VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 04/2023 ISSUE

MONTHLY REPORT
Cotton and Yarn Statistic
April
2023
Vietnam Cotton and Spinning Association
Collected & Edited: Information and Communication Dept.
--- For internal circulation only ---

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VCOSA Newsletter
April 2023 https://vcosa.vn
National news
International news
REMARKABLE INFORMATION
🔹 Imported raw cotton prices are likely to keep falling in the coming time
🔹 Forecasted import volume of raw fiber is expected to remain low next month
🔹 The import price of yarn dropped sharply
🔹 Government approves tax extensions to boost economy
🔹 Government endorses 2% VAT cut
🔹 Textile and garment industry needs to deploy various solutions to stabilize production in the difficult period
🔹 Vietnam’s GDP forecast for 2023 by international organizations
🔹 QCO takes effect for polyester fibre in India; industry divided
🔹 BGMEA calls for VAT waiver and duty-free import of textile waste to boost recycled fiber production
🔹 Bangladesh textile mill owners seek interim suspension on cotton yarn import
🔹 Chinese researchers find new mechanism to improve quality of cotton fiber
🔹 India’s cotton exports seen sliding, matching imports for first time in years -USDA
🔹 Brazil cotton area growth constrained by price drop - Bayer execs

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VCOSA Newsletter
April 2023 https://vietnamyarnprice.com
I
ndia has extended the deadline
for mandatory QCO on four
orders—polyester fully drawn
yarn, polyester partially oriented
yarn, polyester industrial yarn, and
100 per cent polyester spun yarn—
until July 2, 2023. The ministry
of chemicals and fertilisers had
previously issued Quality Control
Orders requiring BIS certification
for the import and domestic sale
of various polyester products,
including 100 per cent polyester
staple fibre yarn.
Domestic polyester fibre
and product manufacturers
have obtained BIS certifications,
ensuring no supply disruptions
from domestic producers, as per
market experts. Some foreign
manufacturers have also secured
certification, while many others
are still awaiting approval. A senior
industry official told Fibre2Fashion,
“The Indian government had
initiated the mandatory QCO
two years ago and provided
ample time for BIS certification.
Standardising polyester products
will improve quality in the Indian
textile industry, aligning with the
government’s long-term vision.
Some implementation issues may
arise initially, but the overall quality
of polyester products is expected
to improve.”
However, the domestic yarn
industry is not pleased with
the new provisions, viewing
them as regulatory support for
dominant local suppliers. They
argue that these suppliers will
be able to dictate higher prices
in the absence of competition
from global suppliers. Domestic
producers counter that their plants
are operating at lower capacities
due to an influx of imported supply,
and they can meet any raw material
shortages if imports decrease due
to QCO implementation.
Trade data suggests that there
is no flooding of imported polyester
fibre in the country. India’s import of
polyester fibre (HS Code 550320)
has remained stagnant. India
imported 84 million kg of polyester
fibre (HS Code 550320), valued at
$111.192 million, in 2022.
This represents a slight
increase, but not flooding. Imports
were 82.113 million kg ($103.002
million) in 2021, 82.325 million kg
($82.957 million) in 2020, 116.737
million kg ($138.878 million) in
2019, 83.285 million kg ($116.448
million) in 2018, and 91.248 million
kg ($105.357 million) in 2017,
according to Fibre2Fashion’s
market insight tool TexPro. Imports
increased in 2018 and 2019 but
did not recover from the COVID
disruption even after three years.
Source: Fibre2Fashion
INTERNATIONAL NEWS
QCO takes effect for polyester fibre in India;
industry divided
The Quality Control
Order (QCO) has come
into effect for polyester
fibre and other upstream
and downstream products.
The Indian government
has granted a three-month
extension for mandatory
QCO implementation on
certain polyester yarn
varieties. Trade data
indicates that polyester
imports have not recovered
since the COVID disruption.
The government aims
to improve the quality of
polyester products through
the QCO, aligning with its
long-term vision.

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VCOSA Newsletter
T
he tax applies to the collection of raw materials
used by locally established recycled fiber
production mills and their supply to local
spinning mills. Additionally, the BGMEA is urging the
establishment of an HS code and duty-free facilities
for importing textile waste, clips, and mutilated
garments from the textile industry.
Recycledfiberisanemerging100%export-oriented
backward industry that is growing in importance for
achieving new laws and Sustainable Development
Goals (SDGs) in the EU and the West. However, locally
sourced 5,77,000 tons of textile waste are not enough
to meet demand from buyers. To address this, the
BGMEA is recommending the import of textile waste
and mutilated garments to meet demand.
Producing recycled fiber adds value at the local
level, is chemical-free, and emits no CO2, making it a
unique solution for protecting the environment. Using
recycled fiber as an alternative to virgin cotton saves
Bangladesh at least 30% of foreign exchange on total
imports of virgin cotton, which is worth an estimated
$1 billion.
As international consumers shift towards circular
fashion and recycled products, the BGMEA believes
it is crucial to focus on reusing post-industrial waste
or jute cloth as raw materials. The European Union’s
new law requires cotton fabrics to include at least
50% virgin cotton, organic cotton, or polyester with a
comparable rate (recycled fiber) by 2025.
To encourage foreign investment, increase the use
of recycled fiber in the industry, and ensure access
to the European market for apparel items made
from recycled fibers, the BGMEA has suggested the
exemption of the 7.5% and 15% VAT charged on the
gathering of raw materials used by locally established
recycled fiber manufacturing mills and their supply to
local spinning mills.
Source: Fashionating World
BGMEA calls for VAT waiver
and duty-free import
of textile waste to boost
recycled fiber production
The Bangladesh Garment Manufacturers
and Exporters Association (BGMEA) is calling
for the waiver of the 7.5% and 15% VAT
imposed on locally recycled fiber to attract
more foreign investment in the industry

