VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 03/2023 ISSUE

Bản tin Tháng 03-2023
MONTHLYREPORT
Cotton and Yarn Statistic
March 2023
Vietnam Cotton and Spinning Association
Collected & Edited: Information and Communication Dept.
--- For internal circulation only ---

www.vcosa.org.vn
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Newsletter March 2023
NATIONAL NEWS
INTERNATIONAL NEWS
REMARKABLE INFORMATION
Import price of raw cotton is still in a slight downtrend
It is forecast that the volume of imported raw fiber will continue to decrease
It is forecasted that the import price of yarn will remain stable
Export of fibers and yarns recovers slowly
Global cotton yarn market estimated to hit $ US 100 billion by 2028
Gujarat cotton yarn exporters witnessing high demand from Turkey and Europe
Cotton production: global and local trends
Australian cotton finds a new home as China trade ban drags on
Indonesia hopes India will reconsider its plan to impose anti-dumping import duties on Indonesian VSF
India’s imports of viscose staple fiber surge as cotton prices hit record highs in 2022

3
https://vietnamyarnprice.com
Global cotton yarn market estimated to hit $ US 100 billion by 2028
T
he reason for the rise in
valuation is being credited to
the unique characteristics of
yarn that influence the quality of
finished textile goods.
Out of the yarn types, the
segment of carded yarn is
estimated to show considerable
expansion over the period which
is due to the increased use of the
product for the manufacture of
woolen threads.
Over the estimated period,
the apparel segment is also set to
register reasonable growth which
can be attributed to growing
penetration of e-commerce, rising
amount of disposable income and
more.
Increasing government
initiatives for the benefit of
domestic textile sectors is being
seen as a key factor propelling the
growth of the cotton yarn market.
These initiatives are focused on
skill development, the creation
of infrastructure, and sectoral
development in the textile sector.
The industry expansion could
be hampered, however, due to the
competition in pricing compared to
the lower prices of synthetic yarn.
Cotton yarn market share for
the Asia-Pacific region is expected
to record substantial growth over
the forecast period, which can be
credited to the escalating demand
for the product from the growing
population and an increase in
consumer expenditure.
ThemarketinEurope,however,
is estimated to have a lucrative
pace of growth over the forecast
period. This is being driven by the
growing raw material demand and
rise of technical textiles over the
years.
Source: Apparel Resources
SPECIALIZED NEWS
According to a report by Fortune Business Insights, the global cotton
yarn market, valued at US $ 94.40 billion in 2022 is expected to expand
from US $ 82.81 billion in 2023 to around US $ 100.68 billion by 2028,
with an expected CAGR of 4 per cent over the estimated period.

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Gujarat cotton yarn exporters witnessing
high demand from Turkey and Europe
C
otton exporters in Gujarat
have been witnessing an
unexpected rise in yarn
demand from Turkey and Europe
since February.
This,astradeexpertsbelieve,is
due to the devastating earthquake
hitting Turkey and and hurting
the textile spinning sector in the
country resulting in the increase in
imports of Indian cotton.
In a similar way, since exports
of cotton from Turkey have
stopped, Europe is also importin
cotton from India. The share of
these regions in India’s cotton
exports has jumped in the past
two months from 15 per cent to
30 per cent.
Rahul Shah, the co-chairman
of Gujarat Chamber of Commerce
and Industry (GCCI) textile
taskforce, said, “The past one year
was very difficult for the Indian
textile industry because our cotton
prices have remained higher than
the international prices. However,
now our cotton prices are on a par
with the international prices, and
we have also seen a good crop.”
He added, “We received good
orders for yarn from China in
December and January. Now, there
is significant demand from Turkey
and Europe. The earthquake
destroyed many spinning factories
in Turkey, so they are now
buying cotton yarn from India.
The European countries have
also placed orders with us. The
demand from Turkey and Europe
accounts for 30 per cent of total
exports from earlier 15 per cent.”
Cotton yarn exports from India
went down by 59 per cent from
April 2022 to January 2023 with
exports of 1,186 million kg in the
previous year period went down
to 485 million kg. Cotton yarn
exports reduced to 31 million kg in
October 2022, but increased to 68
million kg in January, which was
highest after April 2022.
Jayesh Patel, the vice president
of Spinners’ Association of Gujarat
(SAG), said, “Spinning mills across
the state are functioning at 100
per cent capacity due to the steady
demand. The inventory is empty in
the value chain and in the next few
days, we will see good demand.”
He added, “Cotton yarn prices
have come down to Rs 265 per
kg from Rs 275 per kg. Similarly,
cotton prices have come down
to Rs 60,500 per candy (356
kg). Steady price of cotton will
generate better demand.”
Source: Apparel Resources
“Spinning mills across the state are functioning at 100 per cent capacity due
to the steady demand. The inventory is empty in the value chain and in the next
few days, we will see good demand.”
Mr. Jayesh Patel, the vice president of Spinners’ Association of Gujarat (SAG)

5
Cotton production: global and local trends
T
he structure of the global
cotton market will not
change significantly in the
coming decade, with sub-Saharan
Africa as a region remaining the
third-largest exporter of raw
cotton in 2031, after the US
and Brazil.
The global trade in cotton is
expected to grow slightly faster
than overall consumption, given
the demand growth in countries
without much domestic cotton
production such as Bangladesh
and Vietnam, and stagnating
domestic mill use in Brazil,
where the projected increase in
production is destined entirely
for export.
Several uncertainties could
affect the outlook. The Russia-
Ukraine war, the emergence of
new COVID-19 variants and
subsequent potential supply
chain disruptions could alter the
projections of the first years. In
addition, the extent to which
interest rates will increase to
contain inflation could alter the
cost of borrowing and hence
investment plans in the sector.
In general, strong competition
from synthetic fibres, notably
polyester, is anticipated to continue
to adversely affect cotton demand
growth over the projection period.
However, given the increased
adoption of sustainability
standards in supply chains, the
growth in consumer preferences
for more sustainable products
is expected to partly offset the
overall downward pressure on
cotton demand growth.
Like other crops, cotton
production is sensitive to pests,
weather conditions and climate
change. Changing policy measures
and trade tensions are also sources
of uncertainty for cotton markets.
Cotton consumption
Cotton consumption refers to
the use of cotton fibres by mills
to produce yarn. Mill use of cotton
depends on the global demand for
textiles and on competition from
substitutes such as polyester and
other synthetic fibres.
Over the past decades,
global demand for textile fibres
has grown strongly, driven by
population and income growth;
After a sharp increase
in 2021, cotton prices
are expected to remain
elevated in 2022,
supported by rising
consumption and overall
higher commodity prices.
Over the period up to
2031, however, prices
are anticipated to adjust
downwards to return to
their long-term decreasing
trend in real terms, due
to productivity gains and
continuing competition
with synthetic fibres.
Photo: Dr Jack

