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Cotton and fibers are the two dominant raw materials for Vietnam’s textile and garment industry. The country is currently the third largest importer of cotton in the world, with a consumption volume of 1.5 million tons per year. Simultaneously, Vietnam is the third largest exporter of textiles and garments globally, only after China and Bangladesh.
In addition to domestic supply, Vietnam also spends a significant amount annually on importing these raw materials. According to preliminary statistics from the General Department of Customs, cotton imports to Vietnam in July reached 110,667 tons, valued at over $219 million, an increase of 26.5% in volume and 22.3% in value compared to the previous month.
Cumulative imports in the first seven months of the year exceeded 858,000 tons, worth $1.7 billion, representing a 13.1% increase in volume and a 2.7% rise in value compared to the same period last year.
In terms of market sources, Brazil was Vietnam’s largest cotton supplier in the first seven months, with over 297,000 tons, valued at more than $609 million, an increase of 174% in volume and 133% in value compared to the same period last year.
The United States ranked second, with over 229,000 tons, worth more than $486 million, a decrease of 32% in volume and a 4.13% drop in value compared to the same period last year. Australia was the third largest supplier, with over 128,000 tons, valued at over $271 million, representing a 25% decline in volume and a 31% fall compared to the previous year.
Aside from the three dominant markets mentioned above, Vietnam is witnessing a significant surge in cotton imports from Pakistan, with a four-digit growth rate. Specifically, in the first seven months of this year, Vietnam imported 5,333 tons of cotton from Pakistan, valued at over $9.2 million, marking a remarkable increase of 2,997% in volume and 3,573% in value compared to the same period last year.
Notably, the average import price reached $1,728 per ton, a 21% increase compared to the previous year. However, the import volume from this market accounts for a very small proportion, less than 1% of Vietnam’s total cotton imports.
The textile and garment industry is one of the most profitable sectors in Pakistan, contributing over 60% of the country’s total export earnings. Renowned for its raw cotton and textile products, Pakistan holds significant potential for economic development through its textile industry.
Cotton production is an integral part of Pakistan’s economic landscape. Cotton is cultivated as an industrial crop on 15% of the country’s land during the monsoon months from April to May, known as the Kharif period, and on a smaller scale from February to April.
As of 2023, Pakistan is the fifth largest cotton producer in the world, with an estimated output of 6.22 million bales in 2022/23. This figure marks a 3.7% increase compared to the previous year. Cotton is grown on the country’s cultivated land, accounting for approximately 15% of Pakistan’s total cultivated area, equivalent to 2.95 million hectares.
The Vietnam Cotton and Fiber Association shared that the global cotton industry is experiencing a significant decline in both production and consumption. The latest report from the United States Department of Agriculture (USDA) indicates a substantial decrease in the forecast for global cotton production in the 2023-2024 season, with a reduction of 4.2 million bales compared to the previous season. The drop in production in regions such as West Africa, the United States, Greece, Mexico, and India has overshadowed the increase in output in Brazil.
