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Plastic products manufacturers assured of government support

Children making their choice of plastic toys at a stall in the plastic goods fair begins in Dhaka yesterday

Children making their choice of plastic toys at a stall in the plastic goods fair begins in Dhaka yesterday

A four-day fair of plastic products began in Dhaka yesterday, inviting foreign entrepreneurs to invest in the country’s growing industry.

Finance Minister AMA Muhith inaugurated the exhibition titled “9th International Plastic Fair (IPF) 2014??? at Bangabandhu International Conference Centre.

Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) and Chao International Co Ltd are jointly organising the show fair with over 200 exhibitors from 15 countries, including China, India, Taiwan, Vietnam, Indonesia, Malaysia, Thailand, UAE, Singapore, Italy and UK.

The plastic goods manufacturers put on display products like household items, packaging materials, moulds, toys, pharmaceutical industry items, furniture, melamine goods, garments accessories items, polypropylene (PP) woven bag and machineries in 300 stalls.

Muhith said the sector is growing enviably in the country, but affected due to the suspension of generalised system of preferences (GSP) by the USA. “The government is ready to support the industry to take it a new height as it has bright prospect as exportable item.???

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Kazi Akram Uddin Ahmed invited the foreign investors, particularly from China, to relocate their industry in Bangladesh taking the opportunity of cheap labour.

The industry has more than 5,000 entrepreneurs, which is a good sign of better prospect of the industry ahead, he said. The industry has a great potential as it acts as both backward and forward linkage industry for the RMG sector, the mainstay of the economy.

BPGMEA President Md Jashim Uddin said export growth of plastic products averaged at 20% year-on-year. “But the industry is passing hard time due to suspension of the GSP facility and faced financial losses about Tk4,000 crore due to the recent shutdowns and blockades across the country.???

To overcome the situation, he sought some incentives, including LC opening at zero margin for two years, reducing interest rate on bank loans, 20% cash incentive and reducing tax at source to 0.03% from 0.08%.

At present the country is producing plastic goods worth Tk18,000 crore and earns almost Tk2,000 crore as revenue from this industry, according to the BPGMEA. During 2012-13 fiscal year, the country exported plastic goods worth $84.51m, up from $68.76m a year ago.

According to Export Promotion Bureau of Bangladesh, exports of plastic products fell to $46m during July-January period of the current fiscal year from $49m of the same period previous fiscal year.

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Source: Dhaka Tribune

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