Vietnam: Cotton and Products Annual

Vietnam’s success in controlling COVID-19 has allowed textile and garment companies to maintain their operations, despite short-term disruptions. Post revises its estimate for Vietnam’s cotton imports in MY20/21 up 5 percent to approximately 6.8 million bales or 1.48 million metric tons (MMT) due to high demand from China and South Korea. Despite this recovery, Post estimates that U.S. cotton exports to Vietnam will decline by 10 percent in MY20/21, as Vietnamese spinners are encountering difficulties in buying U.S. cotton due to major purchases by China. Brazil is using this opportunity to increase its cotton exports to Vietnam and will see its market share continue to grow in in MY20/21. Post forecasts Vietnam’s cotton imports for MY21/22 to increase 5 percent from the previous year, to 7.1 million bales or about 1.55 MMT.