VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 11/2023 ISSUE

Cotton and Yarn Statistic
VIETNAM COTTON AND SPINNING ASSOCIATION
Collected & Edited: Information and Communication Dept.
NOVEMBER
2023
MONTHLYREPORT
--- For internal circulation only ---

🔹 2023-24 world cotton stocks to be highest in 83 years.
🔹 50,000 tons of Aussie cotton gets duty free access to India.
🔹 Cotton prices forecast: recovery not in sight as demand slips.
🔹 Recycled cotton produced from textile waste by Spanish materials.
🔹 India to stop importing Chinese knitwear.
🔹 US' textiles & apparel imports drop 21.8% to $81.1 bn in Jan-Sept 2023.
🔹 First fully robotic denim unit operates in Japan, threatening labor.
🔹 In September 2023, the import price of cotton increased slightly after 12 consecutive months of decline.
🔹 Fiber import prices slightly decreased.
🔹 The import price of yarn increased slightly.
🔹 European Green Deal & Vietnam's exports.
🔹 Viet Nam’s stability, openness key to new FDI commitments.
REMARKABLE INFORMATION
International news
National news
NEWSLETTER NOVEMBER 2023 | VCOSA
2 vcosa.vn

INTERNATIONAL NEWS
I
CAC has forecast that world
cotton production in 2023-24 will
rise by 3 percent to 25.41 million
tons, while usage is projected
to decline 0.43 percent to 23.35
million tons. In the light of the
above data, ICAC projected that
global stocks will soar 10 percent,
after a 9 percent increase in 2022-
23 season to 23.32 million tons.
In a press release, ICAC said
that this level of global reserves
is the highest ever projected in
the 83-year history of ICAC data
collection on cotton,” ICAC said
in a press release. Cotton stocks
of the world’s biggest consumer
of cotton, China are expected to
ascend to 9.16 million tons, while
those of the world stocks are
forecast to be 14.5 million tons in
the 2023-24 season.
ICAC expects the global stock-
to-use ratio to rise to 1.00 for
around 12 months of mill use and
the global average yield in 2023-24
is forecast to stay stable at 771
kg per hectare. The cotton body
added that with this amount in
reserve, it expects Cotlook A-Index
will stay between 85 and 95 cents
per pound for the rest of the 2023-
24 season.
Source: Textalks
A
high-level delegation
representing Indian
government officials
engaged in discussions with
Cotton Australia, ACSA, and
Austrade to explore potential
collaborations.
The talks aimed to identify
areas of mutual interest and
foster cooperation between
the two nations.
With the activation of the
Economic Cooperation and
Trade Agreement (ECTA),
50,000 tons of Australian
cotton can now enter India
without tariffs as against the
11 percent duty paid earlier.
Cotton Australia said it
is actively advocating for
an increase in this tariff-
free quota, working with
government officials to grant
Australian cotton greater
access.
This move is intended to
facilitate Australian brands
wishing to manufacture
Australian cotton in India.
Source: Textalks
Global cotton reserves in the
2023-24 season will be the
highest ever forecast in the 83-
year history of the International
Cotton Advisory Committee
(ICAC) data collection.
2023-24 world cotton
stocks to be highest
in 83 years
50,000 tons of Aussie cotton
gets dutyfreeaccess to India
3
vietnamyarnprice.com

C
otton prices have struggled
to gain traction this year
as demand and supply
divergences continued. It was
trading at $79.32 on Tuesday, a
few points above the year-to-date
low of $76.20. Cotton remains
about 14% below the highest point
in 2023 and 43% lower than its
2022 high.
Weak demand and higher
supplies
Cotton and other commodities
are going through a mixed period
in 2023. Some soft commodities
like soybeans, corn, and wheat
have crashed hard as supplies
have remained at an elevated level.
Other commodities like palm
oil, sugar, and orange juice have
jumped because of weather-
relatedissues.Forexample,orange
juice has soared because of weak
production in Florida, which has
faced numerous hurricanes.
Cotton is seeing higher
production and lower demand
in key markets. Demand has
dropped because of the ongoing
high inflation in key markets like
the US, UK, and in the euro area.
Higher inflation has led to elevated
interest rates, which has curtailed
consumer spending.
At the same time, there is
abundant cotton supply. According
to the USDA, the US is expected
to produce 13.1 million bales this
year, 273k bales higher than the
previous estimate. While Texas
production has dropped, it has
been offset by other states.
Internationally, countries
like Afghanistan, United States,
Argentina, and Paraguay are
expected to have higher supplies.
This increase will offset the
decline of production in countries
like Spain and Mexico.
At the same time, cotton use is
expectedtoremainunderpressure.
In the US, mill use is expected to be
100k bales lower while globally, it
will be about 500k lower.
Cotton prices forecast:
Recovery not in sight as demand slips
“Global consumption is 500,000 bales lower, with cuts for
Vietnam, Turkey, and the United States. World trade is little changed
from the previous month despite a 500,000-bale increase in China’s
projected imports, as declines for Vietnam, Turkey, Korea, and
Thailand are largely offsetting.”
The WASDE report
4 vcosa.vn