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increasingly, however, most of
this demand has been met by
synthetic fibres.
Per capita consumption of
non-cotton fibres overtook that of
cotton in the early 1990s and has
continued to grow strongly ever
since. In contrast, global per capita
consumption of cotton fibres has
increased marginally over time
and has decreased in recent years.
After the peak of nearly 27t in
2007, global cotton consumption
decreased to around 25t per
annum in 2019 to 2021, due to its
deterioration in competitiveness
relative to polyester.
The prospects for global
cotton use depend on its evolution
in developing and emerging
economies. Demand from
developing regions with lower
absolute levels of consumption but
higher income responsiveness is
projected to exert upward pressure
on global demand for cotton as the
incomes and population of these
countries increase.
As a result, this outlook
expects that global consumption
of cotton products will grow at a
slightly higher pace than global
population in the coming decade.
Correspondingly, global mill use is
projected to grow by around 1,6%
per annum over the next decade.
Cotton production
Cotton is grown in subtropical
and seasonally dry tropical areas
in both the Northern and Southern
hemispheres, although most of
the world’s production takes place
north of the equator. The main
producing countries are India,
China, the US, Brazil and Pakistan.
Together, these countries
account for more than three-
quarters of global production.
Global cotton production is
expected to grow by 1,6% per
annum to reach 30,6t by 2031,
which is 17% higher than in 2022.
Most of this production growth
in the coming decade is expected
to come from the main producing
countries, with India accounting for
about 25% of the global increase.
At the global level, gains in
cotton production are projected
to stem mainly from higher yields,
which are expected to increase
by 14% compared with the
base period, reflecting improved
genetics and better agricultural
practices.
In the last decade, global yields
have been stagnant, reflecting
static or decreasing yields for some
major producers (US, Pakistan,
India), declining cotton area in
China (where yields are well
above average), and expanding
cotton area in India (where yields
are well below average).
Over the projection period, the
area planted to cotton is expected
to expand by 3% compared with
the base period.
Production in India, the world’s
largest cotton grower, is projected
to grow by around 1,3% per annum
over the outlook period, mainly
on account of higher yields rather
than area expansion, since cotton
already competes for acreage with
other crops.
Raw cotton productivity in
India has remained stagnant
in recent years and is among
the lowest globally, as farmers
struggle with adverse weather,
pests and diseases. In addition,
most cotton is grown on small
farms, which limits the adoption of
intensive farming technologies.
However, growing demand
from the domestic apparel
industry in India continues to spur
investments in the sector and
this outlook assumes a growth
in yield that reflects increased
use of smart mechanisation,
varietal development, and pest
management practices.
Nonetheless, climate change,
with most cotton grown under
rainfed conditions, may undermine
the yield growth potential.
Chinese cotton producers
currently achieve yields more than
double the world average. As
further improvement may be more
difficult, yield growth is projected
to slow to 0,6% per annum.
Although in general the
area planted to cotton in China
has declined over the past two
decades, mostly due to changing
government policies, this seems to
have slowed down since 2016. The
cotton area in China is expected to
decrease by 0,3% per annum.
In Brazil, cotton is grown in part
as a second crop in rotation with
soya bean or maize, and output
has recently grown strongly in the
main growing areas, such as Mato
Grosso.
Favourable growing conditions
and a high rate of adoption of
modern technologies in Brazil
have contributed to rising cotton
yields and areas over recent years.
These factors should support
further strong production growth
of 6% per annum in the country.
Cotton trade
Cotton is traded mainly in
bales of raw cotton fibres. World
cotton trade is projected to expand
steadily over the next decade
and reach 12,4t in 2031, 27%
higher than in the base period.
The increase mainly reflects the
significant growth in mill use

7
in Asian countries, particularly
Vietnam and Bangladesh, which
source virtually all their cotton
from imports.
By 2031, imports into China
are projected to be 8% higher
than today, and in Bangladesh
and Vietnam should increase by
60%, in line with mill consumption
growth. These three countries
will account for more than half
of global cotton imports, with
Bangladesh as the world-leading
raw cotton importer.
The US will remain the world’s
largest exporter throughout
the outlook period. Its exports
have stabilised in recent years,
recovering from the lows of
2016, and its share of world
trade is projected at 31% in
2031, compared with 34% in the
base period.
Recent trade tensions
between the US and China have
placed some pressure on cotton
shipments between the countries.
Under the assumption of better
trade relations in the future, the US
should regain its share in Chinese
cotton imports.
Brazilian exports are expected
to grow strongly over the next
decade, consolidating its position
as the second-largest exporter
by 2031. India will follow in third
place with shipments projected at
1,3t by 2031.
Cotton is an important export
crop for sub-Saharan Africa, which
currently accounts for 16% of
global exports. Cotton production
in the region has increased in
the past few years, due to both
increased area and improved
yields. However, spinning mill
consumption remains limited, as
many countries export most of
their produce.
Sub-Saharan African exports
are projected to continue growing
at around 1,7% per annum in
the coming decade, with South
and Southeast Asia the major
export destinations. However,
the textile and apparel industry is
growing in some other countries,
especially Ethiopia.
Source: Farmer’s Weekly
T
he shift in consumption
towards viscose was due
to the record levels of
cotton prices seen in April 2022.
During January-November 2022,
India’s import of viscose stood at
$221.348 million, representing a
more than 50 percent increase in
both value and volume compared
to the same period in 2021.
In 2021, India’s import of
viscose reached a new high
of $135.116 million, up from
$86.252 million in 2020,
indicating a bounce-back from the
pandemic slump.
The import of viscose fiber
from Indonesia accounted for the
highest share of 29.57 percent,
followed by Austria at 17.17
percent, Hong Kong at 15.62
percent, China at 10.68 percent,
and Singapore at 10.02 percent.
This trend is a clear indication
that the Indian textile industry is
shifting towards alternative fibers
in response to rising cotton prices.
It will be interesting to see how
this trend continues in the coming
years and what impact it will have
on the textile industry in India.
Source: Fashionating World
India’s imports of viscose staple fiber surge
as cotton prices hit record highs in 2022
India’s import of viscose staple fiber
has been on the rise in recent years, with
a significant jump recorded in the first
eleven months of 2022.

