The ready-made garment industry is critical to Bangladesh's economy but exports declined due to COVID-19. Garment exports decreased from $34.1 billion in 2018-19 to $27.9 billion in 2019-20 as the pandemic caused factory closures and order cancellations. While knit exports recovered by 2020-21, woven exports remained below pre-pandemic levels. The decline impacted the 4.1 million garment workers in Bangladesh through job and wage losses. Factories have since implemented health and safety measures to resume operations amid the ongoing challenges of the pandemic.

1. Course Title : Industrial Psychology
Course Code : PSY 3101
Assignment on : Covid-19 and decline in exports of
ready-made garments of Bangladesh
Presented By : Group 09
Montasir Hoque [192-128-101]
KM Inqiad Uddin [192-129-101]
Abdullah Al Fahim Nirjon [192-137-101]
Submission Date : 01/01/2022
Submitted By, Submitted To,
Md. Abdur Rakib
Assistant Professor and Head,
Department of Social Sciences,
BUFT

2.  The Bangladesh economy remains highly dependent on the readymade garments industry for
manufacturing employment, foreign reserve, and women empowerment. In 1963, the first
garment factory in Bangladesh started its journey under the name of Riaz Store on Urdu Road
in Old Dhaka. On July 25, 1978, with the help of TCB, the first men's shirts worth Tk 4 lakh
were exported from Bangladesh to France. The industry contributes 11.2% to the gross
domestic product of the country. More than 4,600 RMG factories constitute the largest
industrial sector in the country and contribute to 36% of manufacturing employment engaging
4.1 million workers. Over the last three decades, the RMG exports have registered a
cumulative average growth of 14.8% per annum reaching 34.133 billion USD in the year of
2019 which was 84.2% of the country’s total exports. (BGMEA, 2020) The COVID-19 virus
made a huge decline in global exports of Readymade Garments (RMG) and as well as
Bangladesh. To flatten the corona virus spread curve, the government declared nation-wide
holidays up to 25 April 2020 and business and industrial activities have come to a grinding halt
except emergency services. Industry people faced a great loss since the outbreak of COVID-19
pandemic in March, according to industry owners it was because, comprising orders that were
put on hold or cancelled in the previous months following the outbreak of the Covid-19
pandemic.

3.  Literature review the potential impact of the corona virus disease 2019 (COVID-19) pandemic
on the readymade garment (RMG) workers of Bangladesh. It articulates the RMG workers’
existing vulnerability during the COVID-19 pandemic based on currently available evidence
and personal conversations/communications with RMG workers. COVID-19 has already
impacted RMG workers’ health (both physical and mental health status) and wellbeing, and
resulted in loss of employment. We argue that the COVID-19 pandemic will have long-lasting
effects on the garment workers, especially related to their health issues, financial hardship and
inability to pay for essentials such as food, and future employment opportunities . Bangladesh
Garment Manufacturers and Exporters Association, Government of Bangladesh responsible
for the global supply chain RMG factories should reconsider the health and overall well being
needs of the RMG workers during the ongoing COVID-19 pandemic.

4.  1. To investigate the impact of COVID-19 pandemic on different issues related to Readymade
Garments (RMG) industry of Bangladesh and thus to assess the impact on this industry.
 2. To recommend suggestions to the policy makers and related stakeholders of the RMG
industry to way forward.
 3. The study also intends to recommend further researches necessary in this area of study.
 This is a descriptive research based on secondary data from different published sources.
Relevant national and international literatures have also been reviewed in conducting the study
that have increased the validity of the research. Secondary data were analyzed by using SPSS
software and different statistical tables have been used to present the data and result of the
research.

5. Year Export of RMG
Total Export of
Bangladesh
% of RMG’s to Total
Export
2015-16 28094.16 34257.18 82.01
2016-17 28149.84 34655.9 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
2020-21 31456.73 38758.31 81.16

6. 


