MUMBAI (Commoditiescontrol) - Vietnam cotton imports are forecast to increase to 1.17 million tonnes or 5.37 million bales (480lb) in the MY2015-2016, up 25 percent from previous year, according to USDA attaché.
U.S. cotton continues to dominate the Vietnam market in MY2015-2016 with an estimated volume of 486,200 tonnes, up 20 percent over the previous year. Vietnam’s cotton consumption in 2016-2017 is projected to continue rising at strong pace.
Vietnam exports about 65 percent of the yarns (including cotton yarn) that it produces to international markets, especially to China, Turkey and South Korea. In CY 2015 yarn export volume was up 12 percent to 961,777 tonnes, of which 498,100 tonnes were shipped to China, up 26 percent over 2014; 92,400 tonnes to Turkey, down 15 percent; and 75,700 tonnes to Korea, up 12 percent.
Vietnam imports of cotton by Marketing Year (August 2015-July 2016):
Vietnam imported a record of 935,900 tonnes (or 4.29 million bales) of cotton, valued at $1.55 billion in MY2014/2015, a sharp increase of 35 percent in quantity and 11 percent in value over the previous year. USDA forecasts Vietnam’s cotton imports will reach 1.17 million tonnes or 5.37 million bales in the 2015-2016, up 25 percent over 2014-2015.
Vietnam’s domestic cotton consumption continues to increase in order to meet strong demand from its expanding textile industry. Demand for yarns is strong, both for export and domestic markets. Vietnam is one of a very few countries in Asia that have expanded their yarn spinning sector in recent years.
Vietnam is currently home to over 100 spinning mills with about 6.3 – 6.5 million spindles (equivalent) that generate an estimated capacity of over 900,000 tonnes of cotton-based and man-made yarns. Industry experts estimates that new and existing spinning projects being registered in 2015 will raise the number of spindles in Vietnam from 6.3 – 6.5 million in 2014-2015 to 8.2 million in 2016-2017.
Vietnam’s cotton consumption has been increasing strongly at an average rate of 22 percent, per year, for the last five years. Domestic cotton consumption for MY 2014/2015 reached 935,900 tonnes, equivalent to 4.29 million bales, valued at $1.55 billion, a sharp increase of 35 percent in quantity and 11 percent in value over the previous year. Post estimates that Vietnam spinning industry will probably consume a volume of 1.17 million tonnes or 5.37 million bales in the 2015-2016, up 25 percent over 2014-2015.
Based on several key factors that could affect Vietnam’s cotton consumption such as: 1) China’s policies remain largely unchanged, 2) global cotton price is likely stable at low level, 3) in addition to expansions of existing spinning mills, foreign investors either establish new spinning mills or relocate their mills to Vietnam to capture opportunities offered by several trade pacts that Vietnam has signed with other trade partners, Post forecasts Vietnam cotton consumption will continue to increase in 2016-2017 at a strong pace, in the region of 20 percent over the 2015-2016.
U.S Bales: 480Lb
(By Commoditiescontrol Bureau; +91-22-40015533)
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