Toy industry holds promise, but policy gaps stunt export growth: Experts

Bangladesh's toy industry, despite operating in a global market worth over $100 billion, continues to struggle to establish itself as a significant export earner. 

With annual exports standing at just $77 million, entrepreneurs say policy gaps, high import tariffs on raw materials and inadequate infrastructure are holding the sector back.

These issues were raised at a focus group discussion titled "Diversifying the Export Basket: Innovation, Export Potential and Market Expansion of the Toy Manufacturing Industry," organised by the Dhaka Chamber of Commerce and Industry (DCCI) in the capital today (23 September).

DCCI President Taskeen Ahmed underscored the urgency of a toy-specific policy framework. "The global toy export market is projected to reach $150 billion by 2030, yet Bangladesh has barely scratched the surface," he said. 

Taskeen pointed to a lack of international buyers, limited testing facilities, high tariffs on imported raw materials and insufficient policy support as key barriers, calling for greater collaboration between government agencies and academia to drive innovation.

Policy bottlenecks and tariff barriers

Speaking at the event, Muhammad Mubinul Kabir, member (Customs: Policy & ICT) of the National Board of Revenue, acknowledged the need to diversify beyond ready-made garments. 

He said the revenue authority is working to expand bonded facilities and streamline customs, adding that policy support for toys could be considered in the next budget. 

However, Kabir cautioned that toy manufacturers must focus on enhancing innovation and product development instead of relying solely on incentives, pointing out that the RMG sector has had policy support for four decades.

Global opportunities and foreign interest

Martin Dawson, deputy development director at the British High Commission in Dhaka, said Bangladeshi toys have "immense export potential," particularly in the UK. He noted that simplifying Rules of Origin and customs procedures would ease market access and could significantly boost exports if existing barriers are addressed.

Industry data and challenges

Presenting the keynote paper, Shamim Ahmed, president of the Bangladesh Plastic Goods Manufacturers & Exporters Association (BPGMEA) and managing director of Jalalabad Polymer Industries, said Bangladesh has approximately 250 toy manufacturers within its plastic sector, employing 15 lakh workers.

Toy exports grew from $15.2 million in the 2016-17 fiscal year to $77 million in FY2023, reaching 88 markets, according to the keynote paper. However, he flagged quality assurance gaps, weak design innovation and a lack of research as persistent obstacles. "Cluster development, skilled manpower, joint ventures and toy-specific policies are essential for sustainable growth," Shamim said.

Entrepreneurs' perspectives

Industry leaders echoed these concerns. Md Juhirul Islam Shimul, deputy general manager and head of marketing of Redmin Industries, emphasised innovation and design novelty, while Musa Bin Tareque, general manager of Hashy Tiger Company, highlighted high tariffs on imported raw materials as a major burden. 

Belal Ahmed, managing director of Golden Son Ltd, lamented the absence of toy-specific policies, arguing that entrepreneurs are being deprived of government support.

Md Mamun-Ur-Rashid Askari, joint chief (International Corporation Division) at Bangladesh Trade and Tariff Commission, suggested adopting Single Window systems to simplify imports and emphasised the importance of intellectual property rights for attracting foreign investors.

Environmental and regulatory aspects

Abdullah Al Mamun, deputy director (waste and chemical management) at the Department of Environment, noted that exemptions for "green" plastic industries would gradually improve the ease of doing business. He urged universities to contribute to research on sustainable practices. 

Ashoke Kumer Roy, director of the Department of Patents at the industries ministry, urged toy manufacturers to adopt patents and trademarks rather than replicating global designs, particularly as Bangladesh prepares for the post-LDC era.

The way forward

The discussion highlighted that the country's toy sector, worth nearly Tk40,000 crore domestically and employing lakhs, could become a strong export earner if the right policies, infrastructure and innovation ecosystems are put in place.

Concluding the event, DCCI leaders renewed their call for a toy-specific policy, improved testing facilities and stronger collaboration between businesses, academia and government agencies to unlock the sector's full potential.