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VCOSA Newsletter
Chinese researchers
recently discovered a plant
hormone which can regulate
cotton fiber growth and is
expected to improve the quality
of cotton fiber.
C
otton is an important cash
crop in China and the main
raw material used by the
textile industry, which means that
cotton fiber’s quality determines
the quality of textiles.
Brassinosteroid (BR),
a growth-promoting phyto-
hormone, regulates many plant
growth processes, including
cell development. However,
the mechanism by which BR
regulates fiber growth was poorly
understood.
Researchers from the
Institute of Cotton Research
under the Chinese Academy of
Agricultural Sciences discovered
that BR can promote the
molecular mechanism of cotton
fiber elongation by modulating
very-long-chain fatty acid
biosynthesis.
Several key genes that
regulate important charac-
teristics of cotton can all be used
as technical reserves to guide
cotton production in the future,
said Li Fuguang, leader of the
research team.
“Next, we will continue
to study whether BR plays a
role in other ways, hoping to
realize the transformation of
sci-tech achievements to boost
agricultural production”,
he said.
The researchers published
their study results in three
journals namely Plant Cell,
Plant Physiology and Plant
Biotechnology Journal.
Source: Xinhua
Brassinosteroid can
promote the molecular
mechanism of cotton fiber
elongation by modulating
very-long-chain fatty acid
biosynthesis
Bangladesh textile
mill owners seek
interim suspension
on cotton yarn
import
Chinese
researchers find
new mechanism
to improve quality
of cotton fiber
The Bangladesh Textile Mills
Association (BTMA), which is the body
of the textile mill owners in the country,
has sought an interim restriction
on import of cotton yarns for the
readymade garment (RMG) industry
even as they cited stockpiles of the
same in various mills of the country to
press home their point.
According to reports, in a letter
written to the Governor of Bangladesh
Bank(centralbank)AbdurRoufTalukder,
BTMAPresidentMohammadAliKhokon
made this request while underlining
such a move (temporary suspension
on the import of cotton yarns) will help
to retain the foreign currency even
as the BTMA also demanded issuing
an interim instruction to the export-
oriented readymade garment factories
to procure at least 70 per cent of their
total cotton yarn requirement from the
local spinning mills under back-to-back
letters of credit.
The mill owners’ body further
reportedly held if the central bank
introduces such policy, it will help
Bangladesh face the issue of dollar
crisis and at the same time the local
spinning mills would get rid of liquidity
crisis caused by yarn stockpiles.
Source: Apparel Resources
A cotton picker is seen working in fields in Xayar County,
Aksu Prefecture, northwest China’s Xinjiang Uygur Autonomous
Region, Sept. 26, 2022. (Photo by Liu Yuzhu/Xinhua)

https://vcosa.vn
The COMPACTeasy mechanical compacting system from Suessen
addresses the need for higher productivity and cost optimization in
compact spinning. The system can spin high-quality yarn from all
common raw materials – at a high speed. Low investment cost, less
energy consumption and minimal maintenance make COMPACTeasy an
attractive alternative to pneumatic systems for spinning mills.
Saving energy and cost are decisive factors for spinning mills today.
Most spinning systems require both a high level of initial investment
as well as considerable operating cost. While compact spinning is
appreciated for its excellent yarn quality and high productivity, it can also
be very cost-intensive, especially with pneumatic compacting systems
requiring a lot of electricity.
Unmatched compact-spinning quality
Continually striving to push boundaries of innovation, Suessen
developed COMPACTeasy, a mechanical compacting solution that offers
low investment cost without compromising on quality. It produces yarns
with excellent characteristics from a broad range of raw materials, such
as cotton and man-made fibers, as well as their blends. With a count
range from Ne 20 to Ne 60, COMPACTeasy covers most applications.
The recipe for success
COMPACTeasy guides fibers through the y-channel of the compactor
with precision, which results in intensive double compacting (Fig. 1)
without any additional energy requirements compared to ring spinning.
Compared to other mechanical systems, the compacting channel
of COMPACTeasy is much wider, so it is less prone to clogging. Thanks
to the traverse motion of the compactor (Fig. 3), the lifetime of cots is
extended resulting in lower maintenance requirements and constant
and durable yarn quality. This is a considerable advantage compared to
flipping the front top roller, which is what mechanical systems usually
require.
Sophisticated technology for less wear and tear
The device consists of a front top-roller retainer and the smaller
COMPACTeasy roller (Fig. 2). The compactor features the y-channel
and the preceding pin and is located between the two top rollers. The
compactor spring uses a low spring force to press the compactor against
the bottom roller. This causes considerably less wear and tear on the
compactor than magnetically loaded compacting elements.
The yarn quality is determined by both the y-channel of the
compactor and the integrated pin, which takes effect precisely in the
zone of the drafting system where the fibers have the least guidance.
This process improves yarn irregularity and increases yarn tenacity.
Hairiness is also significantly reduced and often achieves better results
than pneumatic compacting systems.
Flexibility and compatibility
COMPACTeasy can be added to the specifications for new ring
spinning machines (Fig. 4). Furthermore, machines that have already been
installed can easily be retrofitted. COMPACTeasy enables production to
be switched from ring to compact yarn by simply installing or removing
the compacting device on a ring spinning machine.
Suessen customers are not just impressed by COMPACTeasy’s low
investment and operating cost, they also appreciate the very high yarn
tenacity and consistency, as well as the ability to produce a wide range
of fibers and counts.
Trade Press Article
Economical Compact-Spinning Using
State-of-the-Art Technology
Rieter Trade Press Article: Economical Compact Spinning Using State-of-the-Art Technology, April 2022
About Rieter
Rieter is the world’s leading supplier of systems for short-staple
fiber spinning. Based in Winterthur (Switzerland), the company develops
and manufactures machinery, systems and components used to convert
natural and man-made fibers and their blends into yarns. Rieter is the
only supplier worldwide to cover both spinning preparation processes
and all four end-spinning processes currently established on the market.
Furthermore, Rieter is a leader in the field of precision winding machines.
With 17 manufacturing locations in ten countries, the company employs
a global workforce of some 4 900, about 18% of whom are based
in Switzerland. Rieter is listed on the SIX Swiss Exchange under ticker
symbol RIEN. www.rieter.com
About Suessen
Suessen, the world’s leading manufacturer of spinning systems
and components for spinning machines, is a subsidiary of the Rieter
Group. The company, based in Suessen (Germany), creates customer
value through system expertise, innovative solutions, after-sales
excellence and global presence. Considerable investments in R&D
ensure further development of technical and technological components
in an uncompromising and resolute manner. The company focuses on
universal applicability, improved yarn quality, increased service life,
reduced maintenance and proven reliability in industrial applications.
www.suessen.com
Rieter Management AG
Klosterstrasse 32
P.O. Box
CH-8406 Winterthur
T +41 52 208 71 71
F +41 52 208 70 60
www.rieter.com
For further information,
please contact:
Rieter Management AG
Media Relations
Relindis Wieser
Head Group Communication
T +41 52 208 70 45
F +41 52 208 70 60
media@rieter.com
www.rieter.com
Fig. 1: The y-channel in the
compactor enables intense
double compacting for all
yarn counts.
ID Asset: 96568
Fig. 2: COMPACTeasy retainer with
COMPACTeasy roller, easy-spring,
and compactor with y-channel.
ID Asset: 96569
Fig. 3: Transmission of
the traverse motion to
the compactor (view
from the rear).
ID Asset: 96570
Fig. 4: COMPACTeasy can be installed in new and existing ring spinning
machines. ID Asset: 92811

