The study has made on descriptive research, is conducted to identify how are factory owners coping with the Covid-19 effect on cancellation of RMG export. To come up with the result, researchers were not required to visit the factory. For this reason, researchers have ignored the direct data collection and surveys. Consequently, the research technique has relied based on information from secondary sources. Those data collected through Journals, Research articles, Thesis papers, newspapers case studies, online news paper and survey reports, garments Manufacturing Industries Annual reports, BGMEA Yearly report and Files. The data was collected basically through skimming ad scanning out the findings of different secondary source. After the completion of the data collection descriptive analyses was used illustrate the data. This study did not use any unethical means to collect information

1. Assignment
On
How are factory owners coping with the Covid-19
effect on cancellation of RMG export
Course Tittle : Industrial Psychology
Course Code : PSY3101
Department of Apparel Manufacturing & Technology
Batch - 192 , Section – 03 (Team No : 4)
BGMEA University of Fashion & Technology
Submission Date : 26th
December 2021
Submitted To
Md. Abdur Rakib
Assistant Professor and Head
Department of Social Sciences
BGMEA University of Fashion &
Technology
Submitted To
Ashik Nobi
ID : 191-027-101
Kowser Bin Abdullah
ID : 192-109-101
R.M.Rayhan
ID : 192-132-101

2. Page | 1
Bangladesh, like other third-world countries, is still developing. Agriculture and
industry are the two main drivers of her economic development. Bangladesh has
enhanced its garment industries in recent years, despite its lack of industrial
development. The garment industry is a promising step forward in the sphere of
industrialization. It has provided job opportunities to millions of jobless people,
particularly the country's many illiterate women. It is making a major contribution
to our export earnings (Rana, 2016). There are now about 5000 garment
manufacturers in Bangladesh's RMG industry (private figures), employing over 12
million people, with women accounting for 85 percent of the workforce. However,
the Bangladesh Garment Manufacturers and Exporters Association estimates that
there are roughly 4000 garment manufacturers in the country. With exports worth
over $24.49 billion in the previous financial year, the RMG business is now the
country's greatest export earner. Bangladesh is significantly ahead of other South
Asian suppliers in terms of ready-made garments sector capability, which is
excellent news for us (Mannan, 2015). According to one poll, purchase cancellations
and renegotiations by buyers were common during the early stages of the epidemic.
Individual customers' reactions to the epidemic, however, differed significantly,
according to the findings. In comparison to 2019, BGMEA member manufacturers
saw an almost 17.4 percent decrease in revenue in 2020. Revenue losses varied
greatly among factories in 2020: those that were smaller, older, less well-managed,
and sold to a wider range of buyers had the greatest revenue losses. When it comes
to job opportunities, the impact appears to be moderate: In the second half of 2020,
employment fell by 7.4% compared to pre-COVID-19 levels, however it began to
rise near the end of the year. COVID-19 prompted several factories to postpone or
reduce planned capital investments, especially those aimed at boosting automation.
Finally, in terms of worker health, 3.6 percent of factory employees had had
symptoms of COVID-19 or had tested positive for the virus as of late 2020/early
2021. This is most likely a genuine rate lower bound. The rest of this short explains
how we conducted our survey, goes through these and other key results, and analyzes
policy implications ( Boudreau and Naeem, 2021).
INTRODUCTION

3. Page | 2
Rahman and Siddiqui (2015) found that the garments sector suffers a variety of
challenges in its operations, including a lack of efficient employees, safety and
security, power and energy shortages, financial issues, social and buyer compliances,
and so on. Women garment workers' contribution to Bangladesh's economy has been
amazing and progressively expanding from 2009-10 to 2013-14, thanks to proper
management and collaborative activities. In 2013-14, the RMG sector contributed
81.16 percent to the national GDP, with women accounting for 64.93 percent.
Lawley (2020) found that farming and crop sectors are inextricably related to the
RMG business, and the COVID 19 epidemic in Canada has slowed economic
activity in major cities, resulting in a lengthier depression in the Canadian economy.
Dev and Sengupta (2020) found that the Indian economy is expected to experience
a slowdown owing to the continuing coronavirus (COVID-19) epidemic across the
nation, and the federal government, together with the country's central bank, has
taken a number of steps to address the situation. Because of the ongoing COVID-19
epidemic, the readymade garments sector is facing production delays and order
cancellations, leading in job losses, wage cuts, health-related complications for
employees, and a slew of other issues. The government has placed a high focus on
saving the sector, stating that COVID-19 has impacted the clothing industry's supply
chain structure globally.Bhattacharjee (2020) states that The world's second-largest
RMG industry, which has contributed significantly to Bangladesh's economic
development, is facing an uncertain future owing to the COVID-19 epidemic, with
an estimated loss of USD 6 billion due to product cancellations from overseas
purchasers.
LITERATURE REVIEW

