VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 08/2023 ISSUE

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

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Newsletter August 2023 VCOSA | 2
REMARKABLE INFORMATION
Expected drop in global cotton production next season
As global cotton demand falls, Indian farmers switch to other crops
Chinese exporters flood India with low-cost fiber
Sustainable revolution: could bananas provide the fabric of the future
China’s US imports hit 20-year low
India, Vietnam key sourcing destinations for US, EU buyers
Labor market trends in the future
The forecast for cotton import prices remains at a low level
Imports of yarn are expected to increase again
Exports of fiber and yarn will likely rise in the near future
Businesses seizing opportunities from Free Trade Agreements
International brands are showing interest in products manufactured in Vietnam
What are the qualifying criteria for receiving Value Added Tax reimbursements on exported goods?
Solutions to help Vietnamese textile enterprises comply with new EU regulations
International news
National news

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INTERNATIONAL NEWS
As global cotton demand falls,
Indianfarmersswitchtoothercrops
The disparity between domestic and international cotton prices is
a considerable one as Indian cotton is priced between 10 and 14 per
cent higher than international price. When there is an overall decline in
demand for cotton textile at a global level, the higher pricing is leading
to rejection by international importers
I
ndia, one of the
largest cotton
producers in the
world, is going through
a tough time with its
current crop of the
white fluff. It isn’t just
the Ukrainian conflict
as economic uncertainties have
also created a sizeable slump in
demand for clothing and therefore
textile.
A year ago things looked
different as in FY 2022, Indian
cotton yarn manufacturers
achieved record-high profitability
due to strong demand, lower
domestic cotton prices compared
to international prices and the
US ban on cotton products from
China’s Xinjiang region, which
redirected some demand to India.
FY 2023 has been a complete
let down after so far. Experts opine,
China used to be the number one
and largest buyer of Indian cotton
but now has reduced orders after
its textile industry hit doldrums
post-pandemic. Since FY 2022,
Bangladesh is India’s number one
buyer of cotton yarn.
FY 2023 poses many
challenges
If the country’s registered
production continues its free fall,
India will not only lose its status as
one of the world’s largest cotton
producers but also runs the risk of
becoming a net importer.
So what exactly is going on?
The disparity between domestic
and international cotton prices is a
considerable one as Indian cotton
is priced between 10 and 14 per
cent higher than international
price. When there is an overall
decline in demand for cotton
textile at a global level, the higher
pricing is leading to rejection by
international importers.
A catch-22 situation, the
decline in sales volume and the
forced contraction in operating
profitability just to sell the produce
is creating a big impact on the
farming communities. While
inflation in India is relatively under
control but the slight levels it is at
in terms of energy costs has made
it hard for factories spinning yarns
to lower their costs to compete.
This year has been a record low for
Indian cotton yarn exporters.
USDA red flag a bane
In this ongoing turmoil, USDA
has stated that it expects India’s
cotton exports to slip to its lowest
levels in 19 years during the
ongoing crop season between
October 2022 and September
2023. The USDA expects farmers
to shift to other profitable crops
such as oilseeds and pulses
leading to the dip. Indian cotton
yarn exports had hit a decadal
low of 664,000 tonnes in FY23,
compared to the highest exports
of 1.38 million tonnes in FY22.
Latest agriculture ministry
stats show, cotton sowing across

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I
n the quest for alternative natural
fabrics beyond cotton and hemp,
abacá fabric emerges as a traditional
gem from the Philippines, crafted from
the resilient fibers of the abacá plant.
This age-old textile is lovingly brought
to life primarily by skilled women native
to the region. Through the passage of
time, weaving expertise and knowledge
are passed down from one generation
of women to the next, with younger girls
diligently learning the art of creating
Abacá fabric.
Nurtured in the Philippine highlands,
amidst a harmonious ecosystem of
sustainablemixedagricultureandforestry,
the resilient abacá banana plant thrives
without the need for pesticides, fertilizers,
or excessive water. This remarkable
plant plays a crucial role in reforestation
efforts, healing previously eroded areas
that suffered from monocultural palm
plantations. As a result, biodiversity
flourishes, and the economic well-being of
local farmers prospers.
In its natural state, abacá fabric
boasts a soothing beige or light brown
hue, though it effortlessly transforms
into an array of colors to suit diverse
manufacturing needs.
With unrivaled strength and
endurance, this fabric proves itself an
exceptional choice for crafting ropes,
cords, and strings. In a testament to
its remarkable resilience, abacá fabric
enjoyed widespread popularity in the 19th
century, finding purpose in ship rigging
thanks to its innate ability to withstand
the rigors of saltwater exposure. Today,
the production process of Abacá fabric
remains a meticulous affair, often carried
out with skilled handweaving, ensuring
each piece is crafted with utmost care.
Beyond its impressive durability,
abacá fabric holds another endearing
quality as a lightweight and odor-
free environmentally friendly fiber.
This remarkable combination of traits
solidifies abacá fabric’s status as an eco-
conscious material, appealing to those
seeking sustainable solutions without
compromising on performance.
The commitment to sustainable
practicesandcircularitymadeabacá
attractiveenoughtogainrecognition
from environmentally-conscious
consumers and industry leaders
alike, leading to the development
of Bananatex. Its versatility and
durability make it an ideal choice
for companies seeking to align their
values with their products.
Led by QWSTION, together with a yarn
specialist and weaving partner based in
Taiwan, the development and production
journey have been characterized by a
shared ambition to create a positive
impact on the planet’s future.
The extraction of abacá fibers
involves a simple process of boiling,
followed by pressing into pulp sheets
in the Philippines. These sheets then
undergo papermaking and yarn spinning
in Taiwan. The natural white colorway
maintains the fibers’ authentic hue
without any dyeing, while the all-black
colorway is dyed using a more sustainable
yarn dyeing method, certified to Oeko-Tex
Standard 100, surpassing traditional roll
dyeing alternatives.
Source: E+E leader
India remains 8.5 per cent lower
on year at 7 million hectares due
to a shrink in cultivation in some
major growing states such as
Maharashtra, Andhra Pradesh, and
Telangana amid patchy rainfall.
Many farmers say they are
worried about producing a crop
that is so reliant on water, of which
there is no guarantee as climatic
conditions have changed drastically
and long periods of drought are
playing havoc with the crop and soil.
The only Indian state that saw a 4.6
per cent increase in crop production
was Gujarat as it was blessed with a
copious amount of rainfall last year.
In fact, at a recent Cotton
Association of India press
conference, former secretary of
state for textile, UP Singh was not so
optimistic about times ahead unlike
many experts. While many experts
are talking about a 5 to 7 per cent
growth in cotton yarn production in
India, Singh says unless productivity
in cotton farming is addressed, India
willsoonbeimportingcottoninstead
of being the largest producer.
Source: Fashionating World
Sustainable revolution:
couldbananasprovidethefabricofthefuture

