Cotton import
Due to the strong demand for yarn in the international market (mainly China), Vietnam’s cotton imports continue to increase. In 2014, Vietnam’s cotton imports increased by 30% year-on-year to 757,800 tons, worth US$1.45 billion. Driven by the rapid growth of China’s cotton yarn imports and Vietnam’s accession to the EU’s TPP and FTA agreements, Vietnam’s cotton imports are expected to reach 910,000 tons in 2015, a year-on-year increase of 20%.
As shown in the table below, the United States is still the largest source of cotton imports in Vietnam. In 2014, the United States accounted for 29% of Vietnam’s total cotton imports, occupying the top spot in Vietnam’s cotton imports for eight consecutive years, but India, Australia and Brazil The market share is expanding rapidly. In 2014, US cotton exports to Vietnam increased by only 2% to 219,000 tons. Indian cotton exports to Vietnam increased by 49%, Brazilian cotton increased by 110%, and Australian cotton increased by 105%. Significant increases were also seen in Côte d’Ivoire, Argentina, Pakistan, China and Indonesia.
Analysis by year, Vietnam’s cotton import volume in 2013/14 was 691,400 tons, with an import value of US$1.4 billion, a year-on-year increase of 32% and 36% respectively. In the first six months of 2014/15, Vietnam imported a total of 391,500 tons of cotton, with an import value of US$680 million, a year-on-year increase of 34% and 14% respectively. Vietnam’s total cotton imports are expected to reach 830,000 tons this year, a year-on-year increase of 20%, mainly due to the continued expansion of domestic spinning production and continued strong demand for yarn exports.
In 2014, the United States exported 219,000 tons of cotton to Vietnam, a year-on-year increase of 2%, with a value of US$393 million, a year-on-year decrease of 2%. On an annual basis, the United States exported 223,200 tons of cotton to Vietnam in 2013/14, with a value of US$421 million, a year-on-year increase of 14.6% and 20.2% respectively. Although the growth rate is much lower than the previous year, US cotton still accounts for 32.3% of Vietnam’s cotton imports. According to data from the U.S. Bureau of Statistics, the United States exported 98,800 tons of cotton to Vietnam in the first six months of 2014/15, a year-on-year increase of 8%, but the export volume fell by 9%, mainly due to the increase in Vietnam’s raw cotton demand and the decrease in China’s imports. International cotton prices fell sharply. It is expected that U.S. cotton exports to Vietnam will maintain this trend in 2014/15, with the quantity increasing and the amount decreasing.
Fabric export
According to statistics from the Vietnam Textile and Apparel Association, Vietnam’s textile and clothing exports reached US$24 billion in 2014, a year-on-year increase of 19%. The pace of growth is faster than the plan formulated by the Vietnam Ministry of Industry and Trade (to increase exports to US$25 billion by 2020). Dollar). The Trans-Pacific Partnership Agreement (TPP) and the Free Trade Agreement (FTA) signed between Vietnam and the EU have provided huge development opportunities for the development of Vietnam’s textile and clothing industry. Currently, the United States remains the largest market for Vietnam’s textile and apparel exports. In 2014, Vietnam’s apparel exports to the United States were US$9.8 billion, accounting for 41% of total exports.
Vietnam is one of the few countries in Asia that has expanded its spinning production capacity in recent years. As of 2014, there were more than 100 spinning mills and the number of spindles was 6.1 million. In 2015, it is expected to reach 6.3 million spindles. Cotton yarn and blended yarns The yarn production capacity is 828,000 tons. Due to strong yarn demand from China, Turkey and South Korea, Vietnam’s cotton yarn reached a record high of 858,000 spindles in 2014, a year-on-year increase of 19%. 65% of the yarn produced in Vietnam is exported. The following table shows the overall situation of Vietnam’s textile industry:
Cotton consumption
With the development of the textile industry, Vietnam’s cotton consumption continues to increase. At present, Vietnam’s domestic and export demand for cotton yarn is very active, with cotton consumption increasing by an average of 22% annually in the past five years. Due to the increase in China’s cotton yarn import demand, the decline in international cotton prices, and the TPP and FTA agreements signed with the EU, investment in the textile industry continues to expand. Vietnam’s cotton consumption is expected to be 830,000 tons in 2014/15, a year-on-year increase of 20%.
However, as China’s cotton consumption focuses on domestic cotton and reserve cotton, the import of cotton yarn will decrease, and the growth rate of Vietnam’s cotton consumption will decrease in 2015/16. In 2014, China’s cotton yarn imports dropped from US$6.8 million to US$6.2 million, a year-on-year decrease of 9%.
Small information
Vietnam’s cotton import tariff is zero and the value-added tax is 5%, while the cotton yarn import tariff is 5% and the value-added tax is 10%.