VCOSA Newsletter
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Bản tin VCOSA
Tháng 4-2023 https://vietnamyarnprice.com

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VCOSA Newsletter
India’s cotton exports are
expected to slide sharply for 2022-
23 and match imports into the top
producer for the first time in about
two decades on low domestic
stocks among other factors, the
United States Department of
Agriculture (USDA) said.
I
n its April World Agricultural
Supply and Demand Estimates
report released on Tuesday, the
USDA projected 2022-23 Indian
exports falling by 500,000 bales
to 1.8 million, roughly equaling its
import forecast.
“Lower domestic supplies,
increased demand for foreign
long and extra-long staple grades,
and the Australia-India Economic
Cooperation and Trade Agreement
(ECTA) have all supported this
recent dynamic,” the USDA said.
“Indian crop size is far lower
than initial estimate. The country
is going to produce very small
surplus. That’s why local prices
are firm and there is no parity for
exports,” said a Mumbai-based
dealer with a global trade house.
”In coming months, supplies
would fall further. Exports won’t
gain momentum until new season
crop starts from October.”
Although India was forecast
to be the third largest exporter
globally, projected at about 1.8
million bales in 2022-23, this was
still well below the 6.2 million
during 2021-22, the USDA said.
“Lower production might
tighten the global balance sheet,
creating worldwide opportunities
and challenges,” said Bailey
Thomen, cotton risk management
associate at StoneX Group.
“If India does increase imports
and we see higher demand, ICE
cotton prices might rise. But
demand has been slow due to
economic conditions.”
Global benchmark U.S. cotton
futures prices CTc1 are on track
for a third straight monthly fall and
have declined over 1% so far this
year on demand concerns.
The CAI had said that lower
Indian output could allow rivals
such as the U.S., Brazil and
Australia to increase cargoes to
key Asian buyers such as China
and Pakistan, while pushing up
local MCOTc1 and global prices.
COT/N
(1 bale= 170 kg)
Source: Reuters
India’s cotton exports seen sliding, matching imports for
first time in years - USDA
The Cotton Associa-
tion of India (CAI) said in
March that Indian stocks
could fall to a near two-
decade low in 2022-23 as
adverse weather curtailed
crop yields.
Credit: REUTERS/AMIT DAVE

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VCOSA Newsletter
Germany’s Bayer BAYGn.DE
believes that Brazil’s cotton area
growth may be limited after a
sharp drop in global prices, though
prospects are brighter in the
longer run.
I
n an interview with Reuters, Bayer
executives said cotton planting
could potentially grow by 2%
to 3% in 2023/24. However, after
global prices CTc1 fell by almost
half compared to 2022’s highs, that
prediction might not materialize.
“Next year’s planting will
depend on the price of the
commodity,” said Bayer’s global
cotton leader, Shea Murdock,
ahead of a 10-day trip to main
producing areas in Mato Grosso
and Bahia. “We are going to have
these ups and downs, as we have
always had in the price of cotton,
but in the long run demand remains
sustainable,” he said, adding the
total area could grow slightly to 1.7
million hectares from about 1.65
million hectares.
Cotton prices dropped to
around 80 cents per pound in New
York, marking an almost 10-year
low.
Still, Murdock said that Bayer,
which controls about half of the
market for genetically modified
cotton seeds in Brazil, is preparing
new product launches, citing good
market prospects and export
demand.
China bought about a fourth
of Brazil’s cotton exports in 2022,
which totaled almost $4 billion,
including fibers and textiles.
Eduardo Correa,
Bayer’s Latin America
cotton leader, said Brazil
has “great potential for
opening up areas,” though
“macroeconomic and
microeconomic issues
impact the speed of this
advance”.
In 2021, Bayer launched its
latest cotton seed biotechnology
in Brazil, the Bollgard 3 RRFlex,
offering protection against the
certain caterpillars.
In two years’ time, it plans the
launch of Bollgard 3 XtendFlex,
which adds tolerance to herbicides
dicamba and glufosinate, and is
already in use in the U.S.
The rollout of the new
technology will come despite an
ongoing legal challenge over the
patent for the Bollgard 2, launched
on the local market in 2013, the
executives said.
Source: Reuters
In 2019, Bollgard
became the most used
technology in Brazil and
remains until today,”
Correa said. “This shows
that the farmers like it.
Eduardo Correa, Bayer
Brazil cotton area growth constrained by price drop
– Bayer execs
Credit: REUTERS/RICARDO MORAES

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VCOSA Newsletter
T
he government has extended the
payment deadlines for value-added
and income taxes and land rents for a
fifth time to support the economy amid the
global headwinds.
Extensions of three to six months will be given for
VAT incurred between March and August.
Priority sectors such as agriculture, forestry,
seafood, food processing, garment, construction,
transportation, and logistics will see the VAT and
personal income tax dates extended to Dec. 31.
Corporate income tax payable in the first and
second quarters will be deferred by three months.
In the case of land rents, the priority sectors will
also get a 50% discount for this year and an extension
of six months if payable from May 31.
This is the fifth extension the government has
given since Covid-19 broke out to boost economic
resilience and manufacturing amid a drop in export
orders as global consumers tightened spending due
to fears of inflation and recession.
The extensions involve taxes worth VND112
trillion ($4.77 billion). The figure last year was VND233
trillion.
Source: VnExpress
Government approves tax extensions to boost economy
Farmers harvest rice in the central highlands province of Kon Tum. Photo by VnExpress/Duc Hoa
NATIONAL NEWS