Turning to the daily chart, we
see that cotton prices have been
under pressure recently. It was
trading at $80, lower than the YTD
high of $92.66. This price is also
a few points above the YTD low
of $76.20. It has formed a small
bearish flag pattern and moved
below the 50-day and 25-day
moving averages.
Cotton has remained below
the 23.6% Fibonacci Retracement
level. Therefore, it seems like the
price will continue falling, with the
next point to watch being at $70.5,
the lowest point in 2022. This view
will be confirmed if it moves below
the support at $76.20.
Source: Invezz
Cotton prices forecast
5

Recycledcottonproducedfrom textile waste by Spanish materials
US' textiles & apparel imports drop 21.8% to $81.1 bn
in Jan-Sept 2023
“The textile industry needs new solutions and
collaborations across its supply chain, which is why
we are excited to team up with Valdese Weavers
and expand our product to the upholstery and home
textile segment.”
Alfredo Ferre, CEO at Recover
V
aldese Weavers the US based company
established in 1935 has launched a new
collection using recycled cotton produced
from textile waste by Spanish materials science
company Recover.
Valdese Weavers is a well-known American
manufacturer of home textiles. The company is
located in Valdese, North Carolina, and has a rich
history in the textile industry. Please note that there
may have been developments or changes since
then.
Recover’s flagship material, which is made from
recycled post-industrial and post-consumer waste,
is said to use significantly less water, energy and
land than conventional cotton. Alfredo Ferre, CEO at
Recover added: “The textile industry needs new solutions
and collaborations across its supply chain, which is why
we are excited to team up with Valdese Weavers and
expand our product to the upholstery and home textile
segment."
RecoverinAugust,teamedupwithUSapparelretailer
Lands’ End to launch a ‘low impact’ denim collection. It
also recently teamed up with C&A on a new collection
as part of a four-year strategic partnership. And, earlier
this year, Recover entered into a partnership with Swiss
spinning machinery manufacturer Rieter in a bid to
increase the use of recycled textiles as raw materials.
Source: Textalks
˜ US textile and apparel imports dropped 21.85 per cent to $81.139 billion in Jan-Sept 2023.
˜ China leads as the top supplier with a 23.42 per cent market share, despite a drop across all main suppliers.
˜ Apparel imports declined by 22.81 per cent, with non-apparel down 18.82 per cent.
˜ None of the top ten US apparel suppliers saw an increase in exports.
For additional resources, please contact VCOSA.
Source: Fibre2Fashion
vcosa.vn
6

