According to reports from foreign analysts, despite the negative impact of the new crown epidemic, the operations of Vietnamese spinning mills have withstood the test and have received increased demand for cotton yarn imports from China. In 2020/21, Vietnam’s cotton yarn exports to China reached 984,000 tons, a year-on-year increase of 13%.
In order to meet the needs of textile production and export, Vietnam’s cotton imports also increased by 12%, reaching 1.59 million tons, but US cotton imports fell by 20% year-on-year. , 673,000 tons, due to China’s increased purchases of US cotton and fierce competition from Brazilian cotton and Australian cotton. The U.S. Agricultural Counselor estimates that Vietnam’s cotton imports in 2021/22 will be 1.7 million tons, a year-on-year increase of 7%.
The report analyzes that the new crown epidemic in 2021 will have a greater impact on Vietnam’s textile production and exports. In order to prevent and control the epidemic, the Vietnamese government has adopted strict blockade measures and requires textile companies to provide employees with accommodation and daily necessities as well as nucleic acid testing. The above measures have caused many factories to temporarily close or significantly reduce their operating rates, which has had a huge impact on Vietnam’s textile production, supply, and exports. Growth in January-July 2021 partially offset the sharp decline that began in August, but textile and apparel exports for the whole of 2021 will return to 2019 levels.
The Vietnam Textile and Apparel Association estimates that Vietnam’s textile and apparel exports will be US$36.5 billion in 2021, a year-on-year increase of 3-4%, but a decrease of 7-7% from 2019. 8%. In addition, the shortage of containers has also had a negative impact on Vietnam’s textile and garment industry. Fortunately, Vietnam’s spinning mills have been less affected than the garment industry. Due to the small number of workers in the factory, spinning is more mechanized than clothing, and the large-scale production of the factory, almost all spinning factories can achieve social isolation and have not yet closed their doors.
Vietnamese spinning mills are expected to survive 2021 successfully due to increased demand from China and rising global yarn prices. According to Vietnam Customs data, Vietnam’s total export volume of various yarns from January to October 2021 was 1.6 million tons, with an export value of US$4.6 billion, a year-on-year increase of 16.4% and 55% respectively. It is expected that the export volume for the whole year of 2021 is expected to reach a record high of 2 million tons, and the export value will exceed 5.5 billion US dollars. According to Vietnam trade monitoring data, from January to September 2021, Vietnam’s cotton yarn export volume was 861,000 tons, a year-on-year increase of 14%, and the export volume was US$2.5 billion, a year-on-year increase of 40%. This was mainly due to the maintenance of cotton yarn production and China’s import demand. Strong and rising global cotton yarn prices.
Driven by the strong growth of cotton yarn exports to China, Vietnam’s cotton imports also reached 1.6 million tons in 2020/21, a year-on-year increase of 12%. Although cotton prices fluctuate significantly, Vietnam’s domestic yarn mills have received Chinese import demand. With the recovery of global demand for clothing and the control of the epidemic in Vietnam, Vietnam’s cotton imports are expected to reach 1.7 million tons in 2021/22, a year-on-year increase of 7%, but the premise is that there are no changes in the Vietnam epidemic and Sino-US trade relations.