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VCOSA Newsletter
The government has green-lighted a cut in value-
added tax from 10% to 8% for the rest of this year, and
will present it to lawmakers for approval.
T
he Ministry of Finance, which
made the proposal, has been
tasked with presenting it to
the National Assembly Standing
Committee and getting it approved
speedily.
The next House session is
scheduled for next month, but the
Standing Committee can approve
certain things on behalf of the
National Assembly.
Lowering VAT by 2 percentage
points is a repeat of a policy
adopted last year to support
economic recovery post-pandemic.
The ministry said earlier that
a tax incentive is needed to boost
consumption and manufacturing
amid global economic challenges.
Vietnam’s GDP expanded
by 3.32% in the first quarter, the
second lowest growth rate in the
last 12 years and the same as
in the first quarter of 2020 when
Covid-19 first broke out.
The number of companies
that shut down last quarter was
62,000, higher than the number of
newly registered and reopening
companies (57,000) for the first
time.
Many factories have reduced
operations and laid off employees
amid a fall in global orders due to
inflation and recession concerns.
The tax incentive would reduce
government revenues by VND5.8
trillion a month, the ministry
estimated.
It has also proposed cuts in
35 other taxes and fees in the
second half of the year to support
the economy. Those are estimated
to cost the government coffers
VND700 billion.
Source: VnExpress
Government endorses 2% VAT cut
Customers shop at a supermarket in Ho Chi Minh City. Photo by VnExpress/Ngoc Thanh

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VCOSA Newsletter
T
he IMF’s latest World Economic Outlook report
ranks Vietnam second in the region with a
projected growth rate of 5.8%, behind only the
Philippines (6%). The IMF estimates Vietnam’s GDP in
2023 at about $449.09 billion.
The ADB’s Vietnam Economic Outlook report
predicts a slight slowdown in Vietnam’s growth this
year, from the impressive performance in 2022, to
6.5% and then a rebound to 6.8% in 2024.
Mr. Andrew Jeffries, ADB’s Country Director
in Vietnam, attributed the slowdown in economic
growth to the global recession, monetary tightening in
developed countries and the spillover effects of global
political tensions.
With ADB’s projected growth rate of 6.5%,
Vietnam’s GDP in 2023 will reach about 435.59 billion
USD (up from 409 billion USD in 2022 as reported by
the General Statistics Office).
The World Bank’s Review, released on
March 13, also forecasts Vietnam’s growth
at 6.3% in 2023 and notes that Vietnam has
more room to implement growth-enhancing
measures than many other countries.
According to Mrs. Dorsati Madani, a
senior WB economist, Vietnam’s economy
rebounded strongly in 2022 with an 8%
growth rate, partly due to a low base effect
and the recovery of domestic consumption
and export-oriented production after the
pandemic.
However, the growth rate is expected to
drop to 6.3% in 2023 due to domestic and
external challenges. This means Vietnam’s
GDP in 2023 will reach about $434.77
billion with the WB’s projected growth rate
of 6.3%.
The ASEAN+3 Macroeconomic
Research Office (AMRO) is another
organization that forecasts Vietnam’s GDP
growth. It predicts a 6.2% growth rate for
Vietnam in 2023, which is higher than the
4.6% average growth rate for the ASEAN+3
region.
Vietnam’s GDP forecast for 2023
by international organizations
International organizations have updated their
forecasts for Vietnam’s GDP growth in 2023 based
on the Q1/2023 results.

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VCOSA Newsletter
T
he textile and garment
market remains stagnant in
the first months of 2023, as
most businesses have orders only
until March, facing lower prices and
higher competition. To survive this
crisis, businesses need to adopt
flexible strategies and enhance
their product value.
The Vietnamese textile
industry is in a very tough situation,
according to the Vietnam National
Textile and Garment Group.
The global economy, financial
markets, and currencies are all on
a downward trend.
Global demand is
also growing slowly,
from 2.5% to 4%,
much less than
previous years.
Vietnam’s main
export markets for
textiles, such as the
EU and China, are
also declining by
about 2% to 4%.
M o r e o v e r ,
businesses are
struggling with
supply disruptions
and soaring raw
material prices,
which hamper their production
and operations. The market has
not improved yet, as global textile
demand has not bounced back
due to weak consumption in major
markets like the US and Europe.
The garment industry faces a
bleak outlook as most businesses
only secure orders until March
2023. The subsequent months
show a sharp decline in demand,
with orders becoming smaller and
more complicated. Processing
prices also drop while competition
intensifies.
The yarn industry remains
in a slump, with no recovery in
sight. The market price of yarn is
low, while the cost of cotton for
production is much higher. The
reopening of the Chinese market
offers some opportunities for
yarn businesses as demand picks
up there. However, they also face
fierce competition from Chinese
manufacturers in the global textile
market.
They also need to stay close to
customers and markets, adapt to
new changes, and secure jobs for
their workers. These measures will
help them protect their resources
and survive the long-term
difficulties.
Source: VITIC
Vietnam’s GDP in 2023 will
reach about $434.36 billion
with AMRO’s projected growth rate
of 6.2%.
UOB also revised down its
forecast for Vietnam’s GDP growth
in 2023 to 6.0% from 6.6% in a
report on Vietnam’s Q1/2023
growth published on March 31.
UOB said Vietnam’s Q1/2023
growth rate fell to 3.32% year-
on-year, lower than its previous
estimate and the 5.92% growth
in Q4/2022. The main drag was
the manufacturing sector, which
shrank by 0.4% for the first time
since Q3/2021.
The manufacturing sector
suffered from weak external
demand, as expected. Exports and
imports also declined by 11.9%
and 14.7% respectively in the first
quarter, but Vietnam still recorded
a trade surplus of 4.1 billion USD,
the third in a row.
Vietnam’s GDP in 2023 will
reach about $433.54 billion with
UOB’s projected growth rate of 6%.
Source: Business Life
Textile and garment industry needs to deploy various solutions
to stabilize production in the difficult period
To cope with the current
challenges, textile and
garment businesses need
to trim unnecessary costs,
save on all fronts, and
invest in training to boost
productivity and quality.

