According to the Bangladesh Export Promotion Bureau (EPB), the export of plastic products reached USD $ 31.51 million in the first quarter of 2019-20 (July to September), an increase of 18.01% from USD $ 26.7 million in the same period of 2018-19. Shamim Ahmed, former chairman of the Bangladesh Plastic Products Manufacturers and Exporters Association (BPGMEA), pointed out that the US-China trade war has also promoted exports. In the past, the United States mainly imported plastics from China, but the status quo has changed, opening up opportunities for Bangladesh and reflected in the growth of exports. In addition, the stability of the prices of plastic raw materials also promoted export growth. He further pointed out that India has begun to recycle PET materials from Bangladesh, and China was originally a buyer of these recycled materials. PET can be used to make bottles and containers for packaging various food and consumer products. The output of four types of products, such as plastic hangers, plastic toys, PP woven bags, and artificial fiber bags, is increasing every year.
At present, the main markets for plastic products in Bangladesh are the United States, Canada, and Europe.
The former chairman of BPGMEA, who is also the general manager of Sunflower Melamine Industries, said that Bangladesh ’s plastic product market has an annual growth rate of about 20% and the plastic market size is about 250 billion takas (about 3 billion US dollars). The current chairman of BPGMEA, Jashim Uddin, said that the United States and European countries including Germany have increased their imports of plastic products from Bangladesh.
The global market size is about 570 billion US dollars. The Bangladeshi industry said that if the government can set up a plastic products industrial zone, it will create greater growth. There are currently about 5,000 manufacturers of various types of plastic products in the country, and about 1.2 million people are engaged in the industry.
Prohibition of plastic bags affects the plastic processing industry
Bangladesh Plastic Products Manufacturers and Exporters Association (Bangladesh Plastic Goods Manufacturers and Exporters Association) Secretary-General Md. Shamim Ahmed said that although Bangladesh is poor and backward, but the new government came to power in 2001, in order to solve the problem of plastic bags blocking the drainage system, In March 2002, the use of plastic bags was completely banned, and severe penalties were imposed on those who violated the ban: those who import or sell plastic bags can be sentenced to a maximum of ten years in prison, and those who issue plastic bags will be sentenced to six months in prison, but so far People go to jail for this. Before the implementation of the ban, the capital Dhaka consumed 10 million plastic bags a day. After the ban was promulgated, all 315 plastic bag factories in the country closed, which had a huge impact on the local plastic processing industry.
Plastic people's livelihood products and building materials market are optimistic
At present, the Bangladesh government is vigorously supporting domestic production, hoping to produce the effect of import substitution, so the plastic industry closely related to the people's livelihood industry is also one of the development priorities. In recent years, the city of Dhaka has been booming in civil engineering, and there has been a great demand for plastic building materials (plastic pipes, doors, windows, floors, ceilings) and transportation and drainage facilities. The building materials market is booming.
Taiwan ’s plastic materials and processing equipment are the best choice regardless of production speed or quality. After the crude oil and plasticized raw materials rose sharply in the previous year, local manufacturers have experienced a trend of grabbing plasticized raw materials. The factory is very familiar.
Mengguo is located in the subtropical zone, and there is no risk of icing or bursting in the water pipeline in winter. Therefore, the construction regulations do not mandate the use of cast iron pipes. The finished PVC hard pipes seen on the market are quite rough, white in color and not resistant to impact. It is caused by adding too much lime, and is related to equipment quality, production technology and raw material formula.
In addition to plastic raw materials, Bangladeshi plastic secondary processed products also have a huge market; tertiary processed products are subject to competition from cheap products such as India, China and Thailand, and Taiwanese businessmen have little chance of entering the Bangladesh market. The original willingness to expand the local market If Korean and Japanese trading companies are active, the current situation seems to have changed. More and more Taiwanese raw material and machinery manufacturers have come to Bangladesh to explore the market.
The plastic products currently manufactured by Meng Guo are mainly toothbrushes, ball-point pen tubes, buckets, shopping bags (for export), ready-to-wear bags, trash cans, plastic furniture, toys, ready-to-wear accessories, tableware, etc. There are currently more than 300 A large-scale factory with 200,000 employees and a domestic market size of approximately 8 billion Taka (1USD = 69 Taka) per year. From July 2004 to June 2005, Bangladesh exported 26.83 million US dollars of plastic products, a 40% increase from the previous year, of which 8.11 million US dollars were exported to Europe (mainly Britain, France, Germany, Netherlands, Belgium) and 731 in North America. USD 10,000, USD 7.2 million in Asia, USD 1 million in South America (mainly Brazil), USD 2.11 million in Africa, and USD 1.1 million in Oceania. Exported products are P.V.C. Bag, P.V.C. Pipe, Polythene Sheet, Telephone Sets, Plastic Hanger, Toys, etc.
In terms of raw materials for plastic products, from January to September 2006 (Taiwan), Taiwan ’s plastic raw materials and related products were exported to Bangladesh for approximately US $ 61.38 million, an increase of 31% over the same period in 2005. Among them, significant growth items include HS Code 3907 ( Polyacetal, other polyether and epoxy resin, polycarbonate resin, alkyd resin, polypropylene ester and other polyester, primary state growth rate 36%; HS Code 3902 (Propylene or other olefin polymer, primary state) ) Seven times growth; HS Code 3906 (acrylic polymer, primary state) grows 26%; HS Code 3919 (plastic self-adhesive plates, sheets, films, foils, tapes, strips) grows 30%; HS Code 3908 (polyamide) Amine, doubled in primary state; HS Code 3912 (unlisted cellulose and its chemical derivatives, primary state) grew 66%; HS Code 3903 (styrene polymer, primary state) grew 25%; HS Code 3920 / 3921 (Plastic plates, sheets, films, foils and flat bars) grew 56%; HS Code 3924 (Plastic tableware, kitchen utensils, other household products and toiletries) grew 22%; HS Code 3923 (Plastic For delivery or package Article of cargo; manufactured by plastic stopper, plug or other cover member) 24% growth.
Taiwan Plastic Machinery can fight for cooperation
Because the majority of Bangladesh ’s population can only meet the minimum needs, consumption habits have always been price-oriented. In addition, due to the pressure of dumping at low prices in mainland China, capital investment also tends to be a cheap option when the prices of goods are low and quality is not required. Cheap plastic machinery and equipment in mainland China and India have become the first choice for local procurement. The price is about half of Taiwan-made machinery and equipment. China and India together account for almost half of the market share of Bangladeshi machinery and equipment; Taiwan ’s plastic machinery exports in 2005 Only about 6 million US dollars to Bangladesh.
Most foreign investment will introduce customary, more sophisticated and expensive equipment from the home country. In addition, due to the high value of the products, the local processing plants, which are mainly export-oriented, often purchase high-priced production equipment under the requirements of customer quality. Some European and American customers will even specify that the processing plants must use specific equipment. Taiwan ’s plastic machinery is of excellent quality and reasonable price, and its market share in Bangladesh is expected to continue to grow.