Businesses have urged for a clear policy framework to unlock the export potential of Bangladesh’s toy industry, which they say is struggling to grow despite being a promising sector for export diversification.

They pointed out that while the global toy market is worth more than $100 billion, Bangladesh’s exports stand at just $77 million.

The issue was raised at a focus group discussion on “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) on Monday at its office in the capital.

Delivering the keynote, Shamim Ahmed, president of the Bangladesh Plastic Goods Manufacturers and Exporters Association, said there are around 5,000 enterprises in the country’s plastic sector, of which about 250 are engaged in toy manufacturing, employing approximately 1.5 million people.

“In FY2023–24, exports from this sector reached $276 million, while the domestic market is worth nearly Tk 400 billion,” he said.

He added that toy exports had grown from $15.23 million in FY2016–17 to $77 million in FY24, with products now reaching 88 countries.

If the current annual growth rate of about 24 per cent continues, exports could reach $466.31 million by 2030, making Bangladesh the world’s 28th largest toy exporter.

Shamim Ahmed, also managing director of Jalalabad Polymer Industries, highlighted the absence of product quality assurance, inadequate infrastructure, limited research, and lack of innovative design development as key hurdles.

He also noted that the sector struggles to meet compliance standards required in the United States and European Union, which restricts access to high-value markets.

“However, competitive labour costs, growing local expertise, strategic locations and government incentives could play a vital role in developing the sector,” he said.

He stressed the need for cluster development, human resource training for innovation, joint ventures with global firms, toy-specific policies, and lower supplementary duties on machinery to accelerate growth.

DCCI president Taskeen Ahmed echoed the concerns, citing high tariffs on raw material imports, the absence of bonded facilities, inadequate infrastructure, and insufficient testing facilities as reasons the sector remains underdeveloped.

“To utilise the immense potential of this growing sector, more involvement of the education sector in innovation and enhanced coordination among government agencies are a must,” he said.

Martin Dawson, deputy development director at the British High Commission in Dhaka, said Bangladeshi toys have strong export potential and that the UK government is keen to cooperate.

“If the existing policy barriers are addressed, exports to the UK could multiply significantly,” he said, adding that recent simplification of Rules of Origin requirements could further help Bangladeshi entrepreneurs.

Other industry representatives stressed the importance of product innovation, reducing tariffs on imported raw materials, lowering bank interest rates, and improving testing and compliance facilities.

Government officials also pointed to initiatives such as fee exemptions for environmentally friendly plastic enterprises and the extension of bonded facilities to emerging sectors.

Speakers from the National Board of Revenue and the Bangladesh Trade and Tariff Commission underlined the importance of preparing for the post-LDC era, urging businesses to adopt intellectual property protection and Single Window facilities to simplify trade.

They also called on toy manufacturers to embrace patents, designs, and trademarks to compete globally rather than copying established brands.

Leaders from DCCI and other business representatives also shared their views at the event.