VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 02/2022 ISSUE

1
For internal circulation only
www.vcosa.vn
February 2022
COTTON AND YARN STATISTIC
MONTHLY REPORT
Vietnam Cotton and Spinning Association
Collected and Edited by: Information & Communication Dept.

VIETNAM COTTON AND SPINNING ASSOCIATION_______________________FEB 2022 – MONTHLY REPORT
.
15/Fl., Block B, Viettel Complex Tower, 285 CMT8 Str, Ward 12, District 10, Hochiminh City, Vietnam.
Hotline: 84-902379490, Email: info@vcosa.org.vn
Account VND: 007 100 559, USD: 0001887357124
At Military Commercial Joint Stock Bank
Swift code: MSCBVNVX
Ho Chi Minh city, February 28th, 2022
MONTHLY REPORT February 2022
Contents
Report and Database ...............................................................................................................3
Monthly Import Statistics ..................................................................................................................................3
Monthly Export Statistics...................................................................................................................................7
Remarkable information .................................................................................................................................10
Domestic market.............................................................................................................................................. 10
Global market................................................................................................................................................... 10
An update on export performance..............................................................................................................10
It is forecast that Vietnam's fiber and yarn exports in 2022 will continue to increase ................................... 10
Details of product codes and fiber export markets in 2021............................................................................. 14
An update on import performance.............................................................................................................15
In 2021, the import price of cotton increased by 23.7%.................................................................................. 15
Import price of raw fiber increased by 14.8% in 2021..................................................................................... 18
Import price of raw yarn in 2021 increased by 22.8% compared to 2020....................................................... 20
Cotton Outlook 2-2022.....................................................................................................................................23
Source ........................................................................................................................................25
Reference from Newspapers..............................................................................................26
Cotton production scanty despite huge market....................................................................................26
Australian cotton crops this year to be 2nd best on record ............................................................26
Supply chain disruptions continue to affect world cotton market...............................................27
Turkey: Cotton Textile and Product Exports Spur Record Consumption .................................28

Page | 1
Nguyen An Toan
Chairman of VCOSA

Page | 3
Report and Database
Cotton Fiber, Cotton Yarn, Cotton Fabric imports and exports are covered in monthly report.
Monthly price database includes latest data per market, quantity, unit price, border and trade terms
with per product category.
Monthly Import Statistics
Items
January-2022
Compare last
month (%)
1 month 2022
Compare last
period (%)
Q’ty
(1,000 MT)
Value
(Mil. USD)
Q’ty Value
Q’ty
(1,000 MT)
Value
(Mil. USD)
Q’ty Value
Cotton 127.7 315.5 16.4 29.7 127.7 315.5 3.8 60.7
Fiber & Yarn 93.4 232.3 -16.1 -9.9 93.4 232.3 -16.5 5.7
Fabric - 1,392.1 - 1.1 - 1,392.1 - 25.7
Accessories - 563.9 - 8.4 - 563.9 - 6.8
TOTAL - 2,503.9 - 7.3 - 2,503.9 - 24.7
In January 2022, Vietnam's cotton imports reached 127.7 thousand tons, worth 315.5 million
USD, up 3.8% in volume and 60.7% in value over the same period last year.
Fiber imported to Vietnam was 93.4 thousand tons, down 16.5%; worth 232.3 million USD, up
5.7% over the same period last year.

Page | 4
According to preliminary data in January 2022, cotton imports reached 127.7 thousand tons, up
16.4% over the previous month. Imported fibers and yarns was 93.4 thousand tons, down
16.1% compared to December 2021.
123.5
102.1
176.3 175.3
158.0
145.5
140.5
133.6
159.3
125.6 128.2
109.6
127.7
112.2
74.6
117.9
103.2
93.8 92.9 91.0
70.7
60.6
73.2
94.6
111.2
93.4
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22
1,000
MT
Vietnam Cotton, Fiber & Yarn Import
1 Month 2022 (1,000 MT)
Cotton Fiber & Yarn
-
200.0
400.0
600.0
800.0
1,000.0
1,200.0
1,400.0
1,600.0
Million
USD
Vietnam Import 1 Month 2022 (Mil. USD)
Cotton Fiber & Yarn Fabric Accessories

Page | 5
According to preliminary data in the first month of 2022, cotton imports were about 127.7
thousand tons, up 16.4% over the previous month, up 3.4% over the same period last year.
According to preliminary data in the first month of 2022, imported fiber and yarn was about
93.4 thousand tons, down 16.1% over the previous month, down 16.8% over the same period
last year.
112.2
74.6
117.9
103.2
93.8 92.9 91.0
70.7
60.6
73.2
94.6
111.2
93.4
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Vietnam Fiber & Yarn Import 1 Month 2022 (1,000 MT)
2021 2022
123.5
102.1
176.3 175.3
158.0
145.5
140.5
133.6
159.3
125.6 128.2
109.6
127.7
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Vietnam Cotton Import 1 Month 2022 (1,000 MT)
2021 2022

Page | 6
In the first month of 2022, Vietnam imported cotton worth 315.5 million USD, up 60.7% over
the same period last year; import of fiber and yarn valued at USD 232.3 million, up 5.7%;
imported fabrics of all kinds 1,392.1 million USD, up 25.7%; import of raw materials for textile,
garment, leather and footwear increased by 6.8% over the same period last year, equivalent to
a value of USD 563.9 million.
1,662.2
2,362.4
3,011.7
2,573.4
2,282.3
3,232.2
315.5
1,609.0
1,821.6
2,418.6
2,409.8
1,998.8
2,552.6
232.3
10,483.3
11,381.1
12,771.9
13,276.0
11,875.6
14,324.7
1,392.1
5,058.8
5,428.5
5,711.4
5,863.6
5,381.1
6,255.6
563.9
-
2,000.0
4,000.0
6,000.0
8,000.0
10,000.0
12,000.0
14,000.0
16,000.0
2016 2017 2018 2 0 1 9 2020 2021 2022
MILLION
USD
VIETNAM IMPORT FROM 2016 TO 2022
(MIL. USD)
Cotton Fiber & Yarn Fabric Accessories