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W
estern buyers are
considering Vietnam and
India equally important
sourcing destinations, after China,
in 2023, according to the latest
report.
India and Vietnam are neck-
and-neck in the competition for the
business of Western consumers,
according to about 26 per cent
of the more than 250 enterprises
surveyed globally by QIMA in the
first half of 2023, mentioned in their
report titled QIMA Sourcing Survey
2023: Disruption, Diversification
and Digitisation.
Despite their sourcing diversity,
81 per cent of the surveyed
enterprises still mentioned China,
indicating that it still plays a
significant role in the global supply
chain.
“In the 2023 ranking of key
sourcing destinations, India and
Vietnam proved equally popular
(after China), and were named
(among the top three sourcing
partners) by 26 per cent of the US-
and EU-based brands,” read the
report.
Viewed by industry, India as a
supplier market was the third most
popular among businesses for
the textile and apparel sector with
40 per cent naming the country
among their top 3, preceded by
accessories, jewellery, accessories
coming first and promotional
products second.
The analysis examined both
long-term trends and patterns
over the previous five years as
well as the most recent changes in
worldwide procurement patterns.
The evolution of important supplier
regions, supply chain digitisation
trends, and the effect of the ESG
regulations on sourcing practises
were among the insights provided.
By the end of the year, about
87% of organisations predicted
that supply chain problems would
not worsen. In the last 12 months,
76% of businesses worldwide said
they have changed the location
of their suppliers. According to
the report, the recently diversified
supply chains battled with capacity
and quality but benefited from
flexibility.
Brands utilised digitisation
to improve visibility, quality and
compliance, as globally 74 per
cent of businesses were investing
in supply chain digitization. Main
drivers to do so included improving
supply chain visibility, product
traceability, quality control, and
supplier compliance.
Source: Apparel Resources
India
Vietnam
key sourcing destinations
for US, EU buyers
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T
he trade war between the
United States and China has
led to a significant decrease
in the share of Chinese goods in
US imports. In the first half of
2023, China accounted for only
13.3% of US imports, down from
21.6% in 2017. This is the lowest
level since 2003.
There are a number of factors
contributing to this decline. One
is the Trump administration’s
tariffs on Chinese goods. Another
is the COVID-19 pandemic,
which disrupted supply chains
and led companies to look for
alternative sources of goods. And
finally, the Biden administration
has continued to take a tough
stance on China, which has made
businesses more hesitant to rely
on Chinese suppliers.
As a result of these changes,
US buyers are now turning to other
countries for their goods. Mexico,
Europe, and Southeast Asia have
all seen an increase in their share of
the US import market. In particular,
Mexico has become a major
competitor to China as a source of
electronics and machinery.
The decline in
Chinese imports
is good news for
US businesses
and consumers. It
means that they
have more options
to choose from
and that they are
not as reliant on
a single country
for their goods. It
also means that
the US trade deficit with China is
shrinking.
However, the decline in
Chinese imports is bad news for
China. It means that the country is
losing out on export opportunities
and that its economy is slowing
down. It also means that China is
losing its influence over the global
economy.
China’s share of U.S. imports
of apparel declined quickly after
the Trump administration included
the category in a round of tariffs
in 2019. Sourcing has continued
to shift to other Asian countries,
including Vietnam, Bangladesh
and Indonesia. And growing U.S.
scrutiny of labor practices in the
cotton-producing Chinese region
of Xinjiang, as well as rising wages
for Chinese workers, impacted
imports significantly
The trade war between the
United States and China is likely
to continue for some time. It is
unclear how long it will take for the
two countries to reach a resolution.
But in the meantime, the decline in
Chinese imports is a sign that the
world is changing.
Source: Fashionating world
China’s US imports
hit 20-year low
Expected drop in global cotton production next season
G
lobal cotton production is
expected to decrease by
three percent in the next
season, while consumption may
remain stagnant and ending
stocks could be lower. Analysts
have highlighted that China’s
demand for cotton will be crucial
in determining prices, as any drop
in demand from the country could
limit price increases.
The US Department of
Agriculture (USDA) predicts that
cotton production will decline to
114.1 million bales next season
due to lower crops in the US and
Uzbekistan. The Indian crop is also
projected to be lower. However, this
season’s output is estimated to be
higher at 118.3 million bales due to
largercropsinBrazilandArgentina.
The decline in global production
is attributed to lower acreage
under cotton in Brazil, China,
and India, driven by weak global
prices, poor margins compared
to other crops, and concerns over
fertilizer supplies. Consumption
is expected to increase as mills
replenish low cotton inventories.
The USDA estimates carryover
stocks for next season to be 91.59
million bales. BMI maintains its
2023 cotton price outlook at 86.5
cents per pound.
Source: eznews

Newsletter August 2023
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VCOSA | 7
Solutions to help Vietnamese textile enterprises
comply with new EU regulations
The European Union (EU) is gearing up to implement
several new regulations for textile products, posing a challenge
for Vietnamese textile businesses. Enterprises in the textile
sector must develop plans to collaborate with partners and
distribution systems, as well as proactively devise solutions to
meet the standards set by the EU market.
T
he EU, ranking as Vietnam’s
second-largest textile and
apparel export market after
the United States, is known for
its high standards and stringent
requirements in terms of quality,
labor, and the environment. The
Vietnam-EU Free Trade Agreement
(EVFTA) provides a competitive
advantage for Vietnamese textiles
by gradually reducing tariffs to
0% over a 7-year period from its
effective date. Nevertheless, the
market is undergoing significant
changes related to environmental
sustainability.
The Ministry of Industry and
Trade reveals that the volume of
textilewasteintheEUisincreasing.
Every year, EU citizens discard
approximately 5.8 million tons of
textiles, averaging around 11.3 kg
per person. Most of this waste is
incinerated, buried, or exported
as used clothing. Consequently,
the EU has launched a campaign
to reshape the trend, addressing
all stakeholders in the fashion
industry, including designers,
brands, retailers, end consumers,
and textile manufacturers both
within and outside of Europe.
The campaign aims to ensure
that by 2030, textile products
introduced to the EU market
possesslongevityandrecyclability.
These products should primarily
be made from recycled fibers,
free from hazardous substances,
and produced in accordance with
social and environmental rights.
Manufacturers are responsible for
their products throughout the value
chain, even when they become
waste.
The circular textile ecosystem
is rapidly developing, driven by
the innovation of transforming
recycled fibers into new materials,
while incineration and landfilling of
textile waste are minimized.
Textiles and leather footwear
are among the products that have
shownrelativelyhighexportgrowth
to the EU in recent times, thanks
to the preferential tariff treatment
under the EVFTA. Hence, textile
and leather footwear businesses
need to pay special attention to the
market’s changes.
The EU has introduced a
new strategy for the textile
sector, including legal measures
to enhance circularity, such
as new directives related to
product durability and the right
to repair. Alongside this, the
EU is considering introducing
Extended Producer Responsibility
(EPR) across the EU for textiles.
This obliges businesses to
Vietnamese textile enterprises need to establish plans and proactively
devise solutions to meet the standards set by the EU market

