As the ongoing US–Israel–Iran conflict continues to influence global energy markets and trade flows, the ripple effects are being felt across key manufacturing economies, including Bangladesh’s vital textile and apparel industry. Rising oil prices, potential disruptions in international shipping routes, and shifting buyer strategies are creating new layers of uncertainty for exporters and manufacturers.
In this exclusive interview, Hasin Arman, First Vice President of BAYLA (Bangladesh Apparel Youth Leaders Alliance), Director of MB Knit Fashion Limited, Co-founder of AutoTracks, and Investor & Partner at Crimson Cup Bangladesh, shares his insights on how these global developments are reshaping production costs, supply chain stability, and future sourcing dynamics for Bangladesh’s apparel sector.
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?
Hasin Arman: The first and most direct impact will be on production cost. If oil and energy prices continue to rise, naturally the cost of raw materials, transportation and factory operations will increase. This will especially affect energy dependent segments such as spinning, dyeing, washing and finishing, where fuel and electricity play a major role in daily production.
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At the same time, I do not see Bangladesh losing its competitiveness immediately against countries like Vietnam or India, because this is not a Bangladesh specific issue. It is a global situation and the cost pressure will be felt across all sourcing countries. Bangladesh still has strengths in scale, workforce efficiency and competitive pricing.
But at this current scenario, it is crucial for the Bangladesh government to ensure that the Benapole port remains fully operational to facilitate the smooth and timely transportation of imported yarn from India. In the present context, uninterrupted access to raw materials through bonded warehouse facilities is critical for sustaining production efficiency and preserving the competitiveness of Bangladesh’s textile and apparel sector in the global market.
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?
Hasin Arman: If major trade routes face disruption, the biggest impact will be on lead time and shipping cost. Importing raw materials may take longer, and export shipments may also be delayed. This can create pressure on delivery commitments and increase overall transportation expenses.
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In such a situation, manufacturers should focus on keeping a reasonable stock of key raw materials, planning production earlier and ensuring that shipments are prepared on time. Close communication with buyers will also be important to manage expectations regarding delivery schedules.
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?
Hasin Arman: In the short term, buyers may become more cautious due to global uncertainty. Some may reduce order volumes temporarily or delay placing new orders until the market becomes more stable. This can create short term pressure on factories, especially in terms of pricing and capacity utilization.
However, in the medium term, I believe Bangladesh will continue to remain a strong sourcing destination because of its proven capacity and long standing relationship with international buyers.
