In 2020-21, the cotton market in Vietnam improved noticeably. The increase in Vietnam’s cotton yarn and product exports has been solid over the aforementioned time, thus the USDA last month boosted its worldwide 2020/21 cotton consumption forecast to a record 7.3 million bales, which, if right, will be around 7 lakh bales higher than the previous year.
Through the first 11 months of the marketing year, Vietnam’s cotton exports in 2020/21 had already beaten the previous year’s record by more than 10%. Global demand increase was mostly driven by China, with Vietnam’s cotton yarn exports to this country accounting for approximately 60% of total cotton lint consumption in Vietnam. The COVID-19 pandemic has a negative impact on consumption in 2019-2020.
Vietnam’s garment and textile exports of Vietnamese cotton are expected to recover in 2020-21 from the previous year’s decline and rise to more than $30 billion. The countries with the highest volumes of cotton yarn consumption in 2020 were China (8.2M tonnes), India (4.3M tonnes) and Pakistan (3.3m tonnes) China remains the key foreign market for cotton yarn exports from Vietnam, comprising 79% of total exports.