TERM PAPER

ON
RMG INDUSTRY IN
BANGLADESH
PROBLEM, PROSPER & WAY FORWARD

COURSE- BUSINESS ENVIRONMENT (MKT 510)

SUBMITTED FOR
Muhammad Intisar Alam

Assistant Professor

Department of Marketing

Faculty of Business Studies

University of Dhaka

SUBMITTED BY
Group No: 4

Name ID

Ashik Imran 41634001

Md. Mominul Haque 42044007

Sumaiya Islam 42044011

Fabiha Hossain 42044013

Sanjucta Biswas 42044023

Taposhi Rabeya Trisha 42044029

Tanvir Rahman 42044064

EMBA

Department of Marketing

Faculty of Business Studies

University of Dhaka
LETTER OF TRANSMITTAL

Date: 14.07.2020
Muhammad Intisar Alam
Assistant Professor,
Department of Marketing,
Faculty of Business Studies,
University of Dhaka

Subject: Submission of assignment on “Analyzing & Exploring the effects of Micro & Macro
Environmental factors of RMG industry in Bangladesh”

Dear Sir,
It is indeed a great pleasure for us to be able to hand over the assignment on the topic as per
your request. The assignment is the result of the knowledge which has been acquired from the
course “Business Environment”.
The information of this assignment is mainly based on some research papers, journal articles,
newspapers and internet sources as we couldn’t make to visit any factory due to this pandemic
situation. All the group members gave their best effort for making this assignment come
together.
We hope that, you will find this assignment worth reading and appreciate our hard work and
encourage us to do better by your valuable comments and advice.

Sincerely,
Group No: 04
EMBA
Department of Marketing
Faculty of Business Studies
University of Dhaka
ACKNOWLEDGEMENT

First and foremost, praises and thanks to the God, the Almighty, for His showers of blessings
throughout the work to complete the term paper successfully.
I would like to express my deep and sincere gratitude to our course teacher, Muhammad Intisar
Alam, Assistant Professor, Department of Marketing, Faculty of Business Studies, for giving us
the opportunity to work and providing invaluable guidance throughout this term paper. His
dynamism, vision, sincerity and motivation have deeply inspired us. He has taught us the
methodology to carry out the research and to present the research works as clearly as possible. It
was a great privilege and honor to work and study under his guidance. We are extremely
grateful for the friendly behavior he has showed & the help he has offered.
This term paper that had been assigned gave us a tremendous impact toward ourselves. The
impact was very beneficial for us in term of enhancing our knowledge about the respective topic
and how to work as a team to bring about the best output. Many people, especially our
classmates and team members itself, have made valuable comment suggestions on this work
which gave us an inspiration to improve our term paper.
Finally, thanks go to all the people who have supported us to complete the term paper directly or
indirectly.
EXECUTIVE SUMMARY

RMG industry is the flag bearer of Bangladesh to the first world and one of the major exports
proceed generating source for our country at the same time. All giant brands and companies are
buying their merchandises and products from our manufacturers with the tag where “Made in
Bangladesh” is imprinted. Cheap labor, availability of raw materials and trade relationship with
China are some of the most crucial factors which brought the competitive advantage to us to
show the excellence to the foreign market. To meet that demand from abroad, many giant
companies are formed in Bangladesh who manufactures RMG of different material ranges like
knit, woven, non-woven, denim, cotton, silk, wool and so on. Bangladesh government also tries
to make this industry flourished to maintain export-import balance and to increase national GDP
and other development. But there are also some macroeconomic and microeconomic challenges
in this industry which should be identified and solved gradually to maintain this two-digit
growth. As there are so many macroeconomic parties like global environment, economy,
technological forces, politics, socio-cultural environment, natural environment, competing
countries are involved so there should be a balance among all to ensure smooth demand and
supply. On the other hand, microeconomic factors like customers, employees, shareholders,
suppliers are there and in a big industry it’s not an easy task to manage them all. A huge skilled,
unskilled, semi-skilled labor force is here to managed. Local and international suppliers are also
involved here and there is a continuous price war among the competitors. Another first-time
tragic experience for the industry was the COVID19 which totally shut down the industry for a
long period along with the life of a huge number of labor force. So, this industry has to face
continuous ups and downs to survive and to grow. But after facing all the struggles, this industry
grows because continuous demand is there and we have the resources to support them at our
best. The burgeoning competition, technological advancements and political unrests keeps this
industry always busy to cope up and we believe that we will survive and grow in the long run by
maintaining continuous innovation, getting skilled, welcoming the technology and overcoming
the barriers.
TABLE OF CONTENT

