Vietnam’s cotton yarn exports are the fastest growing in the world, thanks to orders from the largest importer in the market, China. This dynamic is having a positive impact on US cotton exports to Southeast Asian countries.

The United States accounts for more than half of Vietnam's cotton imports, compared with a third just three years ago. These larger needs in Vietnam are likely to lead to record consumption in 2018-2019. Vietnamese mills continue to attract foreign investment, new or existing. Costs are much lower in Vietnam than in Japan or South Korea, and the country is attracting more and more foreign textile exporters, such as China, India and Pakistan. Vietnam's exports of cotton yarn to China have almost quintupled since 2012-2013, showing stronger links between the textile industries of both countries.

In 2016-17, Vietnam was the main destination for US cotton exports. For the moment, this continues to be true. Cotton is the most valuable agricultural product for the United States, accounting for about 40 per cent of the sector’s total exports.

Over the period from August 2017 to June 2018, US cotton exports to Vietnam again reached record levels. The world’s second largest importer of cotton, Vietnam helped propel US cotton exports in 2017-2018 to their highest level in a decade.