Vietnam: Cotton and Products Update

Vietnam cotton imports in marketing year 2021/22 (MY21/22) decreased 9 percent year on year to roughly 1.4 million metric tons (MMT) with a 30-percent higher value at $3.5 billion, according to Vietnam Customs data. Cotton imports dropped significantly from April to July 2022, mostly due to low demand for cotton yarn, which dragged down total Vietnam cotton imports in MY21/22. U.S. cotton exports to Vietnam in MY21/22 significantly contracted by 36 percent year on year to 428 thousand metric tons (TMT), lower than Post’s estimates of 25 percent in the 2022 Vietnam Cotton Annual Report. Australia cotton exports to Vietnam gained in market share with an increase of 146 percent, from 122 TMT in MY20/21 to 300 TMT in MY21/22. Post revises its forecast on Vietnam cotton imports in MY22/23 down 5 percent year on year to 6.3 million bales or 1.4 MMT due to volatility in prices and falling global demand for textile and apparel products.