Amid rising global energy prices and escalating geopolitical tensions, Bangladesh’s textile and apparel industry is facing a new wave of cost pressures and supply chain uncertainties. From increased fuel costs to disruptions in critical trade routes, the challenges are reshaping competitiveness and sourcing dynamics worldwide. In this context, Fashion Business Journal (FBJ) speaks with Md. Qamruzzaman to understand the real-time industry impact and future outlook.
He is Director of Fun Factory Ltd and Functional Apparel Co. Ltd., Hong Kong, and Country Director of Logonet (Thailand) Co. Ltd. for Bangladesh, India and Pakistan.
FBJ: How are rising global oil and energy prices affecting Bangladesh’s textile and apparel production costs, and can the sector remain competitive against countries like Vietnam or India?
Md. Qamruzzaman: The US–Israel–Iran conflict will have an unaffordable impact on Bangladesh’s textile and apparel sector. We are seeing that even if there is a ceasefire or the conflict stops permanently, the sector will not return to the same position as before.
Previously, oil prices were around $70 per barrel, but now they are close to $100 per barrel. This price is unlikely to drop significantly in the near term because many countries’ oil production facilities have been damaged by missile attacks. For example, Saudi Aramco, one of the largest oil and petrochemical producers, has faced disruptions. Rebuilding such facilities may take at least 4–5 years. Similar situations are happening in other countries as well.
As a result, this crisis may continue for the next 4–5 years. High oil and LNG prices will directly impact the energy sector, and Bangladesh relies on nearly 90% imported energy. This will increase yarn prices and overall production costs, while profits in spinning and garments will decline. Inflation will affect all textile raw materials, and transport and shipping costs will also increase. At the same time, buyers are resisting price increases, so suppliers are forced to absorb the cost shocks.
Bangladesh can remain competitive against Vietnam and India mainly in basic items. However, if Bangladesh does not move toward high value-added products, its long-term sustainability will be at risk. Vietnam has better infrastructure, logistics, higher productivity, advanced technology, and strong FTAs, while India is also improving rapidly.
FBJ: To what extent could disruptions in key trade routes such as the Strait of Hormuz impact raw material imports and garment exports, and what contingency strategies should manufacturers consider?
Md. Qamruzzaman: Disruptions at the Strait of Hormuz primarily raise fuel and shipping costs, increase transit times, and create insurance and capacity constraints. These factors raise input costs for raw materials and reduce garment export efficiency.
The overall impact includes higher unit costs, longer lead times, production bottlenecks, and potential order losses or penalties.
Manufacturers should consider the following contingency strategies:
•Immediate rapid risk mapping
•Communication with buyers—alert major customers, negotiate flexible delivery windows, and agree on contingency price pass-through mechanisms
•Increase buffer stocks of critical raw materials (3–8 weeks) and maintain short-term finished goods
•Tactical rerouting and carrier negotiation
•Review war-risk and route insurance
•Hedge fuel exposure where possible
•Arrange short-term working capital to manage higher freight and inventory costs
FBJ: Do you foresee any shifts in global apparel demand or buyer sourcing strategies due to the ongoing conflict, and how might this influence Bangladesh’s export orders in the short to medium term?
Md. Qamruzzaman: Yes, in the short to medium term, order volatility is expected. There may be a shift toward basic or value items, along with logistical and cost pressures that could cause some cancellations.
However, Bangladesh may also secure some volume advantages as a reliable low-cost sourcing destination.
In the medium term, Bangladesh can gain redirected bulk orders if it improves lead time, logistics, and compliance. At the same time, there is a risk of losing time-sensitive and higher-margin orders to nearshoring destinations.