Page | 7
Monthly Export Statistics
Items
January-2022
Compare last
month (%)
1 month 2022
Compare last
period (%)
Q’ty
(1,000 MT)
Value
(Mil. USD)
Q’ty Value
Q’ty
(1,000 MT)
Value
(Mil. USD)
Q'ty Value
Yarn 144.2 473.7 16.4 -11.4 144.2 473.7 -12.3 20.1
Textile & Apparel
(include fabric)
- 3,571.3 - -1.2 - 3,571.3 34.4
- Fabric - 251.4 - -9.3 - 251.4 26.4
Accessories - 200.4 - -6.2 - 200.4 17.7
Technical Textile - 74.5 - 12.2 - 74.5 45.3
TOTAL - 4,319.9 - -1.7 - 4,319.9 - 29.4
In the first month of 2022, Vietnam exported 144.2 thousand tons of fibers and yarns, worth
473.7 million USD, down 12.3% in volume but up 20.1% in value over the same period last year.
Fiber and yarn exports in the first month of 2022 were valued at 473.7 million USD, down 11.4%
over the previous month; fabric exports were valued at USD 251.4 million, down 9.3%; raw
materials for textiles, leather and footwear with a value of 200.4 million USD, down 6.2%;
technical textile exports increased by 12.2%, equivalent to 74.5 million USD.
0
100
200
300
400
500
600
Million
USD
Vietnam Export 1 Month 2022 (Mil. USD)
Yarn Fabric Accessories Technical Textile

Page | 8
In the first month of 2022, Vietnam's fiber and yarn exports were worth 473.7 million USD, up
20.1% over the same period last year; fabric exports were valued at 251.4 million USD, up
26.4%; raw materials for textiles, leather and footwear with a value of 200.4 million USD, up
17.7%; technical textile exports increased by 45.3%, equivalent to 74.5 million USD.
Textile and apparel exports in the first month of 2022 reached 3.57 billion USD, down 1.2%
compared to the previous month.
2,660.8
1,820.8
2,723.9
2,458.8
2,573.8
3,064.6 3,118.8
2,654.6
2,277.4
2,643.9
3,044.6
3,615.2 3,571.3
J A N - 2 1 F E B - 2 1 M A R - 2 1 A P R - 2 1 M A Y - 2 1 J U N - 2 1 J U L - 2 1 A U G - 2 1 S E P - 2 1 O C T - 2 1 N O V - 2 1 D E C - 2 1 J A N - 2 2
MILLION
USD
VIETNAM TEXTILE & APPAREL EXPORT
1 MONTH 2022 (MIL. USD)
2,929.5
3,593.3
4,024.9
4,177.1
3,736.6
5,612.3
473.7
1,078.4
1,324.8
1,759.4
2,127.0
1,943.4
2,553.1
251.4
1,495.2
1,710.6
1,902.1
2,014.6
1,687.5
1,994.8
200.4
415.3
457.9
529.7
588.9
456.0
784.7
74.5
-
1,000.0
2,000.0
3,000.0
4,000.0
5,000.0
6,000.0
2016 2017 2018 2019 2020 2021 2022
Vietnam Export from 2016 to 2022 (Mil. USD)
Yarn Fabric Accessories Technical Textile

Page | 9
Vietnam's fiber and yarn export in the first month of 2022 reached 144.2 thousand tons, worth
473.7 million USD, up 16.4% in volume, but down 11.4% in value compared to the previous
month.
According to preliminary data for the first month of 2022, textile and apparel exports reached
3.57 billion USD, down 1.2% from the previous month, but up 34.2% over the same period in
2021.
164.5
125
194.2
163.7 167.1 171.8 175.6
156.3 144.9 148 157.3
123.9
144.2
394.6
311.5
511.1
464.1 473.1 489.3
517.9
481.1
453.4 468.1
512.3
534.9
473.7
0
100
200
300
400
500
600
M1-21 M2-21 M3-21 M4-21 M5-21 M6-21 M7-21 M8-21 M9-21 M10-21 M11-21 M12-21 M1-22
Qty (1,000 MT) Value (Mil. USD)
2,660.8
1,820.8
2,723.9
2,458.8
2,573.8
3,064.6
3,118.8
2,654.6
2,277.4
2,643.9
3,044.6
3,615.2
3,571.3
JAN F E B MAR AP R MAY JUN JUL AUG S E P OC T NOV DE C
MILLION
USD
VIETNAM TEXTILE & APPAREL EXPORT
1 MONTH 2022 (MIL. USD)
2021 2022

Page | 10
Remarkable information
Domestic market
o In 2021, Vietnam's exports of fibers and yarns reached US$5.61 billion, an increase of 50.2%
compared to 2020 and an increase of 34.4% compared to 2019. In 2022, forecast Vietnam's
fiber and yarn exports will continue to increase due to increased world demand, Vietnamese
spinning enterprises will continue to invest and expand production to seize opportunities
from trade agreements. freedom, as well as anticipate future trends.
o The amount of cotton imported to Vietnam in 2021 reached 1.67 million tons, worth 3.23
billion USD, up 14.5% in volume and 41.6% in value compared to 2020. Cotton price
imported to Vietnam in 2021 averaged US$1,927/ton, up 24.5% compared to 2020. World
cotton prices are forecasted to still increase in the coming time and affect the price of
imported cotton of Vietnam in the first months of 2022.
o Import price of raw fiber increased by 14.8% in 2021.
o Import price of raw yarn in 2021 increased by 22.8% compared to 2020.
Global market
o Cotton production scanty despite huge market.
o Australian cotton crops this year to be 2nd best on record.
o Supply chain disruptions continue to affect world cotton market.
o Turkey: Cotton Textile and Product Exports Spur Record Consumption.
An update on export performance
It is forecast that Vietnam's fiber and yarn exports in 2022 will continue to increase
According to statistics from the General Department of Customs, Vietnam's exports of fibers and
yarns in December 2021 reached US$535 million, up 4.4% compared to November 2021, up
26.4% over December 2020 and an increase of 43.1% compared to December 2019.
In general, in 2021, Vietnam's export of fibers and yarns reached $5.612 billion, up 50.2%
compared to 2020 and 34.4% compared to 2019.