Sl. Content Pages

1 Introduction 1

2 Growth of RMG 1

3 Key Players 2

4 Micro Environmental Factors 3-6

5 Macro Environmental Factors 6-13

6 Conclusion 13

7 Reference 14-15

8 Appendices 16
INTRODUCTION

Bangladesh is the second largest exporter of ready-made garment products in the world after
China. We export to over 132 countries around the world and this figure is expected to triple by
2022 (Berg, 2011). Bangladesh offers a low competitive cost yet the best quality for the high-
end garment products to renowned global brands like Adidas, Puma, Nike, Tommy Hilfiger,
Ralph Lauren, G-Star, DKNY etc. The RMG sector of Bangladesh has duty-free market access
to most of the developed countries including EU, Norway, Switzerland, Canada, japan and
Australia (Bangladesh Denim Expo, 2014). Even though our country’s economy is mostly
dependent on RMG, there are still some problems we are facing in this industry due to Micro
and Macro environmental factors. The aim of this report is to put lights on the problems along
with the ways to get over them.

GROWTH OF RMG
The growth of this industry has been dramatic, increasing from 30 factories in 1980, to over
6000 in 2014 and many more till now (Bangladesh Denim Expo, 2014). The RMG sector
provides direct employment to around 4.4 million people, 80% of whom are women. Around 20
million people are directly and indirectly depending on this sector (Bangladesh Denim Expo,
2014). RMG exports has contributed $34.13 billion to Bangladesh’s total export earnings in
2019, growing by 11.49% compared to last fiscal year. According to Export Promotion Bureau
(EPB) data, the RMG sector has contributed 84.21% to Bangladesh’s total exports of $40.53
billion, growing by 10.55% in FY19. The figure-1 depicts that in last 5 years the RMG exports
added additional 10 billion dollars in the export basket that means growing at a rate on average 2
billion each year. Though the growth rate is impressive it is too optimistic to reach 50 billion
mark by 2021 which is the target set by the government (Mohammad Ishaque, 2019).

1
 Figure 1 Source: (Mohammad
Ishaque, 2019)

KEY PLAYERS IN RMG INDUSTRY

1. Ha-Meem Group.
2. Standard Group
3. Beximco Group
4. Palmal Group
5. Nassa Group and many more

MICRO ENVIRONMENTAL FACTORS

Micro environment indicates the internal factors which directly affect the operational functions
of a business. This environment mainly includes customers, employees, suppliers and
shareholders. Below is a brief analysis of the current problems regarding these factors and the
ways to overcome them.

Customers
Customers are the key to direct revenue, especially in case of RMG industry. The better a
business knows its customers, the healthier is its bottom line (Pratap, 2020). In case of garments
it is best to outsource. Countries like, German, USA, Paris and many international firms set up
their subsidiaries in our country mainly because of two benefits- quality and low labor cost.

In garments sector, we deal with customers all over the world and they play a linear role in case
of business growth. Bangladesh, being the 2nd largest RMG manufacturer, has many top-class

2
global brands as its customer. Hence, our RMG sector dominates a very big portion, 80% of all
export earnings of our country.

But during the Covid-19 pandemic, RMG industries are facing severe issues with their clients
regarding order cancellation and delay in payment. Remake, a nonprofit organization that strives
to educate consumers on the fashion industry’s treatment of women and its environmental
impact, launched the #PayUp petition on April 3 to spotlight how some of the world’s biggest
fashion brands owe more than $3 billion to garment factories in countries such as Bangladesh,
India, Myanmar and Cambodia for upcoming orders (Ilchi, 2020). Remake also reports that an
estimated 50 million garment workers will be impacted by COVID-19 (Ilchi, 2020).

