ABSTRACT
This chapter analyses the impact of COVID-19 on the ready-made garments industry of Bangladesh. The Ready-Made Garments (RMG) industry is the bloodline of the economy of Bangladesh. Bangladesh consistently remains the second-highest exporter with a market share of 6.5% of total RMG trading in the world, just behind China. This sector exports around $35 billion which is 83.9% of the total export of Bangladesh. With more than 4,600 RMG factories, this sector is the most significant employment provider for manufacturing employees. Around 4 million people are directly employed in this sector, and roughly 80% of them are women. Therefore, the RMG sector is considered crucial for the socio-economic development of Bangladesh. While the RMG sector was in the growing face for the last three decades, the picture has changed recently due to the COVID-19 pandemic. Like every other country in the world, Bangladesh has also been hit very hard by the pandemic, and RMG exports face the most difficulties in major markets. Most of the major Bangladeshi garment importing countries, such as the USA, the United Kingdom, Germany, France, and Italy, have taken lockdown as the preventive measure to fight COVID-19, which shrinks their economy and leads their people to demand fewer clothes. This forces international buyers to cancel or delay their orders from Bangladeshi factories. Bangladesh also took the preventive lockdown measure, which forced the factories to remain closed. Small factories were almost on the verge of bankruptcy, threatening the employment of thousands of workers. Big factories try to survive through cost-cutting actions like employee layoffs and pay cuts. Overall, COVID-19 has significantly impacted the growth and survival of the industry and the workers’ working conditions. Given such conditions, the Bangladesh government has taken various steps to support its most important sector. Different monetary and non-monitory measures were taken to reduce the shock of garment exports. The Bangladeshi government also used its diplomatic channels to continue the export and maintain the market share. Some NGOs and social organizations extended their support for RMG workers, too. All these efforts help the RMG sector to recover from the pandemic. The extent and shape of recovery remains to be seen. Given the condition this chapter aims to address some important issues of Bangladesh's RMG industry. First, it has highlighted the industry's historical development, followed by a synopsis of the industry's overview, including major export markets, key products, and raw materials. Then it discusses how COVID-19 impacted the key aspects of the industry. The Bangladeshi government's measures to meet the challenges caused by the pandemic, along with those of NGOs and international communities, have been analyzed. Finally, the chapter offers important policy guidelines for the survival and growth of the industry in the post-COVID-19 era.
