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Plastic toys poised to be the next big export earner
STAR BUSINESS REPORT
The plastic toy industry could play a significant role in expanding Bangladesh’s export basket as shipments are expected to hit an estimated $466.31 million by 2030 if the current annual growth trend holds steady at 24 per cent, according to speakers at a seminar.
“With this growth rate, Bangladesh could become the 28th largest toy exporter in the world that year,” said Md Jashim Uddin, president of the Federation of Bangladesh Chambers of Commerce and Industry.
However, local manufacturers need to take the necessary steps to accelerate production of world-class products and explore new markets in order to achieve this milestone.
“So, we are always working for the development of this sector. For example, efforts are being made to reduce the import duty on raw materials,” he added.
The seminar, styled “Plastic Toy Industries of Bangladesh-A Potential Sector for Export Diversification”, was jointly organised by the Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) and Export Competitiveness for Jobs (EC4J), a project of the commerce ministry financed by World Bank Group.
The event, aimed at showcasing the progress made in local manufacturing of plastic toys, was held at the Centre on Integrated Rural Development for Asia and the Pacific (CIRDAP) auditorium in Dhaka yesterday. Spain is currently the biggest export market for plastic toys made in Bangladesh while Italy and France are tied for second place.
Exports of plastic products hit $128.77 million in the July-April period of the ongoing fiscal year with toys accounting for about $37.10 million, or 29 per cent, of the total amount.
As such, the toy sub-sector of the plastics industry could play a big role in increasing non-traditional exports, said Ferdous Ara Begum, chief executive officer of Business Initiative Leading Development.
“Bangladeshi toys have already set foot in Europe and North America,” she added.
Shamim Ahmed, president of the BPGMEA, sought the government’s cooperation for developing the toy industry. The largely labour-intensive industry provides a lot of job opportunities and will likely play a big role in the country’s export basket one day, he said.
About 90 per cent of the toys in Bangladesh were imported a decade ago but now, only 10 per cent comes from abroad.
However, the tariff on imported toys should be raised to $20 per kilogramme from the $7.5 at present, Ahmed added.
Yusuf Ashraf, a former president of the BPGMEA, called upon all to work together to find solutions to various issues, including the production of counterfeit products.
Mansurul Alam, project director of the EC4J, said although the toy market has existed for centuries, not a single brand of substance has started its journey from Bangladesh as of yet.
“Our satisfaction is still limited to exporting non-brand toys,” he added.
Alam went on to say that if local manufacturers want to compete with world-renowned brands, they will have to make world-class products.
“To this end, the government will have to take several policy initiatives, such as infrastructural cooperation and reduction of tariffs on ancillary imports,” he said.
Tapan Kanti Ghosh, secretary of the commerce ministry, said the plastic toy industry is expanding rapidly and at the same time, it is increasing investment in the country. He assured that the government would provide all possible forms of assistance to enrich the sector and make it a driving force for exports.
Mentioning that compliance with industry standards has become an important issue in international trade, Ghosh said local toy industries need to be modernised and made suitable for the global market.
At the event, the BPGMEA urged the government to withdraw the supplementary duty on all types of toy components to help the sector flourish.
With about 100 toy makers operating in the country and 12 of them being large companies, the market is estimated to be worth around Tk 7,000 crore. Of this amount, local producers contribute around Tk 4,000 crore while the rest is imported.