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C
urrently, cotton grown in
Australia is sent overseas
to 15 different countries for
processing including Vietnam,
Indonesia, Thailand and India.
Previously, China had been the
biggest market. But after the
2020 fall out with China when
Australian exporters were slapped
with tariffs, the Australian industry
began working to build stronger
relationships with other countries.
Now, cotton merchants are
looking to the Vietnamese textile
industry to futureproof the trade.
The Australian Cotton Shippers
Association (ACSA) represents
cotton merchants and recently
sent a delegation to Vietnam and
Thailand. “The point of going over
there is to promote Australian
cotton, our attributes, our ability
to ship and ship quickly,” ACSA
chairman Matthew Bradd said.
Australia’s proximity to Asian
markets gives it a competitive edge
over other top cotton exporters
such as the United States and
Brazil. “You can ship to Vietnam
in about 21 days, whereas the US
and Brazil are further away,” Mr
Bradd said.
The ACSA is exploring
options to promote Australian
cotton in different ways including
showcasing clothes made from
Australian cotton in Vietnam
International Fashion Week. Mr
Bradd said they were working with
Vietnamese spinners to get the
most out of spinning and dyeing
Australian cotton fibre.
He said Australia’s cotton
was mostly irrigated, which made
the fibre more consistent for
processing. “Spinning mills find
Australian cotton more efficient to
put through the spinning process,”
Mr Bradd said.
This year, Central Queensland
is the first to harvest, with cotton
pickers starting up in irrigated
paddocks across the region.
Cotton Info extension officer
Kim Stevens said rain earlier this
year had caused issues with fruit
losses so growers were waiting
for the cotton to produce more
before picking.
“Where it usually would be
pretty flat-out with picking, we’re
Australian cotton finds
a new home as China
trade ban drags on
Australia’s cotton harvest has kicked off, with the industry
working to shore up alternative export markets two-and-
half years on from the China trade ban.
Ảnh: AFP

9
only seeing a small amount of
pickers starting up in the past
couple of weeks,” Ms Stevens
said. “It probably won’t be really
busy picking up until probably May
or June.”
Even with wet weather causing
issues, another bumper crop is
forecast. Cotton Australia chief
executive Adam Kay said about
5.2 million bales were expected
to be produced this season.
Last year, Australian growers
produced a national record of 5.5
million bales.
Under a recently brokered
free trade agreement Australia
can send duty free cotton to
India. Despite India being the
world’s second-largest producer
of cotton, the South Asian country
is Australia’s third-largest export
destination, with a current quota
of 300,000 bales in place. Mr
Bradd said “We’ve considered
them an opportunistic market.
They’ve got their own crop there.
They’re one of the world’s largest
growers of cotton [but] sometimes
they will need to import. The Free
Trade Agreement is good. It puts
us ahead of other markets.”
Mr Kay said losing China
as a market forced the industry
to rethink its strategy. “China
was 70 per cent, of our market.
[The trade ban] showed that we
weren’t diversified enough,” he
said. “Even if China comes back
into the market, hopefully we can
maintain all these markets. It’s
important to have those options.”
However, losing China meant
losing premium prices.
“We’re seeing that sort of
comeback a little bit now as these
other mills and markets get to
know Australian cotton and are
willing to pay a little bit more for
it,” Mr Bradd said.
The cotton industry is
structured in such a way that
farmers sell it to merchants who
then sell it onto spinning mills,
which will look for the highest
price. That structure could result in
China being a major export market
again if the ban were lifted.
But Mr Bradd said there could
still be opportunities to stay
diversified. “There might have
been a shift in some of the supply
chains with brands and retailers
looking to diversify their supply
chain out of China into other
markets,” he said. “We’ve also got
a lot of mills looking to buy just
100-per-cent Australian cotton,
which is good”.
Source: ABC News

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Indonesia hopes India will reconsider its plan to impose
anti-dumping import duties on Indonesian VSF
I
ndonesia is open to negotiating a
trade agreement that focuses on
the interests of its own as well
as India.
Indonesian Trade Minister
Zulkifli Hasan and Indian
Commerce and Industry Minister
Piyush Goyal held a meeting in
New Delhi.
Zulkifli Hasan expressed
his expectation that Indonesia
and India can immediately
begin negotiating the bilateral
Preferential Trade Agreement
(PTA), which has been under
consideration since 2020.
He believes that the PTA can
optimize the economic potential
of the two countries. Indonesia
is open to negotiating a trade
agreement that focuses on the
interests of both countries.
During the meeting, he also
expressed hope for the Indian
government to reconsider its plan
to impose anti-dumping import
duties on Indonesian viscose
staple fiber (VSF) products, which
are a supporting raw material for
the Indian textile industry.
He further noted that one of
Indonesia’s biggest VSF producers
is interested in investing in India
to develop eco-friendly lyocell
fiber products of better quality.
The investment is expected to
help Indonesia contribute to the
manufacturing of high-quality
textiles in India.
The two ministers also
discussed strengthening bilateral
cooperation in various sectors
including textiles.
They also discussed several
issues that hindered efforts to
increase bilateral trade, including
the exports of Indonesian tire and
fiber products to India.
Source: CCFGroup
One of Indonesia’s biggest VSF producers is interested in
investing in India to develop eco-friendly lyocell fiber products
of better quality.

