The European Union announced punitive anti-dumping duties on imports of leather footwear from China and Vietnam earlier this month.

Leather sector entrepreneurs said the EU decision on Chinese and Vietnamese products will help increase Bangladesh's export to the Europe to a great extent in the coming days.

Bangladesh Finished Leather, Leathergoods and Footwear Exporters Association (BFLLFEA) President Tipu Sultan said the decision will help lift demand for Bangladeshi footwear products.

Large chains that import leather shoes from China and Vietnam, which include Marks & Spencer and Tesco, have already started to look to alternative suppliers.

Leather exports rose by 12 per cent and footwear by 29 per cent in the first seven months of the current fiscal year as the EU buyers started additional business from this year, an official of BFLLFEA said.

The country earned $200 million from the leather sector during the July-January period of FY06 against $170 million in the corresponding period of the previous fiscal year.

The government has already prepared a development strategy and implemented a plan for the leather sector to export more in 2006-2010 period.

Meanwhile, the Export Promotion Bureau's data show that in the past fiscal year, 2004-2005, finished leather exporters received 26 per cent higher price for their products.

The average price of a square foot of finished leather was $3.70 in FY 05 against $2.93 of the previous fiscal year.

In 2004-05, export earning from finished leather increased by about 5 per cent to $220 million, although the volume of export declined by about 17 per cent to 50.71 million square feet.