VCOSA Newsletter
VCOSA’S ACTIVITIES
VCOSA’S ACTIVITIES
📌 On April 4, 2023, VCOSA met with Assoc. Dr. Bui Mai Huong to discuss opportunities for collaboration in
hosting workshops and technical training sessions.
📌 On April 5, 2023, VCOSA attended the seminar “Traceability and transparency requirements in the supply
chain and its implications for Vietnamese enterprises”, which was co-hosted by the Trade Remedies
Administration of Vietnam and the US Trade Facilitation Program. The seminar aimed to raise awareness
among businesses of the importance of ensuring transparency in their supply chains and complying with
the traceability regulations of the importing country.
📌 Later that afternoon, VCOSA held an online meeting to mediate the dispute over cotton quality between its
members and the Shipper. VCOSA’s representative summarized the situation and proposed solutions for
the parties to consider.
📌 On April 6, 2023, VCOSA joined the webinar “China yarn and textile market operation and outlook”, organized
by CFFGroup in China, to gain insights into the trends of Cotton, Viscose, PSF, and other materials.
📌 On April 11, 2023, VCOSA met online with Mr. Jean-Paul from AsiaCotton to discuss a collaboration plan for
the Quality Matter 2023 training course, which is scheduled for July or August 2023.
📌 On April 14, 2023, VCOSA welcomed representatives from SunFlower India, a company that specializes in
providing raw cotton and yarn from India, at its head office to discuss potential cooperation in Vietnam.
📌 Later that afternoon, VCOSA joined the webinar “Green transformation roadmap & things businesses need
to be aware of”, which was organized by the PSD Committee, Vietnam Economic Forum, and The Asian
Foundation. The webinar provided businesses with information to help them understand the general green
transition roadmap and the key points to note in it.
📌 VCOSA launched a program on April 17, 2023 to help its members boost their image, brand awareness and
main products across domestic and international trade channels. The program is called “Communication -
Promotion of VCOSA’s members 2023”.
📌 On April 20, 2023, VCOSA met with President Ni Liqun and Vice President Tracy Wang from United Asia
International Exhibition Group (UAEC) at its head office to explore opportunities for hosting exhibitions in
Vietnam in December 2023.
Some photos of VCOSA’s activities
Mr. Nguyen An Toan, VCOSA’s chairman participated in the seminar “Traceability and transparency requirements in the
its implications for Vietnamese enterprises”

VCOSA Newsletter
SUPPORTIVE ACTIVITIES FOR MEMBERS
O
nMarch20,2023,DongKhanhTextileJointStock
Company, owned by Mr. Trinh Tan Hoang who is
also the CEO, located in Tan Do Industrial Zone,
Duc Hoa, Long An Province - one of the major spinning &
textile producers in the South, and an active member of
the Vietnam Cotton and Spinning Association (VCOSA)
- was removed from the LOUA 2 of the International
Cotton Association (ICA), which is a list of companies
proven to have links to one listed on LOUA 1. LOUA 1
is a public list that identifies companies that have failed
to comply with one or more arbitral awards under the
ICA’s Bylaws and Rules.
Dong Khanh Textile Joint Stock Company has a
capacity of more than 100,000 spindles and 5,000 OE
rotors, and can supply 22,000 tons of yarn per year from
cotton to blended yarn (CVC, TC) for both domestic and
international markets.
From December 2022 to March 2023, Dong Khanh
cooperated with VCOSA to provide complete information
and legal documents to prove the company’s eligibility
to be removed from LOUA 2. The ICA actively supported
the investigation process and worked closely with all
parties to achieve the goal and shorten the processing
time. This demonstrates the strategic vision and deep
commitment of Dong Khanh’s Board of Director to
enhancing the company’s reputation and competitive
capacity.
Being removed from ICA’s LOUA 2 not only marks
an important milestone in the company’s history but
also demonstrates Dong Khanh’s continuous efforts
to enhance its reputation and expand and build
relationships in
both domestic
and international
markets. It can be
said that this is a
step forward for
the Vietnamese
s p i n n i n g
i n d u s t r y ,
affirming the
fairness and transparency of the ICA.
Indeed, in recent years, the ICA has made
significant contributions to helping the Vietnamese
spinning industry enhance its competitive capacity and
recognition. The relationship between VCOSA and ICA
is increasingly strengthened through activities aimed at
protecting the rights and interests of members of both
organizations.
The ICA actively listens and improves its Bylaws and
Rules to optimize safety, fairness, and transparency in
global cotton trade transactions, while VCOSA regularly
seeks opinions and contributions from its members to
organize programs that support Vietnamese spinning
businesses to enhance their competitive capacity and
protect their rights and interests when engaging in
cotton trade transactions.
Congratulations to Dong Khanh on being removed
from ICA’s LOUA 2, and hopefully this will inspire and
motivate other partners in the Vietnamese spinning
industry to continue to develop and improve the
reputation of the company.
Dong Khanh Textile Joint
Stock Company has been
removed from the “List of
Unfulfilled Awards 2” (LOUA 2).
---------
This represents a step
towards fairness in the cotton
trade rules and the progress of
the Vietnamese spinning industry.
supply chain and VCOSA’s chairman, led a meeting to discuss and collect suggestions for starting an anti-
dumping investigation for the product made of 100% polyester spun yarn (HS 5509.22.00)

