Foreign Cotton Demand Is Strong And Vietnam'S Cotton Consumption Is Also Increasing.

In 2016, Vietnam's textile and clothing exports amounted to 28 billion 500 million US dollars, up 5% over the same period last year, accounting for Vietnam. foreign trade 16% of total exports. In the 2014-2016 years, Vietnam's textile and garment export growth declined year by year, 20.9%, 10.9% and 5% respectively, mainly due to the stagnation of export demand and fierce competition from China, India, Pakistan and Bangladesh. Vietnam's textile and clothing exports are expected to increase by 6-8% in 2017. At present, the United States is Vietnam's largest market for textile and clothing exports. In 2016, Vietnam's textile and clothing exports to the United States increased by 5% to 11 billion 400 million US dollars, accounting for 40.3%. It is expected to reach US $11 billion 700 million in 2017, an increase of 7% over the same period last year.

Besides the United States, Vietnam's textile and clothing export markets also include the European Union (12%), Japan (10.2%) and South Korea (8%). The FTA between Vietnam and the EU will come into force in 2018. In recent years, Vietnam's textile and garment industry has continuously absorbed a large amount of investment from home and abroad, covering the entire industrial chain, and meeting the new opportunities brought about by the FTA. Vietnamese yarn 65% exports, mainly exported to China, South Korea, Turkey. In 2015, the total export volume was 1 million 170 thousand tons, an increase of 21.4% over the same period, of which 65% (743 thousand tons) was cotton yarn, an increase of 26% over the same period last year. China is the largest importer of Vietnamese cotton yarn. In 2016, it imported 625 thousand tons, accounting for 84% of Vietnam's cotton yarn exports. Therefore, the change of Chinese market is very important to Vietnam.

In recent years, the Chinese government has vigorously developed the textile industry in the western region, actively absorbed the reserve cotton, and gradually increased the domestic cotton price to the international cotton price. Fortunately, the export of Vietnamese cotton yarn has not yet declined. In 2016, Vietnam's cotton yarn exports to China increased by 24% over the same period last year, while India and Pakistan's cotton yarn exports to China decreased by 41% and 28% respectively. Vietnamese industry wants Vietnam's geographical advantages. Cost advantage The FTA with China and ASEAN can continue to promote Vietnamese cotton yarn exports to China. China and ASEAN's FTA have made Vietnamese cotton yarn tax-free into the Chinese market, while China's quota free imports of cotton need to pay 40% import tariffs, so Vietnam's textile industry has benefited greatly.

The other two main export areas of Vietnam's cotton yarn are South Korea and Turkey. In 2016, the exports to the two countries were 41 thousand tons and 27 thousand tons respectively, up 52% or 80% over the same period last year. Vietnam's exports of cotton yarn to South Korea are expected to increase, while exports to Turkey will decline because of the resumption of cotton production in Turkey. Almost 100% of Vietnam's textile cotton imports come from the United States, India, Brazil, Australia and Cote d'Ivoire, which account for 70-80% of Vietnam's total cotton supply. Vietnam has recently tried to import Argentina cotton and African cotton, but there are few quantities.

China, Turkey and South Korea have strong demand for Vietnamese yarn and are strongly stimulating. Vietnam? Cotton imports. In 2016, Vietnam imported 1 million 30 thousand tons of cotton, an increase of 2% over the same period. It is estimated that imports will increase by 10% in 2017. For the past ten years, cotton has been the largest source of cotton imports in Vietnam. In 2016, the United States exported 537 thousand tons of cotton to Vietnam, valued at $786 million 300 thousand, an increase of 24.3% and 26.3% compared with the same period last year, while the proportion of cotton imports to Vietnam increased from 42.6% in 2015 to 52%. In 2016, only the United States and Australia increased cotton exports to Vietnam, while other varieties decreased.

Vietnam's cotton imports in 2016/17 are expected to increase to 1 million 150 thousand tons, up 15% over the same period last year. According to the current Vietnamese textile industry expansion rate and international market demand for Vietnamese yarn imports, Vietnam's cotton imports in 2017/18 are expected to reach 1 million 260 thousand tons, an increase of 10% over the same period last year. Vietnam's import demand for us cotton in 2016 has increased substantially, thanks to the following factors: first, the increasing demand for Vietnamese yarn at home and abroad, especially in China, Turkey and South Korea; two, Vietnam's large textile mills are investors in China, Taiwan and Korea, and these countries and regions have a special preference for us cotton; three, India cotton exports are reduced; four, Pakistan cotton supply is greatly reduced.

In 2015/16, the United States exported 421 thousand tons of cotton to Vietnam and its value was 598 million US dollars, up 4% and 1% respectively over the same period. In the year of 2016/17, the United States exported cotton to Vietnam more favorably. Exports in the first 7 months have reached 302 thousand tons, up 64% over the same period last year. If this trend continues, US exports to Vietnam are expected to reach a new high of 500 thousand tons this year, up by at least 20% over the same period.

Driven by the demand of foreign cotton yarn, Vietnam's cotton consumption has also continued to increase. Vietnam's cotton imports in 2016/17 are expected to reach 1 million 150 thousand tons, an increase of 15% over the same period, of which about 80% produce cotton yarn and cotton yarn is mainly exported to China (accounting for more than 80% of the total output). If China continues to import Vietnamese yarn and reduce imports of India yarn and Pakistan yarn, Vietnam's cotton consumption will expand to 1 million 260 thousand tons in 2017/18, up 10% over the same period last year. In 2016 4-5, the average price of cotton imports fell to 1.5 US dollars / kg, the lowest in nearly 5 years. The average import price began to rebound and gradually increased from June 2016 to March 2017, reaching 1.79 US dollars per kilogram.

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