Photo : Messenger
During the prolonged economic slowdown globally, the country's plastic manufacturing sector has been maintaining steady growth over the years against the backdrop of growing demand for plastic products in domestic and international markets.
According to the Export Promotion Bureau (EPB), plastic goods exports grew by 16.82 percent to $161.62 million in eight months during July-February of the 2024 fiscal year (FY).
During the same period last year, plastic exports were $138.35 million. However, the sector has set a target of $275 million for plastic exports for the 2024 FY.
“The demand for Bangladesh’s plastic is rising in the global market day by day. Though we are not satisfied with the export figures, in the current dull market, this amount is not bad,” Joshim Uddin, Vice Chairman of Bengal Group of Industries, told The Daily Messenger.
He also mentioned, “As our major markets are China and Japan, our market is less affected by the war than the EU and USA. This has resulted in the growth of plastic exports even in adverse economic situations.”
He emphasised that this potential sector needs policy support from the government. If the sector receives subsidies, it might grow like the Ready-Made Garment (RMG) industry.
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 achieve this, 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 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 the success of the sector,” he added.
Centre for Policy Dialogue (CPD) Research Director Dr Khondaker Golam Moazzem said, “If we want to diversify the country's export basket, plastic products could be a good option as its year-on-year earnings from shipments are growing even amidst inflation.”
The government should encourage more local and foreign investments for the expansion of world-class production as well as exports, he said.
Dr Moazzem also emphasised setting up a special economic zone for plastic product manufacturers.
However, the manufacturers said Bangladesh's share in the global market is still insignificant, as the size of the international market for plastic products ranges from $546 billion to $600 billion. Currently, Bangladesh contributes only 0.01 percent to the global market.
Messenger/Fameema
