Shadow exporters of the country have bagged about US$ 6 billion by exporting logistics products in the fiscal year (FY) 2015-16, according to industry insiders. Of the total amount, the packaging industries contributed about $ 1.5 billion. In the FY 2014-15, the sector earned $ 5.6 billion and export earnings in the FY 2013-2014 were $ 4.7 billion. The shadow exporters are exporting products like corrugated carton, carton, button, thread, labels, poly bag, hanger, zipper and other accessories. Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) having membership of about 1,357 experienced a steady growth at the rate of 70-80 per cent over the years along with the expansion of the apparel industry. Of them, more than 600 factories are producing corrugated carton to support the country’s apparel industry. The sub-sector of apparel has acquired necessary skills and capacity to serve the major export industries like frozen food, fish, meat, vegetables, furniture, pharmaceuticals and other products as the logistics industry. Most of the factories located in Dhaka, Gazipur, Narayanganj and Chittagong are supporting the apparel industry. The sub-sector generates employment of about 0.3 million with total investment of $ 30 billion and it adds value at a rate of 40 per cent. BGAPMEA has targets to reach the mark of growth of about $ 12 billion by 2018 and $ 18 billion by 2025. The industry comprises 1,400 small and medium enterprises manufacturing logistics products for the RMG sector and directly exports raw materials to other countries like Vietnam, Middle-East countries and South Africa. Raw materials like corrugated sheets are imported mainly from Korea, Taiwan, Sweden and the USA while plastic raw materials from Malaysia, Indonesia, and Dubai to support the apparel industry of the country. In the wake of recent terrorist attacks in the country, buyers have cancelled meetings in Bangladesh and asked the manufacturers to meet them in Singapore. They are avoiding visits recently, but it will not impact the business, BGAPMEA President Abdul Kader Khan told the FE. “Though the industry is growing but lacks a testing laboratory and technical training institute to develop skilled human resources (HR) for the sector and meet the growing demand for skilled HR to ensure sustainability and development of the sector,” said Mr Kader. “We have long been demanding the government set up such an institute and ensure facility for the sector but the authority has not yet made much progress in developing the sector,” he added. “BGAPMEA has planned to build a training institute and a testing lab at Uttara by 2016 at its own cost to help the sector grow,” he opined. Industry insiders have demanded that Bangladesh Small and Cottage Industries Corporation set up a special economic zone in Manikganj to help develop the sector and boost growth.