Bản tin VCOSA
Tháng 4-2023 https://vcosa.vn
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Wakefield Inspection Services Ltd được thành lập tại Liverpool, Vương Quốc Anh từ năm 1993. Cho đến nay, có
hơn 20 công ty con đã được thành lập toàn cầu và việc mở rộng mạng lưới vẫn đang được tiếp diễn. Hiện tại WIS
đang hoạt động tại hơn 60 quốc gia và trở thành công ty dẫn đầu về ngành giám định bông thô trên toàn thế giới.
Qua hơn 20 năm cung cấp dịch vụ giám định tại thị trường Việt Nam, chúng tôi sung sướng thông báo rằng WIS có
thể cung cấp dịch vụ kiểm nghiệm bông thô tại phòng thí nghiệm HVI vừa được thành lập tại TP. Hồ Chì Minh.
Tại sao chọn WIS?
 Wakefield Inspection Services là công ty giám định dẫn đầu và được quốc tế công nhận.
 Có truyền thông lưu giữ nhân viên, giúp việc liên lạc với khách hàng của mình luôn thông suốt.
 Có đội ngũ nhân viên dày dạn kinh nghiệm.
 Duy trì việc đào tạo không ngừng.
 Cung cấp dịch vụ đúng nhu cầu của khách hàng, theo từng yêu cầu cụ thể.
 Có mạng lưới toàn cầu thông qua đội ngũ nhân viên địa phương.
 Có mạng lưới hỗ trợ toàn cầu.
Để biết thêm thông tin về các dịch vụ WIS hiện đang cung cấp, vui lòng liên lạc với chúng tôi qua email:
Info@wiscontrol.com / vit-ops@wiscontrol.com
Wakefield Inspection Services Ltd was established in Liverpool, England in 1993. Since WIS’ formation - over twenty Group
Companies have been established worldwide and this expansion continues today, WIS currently operates in over 60 countries
becoming the leading company in the inspection of raw cotton fibre.
Now having worked in Vietnam for the last 20 years WIS is pleased that they can offer the HVI testing of cotton in our testing
laboratory in Ho Chi Minh
Why Wakefield?
 Wakefield Inspection is an internationally recognised, and industry leading inspection company
 Staff retention, enabling a continuity of communication with our clients
 Providing staff with significant hands on experience
 Ongoing Training
 Customised services, tailored to your needs
 Global coverage via local, on the ground, staff
 A Group wide support network
For more information on what WIS can do for you, please contact:
Info@wiscontrol.com / vit-ops@wiscontrol.com

18
VCOSA Newsletter
1. Monthly Import Statistics
Vietnam’s cotton imports in March 2023 reached
95.6 thousand tons, worth 218.2 million USD. This
was a significant increase from the previous month,
but a sharp decline from the same month last year.
The volume rose by 24.6% and the value by 19.5%
month-on-month, while the volume dropped by 21.8%
and the value by 33.9% year-on-year.
The country also imported 100.9 thousand tons of
fiber and yarn, valued at 209.6 million USD. This was
a substantial increase from the previous month, but
a slight increase in volume and a notable decrease
in value from the same month last year. The volume
increased by 27.3% and the value by 31.7% month-on-
month, while the volume increased by only 0.3% and
the value decreased by 15% year-on-year
Vietnam’s cotton imports rose
by 24.6% month-on-month to 95.6
thousand tons in March 2023, according
to preliminary data. The country also
imported 27.3% more fiber and yarn
than the previous month, totaling 100.9
thousand tons
Based on the most recent
import-export figures released
by the General Department of
Customs,Vietnamsawasignificant
increase in textile-related imports
in March 2023. Specifically, cotton
imports rose by 19.5% from the
previous month, with a total worth
of 218.2 million USD. Fiber and
yarn imports also saw significant
growth, with a total worth of 209.6
million USD, representing a 31.7%
increase from the previous month.
Various types of fabric saw the
REPORT AND DATABASE

19
VCOSA Newsletter
Preliminary data
showed that Vietnam
imported 27.3% more
fiber and yarn in March
2023 than the previous
month, reaching about
100.9 thousand tons.
This was a slight increase
of 0.3% from the same
month last year.
Vietnam’s cotton
imports rose by 24.6%
month-on-month to
95.6 thousand tons in
March 2023, according
to preliminary data.
However, this was a
21.8% decline from the
same month last year.
highest increase, with a total worth of 1.27 billion USD,
representing a 64.1% growth from the previous month.
Raw materials and accessories for garment and
footwear also experienced a considerable increase,
rising by 39.3% to a total worth of 586.9 million USD.
Over the first quarter
of 2023, Vietnam
reported decreased
imports in the textile
industry. Specifically,
cotton imports amounted
to 575.7 million USD,
representing a decrease
of 39.4% compared to
the same period last
year. Various types of
fiber and yarn imports
also decreased to a total
worth of 505 million USD,
down 25.7%. Various
types of fabric imports
also saw a decrease,
to a total worth of 2.98
billion USD, down 17.2%.
Raw materials and
accessories for textile, leather and footwear imports also decreased by 12.4% compared to the same period
last year, with a total worth of 1.39 billion USD.

20
VCOSA Newsletter
1.1 Imported raw cotton prices are likely to keep falling in
the coming time
A
ccording to the statistics of the General
Department of Customs, Vietnam imported
76.68 thousand tons of cotton in February
2023, worth 182.55 million USD. This was an increase
of 9.7% in volume and 4.2% in value compared to
January 2023, but a decrease of 35.4% in volume and
39.5% in value compared to February 2022
Vietnam sourced cotton from 10
markets in the first two months of 2023.
The import volume from all major markets
dropped compared to the same period in
2022. Specifically:
Australia was the largest source of
cotton for Vietnam in the first two months
of 2023, with 55 thousand tons worth 137
million USD. This was a 49.1% increase in
volume and a 44.2% increase in value from
the same period in 2022, making up 37.7%
of the total cotton imports. However, in
February 2023, the import volume from this
market dropped by 11.2% to 25.99 thousand
tons and the import value dropped by 19.2%
to 61.23 million USD compared to the same
month in 2022.
Brazil was the second largest source of cotton
for Vietnam, with 44 thousand tons worth 118 million
USD. This was a 30.4% decrease in volume and a 24%
decrease in value from the same period in 2022. In
February 2023, the import volume from this market
was 21.57 thousand tons worth 57.33 million USD,
which was lower than both January 2023 and February
2022. The volume fell by 7.2% month-on-month and by
41.1% year-on-year, while the value fell by 5.9% month-
on-month and by 36.6% year-on-year.
The volume of cotton exports from many other
markets to Vietnam plummeted in the first two
months of 2023 compared to the same period in 2022,
such as India (87.4%), Argentina (87.3%), and Ivory
Coast (99%).
Source: VITIC
Vietnam’s cotton imports
Source: VITIC
Vietnam’s cotton imports in 2022-2023 (thousand tons)