vietnamyarnprice.com
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VCOSA | 8
take responsibility for how their
products are handled, recycled, or
repaired. In the EU, the ultimate
goal for textiles is not landfilling,
but recycling. In April 2023, the
EU’s Ministerial Conference
passed regulations on Ecodesign.
Currently, the EU’s Textile
Association and textile enterprises
are actively implementing various
activities related to Ecodesign.
Moreover, the textile and
fashion industry in the EU,
especially textiles, is significantly
impacted by due diligence,
including assessments of
environmental factors, labor, and
human rights.
As a result, the Vietnamese
Trade Office in Belgium and the EU
express concerns. If EPR and other
regulationsareenforced,itcouldbe
challenging for Vietnamese textile
businesses to export products
under their own brand names. This
is because the EU requires brands
to establish buyback and repair
chains. Meanwhile, Vietnamese
businesses mainly engage in
manufacturing for EU brands,
with the EU businesses taking
responsibility for EPR-related
activities.
According to experts,
in the upcoming period,
Vietnamese textile and
footwear enterprises need to
study and innovate according
to trends and regulations,
while also proactively staying
ahead of these trends to
achieve success.
Mr. Tran Ngoc
Quan, Commercial
Counselor at the
Vietnamese Trade
Office in Belgium
and the EU, states
that although the
EU’s regulations
are currently in the
r e c o m m e n d a t i o n
stage, Vietnamese
enterprises need to quickly
respond. Failure to do so may
complicate matters when
recommendations turn into
obligations, potentially leading
to a loss of orders. Businesses
must strictly adhere to state
regulations and policies, as well as
guidance from the Ministry, sector,
and adhere to foreign market
requirements related to origin
tracing, processes, regulations,
and conditions.
Source: Vietq magazine
T
he looming implementation
of a Quality Control Order
(QCO) on textile input
materials has raised concerns
in the textile industry. Chinese
exporters are suspected of
flooding India with low-cost fiber
and polyester ahead of the QCO’s
implementation.
Larger industry players view
the QCO favorably, but micro, small,
and medium enterprises (MSMEs)
are struggling with a double
whammy of declining exports and
a new wave of industry standards.
The influx of substandard
imports from China, which are
up to ₹5-7 per kg cheaper than
domestically produced polyester
fiber, highlights this challenge.
Chinese exporters are taking
advantage of the regulatory
transition period in anticipation of
the government’s standards taking
effect on October 1.
There need for value-added
quality control measures and
urged attention to be paid to the
cotton value chain, which is the
foundation of the Indian textile
sector. Despite India’s status as a
major cotton producer, a decline
in both exports and production,
attributed to decreased Western
demand as a result of the
protracted conflict in Ukraine, puts
the country at risk of becoming a
net importer of cotton.
The US Department of
Agriculture (USDA) predicts that
India’s cotton exports will fall
to a 19-year low in the current
crop season (October 2022 to
September 2023).
The industry’s challenges are
compounded by rising cotton
prices, which have fluctuated
between ₹55,000 and ₹65,000
per candy, with some instances
exceeding ₹1 lakh.
Trade experts emphasize the
importance of cotton, while the
government focuses on garments
and technical textiles, and urged a
balanced approach to maintaining
India’s core textile expertise.
Chinese exporters flood India with low-cost fiber

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2
023: A Pivotal Year for
Economic and Social
Development. Half of the year
has passed, marked by several
positive shifts in the business
landscape. However, experts
suggest that for sustainable and
long-term growth, businesses
mustcontinuouslyexpandintonew
markets, enhance investments to
improve product quality, services,
and competitive capabilities
According to the Ministry of
Industry and Trade, Vietnam has
signed and implemented 19 Free
Trade Agreements (FTAs) to date.
Most of these FTAs have been
effective,elevatingtheinternational
brand image of Vietnamese goods.
The successful implementation
of these FTAs has expanded
and diversified markets, supply
chains, and export products. It has
facilitated deeper integration of
Vietnamese goods into the global
supply chain, boosting production
and improving Vietnam’s trade
balance, which reached a surplus
of $16.5 billion in the first 7 months
of this year.
Trade experts anticipate
that with the signed FTAs,
market expansion prospects and
commercialization of Vietnamese
goods will be further accelerated,
leading to robust growth in the
future.
However, according to reports
and the consolidation of opinions
from various enterprises, Ms.
Nguyen Thi Thu Trang, Director of
the WTO and Integration Center
at the Vietnam Chamber of
Commerce and Industry (VCCI),
mentioned that there are still
obstacles hindering domestic
businesses from fully accessing
tariff preferences. In other
words, these challenges impede
businesses from reaping the
benefits of FTAs. This includes
barriers to accessing and
expanding into new markets.
Ms. Thu Trang highlighted that
firstly, the limited competitiveness
of domestic enterprises, an
unfavorable business environment,
lack of specific information
about commitments, application
methods, challenging rules of
origin, and unfavorable FTA
commitmentsforsomebusinesses
are among the obstacles. There
are also shortcomings in the
implementation of FTAs by certain
state and local management
agencies, not to mention the
volatile and uncertain nature of the
market
In light of this reality,
Ms. Thu Trang advised that
businesses should take
immediate action to seek
partners, boost transactions,
adjust production
processes to meet rules
of origin requirements
where applicable, fulfill
other documentation and
transportation requirements,
to enjoy benefits. Moreover,
export-oriented businesses
should meticulously study the
commitments and conditions
related to tariff preferences,
depending on each market
and each FTA that Vietnam
has signed with partner
countries.
Source: Tin tuc News
Businesses seizing opportunities from FreeTradeAgreements
Goods transportation for import and export at Gemalink Deep-Water Port,
Phu My Town, Ba Ria - Vung Tau Province. Photo: Hong Dat/TTXVN
NATIONAL NEWS

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F
ast Retailing, Walmart,
Amazon, and other major
global brands are actively
ramping up their trade efforts and
seeking sourcing opportunities
and partners in Vietnam.
Enhancing Business Connec-
tions at Home and Abroad
Mr. Ta Hoang Linh, Head
of the Europe-America Market
Department (Ministry of Industry
and Trade), stated that many large
corporations and enterprises
are keen on procuring goods
from Vietnam. However, the
requirements for the quality of
imported goods have evolved
significantly. Specifically, markets
like the US and EU now demand
sustainable products with reduced
production emissions, resource
efficiency, and environmentally
friendly inputs.
To better support export
businesses and facilitate effective
connections, the Ministry of
Industry and Trade is organizing
a series of events called “Vietnam
International Sourcing 2023” from
September 13 to 15.
Global Brands Seeking
Sourcing in Vietnam
Regarding the demand for
textile and apparel sourcing in
Vietnam, Uniqlo’s brand owner
affirmed that Vietnam has
become a strong and pivotal
base for producing textile and
apparel products, enhancing
supply chains. Therefore, Uniqlo
prioritizes sourcing for the
Vietnamese market. The brand has
been developing improvements
for its supply chain in Vietnam to
enhance its presence even further
through collaboration.
As previously reported by
Nhadautu.vn,Walmart,aleadingUS
retail conglomerate, plans to send
senior personnel to participate
in the “Vietnam International
Sourcing“ event to introduce and
seek cooperation opportunities
with Vietnamese businesses in its
global value chain.
The six sectors in which
Walmart aims to find partners
through this event include clothing
and accessories, footwear, textiles
and accessories, consumer
electronics, furniture, and food
and consumer goods.
According to the Ministry of
IndustryandTrade’srepresentative,
advanced markets like Japan,
the US, and the EU are moving
towards sustainable products that
are environmentally friendly and
protective. Brands with a demand
for sourcing goods from Vietnam
are also focusing on environmental
standards, social responsibility,
and labor considerations.
Walmart’s representative also
emphasized the most critical
factors when evaluating suppliers
in Vietnam, such as business
capacity, supply capability,
financial stability, sustainable
development, and environmental
commitments.
Recently, the European
Commission (EC) proposed the
expansion of Extended Producer
Responsibility (EPR) to the textile
and apparel industry. This requires
textile and apparel producers to
ensure responsibility for the entire
product lifecycle and support
sustainable waste management
for the textile industry throughout
Europe.
Source: Nha dau tu
International brands are showing interest in
products manufactured in Vietnam
In the upcoming period, Uniqlo will prioritize procurement in Vietnam.
Photo: Binh Duong AEON Mall
“In the near future, domestic businesses
need to invest heavily in manufacturing
facilities, quality fabric sources, and price
competitiveness. Simultaneously, they must
adhere to circular production processes,
reduce textile waste, use environmentally
friendly materials, and utilize recyclable raw
materials to enhance cooperation and supply
goods to these brands”.
Advised the Ministry of Industry and Trade’s
representative to domestic enterprises.