4. Page | 3
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Export of RMG 28094.16 28149.84 30614.76 34133.27 27949.19 31456.73
28094.16 28149.84
30614.76
34133.27
27949.19
31456.73
0
5000
10000
15000
20000
25000
30000
35000
40000
Amount in Million $ USD
The study has made on descriptive research, is conducted to identify how are factory
owners coping with the Covid-19 effect on cancellation of RMG export. To come
up with the result, researchers were not required to visit the factory. For this reason,
researchers have ignored the direct data collection and surveys. Consequently, the
research technique has relied based on information from secondary sources. Those
data collected through Journals, Research articles, Thesis papers, newspapers case
studies, online news paper and survey reports, garments Manufacturing Industries
Annual reports, BGMEA Yearly report and Files. The data was collected basically
through skimming ad scanning out the findings of different secondary source. After
the completion of the data collection descriptive analyses was used illustrate the
data. This study did not use any unethical means to collect information.
Figure – 1 : Export of RMG from 2015 to 2021
METHODOLOGY
RESULT AND DISCUSSION
Source : Author’s Calculation based on BGMEA (2021)

5. Page | 4
the graph shows the export rate of RMG in Bangladesh from 2015-2021. In 2015-
2016 the rate was 28094.16 million USD.In 2015 -2018 the export rate is
consistently repid. But in 2019-2020 the export rate was decreased, it's 27949.19. In
this year export rate was decrease because Covid-19 effect in Bangladesh rmg sector.
Many people is effect by Covid-19 in world wide. Many buyer cancel the RMG's
order that's why the export rate is decrease. In 2020-2021 the rate is 31456.73
Million USD. In this period the export rate is increase than previous year but less
than 2018-2019. Because Covid-19 effect is present in Bangladesh RMG sector. So
we see that the RMG export rate is consistently increase in 2015- 2019.But in 2019-
2020 the was decrease and in 2020-2021 the export rate is increased again.
Figure – 2 : Comparison between woven & knit of Bangladesh Apparel Export
from 2015 to 2021 .
The graph shows the comparison between woven and knit of Bangladesh apparel
export from 2015-2021. In 2015- 2016 woven exports rate is more and knit exports
rate is less. In 2017 to 2018 woven and knit consistently repid.But in 2019 to 2021
export rate was fall, because world wide Covid-19 impact. In 2019 - 2020 woven
export rate was 14041.19 & knit export rate was 13908.00. In 2020 - 2021 knit export
Source : Author’s Calculation based on BGMEA (2021)
14738.74 14392.59 15426.25
17244.73
14041.19 14496.7
13355.42 13757.25
15188.51
16888.54
13908
16960.03
0
5000
10000
15000
20000
25000
30000
35000
40000
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021
Amount
(Million
$
USD)
Year
Comparison between woven & knit of Bangladesh Apparel
Export from 2015 to 2021
Woven Knit

6. Page | 5
rate was more than woven. In 2020-2021 knit export rate was 16960.03 & woven
export rate is 14496.70. So we see that in 2015-2019 woven export rate is more and
knit export rate is less and both export rate was consistently repid. But in 2020-2021
knit export rate is increase and woven export rate is decrease.
Figure – 3 : Bangladesh RMG’s % of total Export from 2015 to 2021 .
The pie chart shows the Bangladesh RMG's % of total export from 2014-2021. In
2014-2015 total export % of rmg industry is 81.68. In 2015-2016 the rate was
increase but in 2016-2017 the of total export percentage was decrease. In 2017-2019
the was consistently increase. But 2019-2020 the rate was decrease, because of
Covid-19 effect in Bangladesh rmg industry. In 2020-2021 the rate is 81.16%. The
rate of Bangladesh total export % from rmg is too low. Because of lockdown
situation and many company are closed. That's why total export percentage of rmg
was decrease.
Source : Author’s Calculation based on BGMEA (2021)
81.68, 14%
82.01, 14%
81.23, 14%
83.49, 15%
84.21, 15%
83, 14%
81.16, 14%
% of RMG’s to Total Export
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

