After a degree of slowdown in late 2015-16, Vietnam’s cotton imports have moved upwards again in the first few months of 2016-17. Imports in the period August to November, saw an estimated 18 per cent increase over the same period in 2015-16. This means it imported about 1.6 million bales.
The 12-month total (Dec 2015-Nov 2016) for Vietnam has now reached a record level and is expected to move higher. The United States Department of Agriculture (USDA) has raised the 2016-17 forecast for Vietnam’s imports to 5.0 million bales.
Rising demand is largely due to the fact that there is considerable demand for Vietnam-produced yarn in China. China customs data from August to October show, cotton yarn imports from Vietnam was up 200,000 bales. Vietnam’s spinning sector does not appear to have suffered unduly as a result of China’s internal cotton prices which are substantially lower than global levels. Many analysts expect to see spinning declining in countries that previously benefited from lower Chinese domestic spinning.
In particular, countries like India and Pakistan have experienced substantial decline in yarn exports to China. However, Vietnam’s continuing strong demand is supported by a rise in China’s yarn imports from Vietnam.