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Exports drive cotton consumption in Vietnam

Aug 18, 2021
Exports drive cotton consumption in Vietnam

The growth in cotton yarn and product exports will affect the consumption of cotton in 2021 Vietnam. The consumption of cotton is recorded at 7.3 million bales which is 700,000 more than last year.

As per the report from the United States Department of Agriculture, Yarn exports from Vietnam in 2020/21 have exceeded the records from the last year by 10%. It is also observed that the foreign demand for Vietnam cotton is mainly driven by China which is the largest cotton yarn importer. It was also observed that the import of Vietnamese cotton yarn from August to June was recorded at 4 million bales of cotton. . This robust demand from China will also lead to a growth in the country’s cotton fabric and exports.

All cotton yarn spun in Vietnam is produced using cotton lint which is imported from other countries. As per the statistics, as the domestic consumption in Vietnam of cotton yarn is increasing, cotton consumption is becoming higher. The foreign and domestic investment in Vietnam’s garment industry has also improved the demand for cotton knitted fabrics. As per the customs data from Vietnam, the exports of garment and textile in 2020/21 is expected to recover and rise to more than $30 billion.

The world’s largest importer of cotton textile and garments is the USA. The largest export market for Vietnam for the same product range is also the USA.  Out of the total value of U.S. cotton product imports from Vietnam, 30% belonged to pullovers, knitted cotton sweaters, and other articles. The two main factors that affected Vietnam’s market share of U.S. imports were ongoing tariffs specific to China and Withhold Release Orders (WROs).

Source – Grain Central

Image Source: Wikipedia

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