First fully robotic denim unit operates in Japan,
threateninglabor
T
he factory named Kaihara Denim has a domestic
market share of 50 percent. The size of Kaihara
Denim can be judged by the fact that every
second pair of jeans sold and worn in Japan is made
from a denim fabric made by the mill. The company
operates several denim units.
Kaihara manufactures denim and selvage denim
fabrics that are surprisingly cost-competitive for goods
made in Japan. Its low prices have
made Kaihara one of Uniqlo’s
global partners. Unilqo apparel is
sold at incredibly tempting prices.
Kaihara’s fabrics are also chosen
by many premium denim brands
across the world, including Nudie
Jeans and Edwin.
The company was established
in 1893 to produce fine fabrics and
beganmanufacturingdenimfabrics
in the 1960s. The fully integrated
mill covers all operations from
spinning to finishing. It sources
its cotton from the United States,
Australia, and Brazil. Today the
company sells its denim fabrics to
more than 30 countries. These are
made in one of the four different
plants it operates in Japan.
In its most updated unit, only
six people manage the robots that
manufacture denim fabrics in the
hundreds of thousands of yards
per month. The factory is huge,
and the stock of denim fabrics
in the warehouse is more than
massive.
Those that have a chance to
visit the factory observed that the
floor was clean and shiny, nicely
painted. No dust, no waste, no sign
of any work in progress. No, no one
was around. Bright lights, spick
and span cleanliness. Automated
vehicles were driving around with
orange flashing lights.
The smaller vehicles would
transport bobbins of cotton yarn,
the heavier ones bolts of fabrics.
Robots transport cotton bobbins
to the spinning unit and install
them on the machine while other
vehiclescouldbeseentransporting
huge rolls of indigo warps. Big
robot arms install these directly on
the rapier weaving machines.
There was no noise on the
manufacturing floor, it felt soft
and nearly quiet, all in perfect
harmony. The six engineers could
be seen walking discreetly around
the units, checking the robots to
make sure everything was going
smoothly.
This is the future. This is the
future of denim.
Source: Textalks
People have been talking about robots
completely replacing human beings in the future
intheUnitedStatesbutaJapanesemanufacturer
based in Hiroshima is already operating a huge
denim factory operated by robots.
India to stop importing Chinese knitwear
I
ndia’s trade body has urged the
Prime Minister to impose import
restrictions on knitwear from
China. At present, the Indian textile
industry is facing the dual pressure
of slowing export demand and a
large influx of imported fabrics
and garments. According to the All
India Knitting Association, import
supply is also eating up domestic
demand.
In a letter to the Prime
Minister’s Office, the association
explained that synthetic knitted
fabrics imported under HSN
code 60063200 accounted for
74% of the total synthetic knitted
fabrics during April-August 2023
at an average price of $1.41 per
kilogram. In contrast, the cost of
domestic production currently
hovers at $4 per kilogram.
In response, the association
said that India’s domestic
industry is losing market share
due to unfair competition. More
important, cheap imports are
eating up domestic
demand. Therefore,
the agency asked the
government to take
immediate steps to
restrict the import
of synthetic knitted
fabrics from China below cost
price.
Not only is it recommended
that the government impose anti-
dumping duties immediately, but it
is also proposed to impose quality
control orders on finished products
rather than raw materials such as
fibers and yarns.
Source: Textile focus

European Green Deal
& Vietnam's exports
Injustlessthanfouryearsfrom
the start of EGD's implementation,
the EU has introduced numerous
green policies that have/are
expected to have a direct impact
on foreign goods imported into this
Union. The list of green policies
related to imports from outside
entities into the EU will continue
to be supplemented along with
the implementation process of the
goals set out in the EU Green Deal
by 2050, particularly in the period
from now until 2030.
Because the EU is Vietnam's
key export market, the
implementation of the EGD is
assumed to have considerable
impacts on a substantial part of
Vietnam's exports. The EU green
policies as above-mentioned are
to have impacts on Vietnam's
exports in different ways. The
most common impacts are the
increase in "green and sustainable”
standards for EU-exported
goods (in form of total new
green standards/requirements,
or newly-amended, upgraded
or expanded green standards/
requirements from existing ones).
The next group of impacts is
the increase in manufacturers'
financial responsibility for "green,
sustainable" targets (payment
of additional fees, purchase of
carbon certificates, etc.). And
finally, the extra requirements
on accountability responsibility
upon goods’ origin (e.g., origin
of the land used for agricultural
production, amount of carbon
emissions during the production
process per unit of product, etc.),
or information provision about
the "green, sustainable" aspects
of products to consumers (e.g.,
labeling, digital passport for
products, etc.).
With the green policies in the
European Green Deal identified
so far, the following Vietnam’s
exporting sectors are expected
to be severely affected by the
green transition in the EU market
in the coming time: (i) Electrical,
electronics, information technology
products, machinery, equipment,
and related components; (ii)
Agricultural products (especially
coffee, cashews, pepper, cocoa,
meat, etc.), seafood, wood and
wood products; (iii) Foods of all
kinds (especially organic foods);
(iv) Textiles and footwear; (v)
Chemicals, fertilizers, batteries; (vi)
Iron and steel, aluminum, cement;
and (vii) Product packaging
(especially packaging of food and
chemicals, etc.).
A quick survey conducted
by the Vietnam Chamber of
Commerce and Industry (VCCI)
in August 2023 showed that 88-
93% of respondents had never
known or only briefly heard of
the EGD or the EU's outstanding
green policies related to Vietnam's
exports. In particular, the number
of businessmen, employees,
and workers having a clear
understanding of the EGD is only
4%, which is much lower than other
groups (8-12%).
The European Green Deal (EGD) is a
comprehensive and long-term program
of the European Union (EU) to respond to
the global climate emergency from now to
2050.
Approved on January 15, 2020, the EGD
has shaped the EU's strategy to reach net
zero greenhouse gas emissions (climate
neutrality) and become a resource-
efficient economy by 2050.
I
n some specific cases, EGD’s policies may
also apply to actors/activities outside the
EU, most commonly (i) ones with scope of
application involving goods circulated, traded,
used, consumed, discharged and/or releasing
emissions within the EU, regardless of whether
goods are produced within or imported into the
EU; or (ii) ones designed to apply specifically to
imports into the EU to ensure alignment with
EU regulations on EU domestic goods.
NATIONAL NEWS
8 vcosa.vn

