Plastic goods manufacturers of the country have sought separate special economic zones (SEZs) to facilitate the sector and spur its export growth.
According to them, local plastic industry has been seriously affected and its export growth has been hampered due to non-compliant factories.
Regarding environment issue, which is included in the sustainable development goals (SDGs), they said there is confusion about plastic industry and use of plastic goods. Besides, absence of a packaging act creates misunderstanding.
They also emphasised recycling along with proper plastic waste management to protect environment.
They made the observations at the inaugural ceremony of the 14th International Plastic Fair 2019 (Plastic, Packaging and Printing Industries) at a city hotel on Thursday.
Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) organised the event.
Industries Minister Nurul Majid Mahmud Humayun was present as the chief guest in the programme.
Prime Minister's Private Sector Development Adviser Salman F Rahman and Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Shafiul Islam Mohiuddin were present as special guests.
The four-day exhibition will be held until January 20, where 460 companies from 19 countries are taking part with 780 stalls.
Companies from Australia, Austria, China, Egypt, Hong Kong, India, Indonesia, Italy, Japan, Pakistan, Singapore, South Korea, Taiwan, Thailand, Turkey, United Arab Emirates, Vietnam and USA are participating in the fair.
In his opening remarks, BPGMEA President Jashim Uddin said the plastic sector factories must be compliant, and also focused on green factories, for which they require separate SEZs.
Bangladesh Small and Cottage Industries Corporation (BSIC) has been trying to establish a separate environment-friendly industrial park for the plastic sector since 2006.
The project was approved in the Executive Committee of the National Economic Council (ECNEC) in 2015, but there is no visible progress in its implementation, he added.
"Earlier, the Ministry of Industries gave us a separate industrial park. But later it was handed over to the IT sector. We now want two separate SEZs to relocate the factories from Old Dhaka."
He said the plastic goods manufacturers ultimately cannot use the cash incentive due to (non-fulfilment of) various eligibility criteria. Besides, 10 per cent cash incentive against 27 per cent duty cannot solve their problems.
Mr Jashim further said there is confusion about the plastic industry, especially regarding environment issue. But, about three factories (of the sector) are trying to be green ones. India gives green certificate for the plastic industry.
"Now we should focus on recycling along with plastic waste management and collection by city corporation to avert environmental hazards."
The end-users should be educated about resale value of the plastic goods to encourage recycling industry, he added.
The FBCCI president said environment issue has become a concern for the plastic industry. There will be more plastic waste in the sea than the fish species in future.
He, however, said plastic is the industry, which can contribute to the environment by preventing cutting of trees for making wooden furniture.
"This requires planned industrialisation, and that is possible through a SEZ. The plots of BSCIC must be given to the genuine industry owners," he opined.
Salman F Rahman said a SEZ is necessary for the plastic goods manufacturers, especially for those having factories in Old Dhaka.
"We will try to provide a SEZ for the plastic sector as soon as possible," he said, adding: people should also be aware of recycling of plastic goods.
Replying to a comment of Shafiul Islam Mohiuddin regarding the poor condition of ease of doing business in the country, Mr Rahman said he will give priority to address the problem, which will ultimately solve other problems.
He also sought cooperation from the business leaders for implementing the VAT law in the next fiscal year, and suggested them to bring more people under tax-net.
The industries minister said he is aware of the problems of plastic industry, as he hails from Dhaka. The problems will be solved in the soonest possible time.
The sector leaders also said high duty of raw materials has been an obstacle, making Bangladeshi manufacturers less competitive in the global market.
Especially, the toy market, which is the most potential market now, is being dominated by China. They demanded VAT exemption on toys.
Aman Ullah, managing director of Aman Plastic Industries, said they cannot compete with the Chinese toy makers due to imposition of 34-40 per cent duty on raw materials.
"We cannot export products to many countries, as our factories are not complaint."
"This type of trade fair gives us the opportunity to adopt technologies from other countries and purchase machineries. Also the potential buyers can see the quality of plastic goods, manufactured in Bangladesh," he added.
Mr Kamrul Islam of Bengal Plastic said they participate in the fair mainly to display their products to the potential buyers.
Bangladesh has only 0.06 per cent share in the US$ 546-billion global plastic market, mainly due to non-compliance of factories. The sector leaders have set a target of occupying 3.0 per cent share in the market.
At present, Bangladesh exports plastic goods worth $600 million, with an annual turnover of Tk 250 billion of the industry. There are around 5,000 small and big factories in the country.
Almost 95 per cent of the plastic goods in the local market is supplied by local factories, except for the toy industry.
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