Page | 11
Vietnam’s export fibers and yarns in 2021 (million USD)
The average export price of Vietnam's fibers and yarns in December 2021 reached $4,317 per
ton, up 32.5% compared to November 2021 and 86.9% higher than December 2020. In general,
in 2021, the average export price of Vietnam's fibers and yarns will reach $2,965 per ton, up
37.9% compared to 2020.
In 2021, the price of input materials for fiber and yarn production increased, causing the
average export price of this item of Vietnam to also increase. The average export price of
Vietnam's fibers and yarns to markets in 2021 mostly grow at double digits compared to 2020.
In 2021, Vietnam exported fibers and yarns to the Hong Kong with the highest price of 5,493
USD/ton and the lowest export price to the US market, reaching 1,284 USD/ton. Notably, the
average export price of this item to a number of markets increased sharply such as: Turkey
increased by 103.3 percent; Pakistan increased 134.1%.
Export price of fibers and yarns in 2021
Importer
Dec-2021
(USD/ton)
Compared to
Nov-2021
(%)
Compared to
Dec-2020
(%)
2021
(USD/ton)
Compared to
2020 (%)
China 4,278 32.5 76.6 2,948 31.4
Korea 5,016 35.3 104.1 3,242 44.4
USA 1,752 30.3 60.2 1,284 17.3
Taiwan 4,348 11.9 74.3 3,355 35.4
Bangladesh 6,394 13.0 60.6 5,631 64.8
Indonesia 4,778 5.9 49.1 4,069 44.5
Japan 4,008 34.5 72.6 2,692 5.2
Turkey 5,106 61.7 117.2 4,123 103.3
Thailand 4,870 67.6 88.9 3,153 24.7
UK 1,116 14.1 31.6 932 8.2
Pakistan 6,147 38.1 288.8 3,558 134.1
Cambodia 5,265 32.0 61.8 3,800 37.7
Colombia 5,144 24.7 130.9 3,521 64.8

Page | 12
Importer
Dec-2021
(USD/ton)
Compared to
Nov-2021
(%)
Compared to
Dec-2020
(%)
2021
(USD/ton)
Compared to
2020 (%)
Malaysia 5,070 64.0 125.0 3,269 41.6
Brazil 3,507 53.4 83.1 2,533 50.3
Egypt 4,037 6.1 60.4 3,018 49.1
India 4,231 39.2 118.6 2,807 19.7
Peru 3,902 33.9 98.7 2,545 37.8
Philippines 3,294 54.4 101.4 2,328 37.6
Sri Lanka 9,233 22.9 82.1 6,143 60.1
Hong Kong 8,304 17.2 129.1 5,493 79.8
Romania 5,509 23.5 56.6 3,803 8.1
Italy 10,992 211.2 251.2 4,620 21.6
Chile 3,943 27.4 102.3 2,083 7.0
In 2021, Vietnam exports fibers and yarns mainly to the Chinese market, accounting for 53.49%
of the total volume and accounting for 53.18% of the total export turnover of this item. Fiber
and yarn exports to the Chinese market in 2021 increased by 5.8% in volume and 39% in
turnover compared to 2020.
In addition, Vietnam's exports of fibers and yarns to some other markets also increased in 2021,
such as South Korea, the US, and Taiwan. In particular, the export of this item to the Taiwan
market increased by 111.7% in volume and 248.9 % in turnover compared to 2020.
Vietnam's export fibers and yarns in 2021
Importer
Dec-2021 Compared to
2020
(%)
Proportion
2021 (%)
Proportion 2020
(%)
Qty (ton) Value
(1,000 USD)
Qty Value Qty Value Qty Value
Total 1,892,791 5,612,272 8.9 50.2 100.00 100.00 100.00 100.00
China 1,012,384 2,984,781 5.8 39.0 53.49 53.18 55.05 57.48
Korea 173,673 562,990 14.4 65.3 9.18 10.03 8.73 9.12
USA 106,600 136,885 40.7 65.0 5.63 2.44 4.36 2.22
Taiwan 56,590 189,842 64.1 122.2 2.99 3.38 1.98 2.29
Bangladesh 43,294 243,777 111.7 248.9 2.29 4.34 1.18 1.87
Indonesia 33,648 136,917 40.5 103.0 1.78 2.44 1.38 1.80
Japan 34,155 91,929 21.9 28.3 1.80 1.64 1.61 1.92
Turkey 21,389 88,196 -45.2 11.4 1.13 1.57 2.25 2.12
Thailand 29,691 93,623 -19.7 0.1 1.57 1.67 2.13 2.50
UK 22,703 21,162 1.6 10.0 1.20 0.38 1.28 0.51
Pakistan 34,627 123,197 -20.3 86.5 1.83 2.20 2.50 1.77
Cambodia 20,715 78,721 39.9 92.7 1.09 1.40 0.85 1.09
Colombia 20,714 72,944 11.3 83.4 1.09 1.30 1.07 1.06
Malaysia 17,320 56,624 -11.2 25.8 0.92 1.01 1.12 1.20

Page | 13
Importer
2020
(%)
Proportion
2021 (%)
Proportion 2020
(%)
Qty (ton) Value
(1,000 USD)
Qty Value Qty Value Qty Value
Brazil 35,786 90,630 -14.0 29.3 1.89 1.61 2.39 1.88
Egypt 16,872 50,917 -33.3 -0.5 0.89 0.91 1.45 1.37
India 23,754 66,680 35.5 62.2 1.25 1.19 1.01 1.10
Peru 9,369 23,844 22.9 69.3 0.49 0.42 0.44 0.38
Philippines 9,144 21,290 12.0 54.1 0.48 0.38 0.47 0.37
Sri Lanka 7,815 48,005 31.8 111.0 0.41 0.86 0.34 0.61
Hong Kong 10,089 55,417 -54.5 -18.1 0.53 0.99 1.27 1.81
Romania 5,721 21,757 21.2 31.1 0.30 0.39 0.27 0.44
Italy 6,296 29,088 94.8 136.9 0.33 0.52 0.19 0.33
Chile 6,088 12,682 87.3 100.5 0.32 0.23 0.19 0.17
Some factors affecting the growth of Vietnam's yarn industry in 2022
Firstly, the Covid-19 epidemic is still complicated globally, which will affect the textile value
chain in general and the yarn industry in particular.
Currently, developed countries are aggressively implementing expanded vaccination for the
entire population, and at the same time donating vaccines to developing and underdeveloped
countries in an effort to achieve the highest level of herd immunity possible. Therefore, it can
be expected in 2022 when production, business and international trade activities along with
the global value chain can be connected again, creating impetus for the recovery of the textile
industry in general, yarn industry in particular.
Second, global yarn demand is forecasted to increase in 2022 due to increased demand for
textiles and garments.
Recently, international economic organizations have made optimistic forecasts about the
economic recovery of major countries such as the US, China and EU countries. These are all
major textile and garment consumption markets of Vietnam. According to the latest report in
October 2021 of the International Monetary Fund (referred to as IMF) the growth rates of the
US, China, and the EU were 5.2%, 5.6%, and 4.3% respectively in 2022.
The economic recovery of major countries is the driving force for the growth of textile and
garment demand, leading to an increase in the demand for yarn. In contrast, the economic
recovery of developing countries, including many textile producing countries, will be slower.
Thus, textile demand may grow faster than textile supply.
Third, China is still Vietnam's largest fiber and yarn import market, accounting for 53.2% of the
total fiber and yarn export turnover. In contrast, Vietnam is also the largest yarn supplier to
China, accounting for 37% of China's fiber and yarn import value in 2021.

