The study has made on descriptive research, is conducted to identify different dimension of Impact of Covid-19 on the RMG export scenario of Bangladesh. 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
Impact of Covid-19 on the RMG export
scenario of Bangladesh
Course Tittle: Industrial Psychology
Course Code: PSY3101
Department of Apparel Manufacturing & Technology
Batch-192, Section-03
BGMEA University of Fashion & Technology
Submitted By
Mosaibur Rahman
192-124-101
Wakil Ahmed Bitto
192-142-101
Mohuya Rahman
192-144-101
Submitted To
Md. Abdur Rakib
Assistant Professor and Head
Department of Social Sciences
BGMEA University of Fashion &
Technology
Submission date: 15th
December, 2021

2. Introduction
The ready-made garments (RMG) business in Bangladesh is the country's largest foreign
currency distributor and a driving factor behind the country's overall socio-economic
development. The apparel industry, which is the world's second largest exporter of ready-made
clothes, is currently suffering a loss of around $6 billion per year as a result of client
cancellation or suspension of orders. In order to combat the Covid-19 outbreak, Bangladesh's
government has been compelled to implement lockdowns. Lockouts have a catastrophic effect
on the economy, as well as a halt and debilitating influence in practically every industry. On
March 7, 2020, Bangladesh had its first incidence of coronavirus, and by June, the number of
new cases had skyrocketed (Rahaman and Islam, 2021). RMG exports account for nearly 84
percent of total exports. It is worth $34 billion. The RMG sector is a result of the government's
industrialization policy of 1974, which focused on export-oriented industrialization. Because
of its low capital cost and faster returns, the RMG industry was given special attention. Today,
the RMG industry is regarded as the country's economic backbone. It has played a significant
role in the country's economic development. With a GDP of more than 7%, the country is
currently considered one of the world's fastest-growing economies, and it is poised to become
the next Asian behemoth (Bhattacharjee, 2020).The possible negative impact of Covid-19 on
Bangladesh’s economy is dependent on how long the crisis lasts. Following global lockdowns,
there is a small chance that viruses will resurface in successive waves, even if in small numbers,
posing a continuing economic threat. Experts, on the other hand, believe that a potential global
recession would fade away. The International Monetary Fund predicts a worsening of the
recession. Bangladesh's economic fate is inextricably linked to the fate of nations that permit
the two R's that drive it: ready-made garments and remittance (Samme, 2021).COVID-19 has
captivated the attention of the entire world as a result of its lethal impact, which has brought
the entire world to a halt. SARS-Cov-2 is the name given to it after that. Bangladesh has the
potential to become a global leader in the garment manufacturing (RMG) industry. Bangladesh
is the world's second-largest exporter of readymade garments, after China, accounting for 81
percent of total exports and contributing approximately 20% of GDP from textile and apparel.
This industry employs roughly 20 million people in the country. Bangladesh had hoped to
become a middle-income country by the end of the current fiscal year, but the impact of Covid-
19 on garment manufacture (RMG) shattered that goal (Islam, 2020). However, the coronavirus
(COVID 19) pandemic has introduced a slew of new difficulties to the industry's already-
existing concerns, slowing its progress. Bangladesh garments industry is the world's second
largest, employing around 40,000,000 people, with 80% of them being women (2015).
Bangladesh's garment sector is struggling to keep up with the rest of the world. Rather, it must
deal with a variety of issues such as domestic and international political turmoil, infrastructure
and skill shortages, financial crises, and so on. It is quite difficult to compete in the international
market with these flaws (Hassan and Rahman, 2020).

