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