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

Trade Press Article
COMPACTdrum – Outstanding Efficiency
with up to 26 000 RPM
Rieter Trade Press Article: Jayajothi – COMPACTdrum, February 2023
About Rieter
Rieter is the world’s leading supplier of systems for
manufacturing yarn from staple fibers in spinning mills.
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 in the most cost-efficient manner.
Cutting-edge spinning technology from Rieter
contributes to sustainability in the textile value chain by
minimizing the use of resources. Rieter has been in business
for more than 225 years, has 18 production locations in ten
countries and employs a global workforce of around 5 630,
about 16.4% of whom are based in Switzerland. Rieter is
listed on the SIX Swiss Exchange under ticker symbol RIEN.
www.rieter.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:
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
Sri Jayajothi and Company Private Ltd., a quality yarn
spinner from South India, produces cotton and synthetic
yarns with a daily production capacity of 55 tons. Jayajothi
invests in the latest technology to be able to produce at
highest speed without compromising on quality. To help
meet the growing market demand, the company opted
for the Rieter ring spinning machine G 37 with the semi-
electronic drafting system together with the compacting
device COMPACTdrum.
The Rieter ring spinning machine G 37 with the
compacting device COMPACTdrum runs with excellent
spinning stability and ensures highest productivity
(Fig. 1). Jayajothi operates the machines at a maximum
spindle speed of 26 000 rpm producing a very fine yarn (Ne
60) from 100% cotton with 100 grams per spindle (GPS).
This is far above the industry benchmark. The energy
efficient components such as the 75 kW IE4 main motor,
the LENA spindles and the optimized suction systems
reduce the energy consumption by up to 7% compared to
the previous model.
Best performance in downstream processes with
COMPACTdrum
The compacting device COMPACTdrum reduces long
protruding fibers of the yarn to an absolute minimum
which increases the acceptance in downstream processing.
This enables Jayajothi to supply highly demanding
customers in the global market. The yarn produced with
this Rieter solution achieves the best performance in
downstream processes: virtually no other system can spin
a yarn that reaches a value below 0.20 warping breaks
per million meters. The durable technology components
of COMPACTdrum ensure that the yarn quality remains
consistently high over the long term. In addition, the unique
SERVOgrip system eliminates the need to underwind the
yarn for doffing preparation. This reduces fiber fly and
ensures high yarn quality.
K Gokul, Managing Director at Sri Jayajothi,
summarizes: “We are very satisfied with the performance of
the ring spinning machine G 37 with the compacting device
COMPACTdrum. The machine runs at an exceptionally high
spindle speed of 26 000 rpm and produces consistently
high yarn quality.” (Fig. 2)
Highest flexibility for constantly changing trends
The G 37 with COMPACTdrum is hard to beat in
terms of flexibility. Parameters such as yarn twist or twist
direction can quickly be adjusted on the machine display.
The compacting device COMPACTdrum can easily be
plugged in or out so customers can switch between ring
and compact yarn. The machine processes almost any type
of fiber and can be easily and quickly adjusted to almost any
raw material. With Rieter machinery, Jayajothi can respond
to various market requirements: flexibility for constantly
changing trends, better running behavior in downstream
processes, better fabric appearance and a diversified, high
quality product portfolio.
Fig. 1: COMPACTdrum reduces the long fibers protruding from
the yarn to an absolute minimum.
PP-ID: 97817
Fig. 2: M Gokul, Managing Director at Sri Jayajothi, is very
satisfied with the performance of the G 37 with COMPACTdrum.
PP-ID: 97821

13

American Eagle Outfitters
Joins U.S. Cotton Trust Protocol
The U.S. Cotton Trust Protocol (“Trust Protocol”) has announce the membership of American Eagle
Outfitters, Inc. (“AEO”). AEO is a leading global specialty retailer offering high-quality, on-trend
clothing, accessories and personal care products through its American Eagle, Aerie, OFFL/NE by
Aerie, Todd Snyder and Unsubscribed brands.
Trust Protocol membership will support AEO in its continued efforts to provide greater
transparency, communication and standardized reporting of its ESG progress. Underpinned by a
focus on optimism, AEO’s Building a Better World ESG strategy is centered on three key areas:
planet (environment), people (social) and practices (governance). Notably, the company has set
specific goals to achieve carbon neutrality in its owned and operated locations and significantly
reduce water use, among other sustainability initiatives.
The Trust Protocol is the only sustainable cotton system that provides quantifiable, verifiable goals
and measurement and drives continuous improvement in six key sustainability metrics – land use,
soil carbon, water management, soil loss, greenhouse gas emissions, and energy efficiency. The
Trust Protocol integrates these sustainability metrics from Field to Market’s Fieldprint® Platform,
enabling enrolled growers to measure the environmental impacts of their operation and identify
opportunities for continuous improvement.
To join The Trust Protocol, visit TrustUSCotton.org.
ABOUT THE U.S. COTTON TRUST PROTOCOL
Launched in 2020, the U.S. Cotton Trust Protocol was designed to set a new standard in more
sustainably grown cotton, ensuring that it contributes to the protection and preservation of the
planet, using the most sustainable and responsible techniques. It is the only farm-level, science-
based program that provides quantifiable, verifiable goals and measurement in six key sustainability
metrics as well as article-level supply chain transparency.
The Trust Protocol is overseen by a multi-stakeholder Board of Directors comprised of
representatives from brands and retailers, civil society and independent sustainability experts as
well as the cotton-growing industry, including growers, ginners, merchants, wholesalers and
cooperatives, mills and cottonseed handlers.

15
JOIN NOW
To learn more or
become a member,
TrustUSCotton.org
Launched in 2020, the U.S. Cotton
Trust Protocol was designed
to set a new standard in more
sustainably grown cotton,
ensuring that it contributes to
the protection and preservation
of the planet, using the most
sustainable and responsible
techniques. It is the only system
that provides quantifiable, verifiable
goals and measurement in six key
sustainability metrics and article-
level supply chain transparency.
The Trust Protocol provides brands
and retailers the critical assurances
they need to show the cotton fiber
element of their supply chain is
more sustainably grown with lower
environmental and social risk.
SETTING A NEW STANDARD IN MORE
SUSTAINABLE COTTON PRODUCTION
Trust in a smarter cotton future.