Brands should be notifying suppliers in writing about their promises to pay including specific
language about how and when their payments will be received in order to be taken off our
campaigning list (Remake, 2020). The least all the brands can do is not cancel any ongoing
order and pay for the orders that have already been produced. This is the way to save millions of
workers from getting terminated from their job.

Emergency relief funds should be arranged for the garments, otherwise, millions of workers
would be jobless and have nothing to hold on to their living.

Employees
Employees are one of the main parts of RMG sector. Employee participation helps the authority
to select the courses of action in enterprise. Employees are playing a vital role in achieving
business target. Workers can select their work schedule confirms diversity in the organization.

A Good relationship between organization and employees is one of the valuable parts in RMG
sector. If the employee feels their importance in the organization, they also provide a guideline
and suggestions to achieve the goal. As a result, development and necessary changes occur
fruitfully in

1. Setting goals,

2. Making decisions,

3. Solving problems &

4. Designing and implementing organizational changes (BHUIYAN, Volume– V, Issue–

02, July-December, 2010).

3
If employees are engaged in decision making and goal setting, they will always accept and seek
for responsibilities. The cost of control also reduces when an organization gives priority to the
employees. Besides, if RMG selects payment and over time duty payment according to the
employees’ demand, it would increase their productivity.

In the development of RMG sector the contribution of female employees is worth mentioning.
Since 1980 to till now female employees are a major contributor to Bangladesh. In the fiscal
year of 2016-17 among the 4 million workers in RMG 3.2 million are women. 80% of the RMG
employment are women.

Fig 2: Total employment in RMG sector in Bangladesh (Mamun, octobor 2018)

Data: BGMEA

Beginning of RMG revolution, women responded and participated from different areas of
countryside for great future of their economic condition and showed master of their performance
in stitching and weaving.

RMG sector is the largest foreign currency earning for Bangladesh and it is expanding every
year. Almost 5 million employees are involved in this sector and they contribute greatly in our
national economy. But there are a lot of problem in this sector. In many garment factories
employees don’t get proper salary. Sometimes they had to protest for their wages. Partiality in
man power increment is also noticeable.

4
Besides in RMG sector one of the most controversial issue is the working environment. Eve
teasing, rough behavior, over duty and child enforcement are the regular scenario in RMG
section. On the other hand, limited space with vast workers just put everyone at risk.
in recent days during Corona pandemic, Bangladesh readymade garments (RMG) industry has
received work order cancellation of huge amount which is unbearable loss for the sector.
Around 2 million workers in the industry will be affected by this cancellation. Around 4 million
people are directly engaged with the RMG sector.

.
fig 3: Risk of losing employment in COVID 19 source: Daily Star (march 28,20)

Suppliers
The growth of garments also depends on the relationship with the suppliers. Raw materials come
from the suppliers and the smoother the process the better the production. It is much safer to get
the raw materials from local suppliers so that they can be availed even in times of crisis. The
vastness of distribution channel and availability of products also keep the customers within
reach which automatically shows impact on overall revenue.

At the beginning of the spread of Coronavirus, when it was only limited to China, the lockdown
and the closure of all the factories in China might have seemed to be in favor for Bangladesh but
later on it created a bigger toll instead. Because, more than 50% raw materials of Bangladesh
RMG come from China. Hence, the shortage of raw materials eventually resulted in shortage of
production. Apart from the Coronavirus situation, there is another common problem in supply

5
chain management. Lack of communication between garment producers and suppliers. And
because of this gap, deliveries and qualities of production are often sacrificed.

Supply strategy should be focused on product quality, price, delivery, development ability and
management quality. The combination of these factors represents the rating of a supplier.

Shareholders
There is an ancient hearsay, ‘do not kill the golden goose’. The Readymade Garments (RMG) is
a golden goose for Bangladesh. From the time of British colony, Bangladesh was famous for its
conventional textile goods- “Muslin” and “Jamdani”. But the glory of readymade garments has
begun in 1970 with six small and three large scale factories namely Paries Garments, Reaz
Garments and Jewel Garments. Though the RGM has started journey with only 9 industries, this
number reached to maximum 5876 at the fiscal year 2012- 13.