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Photo: Danh Lam/TTXVN
Labor market trends in the future
T
he pandemic has
completely transformed
the landscape of the global
labor market. From changes
in supply and demand to how
workers work, these changes
have occurred rapidly within just
a few years, making the labor
market drastically different from
before the pandemic. Additionally,
the remarkable advancements
in Artificial Intelligence (AI)
technology are also causing
disruptions in the labor market.
Various trends have, are, and
will continue to reshape the labor
market. These include investment
shifts towards sustainable models,
the widespread adoption of ESG
standards, localization of supply
chains, aging populations in both
developed and emerging markets,
tightening regulations on data
management and technology, and
more.
Future Labor Demand
HSBC predicts that most
global labor markets will witness
an increase in unemployment rates
in 2023-2024. Looking further
ahead, in the next five years, it is
estimated that 83 million jobs
could be lost due to changing labor
demands in certain sectors, while
69 million new jobs will be created.
This translates to a 2% decline in
the labor market, equivalent to 14
million job losses.
Jobs predicted to be in high
demand in the future include AI
and machine learning specialists,
sustainability experts, business
data analysts, cybersecurity
professionals, and technology
finance engineers. On the
other hand, jobs that are most
vulnerable to replacement include
security guards, cashiers, postal
service workers, bank tellers, and
administrative assistants.
Reasons behind these
changes are diverse. Notably, the
shift towards greener and more
sustainable business practices is
expected to create many new job
positions. The restructuring and
redistribution of supply chains
are also contributing to new job
opportunities in the coming years.
Global economic slowdown
is also a factor leading to many
companies reducing their
workforce in the future. We can
observe this trend in Vietnam
during Q2 2023. The decline in
orders has impacted labor in the
industrial sectors, especially in
the textile, wood processing, and
electronics industries.
The Role of Technology
The growing interest in AI in
2023 signals that technological
advancements will play a
significant role in shaping the
future labor market. Automation,
for instance, is expected to
affect manual jobs, and robots
are projected to replace human
workers in factories, warehouses,
production lines, and service roles.
Many people tend to perceive
Over the next 5 years, it is forecasted that 83 million jobs
will be lost while 69 million new jobs will be created. The labor
market is undergoing significant shifts due to the impact of
technology and social trends.

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technological advancements as
“machines replacing humans” and
causing job losses. However, from
another perspective, technology
also creates new job opportunities.
Many jobs in the realm
of big data analysis, climate
change mitigation technology,
environmental management,
encryption and cybersecurity,
biotechnology, agricultural
technology, digital platforms,
and applications are projected to
increase in the future.
Future Workstyles
Once again, we must mention
the pandemic as a powerful factor
influencing how we work during
and after the pandemic.
Currently, many businesses
are witnessing an increase in the
return-to-office rate. Especially in
Asia, this rate is approaching pre-
pandemic levels, while the average
return-to-office rate in Europe has
decreased by 20%, and in some
US cities, it has exceeded -50%,
even touching nearly -60% in San
Francisco.
Undeniably, bringing
employees back to the office
brings certain benefits. A study
by Melanie Brucks & Jonathan
Levav in Nature showed that in-
person meetings lead to a 15%
increase in creativity. Collaborative
activities are also more effective
when organized directly instead of
online platforms.
However, there is also
evidence showing that hybrid work
arrangements yield better results
compared to mandating fixed
location work for employees. A
study by economists at Stanford
University, based on labor
productivity measurements at
companies, demonstrated that
hybrid work arrangements do not
affect productivity compared to
full-time office work.
All of these factors
demonstrate that there is no
one-size-fits-all formula for
every business, job type, and
individual choice. Some tasks are
better performed at home, free
from the distractions of a noisy
environment, such as reporting
and data analysis.
The aforementioned labor
market changes will create
opportunities for increased
labor productivity, contribute to
economicdevelopment,encourage
women’s participation in the
workforce, enable businesses
to access talent worldwide, and
vice versa, provide more job
choices for workers regardless
of geographical location. More
importantly, these trends serve
as reminders for businesses and
workers to be prepared for future
changes.
Source: Dien dan Doanh nghiep
Magazine

https://vcosa.vn
What are the qualifying criteria ValueAddedTaxreimbursements
on exported goods?
T
ax-refunding businesses for
value-added tax must fulfill
their import and export tax
obligations, and export goods
must be paid through banks.
In an interview with Người Lao
Động newspaper on August 12, Mr.
Nguyen Tien Dung, Deputy Director
of the Ho Chi Minh City Tax
Department, stated that in recent
times, many businesses have
shown interest in the conditions
for deduction and refund of value-
added tax for exported goods.
Regarding this issue, according
to Mr. Dung, tax laws are clearly
stipulated in Article 3, Article 16
of Circular 219 by the Ministry of
Finance.
Specifically, for exported
goods and services, tax deduction
and value-added tax refund require
a sales contract or a contract
for processing goods, providing
services to foreign organizations
or individuals.
In the case of consigned
export of goods, a contract and
a liquidation agreement for the
consigned export contract, or
a periodic debt reconciliation
report between the consignor and
consignee, must clearly indicate:
quantity, type of exported products,
value of consigned exported
goods; the amount indicated on
bank payment documents for
transactions with foreign entities
by the consignee...
Furthermore, businesses must
fulfill tax obligations, and export
goods must be paid through banks.
In the case of delayed payment,
an agreement must be recorded
in the export contract. In the case
of consigned export, payment
documents through foreign banks
for the consignee are required, and
the consignee must pay the value
of the exported goods through a
bank to the consignor.
“In the case where foreign
entities directly pay the consigning
exporter, the consignor must
possess payment documents
through banks, and such payment
must be stipulated in the contract”,
Mr. Dung added.
Data from the Ho Chi Minh
City Tax Department shows that
in the first six months of 2023,
the department has resolved tax
refund cases for 436 applications,
with a total refund amount of 2,417
billion VND; of which, 256 cases
were refunded before post-audit.
Currently, the Ho Chi Minh
City Tax Department still has
approximately 10% of the total
value-added tax refund amount
remaining. Therefore, from now
until the end of 2023, tax refunding
is one of the focal tasks that the
Ho Chi Minh City Tax Department
aims to address in order to
financially support businesses.
Source: Nguoi lao dong News