www.vcosa.org.vn
16
VCOSA’S A
VCOSA’S ACTIVITIES
📌 On March 1, 2023, VCOSA and FE CREDIT representatives conducted a meeting to discuss cooperation, sharing, and
exchanging experiences in human resource management for members’ enterprises.
📌 On the same day, in Hanoi, VCOSA’s chairman participated in the Business Federation briefing, which was co-
organized by the Vietnam Economic Forum and PSD Committee to provide an update on the business activities
share business management strategies.
📌 On March 3, 2023, VCOSA attended a briefing with Board IV on the topic: Sharing with leaders of Industry Associations
in Hanoi.
📌 On the afternoon of March 9, 2023, at the office of Asian Cotton Traders, VCOSA had a meeting with the company
leader, Mr. Jean-Paul Haessig, who is also a representative of ICA Bremen, to mention projects that could be organized
in collaboration with VCOSA on topics related to the fiber and textile industries in Vietnam.
📌 On March 17, 2023, VCOSA took part in an online interview with KPMG organization to discuss the demands and
evaluation of Vietnam spinning mills in using Australian cotton.
📌 On March 20, 2023, VCOSA officially changed our headquarters address to the L17-11, 17th floor, , Vincom Center
Tower, 72 Le Thanh Ton, Ben Nghe Ward, District 1, Ho Chi Minh City. The notification has been sent to the Agencies,
Members, and Partners.
📌 On the morning of March 21, 2023, at our new headquarter office, VCOSA welcomed representatives of ABS Vina
to discuss and acknowledge the difficulties of member to develop support solutions by engaging with partners in
accordance with business demands.
📌 On the afternoon of the same day, VCOSA’s chairman, Mr. Nguyen An Toan, led a meeting to discuss and collect
suggestions for starting an anti-dumping investigation for the product made of 100% polyester spun yarn, the HS
code 5509.22.00. The meeting had the attendance from companies: Rio Quang Nam, Nha Trang Textiles and Garment,
Thien Nam, Century Synthetic Fiber, Dong Quang Textile, Hung Phu, An Phu Thinh Yarn.
📌 On March 22-24, 2023, VCOSA’s Chairman, Mr. Nguyen An Toan, participated in the opening of the International
Fabric Exhibition TEXFUTURE 2023 at Gem Center as a co-host. In particular, on the second day, Mr. Nguyen Van
Tuan, VCOSA’s former chairman, had a speech at the seminar to share the current picture of the textile industry and
introduce Aurora Industrial Park in Nam Dinh Province.
📌 On the morning of March 30, 2023, VCOSA will attended a conference on trade development, investment, and
services to foster regional ties for businesses, hosted by the Ministry of Industry and Trade in Thai Binh province.
📌 On the same day, a VCOSA representative will attend the General Meeting of Shareholders of Century Synthetic Fiber
Corporation at the Windsor Plaza Hotel in Ho Chi Minh City.
Some photos at the TexFuture 2023 exhibition

17
ACTIVITIES
DEVELOPMENTAL AND SUPPORTIVE
ACTIVITIES FOR MEMBERS
Warmly welcome new member joining VCOSA in December 2022:
DONG KHANH TEXTILE JOINT STOCK COMPANY
RIO QUANG NAM SPINNING COMPANY LIMITED
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.
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
enhanceitsreputationandexpandandbuildrelationships
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.

www.vcosa.org.vn
18

19

Trade Press Article
How CROCOdoff Contributes to Efficient Spinning
Rieter Trade Press Article: Novibra CROCOdoff, April 2021
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 manmade fibers and their blends into yarns. Rieter is the
only supplier worldwide to cover spinning preparation processes and
all four end-spinning processes currently established on the market.
Rieter is also a market leader in precision winding machines. With 15
manufacturing locations in 10 countries, the company employs a global
workforce of some 4 420 employees, about 21% of whom are based in
Switzerland. Rieter is listed on the SIX Swiss Exchange under the ticker
symbol RIEN. www.rieter.com
About Novibra
Novibra, the world’s leading supplier of high-speed spindles, is a
subsidiary of the Rieter Group. The company, based in Boskovice (Czech
Republic), creates customer value through system expertise, innovative
solutions, after sales excellence and global presence. The leading
position of Novibra spindles is based on patented design of spindle
insert and the highest quality of the production. Almost all renowned
manufacturers of ring spinning machines specify Novibra spindles for
high performance. www.novibra.com
Klosterstrasse 32
Postfach
8406 Winterthur
Schweiz
T +41 52 208 71 71
F +41 52 208 70 60
www.rieter.com
For further information, please contact:
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: CROCOdoff contributes
to efficient spinning by
reducing cleaning and
maintenance time.
ID 40195, CROCOdoff detail
Fig. 2: Less ends down
with CROCOdoff due to
underwinding-free doffing.
ID 55559, CROCOdoff on
machine
Every spinning mill around the world faces the twin challenges
of high energy consumption and a shortage of skilled labor. The
only way to stay competitive is automation. This is where Novibra’s
clamping and cutting crown CROCOdoff comes in, that enables
underwinding-free doffing. It reduces cleaning and maintenance time
and contributes to reduction of energy consumption and number
of after-doff ends down. It is no surprise that six million spindles
equipped with CROCOdoffs are in use globally, in different machines,
for different yarns and raw materials.
Spindles with traditional underwinding system demand a lot of time
to clean the yarn catching area and fix the high ends down rate after
doffing. But rising wages and labor shortages are increasingly putting
spinning mills under pressure as fewer people are available for cleaning
and maintenance of spinning machines. The shortage in labor can mean
that the yarn catching area is not cleaned for hours and yarn production
cannot resume, resulting in significant production loss and lower yarn
quality. That is why spinning mills opt for more automation, upgrading
their machines with auto-doffers and spindles with underwinding free
crowns that require fewer operators and less maintenance.
CROCOdoff for Efficient Clamping and Cutting of the Yarn
Novibra’s latest generation of clamping and cutting crowns,
CROCOdoff, offers improved functionalities and an optimized design that
meets the requirements of modern spinning mills (Fig. 1). CROCOdoff
noticeably optimizes spinning automation as it not only helps reduce
the required maintenance time and costs; it also allows running the
ring spinning machines more efficiently and economically and thus
contributes to reduction of energy consumption.
CROCOdoff enables doffing without underwound yarn left on the
running spindle (Fig. 2). The machine no longer needs to be stopped
to clean the yarn catching area of the spindle so yarn production can
continue seamlessly. When the doffing is finished, the yarn end flies out
of the system and there are no open yarn tails that consume expensive
energy.
The secret lies in the efficient clamping of the yarn. The catching
area of the crown has a meander (resembling crocodile teeth and
giving the crown its name) for catching and cutting of the yarn. It can
be clamped tightly and prevents it from slipping out. Extensive tests
conducted on different raw materials proved the reliability of the system
that has been confirmed in practice in the reduction of the after doff ends
down rate.
Customer’s Benefits
Over the course of several months, measurements were taken on
four different machine types – one with CROCOdoff equipped spindles
– under the same conditions. With the three traditional underwinding
systems the average ends down rate was between 45 to 70 depending
on the respective machine brand. The average ends down rate on the
machine running with CROCOdoff was only 11 ends down per doff,
making it roughly four to six times lower.
Moreover, CROCOdoff makes cleaning easy. According to a
customer located in Shandong, China, before installing CROCOdoff,
they had to stop each machine once a day for 20 minutes to clean the
underwinding section and fix the high number of ends down after
doffing. CROCOdoff reduced the ends down rate and there is no need
to stop and clean each machine daily. Another customer in China with a
different raw material and yarn count reported that with CROCOdoff the
ends down rate during doffing consistently stands at around 2% and
production efficiency is significantly higher. Maintenance is optimized,
because the cleaning can be integrated in the general machine cleaning
routine that takes place every two months in contrast to traditional yarn
cutters that require cleaning every two days. The lower workload that
is enabled by CROCOdoff provides more flexibility to assign operators
to other tasks.
Modern Spinning Mills Count on CROCOdoff
In the face of labor scarcity for cleaning and maintenance, a highly
reliable, self- cleaning system with a low ends down rate is a great
opportunity for the modern spinning mill to enhance automation of its
ring spinning machines. This is why spinning mills from different brands
around the world turn to Novibra’s CROCOdoff technology, with now six
million spindles in use globally and counting.