3. Literature Review
Islam, Hassan, Hassan, Rahman and Nargis (2020) stated that readymade garments is working
as a leading factor for the continuous economic development of Bangladesh from the very
beginning of the industry. It is contributing for the economic growth by earning foreign
currencies and creating employment opportunities in spite of having financial, political and
labor efficiency related problems. The continuing coronavirus pandemic caused by COVID-19
is having a significant impact on the global garment value chain. Many supplying entities have
been downsized or even shut down as a result of government recommendations to maintain
social distance, particularly in developing nations like Bangladesh. As a result, many
worldwide buyer brands have had to cancel or delay some of their orders. Many RMG factories
have lost their ability to pay salaries and wages to their employees and workers as a result of
the coronavirus outbreak, and have sent their workers home without pay. Shimanta, Gope and
Sumaiya (2020) describe that Corona Virus pandemic is now a great concern for all over the
world. It has already crashed the world economy and also affected in various sectors. It will be
needed some years to come back to the previous normal situation for the countries. Maintaining
proper health measures and consciousness, the outbreak effect can be reduced. The government
needs to budget more in research and development sector to invent the vaccine and be alert for
upcoming threat like this. The health sector should also be reorganized with improved facility
and better technology which we can afford.Islam (2020) stated that Bangladesh is a developing
country that has experienced rapid economic development (growing around 7 percent average
growth rate last 10 years). Bangladesh has suffered huge harm as a result of the recent COVID-
19 pandemic, particularly in the areas of public health, social well-being, and education. The
purpose of this research is to investigate the effects of the Coronavirus (Covid-19) on
Bangladesh's textile industry and workers. This virus has harmed the garment's owner, and as
a result, the workers are out of employment. With many of their funds depleted, they face
possible famine and a return to eternal poverty.
Methodology
The study has made on descriptive research, is conducted to identify different dimension of
Impact of Covid-19 on the RMG export scenario of Bangladesh. 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.

4. Results and Discussion
Figure-1: RMG- export contribution before covid –19 and after covid-19.
The figure-1 represent that, the growth of RMG export are increasing in every year. In the year
of 2016-17 the percentage rate of export has the amount of 28.15 after that 2017-18 it becomes
30.61 again 2018-2019 it also increased around 34.13 but we can see a great amount of
changing rate in 2019-2020 because of COVID-19 that RMG export amount decreased and its
become 27.95 that is very lowest percentage from the year of 2016. But in the recent year of
2020-2021 its gradually increased with the Amount of 31.4.
Figure-2: RMG Export Share to Top 10 Markets in FY2020-21 values in million US$
Source: Author’s Calculation based on BGMEA (2021).
Source: Author’s Calculation based on BGMEA (2021).

5. From the figure-2 we can observe that , BD’s RMG export share has taken a major position in
many countries over the world. This chart represents all of the countries with the percentage of
BD’s RMG export share value within this recent year which is made by 2020-2021.so, USA
has taken a major area of RMG export share value with the amount of 22.07% after that France
has taken place the 2nd border are of BD’s RMG export share value which is 18.90% further
more Germany has taken 3rd major amount of percentage which is 17.84 also there are lots of
country that we are related with them in an export share with a great amount of BD’s RMG
export share value.
Figure-3: Comparative Statement on Export of RMG & Total Export of Bangladesh.
Year Export of RMG Total Export of
Bangladesh
% of RMG’s to total
export
2011-12 19089.73 24301.90 78.55
2012-13 21515.73 27027.36 79.61
2013-14 24491.88 30186.62 81.13
2014-15 25491.40 31208.94 81.68
2015-16 28094.16 34257.18 82.01
2016-17 28149.84 34655.90 81.23
2017-18 30614.76 36668.17 83.49
2018-19 34133.27 40535.04 84.21
2019-20 27949.19 33674.09 83.00
2020-21 31456.73 38758.31 81.16
The effects of coronavirus have detrimentally affected the overall activities of the Bangladeshi
industries. The table above represent that, the comparative statement on export of RMG & total
of Bangladesh and the value in million USD. In the year of 2011-12 the export percentage was
78.55 In the year of 2012-13 export percentage was increasing that was 79.61 after that 2013-
16 the export percentage was continuously increasing in every year the percentage were 81.13
then 81.68 after that it becomes 82.01. So in the year of 2016-17 total export percentage was
81.23 In the next year 2017-18 the export percentage was growing that was 83.49 after that
in the year of 2018-19 the percentage increased with 84.21 But we can see a great change in
the year of 2019-2020-21 that the total export percentage decreased and has become 83.00 &
81.16 this changes has become due to COVID-19.
Source: Author’s Calculation based on BGMEA (2021).

6. Figure-4: Bangladesh's woven garments export to world.
The pie chart represents that the statistical data of Bangladesh’s woven garments export to the
world. So, we can observe that the biggest portion of total exported amount Germany has the
first position in the year of 2020-21 the amount has 2518.67 after that U. K. has taken the
second position regarding woven exported item 1331.02.Spain has taken also a broader area
regarding woven exported item has 927.440.So Bangladesh exported apparel in every year
around lots of countries over the world.
Figure-5: Bangladesh's knit garments export to world.
3094.01, 37%
2113.55, 25%
1234.01, 15%
1109.61, 13%
867.92, 10%
Knit
Germany
U.K.
Spain
France
Poland
Netharland
2518.67, 39%
1331.02, 21%
927.44, 15%
659.39, 10%
512.48, 8%
422.72, 7%
Woven
Germany
U.K.
Spain
France
Poland
Netharland
Source: Author’s Calculation based on BGMEA (2021).
Source: Author’s Calculation based on BGMEA (2021).