Bangladesh has solo, partnership, proprietorship and family–based private limited companies
and groups of companies which tend to dominate the most in RMG sector. About 88% of
companies have three directors on average, where, two of them are from the same family.

fig 4: A bar chart of decision-making issue

In recent times, the influence of group of companies is growing rapidly in RMG sector of
Bangladesh. About 53% of RMG enterprises are subsidiaries of different groups of companies’
directors still play a major role in price negotiations with buyers but participation of managers in
price negotiation is increasing. Only 47% of directors visit factories on a daily basis- delegation
of authority to the managers is mainly driven by push factors.
Foreign staffs are also found in factory management now a days. About 13% enterprises have
reported to have foreign staff (47% of large enterprises) (Moazzem, 30 August, 2018).

6
MACRO ENVIRONMENTAL FACTORS
Macro environment is the external factors that affects the GDP of a company. A company does
not work alone in its environment, rather operates in a larger context. 6 forces are included in
macro environment and those are- global, technological, socio-cultural, natural, economic and
political environment.

Global Forces
Due to Coronavirus, the entire world goes through a change in world business and economy,
where, the RMG industry is suffering the foremost.
Recently coronavirus (COVID-19), which is now a worldwide pandemic, has provided
a warning call for Bangladesh and its RMG industry. An over-dependence on China has left
many manufacturers in Bangladesh exposed thanks to a scarcity of raw materials and
intermediaries for garment and textile production. The ongoing trade spat between the USA and
China, for instance, could be beneficial to Bangladesh within the long-term but within the short-
term, this is often causing volatility and unpredictability within the markets also as global
exchange rates. As the second largest exporter of apparel products, China
relocation opened opportunity to scale back gap with the amount one exporter. But Bangladesh
is failing to grab the market share which China is losing. As a result, Bangladesh’s gap with its
close competitors is coming down gradually.

With China losing market share, Bangladesh features a scope to expand its share within
the international market. However, countries like Vietnam, Cambodia, Myanmar, and Indonesia
have grabbed the stakes. this is often mainly thanks to Bangladesh concentrating only on a
couple of items that China won’t produce.

The garment industry of Bangladesh has maintained a rational contract with international
suppliers & buyers from the very beginning, which has had a positive & lasting effect on output
& labor productivity. the great quality of its products & long-lasting supportive account with the
leading buyers in Europe & the US have helped the Bangladesh RMG sector to survive well this
far.

Indeed, even after this critical phase when market conditions became uncertain, Bangladeshi
garment factories continued to receive orders from big buyers, due mainly to their past
reliability as business partners. In some cases, buyers check out Bangladesh as an
alternate source aside from the powerful suppliers. Apparently, big buyers like Wal-Mart, H&M,

7
Levi’s, Nike etc. don't shall leave the country overnight. That helps the RMG sector of
Bangladesh immensely to survive & thrive.

Technological Forces
We are lacking behind in respect of technological improvements. China using fully automated
machines which takes 5 to six minutes to finish a jeans pant sewing. On contrary we invest
generally 15 to twenty minutes to finish it with several machine & manual operations. it's not
necessary to grab all the methods, technologies or techniques suddenly. India follow production
friendly methods, quick changeover steps, lean manufacturing, standardization, TQM tools,
TPM systems, MRP tools, Supply chain strategies, minute-based capacity planning tools,
precise software-based costing analysis, digital marketing policy then on. rather than learning or
adopting we are just following them which successively add no value once they aren't available.
Most of the lady workers of RMG sector be scared of adopting semi automation or
methodological change (Diba, 2019).

It must specialize in research and development to assist cause product and process innovation.
Increasing productivity has got to be the long-term objective of RMG industry, with higher
productivity, we will achieve higher wages (Uddin, 2019).