COMPACTapron, the latest addition to the SUESSEN compacting family, sets a new benchmark for yarn tenacity
with an additional 0.5 to 1 cN/tex compared to other compacting systems. By reducing conversion cost by 10%,
COMPACTapron is the right system for competitive spinning mills.
COMPACTapron makes compact spinning more affordable. It offers the right balance between high productivity
and low operational costs without compromising on quality. Most importantly, this latest compacting device reduces
electricity costs. The system is suitable for most machine types and common materials including blends from yarn counts
Ne 20 to Ne 80.
Low conversion costs
The design of COMPACTapron (Fig. 1) makes it a formidable asset to reduce the cost of conversion. It features only
one big cot, resulting in 50% less maintenance time and almost no lapping. As COMPACTapron needs very few consumable
parts, it has a very low spare parts cost per spindle per year. The optimized suction slot allows reduced air flow and power
demand and thus contributes to 60% energy saving.
High yarn tenacity and excellent quality
Yarnstrengthiscrucial indeterminingthequalityofthefinalspinningproduct.Thanksto 3Dtechnology,COMPACTapron
transports fibers in the condensing zone over the suction slot in a distinctive distance to the mesh apron so that all fibers
are entirely compacted. The distance between the nip lines of COMPACTapron is shorter than the shortest fiber so that
fibers are smartly guided through the compacting zone, thus achieving better yarn strengths compared to competitors. The
overall result is an additional 0.5 to 1 cN/tex, a yarn tenacity unmatched in the market.
Flexibility
The improved raw material yield gives spinners more options to optimize cost so they can choose between twist
reduction to enhance productivity, adjusting the raw material mix, or obtaining a higher selling price in downstream
processes.
With less energy requirement, less maintenance and fewer spare parts, COMPACTapron not only boosts yarn tenacity,
it gives spinning mills a real competitive edge.
Trade Press Article
3D Compacting Pushes the Limits of Yarn Strength
About Suessen
Suessen, the world’s leading manufacturer of spinning systems and
components for spinning machines, is a subsidiary of the Rieter Group. The
company,basedinSuessen(Germany),createscustomervaluethroughsystem
expertise,innovativesolutions,after-salesexcellenceandglobalpresence.The
considerable investments in R&D ensure the further development of technical
and technological components in an uncompromising and resolute manner.
The focus is on universal applicability, improved yarn quality, increased service
life, reduced maintenance and proven reliability in industrial application.
www.suessen.com
About Rieter
Rieter is the world’s leading supplier of systems for short-staple fiber
spinning. Based in Winterthur (Switzerland), the company develops and
manufactures machinery, systems and components used to convert natural
and man-made fibers and their blends into yarns. Rieter is the only supplier
worldwide to cover both spinning preparation processes and all four end-
spinning processes currently established on the market. Furthermore, Rieter
is a leader in the field of precision winding machines. With 17 manufacturing
locations in ten countries, the company employs a global workforce of some
4 900, about 18% of whom are based in Switzerland. Rieter is listed on the
SIX Swiss Exchange under ticker symbol RIEN. www.rieter.com
Rieter Management AG
Klosterstrasse 32
P.O. Box
CH-8406 Winterthur
T +41 52 208 71 71
F +41 52 208 70 60
www.rieter.com
For further information, please contact:
Rieter Management AG
Media Relations
Relindis Wieser
Head Group Communication
T +41 52 208 70 45
F +41 52 208 70 60
media@rieter.com
www.rieter.com
Fig. 1: The innovative design of COMPACTapron
significantly contributes to reducing the cost of conversion.
ID Asset: 97492
Rieter Trade Press Article: COMPACTapron, October 2022

vietnamyarnprice.com
vcosa.vn
Bản tin tháng 8-2023 VCOSA | 15

https://vcosa.vn
VCOSA’S ACTIVITIES
VCOSA’s Activities
Mr. Andrew Goledzinowski, The Australian Ambassador to
Vietnam and Mr. Nguyen An Toan, the VCOSA’s Chairman.
Photo: VCOSA
Mr. Tony Harman, Australian Agriculture Counsellor
and Mr. Nguyen An Toan, the VCOSA’s Chairman.
Photo: VCOSA
Ø On August 4, 2023, VCOSA visited and collaborated with the Board of Directors of Fashion Link Joint Stock Company
(Faslink). Ms. Tran Hoang Phu Xuan, CEO Faslink, conducted a sharing session about the company’s recent activities
and upcoming directions. Consequently, the company will continue to focus on developing product lines using
functional fibers (lotus fiber coffee fiber, pineapple fiber, bamboo fiber, etc.), targeting the domestic customer group to
showcase the exceptional features of these product lines to local users.
Ø On August 7 and 10, 2023, VCOSA representatives attended the Australian Cotton Conference held in both Ho Chi Minh
City and Hanoi. Especially on the evening of August 10, upon the invitation of the Australian Ambassador to Vietnam,
Andrew Goledzinowski, and his spouse Lyn Allan, Mr. Nguyen An Toan, VCOSA’s Chairman, attended an intimate
gathering at the residence of the Ambassador in his capacity as a representative of the significant voices in Vietnam’s
cotton and yarn industry. This event aimed to strengthen existing relationships and foster new connections, playing
a role in the commercial ties between Vietnam and Australia. The event was attended by representatives from the
Australian Embassy, as well as from various Vietnamese and Australian companies, corporations, and organizations
operating in the textile and apparel industry, such as the Australian Cotton Association, VITAS, Woolmark, Ascolour,
Canifa, Huong Sen Group, Tran Le, An Hung, Garment 10, etc.
Ø On August 10, 2023, VCOSA participated in an online meeting with representatives from ICA Bremen to discuss and
finalize various details for the implementation of the quality training program in Vietnam. Participants of this program
will receive a certification from ICA Bremen upon completing the training.
Ø On August 11, 2023, VCOSA received representatives from Chan Chao International Co., Ltd., one of the outstanding
affiliated members of VCOSA, to continue discussions and formulate plans for the 21st Vietnam Textile & Garment
Industry Exhibition (VTG 2023) in Vietnam.
Ø On August 14, 2023, VCOSA held an online meeting with representatives from Lakshmi Machine Works Limited to
discuss upcoming collaboration plans.
Ø On August 17, 2023, VCOSA participated in the workshop “New Business Models and Corporate Management
Directions in the Context of Green Transformation” organized in collaboration between the Asian Foundation (TAF)
and the Private Economic Development Research Committee (Committee IV). Experts at the workshop provided
essential and crucial information for businesses to identify advantages during the process of green transformation.
Ø On the same day, VCOSA engaged in an online meeting with Tengiva, a company based in Canada, to exchange insights
and further understand the concentrated textile and apparel database and digital customer information portal, aiming
to enhance supply chain sourcing capabilities in Vietnam.
Ø In anticipation of the 78th anniversary of the establishment of the Ministry of Home Affairs (August 28, 1945 - August
28, 2023) and Vietnam’s National Day (September 2, 1945 - September 2, 2023), VCOSA collaborated with the State
Organization, Research Journal of the Ministry of Home Affairs to contribute to a special issue article highlighting the
association’s messages, achievements, contributions, and developmental directions, thereby supporting the growth of
businesses and the industry as a whole.
Ø On August 23, 2023, VCOSA participated in an online meeting with representatives from Rieter and Illies Vietnam to
discuss and formulate plans for a technical seminar scheduled to be held in November 2023.

