According to reports from foreign analysts, despite the negative impact of the new crown epidemic, the operations of Vietnamese spinning mills have withstood the test and have received increased demand for cotton yarn imports from China. In 2020/21, Vietnam’s cotton yarn exports to China reached 984,000 tons, a year-on-year increase of 13%.
In order to meet textile production and export needs, Vietnam’s cotton imports have increased, but US cotton imports have declined year-on-year due to China’s increased purchases of US cotton and fierce competition from Brazilian cotton and Australian cotton. The U.S. Agricultural Counselor estimates that Vietnam’s cotton imports in 2021/22 will be 1.7 million tons, a year-on-year increase of 7%.
The report analyzes that the COVID-19 epidemic in 2021 will have a greater impact on Vietnam’s textile production and exports. In order to prevent and control the epidemic, the Vietnamese government has adopted strict blockade measures and requires textile companies to provide employees with accommodation and daily necessities as well as nucleic acid testing. The above measures have greatly increased the production costs of textile enterprises, causing many factories to temporarily close or significantly reduce their operating rates, which has had a huge impact on Vietnam’s textile production, supply, and exports. Growth in January-July 2021 partially offset the sharp decline that began in August.
The Vietnam Textile and Apparel Association estimates that Vietnam’s textile and apparel exports will be US$36.5 billion in 2021, a year-on-year increase of 3-4%, but a decrease of 7-8% compared with 2019. In addition, the shortage of containers required for international shipping has also had a negative impact on Vietnam’s textile and garment industry. Vietnamese spinning mills have been less affected than the garment industry. Due to the small number of workers in the factory, spinning is more mechanized than clothing, and the factory’s large-scale production, the spinning factories that have started operations can achieve social isolation and have not yet closed their doors.
According to Vietnam Customs data, Vietnam’s total export volume of various yarns from January to October 2021 was 1.6 million tons, with an export value of US$4.6 billion, a year-on-year increase of 16.4% and 55% respectively. It is estimated that the export volume in 2021 is expected to reach 2 million tons, and the export value will exceed 5.5 billion US dollars. According to Vietnam trade monitoring data, from January to September 2021, Vietnam’s cotton yarn export volume was 861,000 tons, a year-on-year increase of 14%, and the export volume was US$2.5 billion, a year-on-year increase of 40%. This was mainly due to the maintenance of cotton yarn production and China’s import demand. Strong and rising global cotton yarn prices.
In 2020/21, Vietnam’s cotton imports reached 1.6 million tons, a year-on-year increase of 12%. Although cotton prices fluctuate significantly, Vietnam’s domestic yarn mills have received import demand from China. With the recovery of global demand for clothing and the control of the epidemic in Vietnam, Vietnam’s cotton imports are expected to reach 1.7 million tons in 2021/22, a year-on-year increase of 7%, but the premise is that there are no major changes in the epidemic in Vietnam and the international environment.
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