Prospect of Chemical Industry in Bangladesh

The chemical sector of our country is too much import-dependent. Traders are predominant in the market. In the last three decades, a trading surplus has accumulated and now the time has come to transfer the funds to the capital market.

Market competition is getting sharper and sharper every day. It is very high time to think about value addition. Our industrial development grew mostly in the Garments sector and this is time for product diversification.

Garments and other industrial sectors are mostly dependent on imports of chemicals. As the market has already developed in the country, we should set up chemical plants in the country.

Chemical manufacturing capability is a parameter of understanding the development level of a country. These things make a country independent of multinational pressure. Survival of our Pharmaceutical industry; our Textile industry, Paint & Plastic Industry, Paper Industry, Leather industry, Edible oil Industry, cable industry, steel rerolling mills and water treatment and Waste water treatment etc. are dependent on chemicals.

Market Size

Chemicals are used in every industry, in every product that we come across in our daily life, including agricultural products.

With the rapid economic growth of Bangladesh, the volume of exports and local consumption are both growing at an astounding rate. As a result, consumption of chemicals is also increasing tremendously. Since our country is mostly dependent on the import of chemicals, there is a huge scope for growth in chemical manufacturing locally, both as a backward linkage to export and for the local market.

Considering only our Garments and textile exports of nearly USD 38 billion, the market size of textile chemicals is between USD 3 to 4 billion. Considering the local textile industry and other industries, the total market size for chemicals is more than USD 8 Billion.

Present market share by local Chemical and dyestuff manufacturers

In the past 3 decades, various companies started manufacturing of chemicals in Bangladesh, targeting various industries. In spite of a lack of policy support and scarcity of local raw materials, our chemical manufacturing industry has grown at a rapid rate.

At present local companies are producing about USD 1.0 billion worth of chemicals every year, with about 30% annual growth. Many multinational companies have come to Bangladesh to invest in Bangladesh, such as Huntsman Corporation USA, CHT Germany, Yabang Group China etc.

Future prospect

Chemical industry needs space in special industrial areas for safety and smooth operation.

By the vision of our most honourable Prime Minister Sheikh Hasina, our government is rapidly setting up Economic Zones to promote the industrial growth of Bangladesh. As a result, setting up Chemical manufacturing plants is now more feasible and we expect it to grow at a faster rate.

As said earlier, the industrial strength of a country is represented by its chemical manufacturing capabilities. Through our association, we like to work together with our Government authorities to foster the development of the chemical industry in Bangladesh.