https://vcosa.vn
Developmental and Supportive
Activities for Members
Warmly welcome new member joining VCOSA in June 2023:
GHERZI ORGANIZATION
Phu Tho Textile Company
Limited 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
n June 26, 2023, Phu Tho Textile Company
Limited (Phu Tho), owned by Mr. Nguyen Van
Ha, who is also the CEO, located at Thuy Van
Industrial zone, Thuy Van commune, Viet Tri City, Phu
Tho Province - one of the major spinning producers
in the North, 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.
Phu Tho has a capacity of more than 59,000
spindles and can supply 11,000 tons of yarn per year
from cotton, PE to blended yarn (CVC, TCD) for both
domestic and international markets. From March 2023 to
June 2023, Phu Tho cooperated with VCOSA to provide
complete information and legal documents to prove
the company’s eligibility to be removed from LOUA
2. The VCOSA actively supported the investigation
process and worked closely with all parties to achieve
the goal and shorten the processing time. This effort
of VCOSA demonstrates the strategic vision and deep
commitment of Phu Tho’s Board of Directors to enhance
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 Phu Tho’s continuous efforts to enhance
its reputation and expand and build relationships in
both domestic and international markets. It can be said
that this is a step
forward for the
V i e t n a m e s e
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 VCOSA has
s i g n i f i c a n t l y
contributed 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 to 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,
protect their rights and interests when engaging in
cotton trade transactions.
Congratulations to Phu Tho on being removed
from ICA’s LOUA 2, and hopefully, this will inspire and
motivate other Vietnamese spinning industry partners
to continue developing and improving the company’s
reputation.

https://vcosa.vn

https://vcosa.vn
Vietnam Cotton & spinning association
OCT-
2024
VTG 2024
Location: SECC, HCMC
Partner: Chanchao (Taiwan)
Time: TBC
SEP-
2024
Vietnam Textile Summit
Partner: ECV (China)
Time: TBC
NOV-
2023
Trends & Insights:
Future-Proofing
Spinning Operations
Location: HCMC & Thai Binh
Partner: Rieter
Time: 08/11/2023 &
10/11/2023
DEC-
2023
VCOSA Year End Meeting
Location: TBC
Time: TBC
DEC-
2023
Arise IIP Seminar
Location: Vietnam
Partner: Arise IIP
Time: 1st half of
December
VCOSA EVENT TIMELINE
DEC-
2024
Training course
Location: Hanoi / HCMC
Partner: TBC
Time: TBC
VCOSA Premilinary Meeting
Location: Thai Binh
Time: TBC
JUN-
2024
MAR-
2024
Yarn Market Trends 2024
Location: HCMC
Partner: TBC
Time: TBC
AUG-
2024
Location: TBC
Time: TBC
Technical Seminar
Location: HCMC
Partner: TBC
Time: TBC
JAN-
2024
Organize a delegation
to participate
Trade Event ICA
Location: Singapore
Organizer: ICA
Time: 11-12/10/2023
VTG 2023
Partner: Chanchao (Taiwan)
Time: 25-28/10/2023
OCT-
2023
SEP-
2023
OCT-
2023
SEP-
2023
DEC-
2022
FEB-
2023
MAR-
2023
Trade Matters
Location: HCMC
Partner: ICA
Time: 15-17/2/2023
Texfuture Vietnam
Location: HCMC
Partner: STS
Time: 22-24/03/2023
JUL-
2023
Location: HCMC
Time: 21/12/2022
VCOSA Premilinary Meeting
Location: Thai Binh
Time: 07/07/2023
Cotton Quality Training Course
Location: HCMC
Partner: ICA Bremen
Time: September
Texfuture Vietnam
Location: HCMC
Partner: STS
Time: 20-22/09/2023
JAN-
2024
Workshop Training
Location: Vietnam
Partner: ICA
Time: TBC

https://vcosa.vn
REPORT AND DATABASE
1. Monthly Import Statistics
In July 2023, cotton imports for Vietnam exhibited
substantial growth in both quantity and value,
recording a 10% increase (129.7 thousand tons)
in quantity and a 9.6% surge (USD 266.4 million) in
value compared to the previous month. Conversely,
fiber and yarn imports experienced a decline in both
quantity and value, marking a decrease of 17.4% (78.2
thousand tons) in quantity and a 11.3% dip (USD 167.2
million) in value compared to the preceding month.
During the first seven months of 2023, both the
quantity and value of cotton and fiber imports for
Vietnam saw reductions in comparison to the same
period last year. Specifically, cotton imports witnessed
a 3.4% decrease in quantity and a substantial 22%
decrease in value. Meanwhile, fiber and yarn imports
showed an 8.5% reduction in quantity and a notable
25% drop in value.
In July 2023, Vietnam’s cotton imports
reached 129.7 thousand tons, a 10%
increase compared to the previous month.
Meanwhile,fiberandyarnimportsamounted
to 78.2 thousand tons, experiencing
a decrease of 17.4% compared to the
previous month.
According to preliminary statistics
from the General Department of Customs,
in July 2023, the value of cotton imports
reached 266.4 million USD, marking a 9.6%
increase compared to the previous month.
Conversely, the fiber and yarn sector
experienced a decrease with imports
totaling 167.2 million USD, down by 11.3%.
The fabric sector saw a decrease in
imports, reaching 972.7 million USD, a
decrease of 10.4%. On the other hand, the
import value of raw materials for the textile
and footwear industry reached 509.5
million USD, showing a 5.0% increase.

https://vcosa.vn
In the first 7 months of 2023, the import value
of cotton in Vietnam significantly decreased to only
$1.67 billion, marking a 22% decrease compared to
the same period last year. The import value of fiber
and yarn recorded $1.23 billion, reflecting an equally
substantial drop of up to 25%.
The import value of fabric reached $7.39 billion,
experiencing a decrease of 18.8%. Lastly, the import
value of raw materials for the textile and footwear
textile industry amounted to $3.39 billion, showing a
decrease of 16.5%.
Preliminary statistical
data indicates that in July
2023, Vietnam imported
78,200 tons of fiber and yarn.
Compared to the previous
month, this import volume
decreased by 11.3%, and it
also saw a 14.2% decrease
compared to the same period
last year.
In July 2023, Vietnam
imported 129,700 tons
of cotton, marking a 10%
increase compared to
the previous month and a
23.5% increase compared
to the same period last year.