Page | 14
In the next five-year textile and garment development plan, China will not focus on "quantitative
growth" but on "quality development" to create more added value in the supply chain,
prioritizing develop “green” and “sustainable” by using recycled and “organic” materials,
minimizing emissions to the environment. Therefore, China will tend to focus on the production
of high-index yarns. At the same time, the country will increase imports of low and medium
index yarns or shift production of these yarns to other countries. In the short term, the
production shift cannot be done immediately, but it is more likely that China will increase yarn
imports from other countries in 2022.
Fourth, developments on the trade relationship between the US and China, the two largest
textile and garment supply and demand countries in the world in 2022.
Vietnam's yarn industry with more than 70% of output is used for export, of which exports to
the Chinese market account for about 55 - 70% depending on the period. On the other hand, the
main input source of the fiber industry is cotton, which is completely imported with more than
50% coming from the US, the rest from other countries such as Brazil, India, Australia, West
Africa... This shows that the industry Vietnamese fibers are easily affected by fluctuations in
economy, politics, trade relations between countries, especially trade relations between two
major powers, the US and China.
In 2021, the US and China reached a Phase One deal, under which China pledged to buy a large
amount of US cotton. Therefore, it is likely that the Phase Two Agreement will be signed by the
end of this year, creating a temporary peace situation, opening the flow of trade between the
two countries to avoid economic damage. This will also create a favorable environment for the
growth of global textiles.
Details of product codes and fiber export markets in 2021
Statistical data of 2021 is approximately 90% accurate
HS code Import country 2016 2017 2018 2019 2020 2021
5205
Cotton yarn, >85%
cotton by weight
663,392 720,058 734,770 944,731 898,928 825,342
China 573,866 617,787 632,353 833,005 782,297 727,821
Korea, Republic of 28,088 27,752 37,609 43,546 47,939 54,973
Turkey 18,570 22,911 12,723 9,227 1,957 95
Bangladesh 9,286 12,482 11,656 6,575 4,020 -
Thailand 4,134 5,401 8,152 10,680 10,426 4,385
5206
Cotton yarn, <85%
cotton by weight
74,011 95,887 84,043 129,065 134,882 134,409
China 22,683 30,711 31,300 43,547 53,391 67,964
Turkey 9,795 13,108 9,942 10,919 4,246 883.276
Hong Kong, China 8,535 9,620 6,179 12,810 9,081 3,460

Page | 15
HS code Import country 2016 2017 2018 2019 2020 2021
Malaysia 4,816 5,452 4,139 8,596 7,376 7,731
5509
Yarn of synthetic
staple fibers
87,400 79,491 78,779 129,799 115,282 76,111
Egypt 10,200 11,821 12,027 17,090 17,465 -
Colombia 6,665 7,854 11,223 15,523 15,384 4,129
Brazil 4,706 4,561 3,618 12,421 10,898 10,378
China 2,580 4,827 8,414 9,428 5,539 5,934
5402
Synthetic filament
yarn POY, DTY, FDY
116,090 141,942 152,365 244,904 256,114 244,451
China 12,183 17,921 21,055 32,669 40,560 55,948
Thailand 19,263 17,395 19,032 29,294 21,473 21,874
India 15,858 18,982 14,683 19,514 5,901 2632.33
Turkey 17,364 4,244 6,504 15,655 22,396 13,099
5503
Synthetic staple
fibers PSF
60,554 58,175 108,313 197,997 211,554 196,621
United States of
America
14,293 11,806 27,795 40,139 61,690 74,090
Turkey 17,932 19,384 22,056 27,133 9,024 4,670
United Kingdom 15,128 11,050 10,258 17,265 21,749 21,045
Brazil 1,860 3,189 9,917 26,185 17,368 18,686
China 116 140 7,293 19,363 17,075 27,084
An update on import performance
In 2021, the import price of cotton increased by 23.7%
According to statistics of the General Department of Customs, imports of raw cotton to Vietnam
in December 2021 reached 109.63 thousand tons, worth 243.33 million USD, down 14.5% in
volume and down 13.5%. 4% in value compared to November 2021, down 14.4% in volume but
up 20.9% in value compared to December 2020.
In general, in 2021, the amount of cotton imported to Vietnam reached 1.67 million tons, worth
3.23 billion USD, up 14.5% in volume and 41.6% in value compared to 2020.

Page | 16
Vietnam’s import cotton in 2021 (thousand tons)
In 2021, there are 11 markets supplying raw cotton to Vietnam, stable compared to 2020. In
which:
Cotton imports from the US market into Vietnam reached 605 thousand tons, worth 1.17 billion
USD, down 27.7% in volume and 11.4% in value compared to 2020, accounting for 39.2% of the
total quantity of cotton imported into Vietnam.
Second is the Brazilian market, reaching 376 thousand tons, worth 704 million USD, up 11.2%
in volume and 30.4% in value compared to 2020.
In addition, cotton imports from some other markets increased sharply compared to 2020 such
as: from India by 62%; from Australia increased 899%; from Ivory Coast increased by 104% in
volume compared to 2020.
Vietnam's import cottons in 2021
Exporter
Dec-2021 Compared
to Nov-2021
(%)
Compared to
Dec-2020 (%)
2021 Compared to
2020 (%)
Qty
(ton)
Value
(1,000
USD)
Qty Value Qty Value Qty
(ton)
Value
(1,000
USD)
Qty Value
Total 109,635 243,331 -14.5 -13.4 -14.8 21.1 1,679,177 3,232,192 14.5 41.6
USA 8,833 18,542 -40.4 -43.2 -76.1 -67.6 605,815 1,171,991 -27.7 -11.4
Brazil 26,302 55,509 -6.4 -8.1 -49.1 -33.5 376,711 704,586 11.2 30.4
Australia 35,597 86,442 -30.3 -30.1 878.7 1,221.1 274,984 604,104 899.7 1,136.7
India 16,868 35,189 10.8 36.7 -14.7 21.6 190,503 315,334 62.4 105.0
Ivory Coast 3,789 7,893 404.5 384.3 234.7 395.7 39,339 74,297 104.4 157.4
Argentina 4,257 10,433 21.4 44.6 5.3 71.9 33,488 67,583 57.5 125.1
Indonesia 1,141 1,718 -18.5 -5.0 2.3 51.4 12,335 15,167 41.1 67.3
Korea 418 558 147.3 156.0 84.1 61.5 3,423 5,461 78.2 83.8
Pakistan 232 311 105.3 105.2 -7.6 -0.3 1,740 2,434 -48.5 -43.8