With the improvements & developments of recent technology, our RMG sector also developing.
People are that specialize in adopt new technologies, machines, methods, materials etc. From
yarn making to logistics services people are using modern methods & technologies to form it
quicker, accurate & user friendly also as quality full. Now we will produce various types &
parameters of cloth, digital & rotary printing, weaving more complex fabrics, producing in
house trims & accessories, finish fabrics as per buyer requirements, sewing fancy items, wrinkle
free items etc.

Technology and innovation are the 2 major levers which may help the RMG sector in
Bangladesh support its growth aspirations. Technology solutions have provided significant
competitive advantages to several manufacturing companies across the world, including RMG
industries.

More and more RMG companies are now trying to make a culture of technology and innovation
in their organizations to enhance processes, debottleneck production, minimize delays in
delivery, reduce overall cost and improve quality in order that they will provide maximum value
to their customers.

8
In modern technological revolution of methods & technology the world is now planning for each
minute capacity, forecasting, inventory controlling, material requirement planning, managing
supply chain flow, follow total productive maintenance, total quality management (TQM),
brainstorming session, automation, standardization, innovation etc.

Socio-Cultural Environment
Majority of Garments workers are women but they face different kind of challenges in the
workplace as well as in the family. Our social beliefs and culture don’t support a working
woman to some extend and it’s believed by some conservative people that working in a garment
factory is disrespectful for a woman. For this reason, many women are not interested or not
allowed to work in a garment’s factory due to social pressure (Jahan, 2019). Labor union is
sometimes a big problem for RMG sector and there are many cases of factory shut down just
because of illegal and provoked labor protests. The labor union leaders often take unethical
decisions and provoke the labors that the RMG owners are making them deprived. These
incidents happen due to their lack of education, lack of ethics, political influences,
internal/personal clashes and cultural belief system (Mirdha, 2019). RMG owners also create
problems due to their socio-cultural beliefs and educational limitations. They treat the labors
wrongly which results low wage, due wage/salary, inadequate facilities, employee
dissatisfaction etc. These small issues sum up to a bigger problem in the industry sometimes
which impedes the growth. Lack of compliance is another problem in the garments. The
garments owners are not fully conscious about the compliance and safety. The factory buildings,
workspace, emergency measures are not well maintained. As a result, accidents take place (i.e.
Rana Plaza) and it affects the whole industry.

Before women empowerment, we need to demolish the social taboo that working outside of
home is not disrespectful for the women. Awareness campaigns are necessary to run in the root
level and people are also needed to be educated that women empowerment can improve the
quality of everyone’s life and it’s mandatory for the future. In the workplace, women should be
treated equally as the man and there should not be any discrimination in terms of wages,
salaries, facilities or incentives. If labors get what they deserve, then labor union can’t do any
harm. Because a satisfied and motivated labor will never make harm to his/her own organization
even he/she is provoked. Educated labor union leaders should be selected so that they can make
ethical and liberal decision for them. Labor law should be obeyed religiously and their needs or
wants should be taken care of with priority. Training or workshops should be arranged by
government for the entrepreneurs to teach them ethics and values because a lot of entrepreneurs
9
in this sector have no academic knowledge of this business. So, they cannot realize the
profitability of those ethics or cultural values. Compliance and safety of infrastructure and other
regulations should be followed strictly under government supervision. A regulatory committee
can solve these issues and take the industry toward growth.

Natural Environment
Covid-19 is the most venomous example for this segment which is definitely a first-time
experience for the entire world. Due to this pandemic, 40% RMG manufacturing factories will
be shut down or bankrupted in our country which is believed by the industry experts.
Government is taking major responsibility of the workers but many of the companies lost their
buyers, cancelled ready to ship consignments and faced liquidity crisis at its best (Barua, 2020).
Due to the lockdown, shipping industry has got a chronic delay and blockade. A huge number of
containers are stuck in the anchorage and birthing stations and companies are incurring delay
charges and opportunity costs. For this reason, both export and import industry is affected. As
RMG sector is dependent on import and export both, they are suffering from delay in each
shipment and shortage of cash (Islam S. , 2020).