LENA
The most sold energy-saving spindle worldwide
Make the Difference
Visit us at ITMA Milan
June 8 – 14, 2023
Hall 1, booth C206
www.novibra.com

www.vcosa.org.vn
22
1. Monthly Import Statistics
I
n February 2023, Vietnam imported 76.7 thousand
tons of cotton, worth 182.5 million USD, up 9.7% in
volume and 4.2% in value compared to the previous
month, down 35.4% in volume and down 39.5% in
value compared to February 2022.
Fiber yarn imported into Vietnam was 79.2
thousand tons, worth 159.2 million USD, up 30.7% in
volume and 17.1% in value over the previous month;
down 1.7% in volume and down 20.3% in value
compared to February 2022.
REPORT AND DATABASE
According to preliminary data in
February 2023, Vietnam imported 76.7
thousand tons of cotton, up 9.7% from
the previous month. Imported of textile
fibers and yarns was 79.2 thousand tons,
up 30.7% over the previous month.
According to the latest import
and export data from the General
Department of Customs, in
February 2023, Vietnam imported
cotton worth 182.5 million
USD, up 4.2% over the previous
month; fiber and yarn imports
valued at 159.2 million USD, up
17.1%; fabric imports valued at
776.1 million USD, down 17.1%;
import of raw materials for textile,
garment, leather and footwear
increased by 11.7% compared
to the previous month, valued at
421.4 million USD.

23
In the first 2 months of 2023, Vietnam imported
cotton worth 357.5 million USD, down 42.3% over
the same period last year; import of fiber and yarn
valued at 295.2 million USD, down 31.8%; import of
fabric valued at 1.71 billion USD, down 27%; import
of raw materials for textile, garment, leather and
footwear decreased by 20.6% over the same period
last year, worth 798.9 million USD.
According to
preliminary data in
February 2023, imported
of fiber and yarn was
about 79.2 thousand
tons, up 30.7% compared
to the previous month,
down 1.7% over the
same period last year.
According to preliminary
data in February 2023, Vietnam
imported 76.7 thousand tons of
cotton, up 9.7% from the previous
month, down 35.3% over the

www.vcosa.org.vn
24
1.1. Import price of raw cotton is still in a slight downtrend
In January 2023, there were
9 markets supplying raw cotton
to Vietnam, down 1 market
compared to the same period
in January 2022. Vietnam’s raw
cotton imports from some main
markets decreased compared to
January 2022 such as Brazil, USA,
India... Specifically:
Cotton imports from the
Australian market were the
largest in January 2023, reaching
29,000 tons, worth $75 million,
down 29.8% in volume and
34.9% in value compared to
December 2022, but increased
by 8.9% in volume and 9.9% in
value compared to January 2022,
accounting for 41.9% of Vietnam’s
total cotton imports.
Cotton imports from the
Brazilian market ranked second,
with an import volume of 23,000
tons, worth $60 million, down
44.3% in volume and 42.2% in
value compared to December/
2022.
In addition, cotton imports from
some other markets decreased
sharply in volume in January 2023
compared to December 2022 such
as: imports from India decreased
by 39%; from Argentina down
38.2%; from Pakistan decreased
by 71.7%.
According to statistics
from the General
Department of Customs,
cotton imports to Vietnam
in January 2023, reached
69.91 thousand tons,
worth 175.14 million USD,
32.4% in value compared
to December 2022, down
45.5% in volume and
to January 2022. Source: VITIC
Source: VITIC
Vietnam’s cotton import
About price: The average price of cotton imported
into Vietnam in January 2023 was at US$2,505/ton,
down 2.8% compared to December 2022, but up
1.4% compared to January 2022.
The average price of imported cotton from major
markets in January 2023 mostly decreased compared
to December 2022. In which, the price of cotton
imported from Australia decreased by 34.9% to
$2,589/ton, the price of cotton imported from Brazil
decreased by 42.2% to $2,620/ton, and the price of
cotton imported from the US market decreased. 3%
down to 2,385 USD/ton.
Vietnam’s import cottons in 2022-2023 (thousand tons)

25
It can be seen that the price of
Vietnam’s imported cotton tends
to decrease according to the world
cotton price.
In the US, according to data from
https://www.macrotrends.net/, US cotton
prices have also corrected down in
recent months, from $0.83/pound at the
beginning of January 2023. fell to $0.82/
pound at the end of January 2023 and
continued to decline in the first half of
February 2023, with cotton prices as of
February 15, 2023 at $0.81/ pounds.
Source: VITIC
Source: VITIC
Source: macrotrends.net
Import price of cotton
US cotton price in 2022-2023 (USD/pound)
The average import price of cotton in 2022-2023 (USD/ton)