Page | 17
Exporter
Dec-2021 Compared
to Nov-2021
(%)
Compared to
Dec-2020 (%)
2021 Compared to
2020 (%)
Qty
(ton)
Value
(1,000
USD)
(ton)
Value
(1,000
USD)
Qty Value
China 15 47 -31.8 -51.6 540 1,148 -61.9 -51.0
Taiwan 66 63 96 246 -57.3 -37.5
About price: Following the upward trend of world cotton prices, the price of cotton imported
into Vietnam also increased in 2020. In which, the average price of cotton imported into
Vietnam in December 2021 was at $2,219/ton, the price an increase of 27 USD/ton compared
to November 2021 and up 656 USD/ton compared to December 2020 (up 1.2% compared to
November 2021 and 41.9% increase compared to December 2020).
In 2021, the price of imported cotton to Vietnam averaged 1,927 USD/ton, up 24.5% compared
to 2020.
Import price of cotton 2020-2021 (USD/ton)
The average price of imported cotton from markets in 2021 mostly increased compared to
2020. In which, the price of raw cotton imported from Indonesia reached the lowest level of
1,230 USD/ton; followed by from India reached 1,655 USD/ton and the price of cotton imported
from Australia market reached the highest level, at 2,197 USD/ton.
World cotton prices are forecasted to still increase in the near future, so Vietnam's cotton
import prices will also increase in the first months of 2022.
Import price of cotton in 2021 (USD/ton)
Exporter
Dec-2021
(USD/ton)
Compared to
Nov-2021
(%)
Compared to
Dec-2020
(%)
2021
(USD/ton)
Compared
2020 (%)
Total 2,219 1.2 42.0 1,925 23.7
USA 2,099 -4.6 35.5 1,935 22.5
Brazil 2,110 -1.8 30.5 1,870 17.3
Australia 2,428 0.2 35.0 2,197 23.7

Page | 18
Exporter
Dec-2021
(USD/ton)
Compared to
Nov-2021
(%)
Compared to
Dec-2020
(%)
2021
(USD/ton)
Compared
2020 (%)
India 2,086 23.4 42.6 1,655 26.2
Ivory Coast 2,083 -4.0 48.1 1,889 25.9
Argentina 2,451 19.1 63.3 2,018 42.9
Indonesia 1,505 16.6 48.0 1,230 18.6
Korea 1,336 3.5 -12.3 1,595 3.2
Pakistan 1,339 0.0 7.9 1,399 9.2
China 3,165 -29.0 2,125 28.6
Taiwan 955 2,564 46.6
Import price of raw fiber increased by 14.8% in 2021
According to statistics from the General Department of Customs, the amount of fiber imported
into Vietnam in December 2021 reached 45.68 thousand tons, worth 60.08 million USD, up
47.9% in volume and 3.8 % in value compared to November 2021, up 3.8% in volume and
21.1% in value compared to December 2020.
In general, in 2021, the amount of raw fiber imported into Vietnam will reach 400 thousand
tons, worth 513 million USD, down 0.1% in volume but up 14.8% in value compared to 2020.
Vietnam's import fibers in 2021 (thousand ton)
In 2021, Vietnam imported raw fiber from 29 markets, down 2 markets compared to 2020. In
general, in 2021, imports of raw fiber from main markets into Vietnam decreased in many
markets, except Chinese market increased.
China is the largest source of fiber for Vietnam, reaching 176.29 thousand tons, worth 209.84
million USD, up 3.7% in volume and 20.5% in value over the previous year 2020. Import of raw
fiber from the Chinese market accounts for 44.1% of the total amount of raw fiber imported
into Vietnam in 2021.
The second is the Taiwan, reaching 57.84 thousand tons in 2021, worth 64.81 million USD,
down 8.2% in volume, but up 9.4% in value compared to 2020. Raw fiber imported from Taiwan
market accounted for 14.5% of Vietnam's total import of raw fiber in 2021.

Page | 19
Meanwhile, imports of raw fiber from some other markets increased very strongly in 2021 such
as India, Hong Kong, and Cambodia.
Vietnam's import fibers in 2021
Exporter
Nov-2021 (%)
Compared to
Dec-2020 (%)
2021 Compared to
2020 (%)
Qty
(ton)
Value
(1,000
USD)
(ton)
Value
(1,000
USD)
Qty Value
Total 45,687 60,089 43.2 48.0 3.9 21.8 400,001 513,606 -0.1 14.8
China 23,175 28,383 66.3 63.9 13.7 34.2 176,299 209,842 3.7 20.5
Taiwan 5,546 6,757 65.6 72.0 -24.1 0.4 57,844 64,812 -8.2 9.4
Korea 4,680 7,426 18.4 22.1 0.6 24.4 41,846 61,662 -6.3 6.4
Thailand 4,947 6,757 22.3 39.0 5.1 62.4 41,199 52,578 -27.8 2.0
Indonesia 2,915 3,873 6.3 11.6 55.3 125.0 29,402 35,890 14.4 54.4
India 1,960 1,970 -7.6 -8.5 150.6 145.3 19,902 22,348 259.7 246.0
Greece 187 571 -25.1 -23.4 -75.5 -69.1 7,067 19,585 -11.7 -0.9
Singapore 517 1,692 672.5 416.7 -18.8 -10.6 3,573 10,300 -41.6 -11.4
Hong Kong 91 263 -57.8 -33.7 -91.6 -81.1 4,183 7,466 42.6 61.6
USA 321 821 76.0 83.3 2,147 5,953 -48.6 -51.0
Malaysia 523 629 90.7 99.7 86.6 122.4 4,687 5,854 63.5 80.3
Japan 93 194 -66.8 -23.5 -46.9 -54.1 2,257 4,553 -42.0 -61.6
Cambodia 455 400 0.6 2.9 4,252 3,540 18,387.0 11,275.0
Russia - 1,581 2,165 152.4 307.4
Pakistan 232 311 850.1 842.0 408.1 413.1 1,298 1,747 56.0 46.3
In terms of price: In December 2021, the price of imported raw fibers to Vietnam reached an
average of $1,315 per ton, an increase of 3.3% compared to November 2021 and an increase of
17.3% compared to December 2020.
The lowest import fibers price was from the Indian market, reached 1.123 USD/ton; then from
Malaysia has reached 1.249 USD/ton. The highest was from the Singapore, 2.883 USD/tons.
Import price of fibers 2020-2021 (USD/ton)

