Illustration photo
According to preliminary statistics from the General Department of Customs, Vietnam’s cotton import in March reached 128,131 tons with a value of over 249 million USD, an increase of 31.5% in volume and 30.5% in value compared to the previous month. In the first quarter, Vietnam imported a total of 371,901 tons of cotton with a value of over 730 million USD, up 53.6% in volume and 26.8% in value compared to the same period in 2023.
In the cotton import picture of the first quarter of 2024, the world’s two agricultural superpowers, the US and Brazil, are both increasing their exports of this ‘white gold’ to Vietnam. Brazil has become the largest supplier in the first quarter with 115,015 tons of cotton, worth over 232 million USD, up 98.4% in volume and 54% in value compared to the same period last year. The average price was 2,025 USD/ton, down 22% compared to the previous year.
The US is also not far behind with 83,504 tons of cotton, equivalent to over 170 million USD, a sharp increase of 54% in volume and 34% in price compared to the same period. Import prices recorded a similar downward trend to Brazil, reaching 2,045 USD/ton, down 13%.
Coming in third is Australia with 75,883 tons, worth over 157 million USD, down 3.6% in volume and 18% in value. The average price was 2,069 USD/ton, down 15%.
According to statistics, the US and Brazil are the two largest cotton exporting countries in the world, accounting for more than half of the global supply. The US is expected to export 12.5 million bales (1 bale of cotton is equivalent to about 226.8 kg) in the 2023 – 2024 crop year. According to Mr. Gustavo Vigano – Vice President of the Association, Brazil could “overthrow” the US if the US’s cotton harvest and fiber quality continue to decline. At that time, Brazil will become the largest cotton exporter in the world in the 2023 – 2024 cotton season. In addition, Australia is also a cotton powerhouse with a production of up to 5.6 million bales in 2022.
Vietnam is the world’s third largest cotton importer with an annual consumption of 1.5 million tons. Our country is also the world’s sixth largest exporter of yarn and the world’s third largest exporter of textiles and garments – after only China and Bangladesh.
However, the textile and cotton industry in Vietnam is also facing many challenges. One of the biggest challenges is the fierce competition from other countries in the region, especially India, where yarn prices remain lower than in Vietnam. This is causing many difficulties for textile companies in maintaining and developing production.
According to figures from the International Cotton Association (ICAC), the global average cotton yarn price in 2023 is estimated at 68.6 cents/lb, down 9% year-over-year. This is the third consecutive decline since 2021. The latest report from the US Department of Agriculture (USDA) shows a large decrease in the forecast for global cotton production in the 2023-2024 season and a decrease of 4.2 million bales compared to the previous season. Production declines in regions such as West Africa, the US, Greece, Mexico and India have overshadowed production gains in Brazil.