 (BGMEA 2021)
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Export of RMG
Total Export of Bangladesh
% of RMG’s to Total Export

7.  According to the BGMEA data, in the above chart we can see that Bangladesh’s RMG export
earnings of last decade in FY 2015-16 it was 28094.16 million USD. This was followed by a
steady increase RMG export earnings in the following years, such as RMG export earnings in
FY 2016-17 it was 28149.84 million USD, in FY 2017-18 it was 30614.76 million USD. In
this way, it continues to grow till the fiscal year 2018-19, in FY 2018-19 RMG export was
34133.27 million USD. But due to Covid-19, this growth has stopped in FY 2019-20 and
RMG exports have declined and in FY 2019-20 RMG export decreased to 27949.19 million
USD. RMG Exports increased in FY 2020-21 RMG Exports increased to 31456.73 million
USD . (BGMEA 2021)

8. Year Woven Knit Total RMG
2015 13805.44 12797.26 26602.7
2016 14931.33 13736.95 28668.29
2017 14673.99 14538.94 29212.93
2018 16681.04 16245.84 32926.88
2019 16630.64 16441.74 33072.38
2020 13242.36 14228.37 27470.73

9. 
 BGMEA 2021)
0
5000
10000
15000
20000
25000
30000
35000
1 2 3 4 5 6
Year
Woven
Knit
Total RMG

10. Year Trousers
T-Shirts &
Knitted shirts Sweaters
Shirts &
Blouses Underwear
2015-16 10167.31 6892.8 3182.47 3076.36 1172.74
2016-17 9943.09 6650.51 3361.53 2918.97 1328.5
2017-18 10833.83 7153.84 3674.7 2927.34 1410.7
2018-19 11754.86 7902.27 4255.91 3190.23 1640.36
2019-20 9362.64 6273.77 3597.68 2449.65 1358.72
2020-21 10681.52 7239.74 4051.83 2048.4 1789.7

11. 


 BGMEA 2021)
0
2000
4000
6000
8000
10000
12000
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Trousers
T-Shirts & Knitted shirts
Sweaters
Shirts & Blouses
Underwear

12.  Discussion : Due to the daily increase in the number of COVID-19 infections in Bangladesh, the
[Government of Bangladesh (GoB)] declared a state of lockdown (closure of all public and private
offices) in the country from the 26 March 2020,15 which continued until 30 May 2020. As a result
of the lockdown, Bangladesh Garment Manufacturers and Exporter Association (BGMEA) closed
their factories in line with the government’s lockdown instruction. In addition, clothing shipment
processes became problematic due to the increasing global lockdown impacted by COVID-19, and
while demand for online purchases may have increased, supply chains could not continue to meet
demand given changes to freight options. As a result, ~10 million working people, including RMG
workers, returned to their home towns from Dhaka (the capital city of Bangladesh, where the
majority of the garment factories are located) as they would be unable to support themselves in
Dhaka without work. Unfortunately, during the return journey safety measures related to the
prevention of COVID-19 such as maintaining minimum safe social distance from others were not
respected.16 Huge crowds were reported on buses, ferries and trains without maintaining personal
protection,17 which represents a serious risk for infection transmission. The consequences of the
COVID-19 pandemic for these RMG workers is dire and include uncertainty about whether they
will be entitled to wages during the COVID-19 pandemic and related issues such as lack of money
for essentials such as food, and concerns about the re-opening of factories during COVID-19
infection peak times. Other concerns are the health risks due to lack of preventative measures in
the workplace, and the development of mental health conditions due to the impact of the loss of
employment and the fear of contracting COVID-19.

13.  In this current situation, it is important for garment manufacturers to stay resilient and to
prepare for the possibility that the COVID-19 pandemic will have a long-lasting impact on
their businesses.
 1. Cleanliness and Disinfection Measures.
 2. Hand washing or sanitizing having been made mandatory upon entering the factory.
 3. Temporary price reduction policy.
 4. Face masks are made mandatory.
 5. COVID-19 Awareness and Information Spread.
 6. Monetary Motivation and Risk Premium for the Workers.
 7. Government Stimuli Package and Proper Management of them.

14.  In the conclusion, by describing all the charts we can say that due to COVID-19 exports of
readymade garments of Bangladesh had a great decline in FY 2019-20. Again, from the woven
export and knit export chart we can say, Although the Knit export was able to return to its
previous state, but till December of FY 2020-21 woven export
 has not been able to cope with the Covid-19.
 Reference:
 Bangladesh Garment Manufacturers and Exporters Association (July 2021). TRADE
INFORMATION, Bangladesh’s RMG Exports to the World. Retrieved Fro
 https://www.bgmea.com.bd/export-performances/4
 https://en.wikipedia.org/wiki/Textile_industry_in_Bangladesh
 (GOB) Government Of Bangladesh