Page | 20
Import price of fibers in 2021
Exporter
Dec-2021
(USD/ton)
Compared to
Nov-2021
(%)
Compared to
Dec-2020
(%)
2021
(USD/ton)
Compared to
2020 (%)
Total 1,315 3.3 17.3 1,284 14.8
China 1,225 -1.5 18.0 1,190 16.2
Taiwan 1,218 3.9 32.3 1,120 19.2
Korea 1,587 3.1 23.7 1,474 13.5
Thailand 1,366 13.6 54.5 1,276 41.2
Indonesia 1,329 5.0 44.9 1,221 35.0
India 1,005 -1.0 -2.1 1,123 -3.8
Greece 3,047 2.2 26.4 2,771 12.3
Singapore 3,275 -33.1 10.1 2,883 51.7
Hong Kong 2,881 57.0 124.3 1,785 13.3
USA 2,556 4.2 2,772 -4.8
Malaysia 1,203 4.7 19.2 1,249 10.3
Japan 2,093 130.1 -13.6 2,017 -33.9
Cambodia 878 2.3 833 -38.5
Russia 1,370 61.4
Pakistan 1,338 -0.9 1.0 1,345 -6.2
Austria 2,790 14.9
Macau 1,489 6.5
Netherlands 17,177 8.0
UK 3,504 4.1
Bangladesh 900 0.0 0.0 900 0.0
Italy 1,904 119.4
Slovenia 2,989 24.9
Myanmar 1,627 45.5
Belgium 1,636 -6.5
Turkey 2,500 108.6
Germany 4,280 35.7
Seychelles 3,000
Portugal 15,819 15,819
Import price of raw yarn in 2021 increased by 22.8% compared to 2020
According to statistics of the General Department of Customs, import of raw yarn in December
2021 reached 63.22 thousand tons, worth 193.58 million USD, down 2% in volume but up 6%
in value compared to November 2021, down 4.8% in volume but up 31.3% in value compared
to December 2020.
In general, in 2021, the amount of raw yarn into Vietnam reached 721 thousand tons, worth
2.03 billion USD, up 10.4% in volume and 35.2% in value compared to 2020.

Page | 21
Vietnam's import yarns in 2021 (thousand ton)
China is the largest supplier of raw yarn to Vietnam, with imports in December 2021 reaching
40.44 thousand tons, worth 113.59 million USD, down 2.5% in volume but up 4.9% in value
compared to November 2021; up 2.9% in volume and 55.9% in value compared to December
2020. In general, in 2021, the amount of raw yarn imported from China market into Vietnam
reached 442.29 thousand tons, worth 1.14 billion USD, accounting for 61.3% of the total import
volume, up 11.3% in volume and 46.4% in value compared to 2020.
In December 2021, the import of raw yarn from Taiwan market reached 7.84 thousand tons,
worth 23.09 million USD, up 6% in volume and 18% in value compared to November 2021;
down 8.9% in volume but up 9.3% in value compared to December 2020. In general, in 2021,
the amount of raw yarn imported from Taiwan market into Vietnam reached 98.65 thousand
tons, worth 255.87 million USD, accounting for 13.7% of Vietnam's total import of raw yarn, up
23% in volume and 29.3% in value compared to 2020.
In general, in 2021, the import of raw yarn from the main supplying markets to Vietnam
increased, except for Japan, which decreased by 76.7%, Malaysia decreased by 36.7%.
Vietnam's import yarns in 2021
Exporter
Nov-2021 (%)
Compared to
Dec-2020 (%)
2021 Compared to
2020 (%)
Qty
(ton)
Value
(1,000
USD)
(ton)
Value
(1,000
USD)
Qty Value
Total 63,215 193,583 -2.0 6.0 -4.8 31.3 721,045 2,033,928 10.0 35.1
China 40,445 113,595 -2.5 4.9 2.9 55.9 442,294 1,146,119 11.3 46.4
Taiwan 7,840 23,094 6.0 18.0 -8.9 9.3 98,650 255,876 23.0 29.3
India 3,934 11,524 30.1 18.0 -16.4 12.8 56,593 163,652 8.1 42.8
Korea 2,882 9,833 -21.2 -22.5 -44.9 -37.8 34,349 125,696 8.7 23.5
Indonesia 3,555 10,520 -8.4 -15.1 37.1 66.3 33,957 96,538 30.1 58.6
Hong Kong 1,055 5,931 85.4 60.4 -32.2 -27.3 9,338 57,737 1.5 -35.4
Thailand 1,145 4,342 -47.5 -35.8 139.5 143.4 13,365 44,795 28.0 24.9
Japan 440 4,387 30.4 147.2 97.2 124.7 4,030 38,355 -76.7 18.2

Page | 22
Exporter
Nov-2021 (%)
Compared to
Dec-2020 (%)
2021 Compared to
2020 (%)
Qty
(ton)
Value
(1,000
USD)
(ton)
Value
(1,000
USD)
Qty Value
Singapore 186 2,268 -19.1 171.5 -39.0 49.9 2,212 17,253 15.6 25.7
Malaysia 614 1,688 14.9 102.4 -42.1 36.4 7,480 12,721 -36.7 -0.2
Turkey 390 2,201 17.8 20.1 1,262.3 1,513.2 1,841 8,679 50.7 135.0
Pakistan 117 565 261.1 251.8 -26.2 13.3 1,824 7,720 20.2 50.4
USA 41 452 -49.6 -36.3 -85.0 -58.3 1,142 7,619 2.2 -5.7
Italy 27 446 -34.2 19.4 -20.0 27.2 855 7,408 127.8 10.9
Australia - 1,673 3,897 5,207.0 56,896.1
Bangladesh 247 293 -32.9 -42.5 -53.6 -51.7 3,172 3,763 -34.8 -35.6
Sri Lanka 75 728 1,633.9 501.6 41.3 72.4 424 3,641 2.2 8.1
Netherlands 2 76 -93.1 -72.2 -96.7 1,212.9 161 3,566 18.2 -26.5
Macau 12 185 -65.3 -11.8 -88.7 -69.5 319 3,458 -3.6 61.9
In terms of price: Import price of raw yarn in December 2021 was at USD 3,062/ton, an
increase of USD 230/ton compared to November 2021 and USD 843/ton compared to
December 2020. In general, in 2021, the price of imported raw yarn to Vietnam reached an
average of 2,821 USD/ton, up 22.8% compared to 2020.
Import price of yarns 2020-2021 (USD/ton)
Among the markets supplying raw materials to Vietnam, the price of raw yarn imported from
China reached the lowest level of 2,809 USD/ton; followed by from India with 2,929 USD/ton.
Import price from Hong Kong market reached the highest level of 5,623 USD/ton.