https://vcosa.vn
1.1. The forecast for cotton import prices remains at a low level
According to the statistics provided by the General
Department of Customs, the cotton imports to
Vietnam in June 2023 reached 117.92 thousand tons
with a value of $243.12 million, marking a 19.1%
decrease in quantity and a 22% decrease in value
compared to May 2023; however, it showed a 26.2%
increase in quantity but a 10.7% decrease in value
compared to June 2022.
Overall, in the first 6 months of 2023, the volume
of cotton imports to Vietnam amounted to 629.59
thousand tons with a value of $1.4 billion, indicating
a 7.5% decrease in quantity and a 23.3% decrease in
value compared to the same period in 2022.
2023 was the United States, with a
volume of 287 thousand tons and a
value of $640 million. This marked
a 16.3% increase in volume but a
10.5% decrease in value compared
to the same period in 2022. These
imports accounted for 45.7%
of the total cotton imports. In
June 2023 alone, cotton imports
from the US amounted to 70.5
thousand tons with a value of
$149.22 million, showing a 23.7%
decrease in volume and a 26.6%
decrease in value compared to
May 2023. However, there was a
31.3% increase in volume despite
a 6% decrease in value compared
to June 2022.
Australia held the second
position in cotton imports to
Vietnam, contributing a volume
of 125 thousand tons and a value
of $294 million. This represented
an impressive 119.6% increase in
volume and a remarkable 93.8%
increase in value compared to the
same period in 2022. In June 2023,
cotton imports from Australia
reached 17.67 thousand tons with
a value of $37.62 million, indicating
a 44.3% increase in volume and a
39.6% increase in value compared
to May 2023. Furthermore, there
was a substantial 91% increase
in volume and a 33.5% increase in
value compared to June 2022.
Additionally, cotton imports
from several other markets
experienced significant decreases
in volume during the first 6 months
of 2023 compared to the same
period in 2022. Notably, imports
from India saw a 68.5% decrease,
imports from Argentina dropped
by 91%, and imports from Ivory
Coast decreased by 83%
During the first 6 months of
2023, Vietnam sourced cotton
from 11 markets, which is an
increase of 1 market compared
to the same period in 2022. The
cotton imports from key markets
to Vietnam all witnessed growth,
with a notable surge from the
Australian market. However, there
were declines observed from
markets like Brazil and India. Here
are the specifics:
The largest cotton importer for
Vietnam in the first 6 months of
Source: VITIC
Vietnam’s cotton imports
Source: VITIC

https://vcosa.vn
Import price of cotton
Source: VITIC
The average import price of
cotton from most major markets
in June 2023 decreased compared
to May 2023. Specifically, the
import price of cotton from the US
decreased by 3.8% to $2,117 per
ton, and the import price of cotton
from Australia decreased by 3.3%
to $2,128 per ton
The import price of cotton into Vietnam in June
2023 was at $2,062 per ton, indicating a 3.6% decrease
compared to May 2023 and a substantial 29.2%
decrease compared to June 2022. As a result, June
2023 marks the 10th consecutive month of declining
cotton import prices in Vietnam since reaching its
peak in August 2022.
For the first 6 months of 2023, the average import
price of raw cotton into Vietnam was $2,233 per ton,
reflecting a significant 17% decrease compared to the
same period in 2022
— 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.

https://vcosa.vn
1.2. Imports of yarn are expected to increase again
According to statistics from
the General Department of
Customs, the import yarn to
Vietnam in June 2023 reached
42.68 thousand tons, valued
at $130.03 million USD. This
represents an 8.2% decrease in
quantity and an 8.7% decrease
in value compared to May 2023.
Furthermore, this reflects a 29.8%
decrease in quantity and a 34.7%
June 2022.
Over the first 6 months of
2023, the total import quantity for
this category to Vietnam reached
271.37 thousand tons, valued at
$782.35 million USD.This indicates
a 26.7% decrease in quantity and a
31.7% decrease in value compared
to the same period in 2022.
In June 2023, China remained
the largest supplier of yarn to
Vietnam, with an import quantity
of 28.1 thousand tons, valued at
$66.16 million USD. This reflects a
10.2% decrease in quantity and a
26% decrease in value compared
to May 2023, as well as a 35.1%
decrease in quantity and a 51.5%
June 2022. Over the first 6 months
of 2023, Vietnam imported 185.6
thousand tons of yarn from China,
valued at $473.5 million USD,
accounting for 68.4% of the total
import volume. This represents
a significant 20.8% decrease in
quantity and a 31% decrease
in value compared to the same
period in 2022.
Import of yarn from Taiwan in
June 2023 reached 4.1 thousand
tons, valued at $11.99 million USD.
This indicates a 9.3% decrease
in quantity and a 2.4% decrease
in value compared to May 2023,
as well as a 53.1% and 49.8%
June 2022. Over the first 6 months
of 2023, Vietnam imported 26.84
thousand tons of yarn from
Taiwan, valued at $74.06 million
USD, accounting for 9.9% of the
total import volume for yarn. This
reflects a 48.5% decrease in both
quantity and value compared to
the same period in 2022.
Overall, during the first 6
months of 2023, the import of yarn
from major supplying markets
to Vietnam has seen significant
decreases, except for a 15.3%
increase in import from Malaysia.
Notably, there has been substantial
growth in import volume from
certain markets during the first 6
months of 2023, such as Pakistan
and France.
Vietnam’s yarn imports in 2022-2023 (thousand tons)
Source: VITIC
Vietnam’s yarn imports
Source: VITIC
Jan Feb Mar Jun
Apr Jul
May
2022 2023
Aug Sep Oct Nov Dec

https://vcosa.vn
Source: VITIC
Vietnam’s yarn imports
The import price of yarn to
Vietnam in June 2023 was at
$3,047 per ton, a decrease of
0.5% compared to May 2023, and
a 7% decrease compared to June
2022. As an aggregate for the first
6 months of 2023, the average
import price of yarn to Vietnam
stood at $2,883 per ton, reflecting
a decrease of 6.8% compared to
the same period in 2022.
Among these, the lowest
import price for yarn came from
China, reaching $2,354 per ton.
Following that was India with an
import price of $2,816 per ton, and
the highest import price was from
Japan, reaching $10,730 per ton.
According to information
from the Global Textile Network
Information Center (https://
www.tnc.com.cn/info/), the yarn
prices in the Chinese market have
remained relatively stable in the
year 2023. As of August 2, 2023,
the trading price of polyester
fiber was 7,425 CNY/ton, which is
higher than the recorded price of
7,145 CNY/ton on July 3, 2023.
The stability of yarn prices at
a lower level can be attributed to
a balance between supply and
demand factors in the market.
While the supply of yarn is
abundant, the demand remains
weak. The anticipated recovery in
yarn demand has not materialized
as expected due to the sluggish
global economic conditions.
Particularly noteworthy is the
situation in China, the world’s
largest yarn importer, where the
pace of recovery has been slow
following the relaxation of the Zero
Covid policy. This has led to less
enthusiastic import activities in
the yarn market.
The average import price of yarn in 2022-2023 (USD/ton)
Source: VITIC
2022 2023
Jan
2,500
3,500
3,000
Feb Mar Jun
Apr Jul
May Aug Sep Oct Nov Dec

https://vcosa.vn
Import price of yarn
Source: VITIC
The global economy is still
facing numerous challenges,
particularly the unexpected
pace of recovery in China, which
continues to be a significant
obstacle in increasing demand
for yarn products. As a result, the
global yarn prices are projected
to maintain a fluctuating trend for
some time.
Currently, global yarn prices
remain at a low level, leading to a
reduction in the prices of imported
yarn in Vietnam. Additionally,
as the export market for textile
and garment products shows
signs of recovery, this provides a
signal for businesses to increase
their imports of yarn to meet the
production and export demands
in the coming months. It is
anticipated that the import of yarn
into Vietnam will gradually recover
in the near future.

