In this context, FBJ speaks with Md. Mohiuddin Rubel,—Former Director of BGMEA, Additional Managing Director of Denim Expert Ltd, and Managing Director of Bangladesh Apparel Exchange—to unpack how these global and structural pressures are influencing Bangladesh’s competitiveness, and what it will take for the industry to adapt, upgrade, and sustain long-term growth in the evolving apparel landscape.
FBJ: How are rising global oil and energy prices impacting Bangladesh’s textile and apparel production costs, and can the sector remain competitive with countries like Vietnam and India?
Md. Mohiuddin Rubel: Yes, this situation is undoubtedly affecting all countries globally, including Bangladesh. Historically, we have not been very efficient in energy usage and have struggled to utilize it effectively. Issues such as low gas pressure and frequent load shedding already created a structural gap. With rising global energy prices, our competitive pressure has increased further.
Countries like Vietnam and India are significantly more advanced in terms of technology, productivity, and the adoption of renewable energy across many of their factories. As a result, the impact of rising global costs is less severe for them compared to Bangladesh, as they were already operating from a stronger position in these areas.
Also Read: What Rising Energy Prices Mean for Bangladesh RMG
FBJ: How could disruptions in key trade routes like the Strait of Hormuz affect raw material imports and garment exports, and what contingency strategies should manufacturers consider?
Md. Mohiuddin Rubel: In terms of the Strait of Hormuz, Bangladesh does not rely heavily on this route for raw material imports. However, exports to the Middle East and energy supplies—particularly oil and LNG—are linked to this region. Even if the direct impact is limited, it remains essential to develop alternative sourcing and supply chain strategies. There is no question that manufacturers must prepare contingency plans with diversified sourcing destinations.
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FBJ: Do you expect any shifts in global apparel demand or buyer sourcing strategies due to the ongoing conflict, and how might this affect Bangladesh’s export orders in the short to medium term?
Md. Mohiuddin Rubel: Global demand is continuously evolving and shifting. Bangladesh still maintains advantages in large-volume, basic orders and with relationship-based buyers. These segments are less likely to face significant disruption, as buyers typically account for lead times when placing orders here.
However, moving toward higher value-added or premium segments will be challenging under current conditions. Improving lead times and operational efficiency will be critical, alongside strengthening backward linkage industries.
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At the same time, some level of shift is inevitable. Regions such as Southeast Asia are currently more affected due to energy-related challenges. If this situation continues, sourcing may gradually shift to regions with fewer energy constraints—unless Bangladesh can manage the situation effectively. Conversely, if the conflict subsides, these concerns may ease.