Vietnam's stability, openness key to new FDI commitments
It is noteworthy that not only
the EU, but many other major
export markets are also planning
to implement similar policies.
Therefore, the first solution to
deal with the impacts of the
EGD on Vietnam's exports is to
proactively learn about the EGD in
order to identify, accurately grasp
and regularly update specific
green policies related to specific
exported products. This is also the
initial preparation of Vietnamese
exporting enterprises for new
policy trends in international
markets.
Agricultural and food products
are among Vietnam’s high value
exporting potentials in the EU
market. This is however a sector
that concentrates many EU green
policies, notably the "Farm to Fork"
Strategy with important rules on.
For Vietnam’s textile sector, the
EU has been the most important
export market. For the EU, textile
and garment is among the top
sectors causing environmental
degradation and climate change,
thus subject to many early green
efforts of the EU. The majority of
EU green policies on textiles are
concentrated in the EU Strategy for
Sustainable and Circular Textiles.
Source: VCCI
C
umulative foreign
direct investment (FDI)
commitment in Viet
Nam increased despite global
uncertainties, thanks to continued
confidence in Viet Nam’s stability
and openness, noted the World
Bank (WB).
Meanwhile, the cumulative FDI
disbursement in Viet Nam was
US$18 billion, 3.2 percent higher
than a year ago. Manufacturing
continued to be the magnet for FDI
inflows into the country.
Remarkably, the industrial
production index grew by
2.89 percent in October, due
to the continued recovery of
manufacturing exports.
According to the WB, exports
and imports of goods continued to
recover, increasing by 1.6 percent
and 1.05 percent, respectively,
against the previous month, as
demand from trade partners
continued to gradually
recover.
Public investment
disbursement increased
by 35 percent year-on-
year for the 10-month
period, helping the
government achieve
55 percent of the
annual planned budget
(compared with 46.5
percent during the same
period of 2022).
The bank suggested
authorities consider
extending the economic
support program to 2024 to allow
investment projects to be fully
implemented. Preparing higher
quality project–including through
better feasibility studies and
the reform of public investment
procedures would help to speed
up implementation, the WB
highlighted.
A strategic and well-prepared
investment pipeline with a
focus on green, resilient and
regional infrastructure will help
bolster sustainable economic
development, added the bank.
Source: VGP
Cumulative foreign direct investment (FDI) commitment
in Viet Nam increased despite global uncertainties, thanks to
continued confidence in Viet Nam’s stability and openness,
noted the World Bank (WB).
9