Page | 23
Import price of yarns in 2021
Exporter
Dec-2021
(USD/ton)
Compared to
Nov-2021
(%)
Compared to
Dec-2020
(%)
2021
(USD/ton)
Compared to
2020 (%)
Total 3,062 8.2 38.0 2,821 22.8
China 2,809 7.6 51.5 2,591 31.5
Taiwan 2,946 11.4 20.0 2,594 5.1
India 2,929 -9.3 35.0 2,892 32.1
Korea 3,412 -1.7 12.9 3,659 13.7
Indonesia 2,959 -7.2 21.3 2,843 21.9
Hong Kong 5,623 -13.5 7.2 6,183 -36.3
Thailand 3,791 22.3 1.6 3,352 -2.4
Japan 9,963 89.6 14.0 9,518 406.7
Singapore 12,165 235.4 146.0 7,798 8.8
Malaysia 2,749 76.2 135.4 1,701 57.8
Turkey 5,648 2.0 18.4 4,715 55.9
Pakistan 4,837 -2.6 53.5 4,232 25.1
USA 10,975 26.4 177.7 6,670 -7.7
Italy 16,569 81.4 59.0 8,662 -51.3
Australia 2,330 974.0
Bangladesh 1,187 -14.3 3.9 1,186 -1.2
Sri Lanka 9,685 -65.3 22.0 8,597 5.7
Macau 14,948 154.0 169.9 10,853 67.9
Cotton Outlook 2-2022
PRICE OUTLOOK
The upward trend in cotton prices continues, despite persistent estimates indicating that global
cotton stocks are higher than before the pandemic. In 2017/18 and 2018/19, global cotton
stocks were 81.2 and 80.1 million bales. Average prices for the A Index during those two crop
years were 88 and 84 cents/lb. Ending stocks in 2021/22 are forecast to be 84.3 million bales,
and current values for the A Index are 140 cents/lb.
Stocks are also forecast to be higher for the world-less-China in 2021/22 (48.1 million bales
versus 43.2 million in 2017/18 and 44.4 million in 2018/19). In China, 2021/22 stocks (36.2
million bales) are projected to be near the levels from 2017/18 (38.0 million) and 2018/19
(35.7 million).
The unprecedented volume of stimulus that followed COVID and the shipping crisis are all
distortions that can explain some of the deviation in the historical relationship between stocks
and prices. Given the size of the discrepancy, some attention should be paid to where global
cotton stocks are located.

Page | 24
China is the world’s largest warehouser and is expected to hold 43% of global stocks at the end
of 2021/21. Ahead of the holiday, it was consistently reported that gins in Xinjiang were having
difficulty selling to mills or traders due to differences in price expectations. After paying
elevated prices for seed cotton, Chinese gins have been complaining they would suffer losses if
they sold downstream at the levels the market has been asking. This has meant that the flow of
domestic fiber in China has been slow.
USDA figures show that Brazil should hold the second-largest volume of stocks at the end of the
crop year. However, that is due to the timing of the Brazilian harvest relative to the end of the
international crop year and is not a reflection of surplus fiber available to the market.
Nonetheless, the weather in both Brazil and Australia has been generally favorable, which
promises a volume of fresh exportable supply in coming months.
India is the next largest location for stocks. There have been reports that Indian growers have
been withholding seed cotton from gins speculatively, with hopes of taking further advantage
of the upward trend in prices.
Delays in the flow of cotton in India and China may be contributing to feelings of scarcity. China
and India are the world’s largest spinners. Imports can be substituted for domestic supplies to
feed mills. However, the shipping crisis is an impediment facing shippers around the world. U.S.
export shipments are down 43% year-over-year crop-year-to-date. With challenges in securing
trucks and ships, it remains to be seen if the U.S. will meet the lowered forecast for exports this
crop year.
High prices suggest an increase in acreage and production around the world in 2022/23. There
is more uncertainty on the demand side. Stimulus is scheduled to be withdrawn in several major
consumer markets. At the same time, general inflation and price increases for apparel and other
finished textiles threaten downstream demand.

Page | 25
Source
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.
5.9 5.9
3.8
2.4 2.9
1.3 0.8 1.2 0.7 0.2 0.3 0.3 0.3 0.2
8.6
5.7
0.6
1.9 0.7
2.4
1.9
1.9 1.6 0.7
0.5 0.4
0.2
1.3
3.3
1.4
1.8
0.1
0.9
0.3 0.3 0.3 0.3 0.1
2.1
0.2
1.2
1.2
1.1
1.8
1.6
0.5 0.2 0.2
0
2
4
6
8
10
12
14
16
18
Million
metric
tons
World Cotton Market Outlook 2021/2022
Update forecast for February 2022
Production Consumption Exports Imports

Page | 26
Reference from Newspapers
Cotton production scanty despite huge market
Thedailystar
Feb 7, 2022
Cotton production in Bangladesh has been low as farmers prefer other cash crops to the white
fiber, completely missing out on at least a $3 billion domestic market.
The country managed to produce only 1.77 lakh bales of cotton last year, which was insufficient
to meet the demand of even a single spinning mill.
This represents nearly 1 per cent of the total annual consumption of the key textile raw material
of 9 million bales. Some 480 pounds, or 218 kilograms, make a bale.
This has made Bangladesh one of the largest importers of cotton as it needs to feed the local
apparel industry, the second-largest in the world.
Spinners, millers and other users have to spend more than $3 billion annually to buy cotton
from India, the US, African countries, Australia, Brazil, Pakistan, and Central Asian nations.
Currently, cotton is cultivated on 45,000 hectares of land in about 40 districts.
In 2022, Bangladesh will import more than 9 million bales of cotton, up from 8.5 million bales
last year, on the back of a nearly 30 per cent growth in garment exports in keeping with the
recovery of the global supply chain.
Australian cotton crops this year to be 2nd best on record
Fibre2fashion
Feb 10, 2022
Owing to favorable conditions across most of Australia’s cotton growing regions, the country’s
production this year is expected to be second best on record, according to Cotton Australia.
Australian cotton, which is among the best quality sustainable cotton, was impacted by drought
in 2019-20 when its yield was less than 590,000 bales, followed by 2.8 million bales last year.
“Substantial rain late last year and early this year have growers optimistic, and if good
conditions continue, a crop of around 5.2 million bales is possible,” Cotton Australia CEO Adam
Kay said in a press release.
Kay said some regions haven’t had enough rain and others have suffered severe flooding, but
the majority of growing regions have benefitted from warmer temperatures, good rain and
manageable pest issues.