7. The pie chart represents that the statistical data of Bangladesh’s knit garments export to the
world. So, we can observe that the biggest portion of total exported amount Germany has the
first position in the year of 2020-21 the amount has 3094.01 after that U.K has taken the second
position regarding woven exported item 2113.55.Spain has taken also a broader area regarding
knit exported item has 1234.01.So Bangladesh exported apparel in every year around lots of
countries over the world.
Figure-6: Main apparel items exported from Bangladesh
The graph represent that main apparel items exported from Bangladesh before and after of
COVID -19 pandemic. The main exported item are trouser, T-shirt & knitted shirt, sweater,
shirt & blouses, underwear. So, before COVID-19 we can see in the year of 2018-19 the
percentage of exported trouser was 11754.86 but after COVID-19 in the year of 2019-20 the
percentage gradually decreased and the amount has become 9362.64 after that in 2018-19 the
percentage of exported T-shirts & knitted shit was 7902.77 but during pandemic the amount
decreased and that has 6273.77 then the percentage of sweaters before pandemic was 3190.23
after pandemic has become 2449.68 and underwear percentage was 1640.36 after pandemic
has become 1358.72 so after the observation we can say that COVID-19 has a great impact on
RMG sector of Bangladesh .
Source: Author’s Calculation based on BGMEA (2021).

8. Figure-7: The percentage of RMG’s to total export.
The graph represent that the percentage of total RMG’s export to Bangladesh. So in the year
of 2016-17 the percentage of total export has 81.23. After that 2017-18 the percentage of total
export were increased around 83.49. In the next year 2018-19 the percentage also increased
84.21 but in the year of 2019-20 we can see great change of that percentage which was
decreased and has become 83.00. After that the total export percentage in 2020-21 has also
become 81.16. This percentage has a great distinguishing feature from 2018-19 between those
year we can observe the total percentage has a lot of differentiable amount so the final
observation is that the exported percentage before and after covid-19 has a great impact on
RMG sector of Bangladesh.

9. Recommendations
• The manufactures should ensure the uniformity of demand & supply chain management
of raw materials & finished goods respectively, just because temporary lockdown may
occur in future until.
• The factories should secure their cash flow & real time communication with the other
stakeholders is a must. The workers should have up-to-date information about the
pandemic & the factories should take care of their workers.
• Bangladesh's RMG business should cultivate and maintain positive relationships with
buyers and other stakeholders so that they are confident in the unanticipated delay in
goods shipment during the COVID-19 epidemic.
• 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.
• Most of the RMG companies have cut worker salary. But if they regularize 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.
• The government should provide the required stimulus package to the RMG industry to
help it maintain its operations during the COVID-19 epidemic so that it does not lose
market share.
Conclusion
COVID-19's impact is just beginning to be felt, and it will continue to grow rapidly. The entire
impact will become apparent in the next months or years. Staying ahead of the curve and
preparing for proper emergency and post-crisis support in many forms is necessary in order to
reduce the impending economic and probable social crises. For greater efficacy and long-term
sustainability, the effective and non-effective operations may need to be sequenced in a risk-
adjusted way. COVID-19 has an obvious impact on various economic sectors in addition to the
RMG business. Assistance to the RMG business, which is the largest contributor to urban
poverty reduction, may benefit other related supply chain industries, allowing the economy to
normalize greatly and more quickly. Hence it can be concluded that Garment production is
crucial for Economic revival but care must be taken to ensure that the health and safety of the
workers are not compromised by the authorities concerned. Both the Government and the RMG
industry should coordinate with each other to overcome all the hurdles.

10. References
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) (2021)
export performance retrieved from http://www.bgmea.com.bd/page/export-
performance-list
Bhattacharjee, J. (2020, April). Bangladesh: Covid-19 badly impacts garment industry
retrieved from https://www.orfonline.org/research/bangladesh-covid19-badly-impacts-
garments-industry-65275/
Boudreau, L. Naeem, F (2021, July). The Economic Effects of COVID-19 on ready-
made garment factories in Bangladesh. https://pedl.cepr.org/publications/economic-
effects-covid-19-ready-made-garment-factories-bangladesh?fbclid=IwAR0F-
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