VCOSA’S ACTIVITIES
ƙ Following the visit to member businesses nationwide in May & June 2023, VCOSA continued to visit
members in the Southern region, including Phong Phu Corporation and Dong Quang Textile Corporation,
to inquire about and update the business and production activities as the year 2023 approached its end.
ƙ On the morning of November 8th, 2023, VCOSA representatives participated in an online meeting hosted
by the leadership of the Trade Remedies Authority. The meeting emphasized the need to expedite dialogue
with the United States regarding the recognition of Vietnam as a Market Economy (MES) to protect the
legal rights and interests of all Vietnamese manufacturing/exporting enterprises in the U.S. market.
ƙ On November 8th and 10th, 2023, with the sponsorship of Recover Fiber, Rieter, and Illies Vietnam, VCOSA
collaborated to organize the seminar "Trends and Insights: Future-Proofing Spinning Operations" at two
locations in Ho Chi Minh City and Thai Binh. With the participation of 120 guests from 49 enterprises,
the seminar successfully provided an overview of current trends and the latest innovations shaping the
spinning industry while offering direct networking opportunities between businesses and representatives
from Co-organizers and Sponsors. To view the comprehensive seminar report, please click the link: https://
bit.ly/47G0B03
Organizing committee and participants at the HCMC venue
Special moments at the seminar
Speakers from Rieter and Recover Fiber
Appreciation gifts from the organizing committee and participants to Rieter, Recover Fiber and Illies Vietnam
Organizing committee and participants at the Thai Binh venue
10 vcosa.vn

ƙ On November 9th, 2023, VCOSA participated in the Cotton Incorporated (CI) Cotton Price Workshop held at Sheraton
Hotel, Ho Chi Minh City. This annual workshop covers various topics such as cotton season, production, weather
conditions, etc., presented by CI experts to provide businesses with an overview and direction.
ƙ On November 10th, 2023, VCOSA representatives attended a press conference on the theme "Texpertise with a focus
on Techtextil, Texprocess and Heimtextil", organized by Messe Frankfurt Group (Germany) and its representative
office in Vietnam. Messe Frankfurt Group organizes annual trade fairs for fabrics, textile accessories, machinery,
textile technology, and textile care in Frankfurt, New York, Paris, India, Shanghai, Shenzhen, Guangzhou, etc.
ƙ On November 13th, 2023, VCOSA submitted a report to the Ministry of Home Affairs on the results of legal
compliance checks.
ƙ On November 16th, 2023, VCOSA attended the seminar "EU Green Deal - Impact on Vietnam's Exports. What
Businesses Need to Know" organized by VCCI and the Friedrich Naumann Foundation (FNF) in Hanoi. The seminar
aims to help manufacturing and exporting businesses understand, comply with, and adapt to green standards within
the framework of the European Green Deal.
ƙ As part of the cooperation series for the Textile and Footwear industry, on November 16th, 2023, Mr. Nguyen
An Toan, VCOSA's Chairman, attended a meeting hosted by the Sustainable Trade Initiative (IDH) at Pho Noi B
Textile Industrial Park to enhance capacity and cooperation in implementing sustainable practices in the textile
and footwear industry within industrial parks in Vietnam (IPEV). Subsequently, on November 23, 2023, VCOSA’s
representative in the Southern region participated in a field trip to Nhon Trach 3 Industrial Park, Dong Nai province.
ƙ On November 18th, 2023, at the invitation of a member company, Renze Textile Company, VCOSA representatives
held a working session with a delegation from Fujian Province, China, to share information about the spinning
industry and the textile market in Vietnam. VCOSA introduced the Aurora Textile Industrial Park, and the partners
showed interest in the park's location, rental costs, and industries suitable for investment.
ƙ On November 20, 2023, VCOSA issued official letter No. 275/2023/CV-VCOSA to provide feedback to member
businesses regarding the temporary detention of a shipment of raw cotton. Subsequently, on November 22, 2023,
VCOSA issued letter No. 276/2023/CV-VCOSA to relevant authorities, secondly recommending the application for
the classification code for imported fallen cotton as raw material for OE fiber production.
Participants asking questions to speakers at the seminar
Direct networking (B2B) activities between participants and representatives from the organizing committee
11