Page | 27
“It goes to show how diverse our cotton growing regions are with some farmers separated by
thousands of kilometers. But what is clear is that most of Australia’s 1500 growers are busy
preparing for a good year and hoping they can find staff to help them through to harvest.
“While the yield per hectare can also vary significantly, particularly with dryland and irrigated
cotton, some are forecasting 12-14 bales a hectare under irrigation. Good results are also
expected in dryland areas because of the rain and natural conditions this year,” Kay added.
Supply chain disruptions continue to affect world cotton market
Fibre2fashion
Feb 14, 2022
In the early weeks of 2022, the supply chain disruptions continue to affect the US and world
cotton market and the COVID-19 Omicron variant is creating disruptions in various parts of the
world, according to the National Cotton Council (NCC) economists who have pointed out a few
key factors that will shape the US cotton industry’s 2022 economic outlook.
This past year can be characterized as a year with significant uncertainty and volatility in the
global economy and the world cotton market. The global economy recovered at a much faster
pace than expected as COVID-19 restrictions were relaxed and world economies reopened.
Strong world cotton demand has resulted in the highest cotton prices in a decade. However, the
lingering effects of the COVID-19 pandemic’s shock to global trade have created an
unprecedented level of stress and disruption on the entire supply chain, from transportation
costs to labor availability, NCC said in its report.
In the analysis of the NCC Annual Planting Intentions survey results, Dr Jody Campiche, the
NCC’s vice president, economics & policy analysis, said, “The NCC projects 2022 US cotton
acreage to be 12 million acres, 7.3 per cent higher than 2021. Although cotton prices are higher
than in recent years, higher input prices and supply chain disruptions have resulted in
significant increase in production costs for 2022. Most producers are expecting a significant
increase in input costs in 2022, largely due to higher fertilizer and chemical costs.”
Based on the state-level 10-year average abandonment rates and five-year average yields, 2022
harvested area is estimated to be 9.8 million acres with an overall abandonment rate of 18.9
per cent. US production is estimated to be 17.3 million bales with an average yield of 850
pounds per acre, which includes 16.8 million upland bales and 438,000 extra-long staple bales.
Regarding domestic mill cotton use, the NCC is projecting an increase in US mill use to 2.7
million bales during the 2022 crop year. As one of largest markets for US cotton, US mills
continue to be critically important to the health of the cotton industry. In the face of rising textile
imports from Asian suppliers, the US textile industry has focused on new investment and
technology adoption in order to remain competitive. Preserving important trading
arrangements in the western hemisphere also is critical to the US textile industry’s health.

Page | 28
US exports for the 2021 marketing year currently are estimated at 13.8 million bales, which is
950,000 bales below the February 2022 USDA estimate. While US export sales have been very
strong thus far in the 2021 marketing year, weekly shipments are lagging well behind the five-
year average pace. In addition to the disruptions and delays caused by transportation issues,
cotton shipments in the early months of the 2021 marketing year suffered from a lack of
available supply.
As of February 3, total commitments reached 13 million bales while 4.5 million bales had been
shipped. Current shipments are 3.2 million bales behind last year and 1.1 million bales behind
the five-year average. To reach 13.8 million bales in shipments by July 31, weekly shipments
will need to average 370,000 bales which is slightly above the five-year average pace.
With fewer exports for the 2021 crop year, US ending stocks are projected to increase to 4.4
million bales or 1.2 million bales more than the previous year. Campiche added that the world
production is estimated to increase to 122.6 million in 2022 due to higher acreage. World mill
use is projected to increase to 125.9 million bales for the 2022 marketing year, which
represents an all-time high for cotton demand. With expanded consumption in key importing
countries, world trade is projected to increase to 48.3 million bales.
US exports are projected to increase to 15.8 million bales in the 2022 marketing year. When
combined with US mill use, total offtake exceeds expected production, and ending stocks are
projected to fall to 3.1 million bales. If realized, US stocks represent one of the lowest levels in
the last 20 years. World ending stocks are projected to decline by 3.4 million bales in the 2022
marketing year to 81.6 million bales, resulting in a stocks-to-use ratio of 64.8 per cent.
A tighter US balance sheet, supply chain disruptions, speculative money flow, overall increases
in commodity prices, and strong demand are creating a bullish sentiment for cotton prices.
However, additional restrictions related to the COVID-19 pandemic, a slow-down in world
economic activity, and low man-made fiber prices could put downward pressure on cotton
prices in 2022.
Turkey: Cotton Textile and Product Exports Spur Record Consumption
USDA
Feb, 2022
Turkey’s 2021/22 cotton consumption is forecast at a record 8.5 million bales and use is
expected to grow more than 10 percent, well above the 3 percent consumption growth forecast
for the world. Turkey is forecast to contribute a significant portion of the world’s record
2021/22 consumption, behind only India in its year-over-year increase of 0.8 million bales.
Logistical advantages, changes in global retailers’ sourcing strategies, and duty-free access to
the European Union (EU) are supporting robust cotton product and textile exports.
Despite global issues with ocean freight, Turkey’s location is ideal relative to other cotton
product and textile exporters. Turkey is near European and Middle East markets, with the EU

Page | 29
being the world’s second-largest importer of cotton products. Turkish exporters can also ship
by rail or truck versus relying solely on ocean transit. Additionally, Turkey’s Customs Union
with the EU means that most textiles and clothing products can be exported duty-free to the EU
and European Free Trade Association countries.
Outside of logistics, EU and U.S. retailers are actively restructuring their supply chains to rely
less on manufacturers in Asia (particularly China). The United States is the world’s largest
importer of cotton products, and U.S. retailers are seeking to comply with the U.S. Withhold
Release Order (WRO) on products containing any derivative of Xinjiang cotton. Compared with
China and other major exporting countries in South and Southeast Asia (e.g., Bangladesh,
Vietnam, and Cambodia), Turkey’s supply chain from lint to finished fabric is mostly absent of
Xinjiang lint.
Turkey cotton product and textile exports are booming despite widespread economic concerns.
These include exchange rate fluctuations, rising energy costs, electricity cuts, cotton prices
more than doubling (in local currency), and slower tourist activity (a significant contributor to
domestic economic growth). Although the lira’s plunge makes cotton lint imports and other
inputs more expensive, the lower-valued currency also makes textile and product exports more
affordable for foreign buyers. Despite these economic headwinds, lower priced exports
continue to surge. With global retailers seeking alternative sources outside Asia and with
Turkey’s logistical advantages, these factors provide a strong foundation for 2021/22
consumption and beyond.

VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 02/2022 ISSUE

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 02/2022 ISSUE

Similar to VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 02/2022 ISSUE (20)

More from Vietnam Cotton & Spinning Association

More from Vietnam Cotton & Spinning Association (20)

Recently uploaded

Recently uploaded (20)

VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 02/2022 ISSUE