Local toy makers have demanded duty cuts on a number of components used in toy manufacturing, arguing that the high import duty is holding back the potential sub-sector's growth.
Despite having duty-free market access, quality goods and low labour cost, Bangladesh couldn't grab the global market of toys and seize a notable market share due to a lack of required policy support, they said.
In absence of a strong backward linkage accessories industry, the toy sub-sector is fully dependent on imported components.
"China, the main player of the global toy market, is shifting to high-tech industries due to its high labour cost, creating an opportunity for Bangladesh to strengthen its foothold in the global market," Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) President Shamim Ahmed said.
The local toy industry now meets most or 80 per cent of the domestic demand which was largely dependent on imports just a decade ago, he told a group of reporters at the association office in the city on Tuesday.
The BPGMEA president pointed out that the National Board of Revenue (NBR) earlier reduced the import duty on 10 components and stressed the need for cutting the rate to 5.0 per cent on 24 more items like rubber, plastic sheet, PVC washer, metal sheet, metal stick, and mini motor.
"Cheap labour and large workforce are among the major strengths of the industry," he said, adding Bangladesh has huge potential to double the toy export earnings and create additional employment if the industry receives required support.
It would help develop the backward linkage accessories industry thus not only meeting the full demand of the local market and also increase export earnings.
According to the BPGMEA, some 137 manufacturers, located mostly in export processing zones, economic zones, Keraniganj, Gazipur and Old Dhaka are meeting the local demand.
Of the total, some of the big names - Bengal Plastic, RFL (export), ACI and Aman are already exporting toys.
Aman Ullah, a toy maker, said some 30-40 components or parts are required for a toy and they have to pay 25-89 per cent duty on import of those raw materials.
KM Iqbal Hossain, senior vice president of BPGMEA, said toys are innovative products as each toy has a variety. Toy industry needs the government's policy support for expansion.
Being a labour-intensive sector, more women can be employed here, he said, adding that the sector has the opportunity to turn itself into the one like the country's readymade garment industry.
China, Vietnam and Taiwan are leaders of technology while Bangladesh still lags far behind in terms of technological development, he added.
According to BPGMEA, the local toy market would be around Tk 70 billion.
The global toy market is projected to reach more than US$110 billion by 2026 as household income and the people's purchasing power are rising.
It would not be possible to sustain the country's competitiveness on a global scale unless the sub-sector gets required policy support, including withdrawal of supplementary duty (SD) on all types of toy components, withdrawal of VAT on local sales, credible testing and certification facilities and generating skilled workers, observed the industry insiders.
In the fiscal year (FY) 2016-17, the country fetched $15.23 million from toy exports which stood at $44.52 million in FY 2021-22, according to the Export Promotion Bureau (EPB) data.
Tricycles, scooters, pedal cars and similar wheeled toys, and dolls are the most exported items - shipped mostly to Spain, Italy, France, Japan, USA, UK and Germany, EPB data showed.
Munni_fe@yahoo.com