Industries Adviser Adilur Rahman Khan on Saturday said that the green shipbuilding industry could emerge as Bangladesh’s next major foreign exchange earning sector after the ready-made garment (RMG) industry.

He made the remarks while addressing a seminar titled “Green Shipbuilding: A New Frontier for Export Diversification”, organised by the International Business Forum of Bangladesh (IBFB) at the InterContinental hotel in the capital.

Dr Anisuzzaman Chowdhury, chief adviser’s special assistant for finance, spoke as the special guest, while Policy Research Institute (PRI) Chairman and CEO Dr Zaidi Sattar delivered a presentation.

Experts blamed lack of long-term financing, 15%-20% higher production costs due to weak backward linkages, external shocks like the COVID and the impact of Russia-Ukraine war as the key constraints in flourishing the country’s emerging shipbuilding industry in recent years.

They highlighted that key growth drivers include expanding international trade, increasing demand for energy-efficient vessels, naval modernisation, and green technology.

Addressing as the chief guest, Adviser Adilur said Bangladesh has earned global recognition in shipbuilding because the industry was able to meet the global standards. Now it’s time for policy integration and implementation to grab the opportunity.

He urged IBFB to lead the initiative to bring together all the stakeholders and move so that the sector can flourish expectedly.

IBFB President Lutfunnisa Saudia Khan delivered opening remarks on the occasion while Engr Md Sakhawat Hossain, director of IBFB and chairman of Western Marine Shipyard, and Humayun Rashid, former president of IBFB also spoke on the occasion among others.

Chief Adviser’s Special Assistant Dr Anisuzzaman urged the policy makers to change their mindset and utilise domestic capacities.

“No economy can get dynamism only by remittance. Rather, it's industrialisation that can bring changes in the economy effectively. We are breaking ships to build ships and the issues like environment, health are vital to be addressed in this regard”, Anisuzzaman added. 

In his keynote paper, Dr Zaidi Sattar mentioned that export activity in this industry resumed modestly in 2024, with firms like Western Marine securing fresh orders. The sector restarted showing signs of revival in the 2024-25 fiscal year while the country earned US$143 million in ship exports in the last 12 years. He said the government introduced the 2020 Shipbuilding Industry Development Policy, offering tax incentives and loan support.

Raising exports to $100 million by our export-oriented shipyards each is quite possible over the next two years and that would double employment to 100,000 in those shipyards, Dr Zaidi Sattar hoped.

The global commercial shipbuilding market is valued at $155 billion (2024) and is projected to reach around $193.4 billion by 2030, growing at a CAGR of 4.8%. The United Nations Conference on Trade and Development estimates the global market for shipbuilding at over $230 billion.