Post covid-19 impact in RMG sector

Abstract

The COVID-19 pandemic severely disrupted Bangladesh’s Ready-Made Garment (RMG) sector, one of the country’s largest sources of employment and export earnings. The sudden interruption of global trade exposed significant structural vulnerabilities within the industry. At the height of the pandemic, international buyers canceled or suspended orders worth billions of dollars, forcing thousands of factories to close temporarily and resulting in widespread layoffs and wage reductions. Many workers, particularly women, faced economic uncertainty with limited access to healthcare and social protection. Although the sector has gradually reopened and exports have begun to recover, many factories continue to operate under financial pressure, while working conditions remain fragile. The need to comply with enhanced health and safety protocols, together with changing buyer expectations, has further increased operational challenges. Despite the ongoing recovery, persistent issues such as inadequate labor rights, low wages, and limited social security require urgent attention to build a more resilient and equitable RMG industry. Accordingly, this paper aims to examine the impact of the COVID-19 pandemic on Bangladesh’s Ready-Made Garment (RMG) sector through a systematic review of the existing literature, applying a descriptive approach to understand the nature of the crisis and its implications for the industry.