21
VCOSA Newsletter
Source: VITIC
Vietnam’s cotton import price in February 2023
was $2,381/ton, down 5% from January 2023 and
down 6.4% from February 2022. This was the sixth
month in a row that the import price fell in Vietnam
since it peaked in August 2022.
For the first two months of 2023, the average price
of imported cotton into Vietnam was $2,440/ton, a
2.7% decrease compared to the same period in 2022.
According to a report by Fitch
Solutions, global cotton production
is expected to reach 118.1 million
bales in 2023, up from 117.6
million bales in 2022, an increase
of 0.43% compared to the same
period in 2022.
China is expected to produce
27.4 million bales of cotton in
2023, a 2.1% increase from 2022.
However, this is still below the
average output of 27.8 million
bales from 2018 to 2022. (1 bale
weighs 480 pounds.)
As the US persists in banning
cotton from Xinjiang, China’s
Xinjiang region faces trade barriers
that exclude most of its products
from the global market. This
shrinks the world supply and drives
up the prices.
The global cotton price is
falling due to low demand. The
US raw cotton price was 0.79
USD/pound on February 15, 2023,
according to macrotrends.net.
This was lower than the 0.83 USD/
pound in January 2023 and the
lowest since October 2022.
This global trend suggests that
Vietnam’s raw cotton import cost
will also drop soon.
Import price of cotton
The cotton import prices
from major markets in
February 2023 rose slightly
from January 2023. The only
exception was Australia,
whose price fell by 9% to 2,356
USD/ton. The prices from
Brazil and the US increased
by 1.4% and 3% respectively,
reaching 2,657 USD/ton and
2,456 USD/ton.

22
VCOSA Newsletter
US cotton price in 2022-2023 (USD/pound)
Source: macrotrends.net
1.2. Forecasted import volume of raw fiber is expected to
remain low next month
The General Department of Customs reports that
Vietnam imported 35.77 thousand tons of fiber
in February 2023, worth USD 37.77 million. This was
31.1% more in volume and 22.5% more in value than
January 2023, and 31% more in volume and 5.2% more
in value than February 2022. In the first two months
of 2023, Vietnam imported 63 thousand tons of fiber,
worth USD 68 million. This was a 3.9% increase in
volume but a 16.2% decrease in value from the same
period in 2022.
As predicted, Vietnam’s fiber
import prices keep falling because
the world cotton market remains
weak.
In the domestic market, amidst
adeclineinexportorders,inorderto
alleviate difficulties for businesses,
the State Bank of Vietnam recently
decided to uniformly reduce
operating interest rates by 0.5 -
1% per year from March 15, 2023.
Along with the move to reduce
operating interest rates, the central
exchange rate at the State Bank
of Vietnam on March 16, 2023
also decreased to 23,622 VND/
USD. The USD exchange rate on
the interbank market on March 16,
2023 decreased slightly by 0.02%
compared to previous days, to
23,582 VND/USD. The State Bank
of Vietnam’s reduction in operating
interest rates, coupled with the
cooling of the foreign exchange
rate, increases the ability to access
capital and the ability to mobilize
foreign currency for import
businesses in general and textile
and garment raw material import
businesses in particular.
Although there are positive
signals in the domestic currency
market, Vietnam’s textile and
garment export orders have yet to
show signs of recovery as demand
in major textile and garment
export markets remains weak.
This also cannot drive Vietnam to
increase imports of raw materials
for production. Therefore, it is
forecasted that the import of fiber
into Vietnam will remain low in the
next month.
Vietnam imported fibers from
27 markets in the first two months
of 2023, five more than the same
period in 2022.
China was Vietnam’s biggest
fiber supplier in February 2023.
Vietnam imported 12.78 thousand
tons of fiber from China, worth 14.8
million USD. This was 15.8% more
in volume and 13.2% more in value
than January 2023, and 20.4%
more in volume and 15.4% more
in value than February 2022. In the
Vietnam’s fiber imports in 2022-2023 (thousand tons)
Source: VITIC

23
VCOSA Newsletter
first two months of 2023, Vietnam
bought 23.82 thousand tons of
fiber from China, worth 27.87
million USD. This was 37.8% of the
total import volume, but 6.5% less
in volume and 14.2% less in value
than the same period in 2022.
Thailand was Vietnam’s
second-largest fiber supplier in
February 2023. Vietnam imported
5.25 thousand tons of fiber from
Thailand, worth 5.87 million USD.
This was 25.8% less in volume but
50.9% more in value than January
2023, and 89.9% more in volume
and 53.4% more in value than
February 2022. In the first two
months of 2023, Vietnam bought
12.34 thousand tons of fiber from
Thailand, worth 9.76 million USD.
This was 19.6% of the total import
volume, but 74.1% more in volume
and 1.1% more in value than the
same period in 2022.
Most of Vietnam’s main fiber
suppliers saw a slight drop in
exports to Vietnam in the first
two months of 2023, except for
Bangladesh which increased by
766% in volume.
Japan and Hong Kong also
had a strong rise in fiber exports to
Vietnam in this period.
Source: VITIC
Source: VITIC
Vietnam’s fiber imports
In February 2023, the average price of raw fibers
imported to Vietnam was 1,056 USD/ton, down
6.6% compared to January 2023 and down 19.7%
compared to February 2022. Among them, the price of
raw fibers imported from Thailand was the lowest at
1,117 USD/ton; followed by Taiwan at 1,190 USD/ton
and the highest import price was from South Korea
with a price of 1,742 USD/ton.
The average import price of fiber in 2022-2023 (USD/ton)

