According to the latest US Department of Agriculture estimate, robust development in Vietnam’s cotton yarn and product exports is expected to boost 2020/21 cotton consumption to a record 7.3 million bales, 700,000 more than the previous year’s COVID-19 collapse.
Through the first 11 months of the marketing year, yarn exports from Vietnam in 2020/21 have already surpassed the previous year’s record by more than 10%.
China has been the primary driver of foreign demand, with Vietnam’s cotton yarn exports to the nation accounting for about 60% of Vietnam’s total cotton lint consumption.
Vietnam is the world’s largest cotton yarn importer and Vietnam’s largest customer with the geographic proximity and foreign investment by Chinese companies driving record exports. The United States WRO (Withhold Release Order) on cotton lint from China’s Xinjiang region is further supporting current and future demand for Vietnam’s cotton yarn. Significant foreign and domestic investment in Vietnam’s garment industry has driven greater demand for cotton knitted fabrics.