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Despite a prolonged global economic slowdown, the country`s plastic manufacturing sector has exhibited consistent growth over the years. This trend persists against the backdrop of increasing demand for plastic products in both domestic and international markets.
According to Export Promotion Bureau (EPB) plastic goods export grew by 16.44per cent to $116.64 million, in the first six months during July-December of 2024FY.
During the corresponding period last year, the export of plastic products amounted to $100.17 million. However, looking ahead, the sector has ambitiously set a target of $275 million for plastic exports in the fiscal year 2024.
“Demand of the Bangladesh’s plastic is rising in the global market day by day. Though, we are not satisfied over the export but in the dull market this amount is not bad,” Jashim Uddin Vice Chairman of Bengal Group of Industries told The Daily Messenger.
“As our big markets are China and Japan, these are less affected by the war than the EU and USA. That has resulted in the export of plastic has grown even in adverse economic situations,” he added
He said: The potential sector needs the policy support of the government. If the sector gets a subsidy, it might grow like RMG.
Meanwhile, the country`s plastic manufacturers have set a new target of securing a 3 percent share of the $570 billion global market by 2030.
Bangladesh Plastic Goods Manufacturers and Exporters Association President Shamim Ahmed said "To make this happen, we need a 10-year tax holiday and other policy support from the government. We also need an uninterrupted power supply to our industries. He demanded for the withdrawal of value added tax on plastic toys and crockeries.”
"Although the global economic crisis amid the Russia-Ukraine war has affected our business, we are still hopeful about success of the sector," he adds.
Centre for Policy Dialogue (CPD) Research Director Dr Khondaker Golam Moazzem said, "If we want to diversify the country`s export basket, the plastic products could be a good option as its year-on-year earnings from the shipment are growing even during inflation."
The government should encourage more local and foreign investments for the expansion of world-class production as well as export, he said.
Dr Moazzem also emphasised on the setting up of a special economic zone for the plastic products manufacturers.
However, the manufacturers said Bangladesh`s share in the global market is still insignificant, as the size of international market of plastic products is $546 billion to $600 billion. Currently, Bangladesh holds a share of only 0.01 per cent of the global market.
Plastic export upward trend
Months
2024FY 2023FY
July $16.76 $14.62
August $18.40 $18.75
September $20.80 $14.77
October $15.16 $14.17
November $21.48 $18.28
December $24.04 $19.62
Monthly export trend
USD in million
Source: Export Promotion Bureau
Messenger/Fardin
