Impact of COVID_19 in Bangladesh RMG industry!!!

 

#covid_19 #coronavirus

Export revenue of Bangladesh generated from exporting different kinds of products such as Readymade garments, Jute manufacturers, Fish, shrimps and prawns, Leather and leather manufacture, Home Textile, Raw Jute, Petroleum and Petroleum product, Terry Towel, Bicycle, Pharmaceutical products, Handicrafts, Tea, Fertilizer, Others products. But a large portion of export revenue is generated from the readymade garment sector which was above 80% during the last couple of years.   The total number of garments factories was increased by 1.34% in FY18-19 but it may be decreased after the pandemic coronavirus impact. The number of garments factories was 4,621 no's in the FY18-19 fiscal year which was 4,560 no's in FY17-18. Bangladesh earned $33,674.09 million export revenue including $27,949.19 million revenue from the RMG sector in FY19-20 which was $34,133.27 million within $40,535.04 million total export revenue in FY18-19, and $30,614.76 million within $36,668.17 million total export revenue in FY17-18. The country's total export revenue decreased at 16.93% in which export revenue from the garment sector decreased by about 18.12% and other sector export revenue declined 10.57% for fatality condition arise from the epidemic COVID-19. It may continue in the next couple of months of the year to be a normal economy and other socio-cultural conditions. Export revenue growth was showing a positive trend during the last financial years 10.55% in FY18-19 in which RMG sector revenue increased 11.49% during the financial year FY18-19. But average revenue generation from RMG and other sectors simultaneously increased during the last couple of year, on average, it was $22,537.59 million RMG revenue and $5,254.37 million revenue from other sectors, overall total average export revenue of Bangladesh was $27,791.96 million during these periods. RMG sector generates its revenue from two sectors as Woven and Knit. Both are almost the same during the last 20 years but woven products dominated the RMG sectors during these financial years. A large amount of export revenue is generated in the readymade garment industry from both products (Woven and Knit). During the last couple of years, woven garments slightly increased from Knit garments. On average woven sector contributed about 51.45% where the knit sector contributed 48.55% revenue of the total RMG sector export revenue during the 20 years. Export revenue was noted near about 50.24% and 49.76% in FY19-20 respectively woven & knit products, which was 50.52% and 49.48% in FY18-19, 50.39% woven and 49.61% knit garments in FY17-18 and 51.13% woven and 48.87% knit garments in FY16-17. It indicated both products providing an equal contribution to the national economy in the last 20 years. Generally, ready-made garments revenue is generated from manufacturing shirts, trousers, jackets, t-shirts, and sweaters, etc. The average export revenue generated from the among sectors was respectively $1,517.95 million, $3,720.38 million, $1,978.98 million, $3,727.22 million, and $2,089.32 million during the last 20 years. A large portion of product-wise revenue is derived from respective t-shirt, trousers, and sweaters. All sources' revenue declined during the latest financial year for the pandemic COVID_19 effect.   The total export revenue of Bangladesh RMG sector is generated from the European Union, the USA, Canada, and non-traditional markets, etc. The major portion of export revenue generated from European Countries especially Germany, the United Kingdom, Spain, France, Italy, Belgium, Netherlands, Sweden, the Czech Republic, and Poland, etc. Bangladesh earned 61.35% export revenue from the EU in FY19-20 which was 61.91% in FY18-19 and 64.12% RMG export revenue from European Countries in FY17-18. The second-largest amount of export revenue generated from the USA, Bangladesh garments companies generated 18.41% revenue in FY19-20 which was 17.97% worth of export revenue in FY18-19, and 17.48% in FY17-18. However, the Export volume of Bangladesh gradually increased in European Countries and the non-traditional market. Being in the pandemic COVID-19 war, policymakers worldwide are involved in damage-control of the economic losses at the moment and preparing for antagonizing the imminent economic crisis. Besides, there are evidence and indications that the financial and banking industries around the world might have to face remarkable instability in the upcoming months. Bangladesh’s government has already announced bail-out packages for the recovery. For the cancellation of nearly $3 billion worth of work-orders, Bangladesh's ready-made garments industry got the attention swiftly. About 2 million workers in the industries maybe exaggerated by this and on the other hand, around 4 million people are directly involved with the RMG sector such as backward linkage industries, accessories and packaging factories, and the transportation sector.