The government has declared furniture as the "Product of the Year" following a rebound in exports during the first seven months of the current fiscal year.

Local furniture-makers view the announcement as recognition for the sector and are calling for policy support, such as duty-free raw material imports and bonded warehouse facilities, to unlock its export potential.  

The local furniture industry fetched $26.67 million in merchandise shipments during the July–January period of FY 2024-25, a 13.65 percent increase compared to the same period last year, according to the Export Promotion Bureau (EPB).  

Defying global economic headwinds, furniture exports saw a surge in FY 2021-22, reaching $110.36 million in export earnings. However, the sector saw exports decline in FY 2022-23 and FY 2023-24, with earnings dropping to $52.65 million and $45.7 million, respectively. 

But EPB officials said that the sector has shown resilience and potential over the past five years, indicating its capacity for sustained growth in the global market. 

Besides, industry insiders believe that with strategic government support, such as duty-free raw material imports and competitive pricing structures, Bangladesh can further strengthen its position in the global furniture market. 

The country's skilled workforce, combined with innovative design and cost-effective production, makes it a formidable competitor against leading exporters like Vietnam, they added. 

Anwar Hossain, vice-chairman of EPB, said the sector could generate around $3 billion in export earnings by 2030 if the government provides adequate policy support, including a bonded warehouse facility. 

"Before declaring the 'Product of the Year', we conducted a study on the local and international market potential," Hossain said.

"The sector holds significant potential for future export growth. We have identified significant opportunities for export growth from Bangladesh," he noted. 

Hossain pointed out that while the sector has promising prospects, it has not received the same level of government policy support as the readymade garment (RMG) industry. 

"We have already discussed with the National Board of Revenue (NBR) ways to implement the bonded warehouse facility," he said. "Within the next three weeks, we expect positive news from the NBR, as they are actively working on it," he added. 

According to the EPB vice-chairman, Bangladesh's domestic furniture market is valued at around Tk 30,000 crore annually, while its exports stand at around $50 million. 

In contrast, Vietnam's domestic furniture market is around $2.5 billion, with furniture exports amounting to $17 billion. 

Hossain said increasing furniture exports has two key benefits.

He said the sector, being labour-intensive, would create many employment opportunities, and it would contribute to the country's overall export earnings. 

Selim H Rahman, chairman and managing director of Hatil Furniture, a leading local manufacturer and exporter, said the declaration of "Product of the Year" is a recognition of the sector's potential in the export market. 

"We have already proved that the furniture sector has a bright future for exports, as some manufacturers export furniture to the Middle East, India and Nepal," he said. 

Rahman said that they have to import all furniture-making raw materials as those are not locally available. 

"So, we need a bonded warehouse facility to import raw materials for the export market, similar to the RMG sector," he added. 

According to him, the local furniture industry has built up its capacity and is producing world-class products. 

"There is good scope for value addition and for generating more jobs," he said. 

Kamruzzaman Kamal, marketing director of Pran-RFL Group which exports furniture under the brand name Regal Furniture, said that they need government support similar to those provided to China and Vietnam for importing raw materials. 

If the government cooperates, the furniture sector will perform well in exports, Kamal commented.