7. Page | 6
Figure – 4 : Percentage distribution of workers in RMG sector before and during
COVID-19 .
we can see that the percentage of workers before Covid-19 and during Covid -19.
We can see before Covid workers rate was 38.1% and during Covid workers rate is
33.9%. Workers rate decrease by 4.2%. Male workers rate before covid was 39.3%
and during Covid this rate was 35.7%. Female workers rate in before covid is 37.3%
and during Covid the rate was 32.3%. We can see RMG sector workers are decrease
also male and female. This workers rate was decreased because of Covid -19 effect.
During Covid-19 many factories are shutdown, and many workers have lost their
jobs. Because during Covid worldwide shutdown situation and many buyers are
canceled their order that's why management decided shutdown factories.
Source : ACD Survey (2020)
Female Workers male Workers All Workers
Before Covid - 19 37.3 39.3 38.1
During Covid - 19 32.7 35.7 33.9
37.3
39.3 38.1
32.7
35.7
33.9
0
5
10
15
20
25
30
35
40
45
PERCENTAGE
OF
WORKERS
AXIS TITLE
Percentage distribution of workers in RMG sector
Before Covid - 19 During Covid - 19 Linear (Before Covid - 19) Expon. (During Covid - 19)

8. Page | 7
Figure – 5 : Total number of RMG industries in Bangladesh .
we can see the total number of garment industries in Bangladesh. In 2010 the
number of garment industries was 5.06 thousands. In 2011-2013 the number of
garment industries of Bangladesh is consistently increase. But in 2014 the number
of garment industries was 4.22. Total number of garment industries rate was
decrease, due to the Rana Plaza collapse.The accident happened due to building
without following the rules and many people lost their lives there. The
government then instructed law enforcement agencies to ensure the safety of all
factories, and many factories were shut down because they were at risk. But in
2016-2019 the number of garment industries in Bangladesh has begun to grow in
small quantities. In FY 2019 the number of garment industries in Bangladesh rate
was 4.62 thousands.
Source : FMCG Survey (2020)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Series1 5.06 5.15 5.4 5.88 4.22 4.3 4.33 4.48 4.56 4.62
5.06 5.15 5.4
5.88
4.22 4.3 4.33 4.48 4.56 4.62
0
1
2
3
4
5
6
7
Number
of
Garment
Factories
in
Thousands
Total number of RMG industries in Bangladesh

9. Page | 8
Owners of garments and textiles have asked the government to provide loans on
the same terms as last year to enable the export-oriented readymade garment
industry pay wages, Eid bonuses, and other allowances to their employees in
April, May, and June. In this respect, the BGMEA, BTMA, and BKMEA together
submitted a letter to the finance minister.
The BGMEA keeps a close eye on the situation in the clothing industry. To far
(13 April), 1136 factories have reported losing USD$3.15 billion in cancelled or
postponed orders, or 976 million items. So far, 2.26 million workers have been
affected.
BGMEA President Dr. Rubana Huq has also written to Dr. Gerd Müller,
Germany's Federal Minister for Economic Cooperation and Development,
requesting that all brands purchasing from Bangladesh not cancel or delay
shipments.
Workers' health, wellness, and workplace safety are being protected via initiatives.
Factories that reopened after the Eid holidays would be required to follow health
safety procedures on a regular basis. Temperature checks at the door, masks, hand
washing, hand sanitizer, and social separation while at work are all examples of
these precautions.
RECOMMENDATIONS

10. Page | 9
There is insufficient information to estimate the longevity of COVID-19 on diverse
surfaces ,44 the virus might be spread over the border if the clothing are created by
COVID-19-infected employees. As a result, all actors in the Bangladesh RMG
sector, including global health communities, the BGMEA,international
brands/retailers, the GoB, and the International Labour Organization, must take
urgent coordinated and effective actions to protect workers' health and overall
wellbeing, as well as the health of people in other countries, during the COVID-19
pandemic. Furthermore, in order to maintain Bangladesh's economic sustainability,
the global supply chain and RMG trade must be tenured for the long term.Clothing
manufacturing during the COVID-19 epidemic should not proceed without a
thorough review of the system and the preparation of a strategy to protect employees'
health and safety. Finally, the United Nations Development Programme has
launched an immediate assessment for global trades to perform human rights due
diligence in response to the COVID-19 pandemic.45 The Bangladesh government
and the RMG business must take notice of this warning.
CONCLUSION

11. Page | 10
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https://www.linkedin.com/pulse/history-garments-industry-bangladesh-motahar-hossain-
rana
Mannan, A. (2015,November). Readymade Garments Industry of Bangladesh. Retrieved
from: https://garmentsmerchandising.com/readymade-garments-industry-of-bangladesh/
Boudreau, L. Naeem, F (2021.July). The Economic Effects of COVID-19 on Ready-made
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wZXzZ4ZQp8dJy6r_U
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