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economy. As a major export crop and key to the
domestic textile industry, it uplifts smallholder farmers
and champions the circular economy. Beside, Africa
contributes 8% to the world's cotton production, with
Western Africa's rich cotton basins leading the charge.
Countries like Benin and Togo export a staggering 99% of
their cotton to Asia.
💡 GDIZ - Africa's Cotton Industry Hub: The Glo-Djigbé
Industrial Zone in Benin, developed in partnership with
ARISE IIP and the Government of Benin, is a $100 million
testament to Africa's modern production capacity.
1. Sustainable Steps Forward:
— 100% sustainably sourced cotton under the CMiA
initiative.
— CO2logic partnership to reduce carbon footprint.
— Controlled chemical use and increased recycling.
— 95% water reuse and on-site solar energy generation.
2. Empowering Local Economy:
— Value addition at source ensures fair prices for
producers.
— Integrated logistics to cut costs.
— Increased market access for small manufacturers.
— Skilled manpower through Garment Training Centers.
ARISE IIP as a developer and operator of world-class
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We are excited to know about your investment plans for
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REPORT AND DATABASE
1. Monthly Import Statistics
In October 2023, cotton imports decreased slightly
by 0.8% compared to the previous month, reaching
107.6 thousand tons. However, cotton import value
decreased more, reaching 216.6 million USD, down
1.7% compared to September 2023. In the first 10
months of 2023, both quantity and value of cotton
imports decreased compared to the same period last
year, down by 8.7% and 30.6% respectively.
For fiber and yarn, both quantity and import
value in October increased compared to the previous
month, up by 7.8% and 2.8% respectively. However, in
the first 10 months of the year, the quantity decreased
by 2.5% while the value decreased significantly by
18.4% compared to the same period last year.
Cotton imports in October 2023
were 107.6 thousand tons, down slightly
by 0.8% compared to September 2023.
This is the second consecutive month
that cotton import quantities decreased
compared to the previous month.
In contrast, fiber and yarn import
quantities in October increased by 7.8%
compared to September, reaching 96.2
thousand tons.
Ž Cotton import value in October reached
US$216.6 million, decreasing 1.7%
compared to the previous month. This
was the second consecutive
month that cotton import value
decreased.
Ž Fiber and yarn import value
increased 2.8% to US$194.5
million.
Ž Fabric import value increased
3% to a record high of
US$1,132.7 million.
Ž The only import value that
decreased was materials and
accessories for the textile and
garment industry, falling 4.4%
to US$496.5 million.
In general, import values of the
three major commodities of fiber
and yarn, fabric all increased while
cotton and materials and accessories for the textile and garment industry decreased compared to the previous month.
14 vcosa.vn

The import value of these 4 commodities in the first 10 months of 2023 all sharply decreased compared
to the same period last year. Specifically:
Ž Cotton import value reached US$2.35 billion, a strong decrease of 30.6% compared to the same period
last year.
Ž Fiber and yarn import value totaled US$1.8 billion, down 18.4% compared to the first 10 months of
2022.
Ž Fabric import value was US$10.71 billion, down 14.4%.
Ž Materials and accessories for the textile and garment industry import value reached US$4.95 billion,
down 13.5%.
Preliminary statistics
show that in October 2023,
Vietnam imported 96.2
thousand tons of fiber and
yarn. This import quantity
increased by 7.8% compared
to the previous month and
increased by 31.2% compared
to the same period last year.
In October 2023, Vietnam
imported 107.6 thousand
tons of cotton, decreasing
0.8% compared to September
2023 and decreasing 23.3%
compared to the same period
of 2022.
15