Covid-19 is shutting down many businesses and also creating many other opportunities. So, if
we can adopt with this shift in the business then we must survive in the long run. For example,
many RMG factories are now manufacturing Personal Protective Equipment (PPE) and
surgical/face masks to support the continuous demand of these products during and after the
pandemic. So, this kind of new opportunities and scopes are opening up. As export and import is
hampered for transportation disruption, local businesses can flourish to meet local demand
during this period of time. Local garments factories can produce some products which are
generally imported in Bangladesh. During the unavailability of Chinese or Indian products, local
manufacturers can find new markets for their products. Many countries are banning Chinese
products, so we can intervene to those market with our products as demand is still same in those
markets.

Governments support on workers salary is not enough or not utilized properly. Government
should also take actions to maintain the market by keeping the previous buyers and make the
marketing channels easy. As cash crisis is a major problem for the factory owners so
government or banks should arrange some more easy loans or credit facilities to them for some
more period. A perfect internet-based job searching network can facilitate the workers to find
jobs who are currently unemployed. To solve the crisis in the sea port, the authority should take

10
strict action to resolve the blockade ensuring zero corruption. The late fees and rents should be
removed from port so that businessmen will make less loses. Some emergency air/sea shipment
should be arranged for essential goods and export proceed generating goods. Government and
trade unions should open up and find new markets in other countries. Foreign affair department
should play vital roles here. Large companies should remove embargos to let small and medium
companies to get into the new markets.

Economic Environment
Due to COVID-19 pandemic, the readymade garment (RMG) industry of Bangladesh is facing
an uncertain future. Buyers are cancelling or suspending orders which causes a loss of nearly 6
billion dollars. The demand of US and European market falls down which follows the closure of
hundreds of shops causing the cancellation of orders due to pandemic-centric lockdown. 900
million pieces of garments orders which worth 2.9 billion dollars had already been cancelled or
were being held up (according to the Bangladesh Garment Manufacturers and Exporters
Association (BGMEA). Most of the orders until July has either been cancelled or suspended and
the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) have claimed
that more than 3 billion dollars has already been lost (BHATTACHARJEE, 2020). Garment
industry of Bangladesh is heavily dependent on China for raw materials. 60 percent woven
fabrics, 15-20 percent knit fabrics and 80-85 percent dying chemicals and accessories are
imported from China for readymade garments factory. Sourcing of RMG raw materials has been
affected badly since January, 2020 and it may take another three to six months to stabilize the
supply chain from China. India which is the alternative raw material supplying country is also
affected by COVID-19 (Rashaduzzaman, 2020). Speaking at a program in International
Convention City, Bashundhara on January, 2020, BGMEA President Rubana Huq said, “The
entire RMG sector is not doing great at this moment because fifty-nine garment factories have
been shut down and 25,900 workers have lost jobs in the last seven months and our growth
stood at 7.64 percent in the negative.” She added, “Most of them were small and medium
enterprises and they failed to maintain compliance strictly and pay their workers under the new
wage structure”.

Government should take initiatives by forming a high-level strategic committee which

comprises all the stakeholders including BGMEA and BKMEA, policy makers, bankers for
identifying problems and suggesting probable remedies. Proper MIS should be maintained for
global impact of COVID-19 and monitoring cells should be opened by BGMEA and BKMEA to
observe and support their members. Cash incentives or developing cash incentive packages
11
through Bangladesh Bank may be considered by government to support affected RMG factories.
To support the operating expenses of RMG industries for the time being special exchange rate
incentives like foreign remittance may be allowed. If correct initiatives are not taken right now,
medium and small garments industries may not be able to manage the upcoming challenges
(Rashaduzzaman, 2020).

In spite of the challenges the RMG sector has set a target of 50 billion dollars exports by 2021.
If Bangladesh grows at a higher rate this target can be achieved. Bangladesh can take advantage
of shifting orders as China will be moving on to high technological segment from the lower one
(Khan, 2020). Maintaining a balance in terms of setting minimum wages at an appropriate level
and ensuring the RMG sector’s cost competitiveness is also a challenge. Some factories have
initiated for automation to reduce their labor dependency as a consequence.

