Home ›› 10 Apr 2022 ›› News
Plastic goods manufacturers and exporters have demanded that the government ease the existing import duty structure on raw materials of plastic products to ensure sustainable development of the country’s plastic sector in a post-LDC era.
Business leaders placed the demand at a webinar titled ‘Sustainable Export Growth in Post LDC World: Strategies for the Plastic Sector’ organised by the Dhaka Chamber of Commerce & Industry (DCCI) on Saturday.
They also urged the government to modernise relevant policies, encourage use of bio-plastic, and sign Free Trade Agreement (FTA) or Preferential Trade Arrangement (PTA) with potential trade partner countries to develop the industry.
On the matter of attracting foreign direct investment (FDI), they stressed the importance of developing plastic waste management, establishing international standard testing laboratories, innovation in product diversification, and ensuring an investment-friendly business environment.
The businesses underscored on central bonded warehouse facility, tax incentives, coordination among government agencies, easy access to finance and investment in research and development.
They also requested the authorities concerned to assess the international policies and design incentive plans in line with the international standard for retaining the market and sustaining the growth.
Speaking at the event, Md Jashim Uddin, president of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI), said entrepreneurs in the plastic sector were very resilient and had the capacity to overcome the myriad challenges that plagued the sector.
“We need world-class accredited testing lab, proper policy support with intellectual property rights (IPR) policy and innovation in design and development,” he added.
In order to facilitate 100% recycling, he suggested an extensive collection system under the guidance of city corporations.
“We need to expand backward linkage and sub-contracting industry in this sector so that small producers can grow and provide thousands of components to the large industries,” he added.
Meanwhile, DCCI President Rizwan Rahman said plastic goods export contributed 0.33 per cent to the GDP and over 5,000 companies were operational in the sector, with 98 per cent of them being small and medium enterprises (SMEs).
“We need to replicate the success model of readymade garments (RMGs) to other export-led manufacturing sectors as well. Product diversification is essential while changing raw materials to recycled plastic waste as a viable alternative,” he added.
While delivering the keynote, Shamim Ahmed, president of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA), requested the government to withdraw the existing 5 per cent supplementary duty on the plastic sector.
He highlighted that in FY 2020-21, the plastic sector’s domestic market size was $ 3 billion. The sector also earned over $ 1 billion from imports and generated 1.5 million jobs.
Plastic is the 8th largest export earning sector in Bangladesh which has been expanding 4.5 per cent per annum, he added.
Also speaking at the event, PRAN RFL Group CEO Ahsan Khan Chowdhury said: “At present, our plastic products are being exported to Germany, Australia and USA. We should work on reducing shipping costs to be more competitive.”
He requested an import duty reduction on plastic raw materials to help increase export.
Meanwhile, Dr Ahmad Kaikaus, principal secretary to the prime minister, suggested forming a national taskforce combining public and private sector participation in order to identify various prospects and challenges in the plastic sector.
He also urged for a better plastic waste management solution.
