDA and FLAXA on government support and sector advantages

🏛 Conference Engagement

Later, representatives of the Bangladesh Investment Development Authority (BIDA) and the Footwear, Leather Goods and Accessories Exporters Association (FLAXA) made presentations at a conference on issues related to investment and cooperation in the sector. The discussions covered:

• 💰 Investment opportunities at Shoe City
• 🏛 Facilities available for foreign investors
• 📊 Business prospects in Bangladesh footwear sector
• ⚠️ Potential challenges that need to be addressed

🏛 BIDA Government Support Commitment

BIDA assured the delegation of government support, including:

• 🏛 Assistance on export-related matters — simplifying export procedures
• 🏢 Establishment of a central bonded warehouse at Shoe City — reducing working capital requirements for footwear exporters
• 👥 Government backing for Hong Kong investor entry into Bangladesh

The BIDA commitment to establishing a central bonded warehouse at Shoe City is particularly significant — addressing one of the long-standing infrastructure gaps that has constrained the growth of Bangladesh's footwear and leather sector.

👩 FLAXA's Pitch: Skilled Workforce Advantage

FLAXA highlighted Bangladesh's availability of a skilled and experienced workforce as an advantage for foreign investors — a key selling point that positions Bangladesh competitively against other regional footwear manufacturing destinations. The FLAXA presentation likely emphasised:

• 👩 Skilled leather workers with decades of tradition
• 👩 Competitive labour costs compared to China and Vietnam
• 👩 Existing footwear manufacturing base in Bangladesh
• 👩 English-speaking workforce supporting international buyer communication

🤝 MoU Signed: Path Forward

Following the discussions, Eddie Lam and BSCL signed an MoU aimed at:

• 🤝 Promoting future business cooperation
• 💰 Investment in Bangladesh footwear sector
• 💰 Mutual development of the industry
• 💰 Joint venture opportunities with Hong Kong investors

Nasir Khan said BSCL was interested in working with the Hong Kong Shoe Association on direct investment and joint-venture initiatives in the future — signalling concrete commercial intent beyond the MoU signing.

👕 Bangladesh Footwear Sector Context

The Hong Kong investment interest comes at a strategically important moment for Bangladesh's footwear sector:

• 👕 Footwear exports: part of Bangladesh's leather and leather goods export category
• 👕 Export diversification: critical to reduce RMG concentration (>84% of exports)
• 👕 China plus one strategy: international buyers seeking alternatives to China
• 👕 Hong Kong Shoe Association: gateway to Chinese footwear investment
• 👕 Bangladesh Shoe City (BSCL): dedicated footwear industrial cluster in Gazipur

🌏 Hong Kong's Strategic Role

Hong Kong plays a unique strategic role in the global footwear industry:

• 🇭🇰 Footwear trading hub: many global footwear brands source through Hong Kong
• 🇭🇰 Chinese footwear investment gateway: Hong Kong investors finance Mainland China footwear manufacturers
• 🇭🇰 International footwear trade shows: Hong Kong hosts major industry events
• 🇭🇰 Footwear design and development: Hong Kong-based design houses serve global brands
• 🇭🇰 Quality control and compliance: Hong Kong firms manage supply chain compliance

The Hong Kong Shoe Association's engagement with Bangladesh Shoe City therefore represents a strategic bridge between Bangladesh's footwear manufacturing capacity and the global footwear sourcing networks that flow through Hong Kong.

🏛 Bangladesh Shoe City (BSCL) Profile

Bangladesh Shoe City Limited (BSCL) is a dedicated footwear industrial cluster in Gazipur designed to provide:

• 🏢 Industrial plots for footwear manufacturers
• 🏢 Factory facilities with modern infrastructure
• 🏢 Central bonded warehouse (planned, with BIDA support)
• 🏢 Common effluent treatment plant for environmental compliance
• 🏢 Worker housing and training facilities
• 🏢 Export facilitation services

BSCL's dedicated footwear cluster approach addresses several structural challenges that have historically constrained Bangladesh's footwear sector development — including fragmented production, inadequate infrastructure, and limited access to bonded warehouse facilities for export-oriented manufacturers.

📊 Strategic Context: Export Diversification Imperative

The Hong Kong footwear investment interest aligns with Bangladesh's broader export diversification agenda:

• 📊 RMG share of exports: over 84 percent of merchandise exports
• 📊 FY26 handicraft exports: fell 15 percent to $32.13 million
• 📊 FY26 shrimp exports: fell 4 percent to $286 million
• 📊 LDC graduation: November 2026 reduces preferential tariff access
• 📊 EU apparel exports: fell 16.4 percent in H1 2026

With multiple export categories under pressure, the footwear and leather sector represents one of Bangladesh's most promising diversification opportunities — leveraging the country's existing leather industry, skilled workforce, and competitive labour costs to capture a larger share of the global footwear market.

🌏 Strategic Implications

The Hong Kong Shoe Association engagement carries several strategic implications:

• ✅ Export diversification signal: foreign investor interest in non-RMG sector
• ✅ Hong Kong gateway: access to global footwear sourcing networks
• ✅ BIDA government support: central bonded warehouse commitment
• ✅ Skilled workforce leverage: FLAXA's pitch positioned Bangladesh competitively
• ✅ Joint venture opportunity: BSCL pursuing direct investment and partnerships
• ✅ China plus one strategy: Bangladesh well-positioned to capture China-plus-one footwear investment
• ⚠️ MoU to investment conversion: depends on follow-up and infrastructure delivery
• ⚠️ Bonded warehouse delivery: BIDA commitment must be operationalised

The Hong Kong Shoe Association's engagement with Bangladesh Shoe City therefore represents a strategically important opening for Bangladesh's footwear sector — with the potential to channel Hong Kong and Mainland Chinese footwear investment into the country's dedicated footwear industrial cluster. If the MoU translates into concrete investment commitments in the coming months, Bangladesh could capture a meaningful share of the global footwear manufacturing migration from China — supporting the country's broader export diversification agenda through the LDC graduation transition period beginning November 2026.