www.vcosa.org.vn
26
Although the cotton price is in
a downtrend, however, according
to the assessment, the world
cotton price will not decrease
deeply and is likely to increase in
the near future when there is more
information that will support the
increase in cotton prices such as:
The US Department of
Agriculture (USDA) recently cut
its estimate of Pakistan’s annual
cotton production for the fourth
consecutive month. Accordingly,
USDA forecasts that Pakistan’s
cotton production in the 2022/23
crop year (from August 2022 to
July 2023) will decrease by 38%
to 3.7 million bales. This is the
lowest level in 40 years.
In India, the world’s second
largest cotton producer with a
21% market share, trade policy
is a major concern. The country
imposed restrictions last year on
exports of wheat, sugar and other
agricultural products to ensure
domestic supplies and keep prices
stable. Although cotton is not
included in the export bans, some
observers say it could happen at
any time.
In the US, which accounts for
15% of global cotton production,
weather is also an issue. Texas,
the major cotton-growing state
in the US, has been dealing
with drought since the spring of
2022. USDA estimates cotton
production of the United States
will drop 16% to 14.68 million
bales in this crop year.
In addition, the prospect of
a recovery in garment demand
is also a factor driving up cotton
prices. With data showing
inflation cooling in Europe and
the US, markets expect the
global economy to avoid a severe
recession, potentially boosting
apparel purchases. In particular,
the world’s largest clothing
market, China, abolished the
strict “Zero Covid” policy, further
increasing these expectations.
It is forecasted that the price of
imported cotton materials into
Vietnam will increase in the
coming time.
A
ccording to statistics of
the General Department
of Customs, Vietnam’s
imported raw fiber volume in
January 2023 reached 27.28
thousand tons, worth 30.84 million
USD, down 18.7% in volume and
down 26 .7% in value compared
to December 2022; down 18.3%
in volume and 33% in value
compared to January 2022.
Right after the Lunar New
Year holiday in 2023, textile and
garment enterprises started
production, ensuring stable jobs
for workers, but orders decreased,
small orders, more complex, lower
processing prices and highly
competitive.
Although experts predict that
garment orders will recover in the
second quarter of 2023, there will
be fierce price competition from
rivals such as Bangladesh, India
and China.
The world fiber market is
still gloomy, there is no sign of
recovery, the selling price of fiber
in the market is still low, while the
price of cotton put into production
at units is still much higher than
the current market price.
With the above factors, it
is forecast that the volume of
imported fiber and the price
of imported fiber into Vietnam
will continue to decrease in the
coming time.
1.2. It is forecast that the volume of imported raw fiber will
continue to decrease
Vietnam’s import fiber in 2022-2023 (thousand tons)
Source: VITIC

27
In January 2023, Vietnam
imported raw fibers from 17
markets, in which, China was the
largest source of raw materials
with an import volume of 11.04
thousand tons, worth 13.07 million
USD, down 30.6% in volume
and 31.1% in value compared to
December 2022; down 25.7%
in volume and 33.6% in value
Next is the Thai market, with
the amount of raw fiber imported
from this market in January 2023
reaching 7.08 thousand tons,
worth 3.89 million USD, up 47.5%
in volume but down 28.9% in
value compared to December
2022; increased by 63.9% in
volume but decreased by 33.2% in
value compared to January 2022.
In general, in January 2023,
imports of raw fibers from main
markets into Vietnam decreased,
especially imports from Thailand
increased by 47.5% in volume.
Notably, the volume of imported
fiber materials from some markets
increased sharply in January 2023
such as Italy.
Source: VITIC
Source: VITIC
Vietnam’s fiber import
About price: In January 2023, the price of
imported fiber materials to Vietnam averaged $1,131/
ton, down 9.8% compared to December 2022 and
17.9% lower than January 2022. In which, the price
of raw fiber imported from Thailand market reached
the lowest level of 549 USD/ton; followed by Taiwan
with USD 1,096/ton and the highest import price
from the Korean market at USD 1,944/ton.
Import price of fiber 2022-2023 (USD/ton)

www.vcosa.org.vn
28
In January 2023, China was
the largest supplier of yarn to the
Vietnamese market, with an import
volume of 26.12 thousand tons,
worth US$69.87 million, down
18.4% in volume and down 9.6%
in value compared to December
2022; down 34.3% in volume
January 2022.
Import of raw yarn from Taiwan
market reached 3.78 thousand
tons, worth USD 11.1 million,
down 29.7% in volume and 25.6%
in value compared to December
2022; down 52.6% in volume
January 2022.
In general, in January 2023,
imports of raw yarn from key
markets into Vietnam decreased
compared to January 2022, except
for Japan, which increased slightly
by 4.9% in volume and 34.4% in
volume. on value.
1.3. It is forecasted that the import price of yarn will remain stable
Import price of fiber
Source: VITIC
Source: VITIC
According to statistics
of the General
Department of Customs,
the import of raw yarn
in January 2023 reached
35.88 thousand tons,
worth 105.41 million USD,
to December 2022, down
43.4% in volume and
to January 2022.
Vietnam’s import yarn in 2022-2023 (thousand tons)

29
Source: VITIC
Source: VITIC
Vietnam’s yarn import
Import price of yarn 2022-2023 (USD/ton)
In terms of price:
Import price of raw yarn
in January 2023 was
at $2,938/ton, up 6.4%
compared to December
2022 but down 1.7%

www.vcosa.org.vn
30
In which, the lowest price of
yarn imported from Indonesia
reached 2,459 USD/ton; followed
by China at $2,674/ton and the
highest import price from Japan
was $11,452/ton.
According to experts, world
yarn prices have remained stable
due to reduced demand and low
purchasing power. The yarn market
is expected to remain strong in
the first few months of 2023 as
spinning mills will readjust prices
next month.
Vietnam’s yarn import price
also recorded price stability,
low import volume due to weak
demand. It is forecasted that yarn
import prices to Vietnam in the
coming months will remain stable,
along with that, yarn import
volume will also remain low.
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.

