According to analysis by foreign institutions, Vietnam’s textile and apparel exports will reach US$31.5 billion in 2017, a year-on-year increase of 10%, reversing the slowdown in growth in the previous two years.
In 2017, foreign investment in Vietnam’s textile and garment industry continued to increase, foreign confidence in investing in Vietnam’s spinning industry increased again, and local yarn mills continued to expand production capacity. In 2017, local yarn mills will add 100,000 spindles. There are currently about 100 spinning mills in Vietnam, with a total number of spindles of about 8.5 million, and yarn production in 2017 is expected to exceed 2 million tons.
65% of Vietnamese yarn is exported, mainly to China, South Korea, and Turkey. Total yarn exports in 2017 are expected to reach 1.3 million tons, a year-on-year increase of 10%, of which cotton yarn accounts for about 65% (845,000 tons).
Vietnam’s cotton yarn exports to China continued to grow significantly in 2017. Statistics show that from January to September 2017, China imported a total of 541,700 tons of Vietnamese cotton yarn, a year-on-year increase of 16.81%. Import volume is expected to reach 700,000 tons in 2017. At present, China is still the largest export destination of Vietnam’s cotton yarn, accounting for more than 80% of Vietnam’s cotton yarn exports in 2017. Vietnam’s cotton yarn exports are highly dependent on the Chinese market demand. Once China’s cotton and cotton yarn policies change, it will bring negative consequences to Vietnam’s cotton imports. direct impact.
So far, although China’s cotton reserves have brought domestic cotton prices closer to international cotton prices and the government has vigorously supported the development of Xinjiang’s textile industry, they have not had a negative impact on Vietnam’s cotton yarn exports. The current situation is that Vietnam’s cotton yarn exports to China continue to increase. In the short term, Vietnam’s unique geographical advantages, competitive costs and China-ASEAN Free Trade Agreement and other favorable factors will enable Vietnam’s spinning industry to continue to attract foreign investment. Vietnam will continue to take advantage of historical opportunities to expand cotton yarn exports to China.
Overall, driven by China’s import demand, Vietnam’s cotton consumption will continue to increase in the future. China’s existing cotton policy is conducive to the import of Vietnamese cotton yarn and reduces the import of Indian yarn and Pakistani yarn, which will continue to increase Vietnam’s cotton consumption in 2017/18. Vietnam’s spinning investment increases, cotton yarn exports have bright prospects
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