KEY ASPECTS
Economic Significance of the Plastics Industry
The plastics sector employs over 1.5 million people in Bangladesh, with 6,000 enterprises producing goods for domestic and export markets, driving significant economic growth.
Diverse Product Portfolio
Bangladesh manufactures household goods, FMCG packaging, toys, sanitary items, and PVC pipes, supporting industries like textiles, healthcare, construction, and electronics with its versatile plastic products.
Growth in Exports
In 2022-23, plastic goods exports reached USD 200 million, growing by 20%, showcasing the sector’s rising global competitiveness and strategic importance in Bangladesh's trade.
Emerging Toy Industry
The toy market is an expanding segment, generating over USD 50 million in exports, with high demand for affordable, eco-friendly plastic toys in Europe and North America.
SECTOR PROFILE
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Plastic INDUSTRY KEY PRODUCTS
KEY EXPORT MARKET
20%
Growth rate
8
Number of products
70
Exported to countries
$300 m
Target to achieve
COMPETITIVE ADVANTAGES
Duty-Free market access
Bangladesh benefits from duty-free access to major markets under the Generalized System of Preferences (GSP), including the EU, UK, Japan, Canada, and Australia. This strategic advantage allows the industry to maintain export competitiveness, particularly for export-oriented manufacturers leveraging these incentives. Recent policy updates have also extended bonded warehouse facilities and reduced import duties on raw materials to 5% for export-oriented operations, bolstering industry growth.
Competitive workforce
Bangladesh's low labor costs remain a critical advantage, enabling competitive pricing for export goods. While China and ASEAN countries dominate the global plastics market, rising labor costs in these regions give Bangladesh a stronger position to cater to price-sensitive buyers.
Global Market Opportunities
China's pivot from labor-intensive industries to high-tech manufacturing creates significant opportunities for Bangladesh to capture a share of the global plastics market. This is further supported by growing international demand for diversified supply chains post-COVID-19. Bangladesh aims to achieve 1% of the global market share, which is projected to reach $721 billion by 2025. If realized, this would translate to annual export revenues of approximately USD 6,000 crore for Bangladesh.
POLICY SUPPORT
Fiscal Incentives
10% cash incentive on export value of plastics products, PET bottles
Reduced import duty on raw materials
Import duty exemption on capital machineries
No VAT imposition on export goods
Plastic recycling industry is entitled to reduced taxation under Income Tax Ordinance 1984, section 46BB
Non-fiscal
Duty-free access to 52 countries including EU
Quota free duty free access to 8,256 products to China
Recognized as one of the highest priority sectors in the Export Policy 2021-24
Bangladesh avails trade preference and concession under ABA, SAFTA, APTA, BIMSTEC trade frameworks
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