Bangladesh’s packaging and accessories sector started its journey as a backward
linkage industry for the apparel sector. The sector now is not a backward linkage
industry, it has by virtue of its contribution in the national economy, been
developed as a full-fledged industry. The industry has its own full-fledged
association under the banner, “Bangladesh Garments Accessories and Packaging
Manufacturers and Exporters Association (BGAPMEA)”. The association is the
whistle-blower and forerunner of dealing in different problems the sector is facing.
Recently they hosted a four-day trade show that began on January 15 at the
International Convention City in Bashundhara in the capital. The association also
talks on how the apparel accessories and packaging industry has developed, the
problems currently confronting the sector, the challenges it is facing and the
prospects for the industry. 

Many people are still unaware of slow but steady growth of the country’s apparel
accessories and packaging industry. On all counts, this industry is a success story. But
this has not been highlighted in the way it rightly deserves. The industry in the last fiscal
fetched export revenues worth $6.12 billion and expects to raise it even higher this year.
Expectations are high that with right kind of incentives and policy support, this particular
backward linkage industry would be able to double its earnings by 2021 in line with the
projected earnings of $50 billion from shipment of apparel items. The fate of the
accessories and packaging manufacturers, in general, are integrally linked to the rise and
fall of the major export-oriented industries, the readymade garments (RMG) industry
leading the pack. To its credit, the industry has also been able to enter directly, though on

a very limited scale, the markets of some South and Southeast Asian countries, quite
successfully. Around 1,600 apparel accessories and packaging units are now in operation,
mostly in and around Dhaka and Chittagong cities. These are meeting most part of the
requirements of the country’s export-oriented apparel and other manufacturing units. In
the early years, apparel manufacturers were required to import accessories and packaging
goods involving a sizeable amount of funds. Now those days are over. These goods are
now being sourced from domestic manufacturers, thus saving billions of dollars every
year. However, the operators in the accessories and packaging sub-sector have some
lingering grievances. Those need to be addressed by the government policymakers. The
president of the Bangladesh Garments Accessories and Packaging Manufacturers and
Exporters Association (BGAPMEA) highlighted the problems that its members had been
facing, in a recent interview with the daily star. Most accessories and packaging goods
manufacturers are small- and medium-scale production units. Yet they are reportedly not
getting bank loans at lower rates of interest like most other small and medium enterprises
(SMEs). Besides, the industry people feel that the Export Promotion Bureau (EPB)
should preserve their export earnings data separately and the utility service-providers do
also need to ensure uninterrupted availability of power and gas to their factories.
Furthermore, the issue of providing cash incentives that are extended to some other
export-oriented sub-sectors, does deserve sympathetic consideration from relevant
authorities. The policymakers must not be oblivious of the fact that without the
manufacturers of accessories and packaging materials, the country would have remained
mostly dependent on the import of these items at substantially higher costs. The imports,
naturally, would have involved a more expensive and time-consuming process. The local
exporters must be aware of the benefits of easy availability of accessories and packing
materials at lower prices from local sources. More importantly, with right kind of
supports, the sub-sector, it is hoped, will be able to increase its earnings from direct
export of accessories and packaging goods. To earn the confidence of the foreign buyers

of their items, the BGAPMEA has already established a quality testing lab having limited
capacity. It needs to expand its capacity. The government can help the association on this
account and also in its efforts to create more skilled manpower for the sub-sector. In the
initial stages of the apparel sector, all necessary accessories, including fabrics, had to be
imported. We faced various problems, such as the sizes of cartons and polybags, which
were not perfect. In packaging, the sizes did not match our requirements. Then we had to
take them to Nayabazar to have them fixed manually. It was in 1985 that several
businessmen, went into the job of reconfiguring the cartons and polybags. Then it
occurred to us as to why we were not manufacturing these products in our country. In this
way, the apparel accessories industry started out on its journey in Bangladesh. In the
beginning, we had small factories. In the early 1990s, big business groups stepped into
the sector. Gradually, factories of other accessories were built. But after 2000, the
industry saw a big expansion. We began to make profits anywhere from 50 percent to 100
percent. So, many businessmen began setting up accessories factories. 
Today, we have the capability to supply accessories to almost all types of industries in the
country. After meeting local demand, 20 to 30 percent of our capacity remains unused.
We will export our products if we get orders from abroad. So, overall, it is a full-fledged
industry now. Now almost all requirements of garments accessories & packaging of
readymade garments & other export oriented industries are being met up locally which is
about 95%. GAP sector earned valuable foreign exchange to the tune of  US$ 7.50 billion
during the fiscal year 2018-2019. But due to the World COVID-19 pandemic, the export
was drop down at US$ 5.03 billion during the financial year 2019-2020. Again the total
export of GAP setor was risen to US$ 7.0 billion during 2020-21. Out of this amount,
near about US$1 billion is exported directly to Turkey, Netherlands, South Africa,
Pakistan, India, Middle East, Ethiopia, Indonesia, Italy, Sri Lanka, Turkmenistan,
Germany, Austria etc. Investment of this sector is about Taka 35 thousand crore and value
addition about 40%. Now this sector is able to supply packaging & accessories products

within 24 hours after receiving the order. We also deliver the products to RMG factories
in our own transportation. As a result, it reduces not only the lead time but also save our
valuable foreign currency. To achieve the US$ 50 billion target of RMG sector, GAP
sector is likely to be exported US$ 12 billion proportionately, if the sector gets policy
support and cooperation from the Government.