Political Environment
Political stability might be a prerequisite for attracting foreign investors in readymade garments
(RMG) industry. Absence of proper democratic system, absence of rule of law, corruption and
terrorism, absence of democratic practice among political parties, pressure from the Islamist,
confrontational situation among political parties these are the foremost noticeable and important
features of the form of government nowadays. Political unrest, strikes, and therefore the absence
of simple doing business are major concerns of foreign investors (Islam & Pattak, 2017). Labor
unrest may be a very recurrent circumstance within the RMG industry of Bangladesh. This
industry is now in crisis thanks to repetitive workers' agitation. There are various samples of
workers being enmeshed in conflicts. Strikes are being called by them to satisfy their demands.
Low wage, long working hour and therefore, the issue of workplace safety are the most causes
of labor unrest. Foreign buyers consider and add new conditions thanks to those sorts of strikes.
Owners face losses, the economy of the country is usually hampered, and it fades out the
reputation of the country also.

The expansion of the RMG industry of Bangladesh much depends on diligence of the labor pool.
The low cost of labor is additionally the important core competency of this industry. However,
actually the workers are bereft of the minimum level of amenities. They don’t get their bonuses,
salaries, and overtimes. Moreover, working place safety is a problem. These reasons lead them
to protest for his or her demand. If the policy-makers of RMG industry consider these causes
and consequences and take required steps to beat these problems, the labor unrest in RMG

12
industry is going to be eliminated. It's an enormous responsibility for the government of
Bangladesh to ensure working place safety altogether the clothes manufacturing factories.

Bangladesh's government has taken many positive steps and initiative in favor of RMG sector.
Favorable policy, tax holiday, export-import policies, investment incentives, reduced import
duties on capital machinery and spares are some important initiatives helping the clothes sector
(Islam & Pattak, 2017). The Bangladesh Accord ablaze and Building Safety, the Alliance for
Bangladesh Worker Safety and National Plan of Action has been formed by government to
enhance building and fire safety of RMG industry. BGMEA and BKMEA also are working
together to unravel the working place safety issue of the workers. They need also taken
necessary actions and invested huge amount of cash.

CONCLUSION
Though Coronavirus has spread a poisonous and deadly impact over the world, the growth of
RMG sector can still be sustained by taking proper measures. If the whole world comes forward
to help, RMG industry can stand up again and move forward like it has always done. Yet, in this
pandemic it is very risky to depend on only one industry for economic growth and prosper.
Diversifying the industry has become important in this chaotic period by adopting new strategies
so that we can be opened to more solution. Public as well as the private sectors need to ensure
collaborative and coordinated strategies to overcome the challenges.

13
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http://www.bangladeshdenimexpo.com/bangladesh/rmg-sector/

Barua, S. (2020, June 4). covid-19s-fallout-unemployment-risks-in-export-oriented-sector. Retrieved

from thefinancialexpress.com: https://thefinancialexpress.com.bd/views/views/covid-19s-fallout-
unemployment-risks-in-export-oriented-sector-1591287330

Berg, A. (2011). Bangladesh's ready-made garments landscape: The challenge of growth. Bangladesh:
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BHUIYAN, M. A. (Volume– V, Issue– 02, July-December, 2010). Employee Participation in Decision

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Diba, S. A. (2019). Current Challenges of Textile and Apparel Industry in Bangladesh. Garments
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Ilchi, L. (2020, April 6). Fashion Scoops. Retrieved from WWD: https://wwd.com/fashion-news/fashion-
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Islam, M. S., & Pattak, D. C. (2017). IMPACT OF MACRO ENVIRONMENTAL FACTORS ON.
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Islam, S. (2020, May 1). shipping-lines-told-not-to-levy-container-detention-charges. Retrieved from

thefinancialexpress.com: https://thefinancialexpress.com.bd/trade/shipping-lines-told-not-to-
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APPENDICES
All data has been collected from journals newspaper articles.

This paper is a combined work of seven group members

At page no 6 figure no 4 there is a bar chart about making decision of GM where in small
factories 26% decision is made by GM and in medium factories it is 75% and in large
factories it is 100%

TQM tools means Total quality management tools

TPM refers Total Productive Maintenance tools

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