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1. BGMEA University of Fashion and Technology (BUFT)
Assignment
On
How to overcome the negative impacts of Covid-19 on the RMG of Bangladesh
Course Title: Industrial Psychology
Submitted To
Md. Abdur Rakib
Assistant Professor and Head
Department of Social Sciences
BGMEA University of Fashion &
Technology (BUFT)
Submitted By
Fahadur Rahman
ID:182- 038 -111
&
Abdur Rahman Tareq
ID:182-064-111
Batch & Section: 182 AMM sec 2
Department of AMM

2. Introduction
The virus COVID-19 made a major impact in our RMG sector, both woven and knit items are decreasing
since the beginning of the COVID-19 pandemic although before this global pandemic the trends were
opposite. Order cancellation, factory reporting, job loss, ranging from salary cut to job loss were the main
issues and also many companies have sent back workers to their home without wages. The study recommended
to ensure safety measures in the RMGfactory as well as to maintain good relationship with the foreign buyers
to tackle the pandemic situation. Besides, temporary price reduction policy and announcement of risk premium
for the workers also were suggested.
Impacts in RMG sector
Figure 01: Trend of export rate of Knit products in 2019-2020
Source: Author compilation from Export Promotion Bureau, Bangladesh
Figure 01 displays the trend of growth rate for knit products from Bangladesh and it is seen that in the month
of July 2019 the export growth rate for knit products was close to 10%. After that the growth rate is gradually
decreasing and dropped to - 89.7% in April 2020 and from April 2020 the rate gradually is increasing and
finally reached - 3.41% in June 2020 and the trend hints good days to come for the knit wing of RMG industry.

3. Figure 02: Trend of growth rate of woven products in 2019-20
Source: Author compilation from Export Processing Bureau, Bangladesh
Figure 02 shows that in July 2019 the growth rate of woven export was 9.51% and since then, the growth
rates are negative and fluctuating till February 2020. After February 2020 the growth rate started to fall down
drastically and dropped to - 84.5% in the month of April 2020. The graph shows that from April 2020 the
growth rate started to revive and in June 2020 it has become - 9.89% from - 84.5% in April which shows a
good sign for the industry.
Figure 03: Trend of total RMG export in 2019-20
Source: Author compilation from Export Promotion Bureau, Bangladesh
Figure 03 presents the scenario of total RMG export growth rate during the ongoing COVID-19 pandemic
from where it is noticed that in July 2019 the growth rate was 9.7% which definitely good figure. But after
July 2019 fell to 11.46% in August 2019 and after that the total RMG growth rate continued to remain decrease
till April 2020 when the rate was - 85.25% which is very devastating for the industry as well as for the national
economy. But after April 2020 the rate started to turn back gradually and in June 2020 the export of RMG
growth rate became - 6.63% from where it can be predicted that the upcoming days will be shining for the
economy of the country.

4. Recommendation
The following suggestions that might be helpful for the entrepreneurs of RMG industry to tackle the
challenges caused by COVID-19 pandemic.
1. Maintaining Good Relationship with the Buyers and Related Stakeholders
Bangladesh RMG industry should develop and maintain good relationship with the buyers and related
stakeholders so that they are convinced about the unexpected delay of shipment of goods during the
COVID-19 pandemic. This may reduce the cancellation of orders.
2. Temporary Price Reduction Policy
The RMG exporters of Bangladesh may offer reduced rate during the pandemic and this offer will increase
the demand and subsequently will help to get new orders. At the same time this low-price offer may reduce
the rate of order cancellation from buyer end.
3. Monetary Motivation and Risk Premium for the Workers
Most of the RMG companies have cut worker salary. But if they regularize with the salary the workers might
be motivated to work with full enthusiasm. On the other-hand a minimum risk premium may be introduced
for the garments workers in case they are affected with COVID-19 or die due to this. 1-2% profit sharing with
the workers may also be inspiring for the workers during this pandemic situation.
4. Government Incentives Package and Proper Management of them
Since the RMG industry contributes more than 80% of the export of the country, government should offer
necessary incentives package for the RMG industry to support the industry during COVID-19 pandemic so
that the industry can continue its activities and they do not have to lose market of RMG.
Conclusion
If the research recommendations are considered by the RMG leaders and other policy makers the RMG
industry may turn around soon. The study also concludes that the leading trade bodies specially BGMEA
may initiate industrial research to way out from this crisis period.
Reference:
https://www.researchgate.net/publication/344271343_Impact_of_COVID-
19_Pandemic_on_Readymade_Garments_RMG_Industry_of_Bangladesh_Cite_this_Article