Experts call for policy reforms to boost BD’s toy exports

Business Report :

Experts have urged the government to extend policy support to Bangladesh’s toy sector, which earned only USD 77 million in exports last year against the USD 102.8 billion global market. They say high tariffs, infrastructure bottlenecks, and lack of testing facilities are hindering growth despite strong domestic production capacity.

The call came 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 & Industry (DCCI) in the capital on Tuesday. The event brought together policymakers, trade experts, and industry stakeholders to explore ways to position toys as a competitive export product, says a press release.

DCCI President Taskeen Ahmed, in his welcome remarks, said export diversification is essential for sustaining Bangladesh’s economic growth. He highlighted that while the global toy industry is projected to reach USD 150 billion by 2030, Bangladesh has yet to capture even a fraction of that market. “Limited access to international buyers, high import tariffs on raw materials, and inadequate infrastructure remain major challenges,” he said. Ahmed stressed on collaboration between academia and industry to foster innovation and product design.

Special guest Muhammad Mubinul Kabir, Member (Customs: Policy & ICT) of the National Board of Revenue (NBR), said the government recognizes the need to broaden the export basket beyond RMG. He explained that while tariff structures are framed under the 2023 Tariff Policy, new support measures could be considered during the next budget cycle. “The RMG sector received strong policy backing for four decades. Now it is time for other industries to strengthen their innovation and skills base,” he remarked.

Martin Dawson, Deputy Development Director at the British High Commission in Dhaka, noted that Bangladeshi toys hold considerable potential in the UK and other global markets. He said recent simplifications of Rules of Origin requirements and customs reforms will help exporters, provided domestic policy barriers are removed.

“If addressed, Bangladesh’s toy exports to the UK could multiply significantly,” he added.
Presenting the keynote paper, Shamim Ahmed, President of the Bangladesh Plastic Goods Manufacturers & Exporters Association (BPGMEA), said that around 250 enterprises are involved in toy production within the country’s broader plastic sector, employing about 1.5 million people. Toy exports have increased steadily from USD 15.23 million in FY 2016-17 to USD 77 million in FY 2022-23 across 88 destinations. However, the sector continues to struggle with poor product quality assurance, insufficient research, and weak design capabilities. He recommended cluster development, infrastructure upgrades, reduced supplementary duties on machinery, and targeted toy industry policies to support growth.
Industry participants echoed these concerns. They pointed to high input costs, financing challenges, weak supply chains, and lack of intellectual property protection as key barriers to competitiveness. Government representatives assured that ongoing efforts, such as exemptions for green and yellow category firms and streamlined customs procedures, would ease business operations over time.
Concluding the event, DCCI leaders reiterated that with appropriate policy reforms, investment in innovation, and stronger coordination among agencies, Bangladesh’s toy industry could become a billion-dollar export earner in the near future.