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    US Sanctions Against Xinjiang Cotton Will Affect Vietnam'S Textile And Garment Industry

    2020/9/21 17:31:00 56

    CottonClothing

    According to the report of Vietnam youth network on September 16, Nguyen Wenjun, chairman of Vietnam cotton yarn Association, said on the 16th that if the United States imposed sanctions on China's Xinjiang cotton, many Southeast Asian countries would be the first to be affected, because three of the seven countries with the largest number of cotton yarn imported from China are in Southeast Asia.

    ?
    At present, Vietnam is the world's second largest cotton importer, with 65% from the United States, 15% from India and 10% from Africa. The share of cotton from China is very small. However, Vietnam's annual demand for clothing fabrics is about 10 billion cubic meters, and only about 3.5 billion cubic meters can be provided domestically. The remaining 6.5 billion cubic meters need to be imported, of which about 65% come from China.
    ?
    Therefore, the U.S. sanctions may force Vietnamese enterprises to replace China's imported fabrics with fabrics from South Korea, Thailand and Japan. However, due to China's huge production capacity and price advantage, it is unrealistic to completely replace Chinese fabrics.
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