Hundreds of Thousands of Tons of ‘White Gold’ from the US Arrive in Vietnam at Dirt-Cheap Prices: 5% Import Tax, 1.5 Million Tons Annual Consumption

According to preliminary statistics from the General Department of Vietnam Customs, cotton imports to Vietnam in April reached nearly 170,000 tons, valued at over $290 million.

Cumulative imports in the first four months of the year stood at approximately 625,000 tons, with a total value of over $1.07 billion, marking a 23.9% increase in volume and a 7.7% rise in turnover compared to the same period in 2024.

Surprisingly, in the first four months, the United States surpassed Brazil to become Vietnam’s largest cotton supplier. Imports from the US amounted to 251,321 tons, valued at over $444 million, an increase of 84% in volume and a 57% surge in value compared to the same period in 2024. The average price stood at $1,769 per ton, continuing its downward trend. The US market accounts for about 40% of Vietnam’s total cotton imports, while Vietnam is the third-largest cotton importer for the US, after China and Pakistan.

Brazil ranked second, with 241,777 tons in the first three months, equivalent to $428 million, a 56% jump in volume and a 36% rise in turnover compared to 2024. The average import price was $1,770 per ton, a 13% decrease from the previous year.

Additionally, Australia is the third-largest cotton supplier to Vietnam.

Vietnam is the third-largest cotton importer in the world, with an annual consumption of 1.5 million tons. The country is also the sixth-largest exporter of fiber and the third-largest exporter of textiles and garments, only behind China and Bangladesh.

As Vietnam and the US do not have a bilateral free trade agreement, imports from the US are typically subject to preferential import tax rates. The tax rate for cotton imported from the US is approximately 5%.

International trade policies, particularly tariff measures, have had a significant impact on Vietnam’s cotton market and textile industry. The US’s imposition of tariffs on imports from various countries, including Vietnam, has created challenges for the industry. However, Vietnam has demonstrated its goodwill by considering reducing import taxes on US agricultural products to balance trade and maintain bilateral economic relations.

According to data from the US Department of Agriculture (USDA), in 2024, the world’s largest economy exported approximately 2.49 million tons of cotton, valued at $5 billion.

For 2025, the USDA predicts a potential decrease in US cotton exports due to harsh weather conditions. Their November 2024 report forecasted a $200 million decline in export value to $4.3 billion due to lower export volume. This could be attributed to increased competition from other exporting countries, particularly Brazil, which has overtaken the US as the world’s largest cotton exporter.

Nevertheless, the USDA anticipates a significant rise in US cotton exports to Vietnam in 2025, driven by Vietnam’s record-high demand. This is attributed to the expected continued growth in Vietnam’s cotton demand due to the recovery of the global textile market and increased foreign direct investment in the industry.