According to preliminary statistics from the General Department of Customs, Vietnam’s cotton imports in January 2024 reached 146,365 tons worth over $289.7 million, up 20.8% in volume and 20.1% in value compared to December 2023. Compared to the same period last year, imports of this item to Vietnam increased sharply by 109.3% in volume and 65.4% in value.
The import price of this item to Vietnam reached $1,979 per ton, a decrease of nearly 21% compared to the same period in 2023.
From a market perspective, Australia is the largest cotton supplier to Vietnam. Specifically, in January 2024, Vietnam imported 50,436 tons of cotton from Australia with a value of over $104 million, an increase of 72.3% in volume and 37.2% in value compared to January 2023, accounting for 35%.
Brazil is the second largest cotton supplier to Vietnam. In January, Vietnam imported 42,854 tons, equivalent to $87.5 million, an increase of 84.3% in volume and 43.6% in value compared to the same period.
The United States is the third largest market. In January, Vietnam imported various types of cotton from the United States reaching 19,217 tons with a value of over $40.6 million, an increase of 37% in volume and 38% in value compared to the previous month. Compared to January 2023, the US exported a significantly increased amount of cotton to Vietnam, with volume increasing nearly 200% and value increasing 166%, accounting for 13%.
The import price of this item from the US in January reached $2,113 per ton, a 11.3% decrease in value compared to the same period in 2023.
Vietnam is the world’s third largest cotton importing country with a consumption of 1.5 million tons per year. As of 2021, Vietnam’s cotton imports from the US accounted for 25% of total US exports and the largest cotton importing country in the world.
Cotton is a raw material for Vietnam’s textile and garment industry. According to the Vietnam Textile and Apparel Association (VITAS), domestic cotton production currently only meets about 1% of demand; fiber, yarn about 30%; fabric 20%; supporting industries are not developed.
The Vietnam Cotton and Spinning Association states that the global cotton industry is experiencing a significant decline in both production and consumption. The latest report from the US Department of Agriculture (USDA) shows a large decrease in the forecast for global cotton production for the 2023-2024 season, a decrease of 4.2 million bales compared to the previous season. The production decline in regions such as West Africa, the US, Greece, Mexico, and India has overshadowed the increase in production in Brazil.
According to the International Cotton Advisory Committee (ICAC), the average global cotton fiber price in 2023 is estimated at 68.6 cents per pound, a 9% decrease compared to the previous year. This is the third consecutive year of decline since 2021. The main reason is the sharp decline in consumption due to the COVID-19 pandemic, while production levels remain higher than demand, leading to oversupply.
Global fiber consumption is estimated to decrease by 11% to 22.9 million tons in 2023. In addition, cotton prices are also affected by the prices of alternative materials such as polyester and viscose, trade policies of countries, etc.
Turning to 2024, cotton prices are expected to increase as demand gradually recovers. According to the US National Commission on Reform and Development, the US will limit cotton imports by raising sliding scale duties to 750,000 tons of cotton for state-owned companies. This will further boost the demand for cotton in the future, making the outlook for Vietnam’s textile and garment industry more optimistic.