24
VCOSA Newsletter
Import price of fiber
Source: VITIC
1.3. The import price of yarn dropped sharply
Based on the data from the General Department of
Customs, Vietnam imported 42.75 thousand tons
of yarn in February 2023, valued at 116.98 million
USD. This was a 19.2% increase in volume and an
11% increase in value from January 2023, but a
23.3% decrease in volume and a 31.3% decrease in
value from February 2022. In the first two months of
2023, Vietnam imported 78.63 thousand tons of yarn,
valued at 222.39 million USD. This was a 34% drop
in volume and a 38.2% drop in value from the same
period in 2022.
China was Vietnam’s top
source of yarn in February 2023,
importing 28.2 thousand tons
worth 66.72 million USD. This was
up 7.9% in volume but down 4.5%
in value from January 2023; down
12.9% in volume and 28% in value
from February 2022. In the first two
months of 2023, Vietnam imported
54.33 thousand tons of yarn from
China, valued at 136.59 million
USD, making up 69.1% of the total
imports, plunging by 24.7% in
volume and 32.2% in value from
the same period in 2022.
Vietnam imported 4.74
thousand tons of yarn from Taiwan
in February 2023, valued at 11.98
million USD, rising by 25.1% in
volume and 7.8% in value from
January 2023; falling by 40.5% and
41% in value from February 2022.
In the first two months of 2023,
Vietnam imported 8.53 thousand
tons of yarn from Taiwan, valued at
23.09 million USD, accounting for
10.8% of the total imports of yarn
in Vietnam, plummeting by 46.6%
in volume and 47.1% in value from
the same period in 2022.
Overall, in the first two months
of 2023, the imports of yarn from
the main markets to Vietnam
declined compared to the same
period in 2022, except for Japan
which surged by 22.6% in volume…
Remarkably, the imports of yarn
from some markets soared very
strongly in the first two months of
2023 such as Pakistan…
Source: VITIC
Vietnam’s yarn imports in 2022-2023 (thousand tons)

25
VCOSA Newsletter
Vietnam’s yarn imports
The average import price of yarn in 2022-2023 (USD/ton)
Source: VITIC
Source: VITIC
The import price of yarn from China was the lowest
at 2,366 USD/ton; followed by Indonesia at 2,703 USD/
ton and Japan at the highest at 11,791 USD/ton.
Vietnam’s import price of yarn kept falling, but the
demand from importers was still low, indicating that
the imports of yarn into Vietnam would stay low in the
near future.
Vietnam’s import price of yarn was 2,736 USD/ton
in February 2023, down 6.8% from January 2023 and
10.4% from February 2022. In the first two months of
2023, the average import price of yarn in Vietnam was
2,828 USD/ton, down 6.3% from the same period in
2022.

26
VCOSA Newsletter
Import price of yarn
Source: VITIC
— All data are accurate, relevant and verified from sources: the Ministry of Industry and
Trade, General Department of Vietnam Customs, General Statistics Office of Vietnam,
International Trade Center, Cotton Incorporated and other reliable sources.
— This text provides general information. VCOSA assumes no liability for the information
given being complete or correct. Due to varying update cycles, statistics can display
more up-to-date data than referenced in the text.
Communication and Information Department.

27
VCOSA Newsletter
2. Monthly Export Statistics
In March 2023, Vietnam exported a total of 151.3
thousand tons of fiber and yarn with a value of 376.4
million USD. This represents a 39.5% increase in
volume and an 11% increase in value compared to the
previous month. However, there was a corresponding
decrease of 7.9% in volume and 29.2% in value
compared to the same period last year.
Vietnam’s fiber and textile
exports grew in March 2023. Fiber
and yarn exports were worth 376.4
millionUSD, 11% morethanFebruary
2023. Fabric exports also rose by
20%, reaching 248.7 million USD.
Raw materials for textile, leather,
and footwear exports increased
by 20.9%, totaling 198.3 million
USD. Technical textile exports were
worth 63.1 million USD, 10.4% more
than the previous month.
In March 2023, Vietnam
exported a total of 151.3
thousand tons of fiber and
yarnwithatotalvalueof376.4
million USD, representing a
39.5% increase in volume
and an 11% increase in value
compared to the previous
month.

28
VCOSA Newsletter
In March 2023, textile
and garment exports
reached 2.62 billion USD,
showing a 14.5% increase
compared to the previous
month.
The preliminary data
shows that Vietnam’s
textile and garment
export value in March was
2.62 billion USD, a 14%
decrease compared to the
same period last year.
Vietnam’s fiber and yarn exports were worth 940.8
million USD in the first three months of 2023, 35%
less than the same period last year. Fabric exports
also dropped by 13.7%, totaling 609.6 million USD.
Leather and footwear textile raw materials exports fell
by 14.1%, reaching 482.7 million USD. Technical fabric
exports were worth 178 million USD, 17.9% less than
last year.

29
VCOSA Newsletter
3. Cotton Outlook
G
lobal Cotton Imports
Continue to Decline as Mill
Use Weakens. The latest
U.S. Department of Agriculture
(USDA) cotton estimates indicate
that global mill use for 2022/23
(August–July) is projected at
110.2 million bales, 5 percent
(6.1 million bales) below last
season and, besides 2019/20,
is the lowest since 2013/14.
With cotton product demand
weakening from the recent high in
2020/21, world cotton imports—
estimated at 38.8 million bales—
continue to decline for a second
consecutive year.
Bangladesh accounts for the
largest share of world cotton
imports in 2022/23, while China
contributes the largest share of mill use. China is the
only major country expected to have higher mill use in
2022/23 than in 2021/22.
World cotton production is forecast at 115.9
million bales in 2022/23, slightly below the previous
year, as an increase in the global yield almost offsets
the 3 percent drop in harvested area. Global exports
in 2022/23 are led by the United States, Brazil, and
Australia, accounting for a combined 66 percent of
world cotton exports. Meanwhile, world cotton stocks
(92 million bales) and the stocks-to-use ratio (84
percent) are expected to be the highest in 3 years.
Source: CI

30/4
&
01/5
Head Office
L17-11, 17/Fl, Vincom Center Tower, 72 Le Thanh Ton str., Ben Nghe ward, dist. 01,
Ho Chi Minh city
Representative Office
Room 403, 4/Fl., Ocean Park Tower, 01 Dao Duy Anh str., Phuong Mai ward, Dong Da dist.,
Ha Noi city
Office (mailing address)
1265 Hoang Sa str., Ward 5, Tan Binh Dist., Ho Chi Minh city
œ +84 902 379 490
œ info@vcosa.org.vn
œ www.vcosa.org.vn

VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 04/2023 ISSUE

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