US Share in Vietnam's Cotton Imports Dips

Vietnam’s overall cotton consumption in 2018-19 is expected to grow 6.6 per cent year on year. The country’s demand for cotton, and import requirement, is of importance in particular to exporters in the US, the major origin of Vietnamese purchases for nearly a decade.

The US share of Vietnamese cotton imports this season is forecast at 51 per cent, a little down from the 54 per cent in 2016-17, thanks to tough competition from other major cotton suppliers. The US share of imports in 2018-19 is seen as returning to 54 per cent.

Further, CPTPP will offer an opportunity for Vietnam’s textile and garment industry to grow in the coming years. Increased export revenue can be expected from Canada, Mexico, and Peru, the three CPTPP members with which Vietnam does not yet have a free trade agreement. Growth in cotton imports by Vietnam will slow to a seven-year low next season. Vietnam is the world’s second-largest buyer of the fiber.

In the five years to 2016-17, annual growth in Vietnamese cotton imports averaged 28 per cent, making the country the second-ranked buyer, behind only Bangladesh. The lower growth rate expected for next season is attributed to factors including a broader market slowdown. Another factor is a slowdown in investment in the country’s spinning sector.