https://vcosa.vn
2. Monthly Export Statistics
In July 2023, the export volume of the fiber group
reached 155.4 thousand tons, with a total value of
384.1 million USD. Compared to the previous month,
the export volume increased by 0.9%, while the total
value grew by 2.2%.
In the first 7 months of 2023, the cumulative export
volume of fiber and yarn reached 988.8 thousand tons,
with a total value of 2.45 billion USD. Compared to the
same period last year, the export volume increased
by 2.6%, but the total value significantly declined by a
rate of 20.8%.
In July 2023, fiber and yarn remained
the top exported commodity with a value
of 384.1 million USD, showing a slight
increase of 2.2% compared to the previous
month. The most impressive growth was
seen in raw materials for the textile and
footwear industry, reaching 164.9 million
USD, a remarkable increase of 7.5%.
On the other hand, technical textile
recorded the lowest export value and the
sharpest decline, standing at only 50.7
million USD, representing a decrease
of 1.6%. Fabrics were the only other
commodity with a decreased export value,
totaling 179.2 million USD, a drop of 0.6%
According to the statistics
from the General Department of
Customs, in July 2023, Vietnam’s
exports of fiber and yarn reached
155.4 thousand tons, marking a 0.9%
increase in quantity compared to the
previous month. The export value for
this commodity amounted to 384.1
million USD, indicating a 2.2% growth
compared to the previous month.

https://vcosa.vn
In July 2023,
textile and garment
exports reached 3.26
billion USD, showing
a 6.8% increase
compared to the
previous month.
According to
preliminary statistics
in July 2023, Vietnam’s
textile and garment
exports reached 3.26
billion USD, showing
a 11.6% decrease
compared to the same
period last year.
Vietnam’s exports of textile and garment items
including fiber, yarn, fabric, textile materials and technical
textile during the first 7 months of 2023 have all
experienced declines in comparison to the same period
last year. Among these categories, the highest export
value was attributed to fiber and yarn, reaching 2.45 billion
USD, which represents a substantial decrease of 20.8%.
The deepest decline was observed in the technical
textile segment, with an export value of 388.3 million USD,
marking a significant drop of 26.8%. Export revenues from
fabric totaled 1.37 billion USD, indicating a reduction of
18.2%, while the export value of textile raw materials for
the garment and footwear industries reached 1.12 billion
USD, signifying a contraction of 17.8%.

https://vcosa.vn
In July 2023, the average
export prices of Vietnam’s fiber and
yarn increased to several markets
compared to June 2023, including
China, South Korea, the United
States, Japan, Taiwan, and India.
However, the average export
prices of fiber and yarn to many
other markets still decreased,
such as Bangladesh, Indonesia,
Thailand, Philippines, Cambodia,
and Colombia.
2.1. Exports of fiber and yarn will likely rise in the near future
A
ccording to the statistics
provided by the General
Department of Customs,
Vietnam’s exports of fiber and
yarn in July 2023 reached 155.35
thousand tons, with an export
value of 384.11 million USD. This
indicates a slight increase of 0.9%
in quantity and a 2.2% rise in export
value compared to June 2023.
Furthermore, these figures reflect
a substantial growth of 41.2% in
quantity and 19.2% in export value
compared to July 2022.
Over the first 7 months of 2023,
Vietnam’s exports of fiber and
yarn amounted to 988.8 thousand
tons, worth 2.451 billion USD. This
demonstrates a 2.6% growth in
quantity but a significant decrease
of 20.8% in export value compared
to the same period in 2022.
Following a sluggish export
performance in the first half of the
year, the fiber and yarn category
in Vietnam witnessed a recovery
in July 2023 compared to the
corresponding month in 2022. This
resurgence suggests a positive
signal of rejuvenation within the
garment and textile market.
Historically, the demand for
textile and apparel products tends
to surge towards the end of the
year to cater to holiday and festive
occasions. Therefore, Vietnam’s
exports of textile fiber and yarn
are projected to gain momentum,
particularly in the third quarter of
2023. It’s anticipated that exports
of these products, especially to the
Chinese market, will experience a
swift recovery, driving Vietnam’s
overall export growth in this
segment.
According to VnDirect’s textile
market report, in China, the input
price index for yarn manufacturers
inched up by 0.1% and 0.3% in
May and June 2023, respectively,
indicating a recovering demand.
Retail sales of textile and footwear
products up to May 2023 had risen
by 2.3% compared to April 2023
and surged by 12.3% compared to
May 2022, reaching 107.6 billion
Chinese Yuan.
The People’s Bank of China
(PBOC) has continued to cut
lending rates to boost production
and consumption activities, as well
as lower savings rates to stimulate
the flow of funds into consumption
and investment. According to
analysis, the Chinese market is
likely to display clearer signs of
recovery in the fourth quarter of
2023 and the first quarter of 2024.
In July 2023, Vietnam primarily
exportedfiberandyarntotheChinese
market, accounting for 52.9% of the
total quantity and 57.2% of the total
export value of this commodity.
The recovery of Vietnam’s fiber
and yarn exports in the past month
was largely driven by an increase
in exports to the Chinese market.
Specifically, exports to China
reached 82.2 thousand tons, with
an export value of 219.5 million
USD. This marked a 0.3% increase
in quantity and a 2.6% rise in export
value compared to June 2023, as
well as an impressive surge of 79.2%
in quantity and 67.4% in export value
compared to July 2022.
Additionally, Vietnam’s fiber and
yarn exports expanded to various other
markets in July 2023 compared to June
2023. Notable markets experiencing
growth included South Korea, Colombia,
Pakistan, Sri Lanka, the United Kingdom,
Egypt, and Hong Kong.
Source: VITIC
Source: VITIC
Vietnam’s export fiber and yarn in 2022-2023 (million USD)
Jan Feb Mar Apr May Jun
2022 2023
Jul Aug Sep Oct Nov Dec

https://vcosa.vn
Vietnam’s fiber and yarn export
Export price of fiber and yarn
The average export price of Vietnam’s fiber and
yarn in July 2023 reached 2,472 USD per ton, marking
a 1.2% increase compared to June 2023. However,
this price was still 18.5% lower than that of July 2022.
Over the first 7 months of 2023, the average export
price of Vietnam’s fiber and yarn stood at 2,479 USD
per ton, representing a significant decrease of 29.6%
compared to the same period in 2022.
Source: VITIC
Source: VITIC

https://vcosa.vn
3. Cotton Outlook
Source: CI
T
he U.S. Department of
Agriculture (USDA) has
released its August 2023
World Agricultural Supply and
Demand Estimates (WASDE)
report, providing insights into the
current state of the cotton industry.
Key takeaways from this month’s
cotton summary include:
U.S. cotton production is
projected to decline by 2.5 million
bales in the 2023/24 season, to
14.0 million bales. This is due to
higher projected abandonment
rates and decreased yield in the
Southwest.The export forecast for
U.S. cotton has also been lowered
by 1.3 million bales, to 3.1 million
bales. This is due to diminished
U.S. supply and heightened
competition from Brazil and
Australia.
As a result of the lower
production and exports, ending
stocks of U.S. cotton are projected
to decline by 700,000 bales, to
3.1 million bales.On a global
scale, production is projected
to decline by 2.7 million bales,
while consumption is projected
to increase by 500,000 bales. This
results in a reduction of projected
ending stocks by 2.9 million bales.
Global trade is expected to
increase by 400,000 bales, with
increased imports by China
and Turkey offsetting declines
in the United States and Benin.
Consumption is expected to rise in
China and Turkey, while decreasing
in Indonesia compared to the
previous month’s estimates.
The USDA’s WASDE report
is a valuable resource for
stakeholders in the cotton
industry, as it provides timely and
comprehensive information on
global cotton supply and demand.
The report’s findings suggest that
the U.S. cotton industry is facing
some challenges in the coming
season, but there are also some
opportunities for growth.

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 - 08/2023 ISSUE

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VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 08/2023 ISSUE