31
2. Monthly Export Statistics
In February 2023, Vietnam exported 108.5 thousand tons of fiber and yarn, worth 339 million USD, up 23.1%
in volume and 50.3% in value over the previous month; down 17.8% in volume and down 23.3% in value
compared to February 2022.
Fiber and yarn
exports in February 2023
reached 339 million
USD, up 50.3% over the
previous month; fabric
exports reached 207.3
million USD, up 35.7%;
export of raw materials
for textile, garment,
leather and footwear
reached 164 million
USD, up 35.4%; technical
fabric exports decreased
1% month on month,
worth 57.2 million USD.
Vietnam’s fiber and
yarn exports in February
2023 reached 108.5
thousand tons, worth
339 million USD, up
23.1% in volume and
to the previous month.

www.vcosa.org.vn
32
Textile and garment
exports in February 2023
reached 2.29 billion USD,
up 1.9% from the previous
month.
According to
preliminary data in
February 2023, textile
and garment exports
reached 2.29 billion
USD, up 11.9% over the
In the first 2 months of 2023, Vietnam’s fiber
and yarn exports were valued at 564.6 million USD,
down 38.4% over the same period last year; fabric
exports reached 360.7 million USD, down 16.1%;
export of textile, garment and footwear raw materials
reached 285.1 million USD, down 16.6%; technical
fabric exports decreased by 21.3%, valued at 114.9
million USD.

33
Vietnam exports textile fibers
and fibers mainly to China and
South Korea in the first two months
of 2023, accounting for 52% of the
total export turnover of this item.
Export of textile fibers and yarns
to most markets decreased in the
first 2 months of 2023 compared
to the same period in 2022,
however, exports to some markets
still increased such as India and
the Philippines.
According to the textile
industry information at the website
https://info.texnet.com.cn/, China’s
textile and garment industry has
not had a breakthrough in the first
months of 2023 as export orders
are still low. Therefore, Vietnam’s
exports of textile fibers and yarns
to the Chinese market are not
expected to increase sharply in the
next 1 or 2 months.
Export of fibers and yarns recovers slowly
According to statistics from
the General Department of
Customs, Vietnam’s exports of
textile fibers and yarns in February
2023 reached 108.46 thousand
tons, with a turnover of 339
million USD, up 23.1% in volume
and 50.3% in terms of turnover
compared to January 2023;
compared with February 2022,
it decreased by 17.8% in volume
and 23.3% in turnover. In the
first 2 months of 2023, Vietnam’s
exports of textile fibers and yarns
reached 196.59 thousand tons
with a turnover of 564.5 million
USD, down 28.8% in volume and
38.4% in turnover compared with
the same period in 2022.
Like many other commodity
groups, Vietnam’s export of
fiber and textile products has
been affected by the global
economic downturn. Fiber is the
leading group of inputs for fabric
production (upstream industry),
so this is also a group of goods
affected earlier than the garment
industry (downstream industry), as
large customers reduce inventories
in the context of weak consumer
demand. The reopening of China’s
economy from the beginning of
2023 will make Vietnam’s textile
fiber and yarn exports to this
market recover, however, the
recovery is still slow due to textile
export orders of China are still low.
Source: VITIC
Vietnam’s export fiber and yarn in 2022-2023 (million USD)

www.vcosa.org.vn
34
Vietnam’s fiber and yarn export
In terms of prices: The
average export price of Vietnam’s
textile fibers and yarns in February
2023 reached 3,125 USD/ton,
up 22.1% compared to January
2023 but down 6.7% compared
to February 2022. Generally in
the first two months of 2023, the
average export price of Vietnam’s
textile fibers and yarns reached
US$2,872/ton, down 13.4% over
the same period in 2022.
Compared with the first month
of 2023, the average export price
of Vietnam’s textile fibers and
yarns in February 2023 increased
in most markets, in which, the
export price to a number of
markets grew significantly such as
China, Korea, Bangladesh, USA,
Indonesia, Cambodia... In contrast,
export prices to some markets
decreased such as Turkey, Brazil.
Source: VITIC

35
Export price of fiber and yarn 2022-2023 (USD/ton)
Export price of fiber and yarn
Compared with February
2022, Vietnam’s export
prices of textile fibers and
yarns in February 2023
decreased in most markets,
in which, export prices to
some markets decreased
significantly such as India,
Pakistan, Turkey, Colombia,
Italy.
Source: VITIC
Source: VITIC

www.vcosa.org.vn
36
3. Cotton Outlook
T
he USDA released a
preliminary partial set of
forecasts for the upcoming
2023/24 crop year at their Annual
Outlook Forum in late February.
No meaningful change is
forecast for global production next
crop year (-100,000 bales, from
115.1 million in 2022/23 to 115.0
million bales in 2023/24). While
cotton prices have held at levels
above historical averages, they
have not kept pace with increases
for crops that can compete with
cotton for acreage, notably corn
and soybeans. As a result, planted
acreage is expected to decrease
across a range of locations,
including China, India, the U.S.,
Turkey, and West Africa.
However, weather and
pest-related issues in 2022/23
underlined that planted acres do
not always translate into acres
harvested. With lower planted
acreage, assumptions of a return
to average conditions in countries
like the U.S. (drought in 2022/23),
Pakistan (flooding), Australia
(flooding), and West Africa (pests)
are the main reason production is
expected to be higher in 2023/24.
These gains are expected to offset
the effects of lower acreage and a
return to trend for countries with
strong yields this crop year (e.g.,
China and Turkey).
Volatility has dominated
the demand side of the market
balance sheet since the onset of
COVID. In 2023/24, the USDA
suggests a comparatively large
increase in mill-use (+5.4 million
bales to 115.5 million). The
addition is expected to result from
a recovery in order placement
following the current inventory
adjustment, which has sharply
lowered demand throughout the
cotton supply chain.
The net result from these
projections is that 2023/24 ending
stocks are forecast to decrease
slightly (-500,000 bales, to 89.6
million when applied to the current
figure for 2022/23 stocks). Outside
of the period of high Chinese
reserves (2013/14-2015/16) and
2019/20 (COVID), this volume
would rank among the highest on
record.
From this early standpoint,
ahead of an upcoming crop year,
a significant degree of uncertainty
is always associated with these
forecasts. For 2022/23, the level
of uncertainty is higher than usual.
The trajectory of the global
economy looms large. The latest
data releases indicate inflation has
yet to be cured, which may mean
interest rates will have to climb
higher. Meanwhile, labor markets
have proven resilient, consumers
still have savings from stimulus,
and COVID has faded as a pressing
threat. Geopolitical developments
are unknowable but may prove
influential.
The weather also has proven
volatile in recent years. Climate
forecasters indicate that La Nina
may be transitioning to El Nino. El
Nino is associated with a reversal
in conditions common under La
Nina in many areas, including West
Texas. The timing of any changes
in weather patterns relative to
crop development will shape the
harvest outlook.
Source: CI

37
Source: CI

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 - 03/2023 ISSUE

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VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 03/2023 ISSUE