B
ased on statistics provided
by the General Department
of Customs, the cotton
imports into Vietnam during
September 2023 amounted to
108.51 thousand tons, valued at
US$220.34 million. This reflected a
decrease of 11% in quantity and a
10.1% reduction in value compared
to August 2023. Moreover, it
showed a substantial drop of
23.3% in quantity and a significant
48.4% decrease in value when
compared to September 2022.
Throughout the initial 9 months
of 2023, the total quantity of cotton
imported into Vietnam reached
US$2.13 billion. This indicated a
decline of 6.8% in quantity and a
notable decrease of 28.2% in value
compared to the corresponding
period in 2022.
Notably, cotton imports by
foreign-invested enterprises in
September 2023 stood at 79
thousand tons, amounting to
US$151 million. This represented a
decrease of 7.1% in quantity and a
14.6% reduction in value compared
to August 2023. Similarly, it marked
a 26.1% decline in quantity and
a substantial 53.8% decrease in
value in comparison to September
2022.
From January to September
2023, cotton imports by foreign-
invested enterprises totaled 659
thousand tons, valued at US$1.47
billion. This showcased a 9.1%
decline in quantity but a significant
42.2% increase in value compared
to the same period in 2022. These
imports accounted for 66.6% of
the total imported cotton quantity
and 68.9% of the total imported
cotton value in the country.
a 5.9% decrease in quantity and
a significant 29.9% decline in
value compared to the same
period in 2022, constituting
38.3% of the total cotton import
quantity. Notably, in September
2023, the volume of imported
cotton from this nation stood at
12.72 thousand tons valued at
US$29.71 million, indicating a
54.3% decrease in quantity and
a substantial 46.1% decline in
value compared to August 2023.
Moreover, this marked a staggering
73.4% decrease in quantity and a
significant 79.2% decrease in value
in contrast to September 2022.
The Australian market secured
the second rank, with cotton
imports totaling 300 thousand
tons valued at US$668 million.
This experienced a robust 39%
surge in quantity and a slight
to the same period in 2022.
Specifically, in September 2023,
the imported cotton quantity
from Australia reached 66.26
thousand tons valued at US$139.6
million, indicating a 6.5% increase
in quantity and a 5.2% rise in
value compared to August 2023.
However, it marked a 12.5%
decrease in quantity and a notable
40.7% decrease in value compared
to September 2022.
Furthermore, there was a
sharp decline in the quantity of
cotton imports from other markets
during the first 9 months of 2023
compared to the same period in
2022. For instance, cotton imports
from India plummeted by 51.4%,
from Argentina by 89.6%, and from
Cote d'Ivoire by 77%...
During the initial 9 months of
2023, Vietnam engaged with 13
cotton supplying markets, marking an
increase of 3 markets in comparison
to the same period in 2022. The import
quantities from these main markets to
Vietnam surged when compared to the
corresponding period in 2022. To delve
into specifics:
Cotton imports from the US
dominated in the first 9 months of
2023, amounting to 378 thousand tons
valued at US$832 million. This showed
Source: VITIC
Vietnam’s cotton imports
Source: VITIC
1.1. In September 2023, the import price of cotton increased
slightly after 12 consecutive months of decline
Vietnam’s cotton imports in 2022-2023 (thousand tons)
16 vcosa.vn

On the world market, cotton
prices still fluctuate greatly,
although many recent forecasts
indicate that global cotton supplies
will decrease in the coming season,
weak global textile and garment
demand has still not been able to
support cotton prices.
In Pakistan, cotton production
in Pakistan is expected to decline
significantly in 2023 due to
bollworm and rain damage. This
could lead to a decline in textile
exports from this market.
Brazil is about to surpass
the United States to become the
world's largest cotton exporter
as Texas, the leading cotton
producing region of the United
States, faces heat waves and
droughts. The United States and
Brazil are the world's leading cotton
exporting markets, accounting for
more than half of global supply.
The United States is expected to
export 12.5 million bales (1 bale
= 226.8 kg) during the 2023-2024
season, but this estimate may be
reduced when the US Department
of Agriculture (USDA) updates its
forecasts. Meanwhile, Brazil is
forecast to export 11.25 million
bales of cotton over the same
period.
According to the China Cotton
Association, cotton production will
decrease in the 2023-24 season.
The cotton planting area in the
2023-24 season reached 41.48
million acres, down 7.6% and
production is forecast at 6.279
million tons, down 5.2% from
the previous season. However,
cotton consumption is expected to
recover and increase to 7.9 million
tons in the 2023-24 season, up 4%
from the same period in 2022.
In general, cotton prices on
the world market still fluctuate
greatly, Vietnam's cotton import
prices have begun to rise slightly
after declining for 12 consecutive
months. It is forecast that cotton
import prices into Vietnam will
recover in the short term, however
the increase will be very low as the
textile and garment industry has
not fully recovered.
Import price of cotton
The average import price of cotton in 2022-2023 (USD/ton)
Source: VITIC
The average imported cotton
price from the main markets
in September 2023 increased
slightly compared to August 2023,
except for the imported cotton
price from the Australia, which
decreased 1.2% to US$2,107/ton.
The imported cotton price into Vietnam in
September 2023 was at US$2,031/ton, up 0.9%
compared to August 2023, but down 32.8% compared
to September 2022. Thus, after 12 consecutive
months of price declines, in September 2023 the
import price of cotton into Vietnam began to rise
slightly again.
In the first 9 months of 2023, the average import
price of cotton into Vietnam was US$2,160/ton, down
23% compared to the same period in 2022.
17

According to statistics released
by the General Department of
Customs, the import of fiber into
Vietnam in September 2023 totaled
US$45.29 million. This indicated
an 18.2% increase in quantity and a
to August 2023. Furthermore, it
marked a 38.4% rise in quantity and
a 24% surge in value in comparison
to September 2022.
During the first 9 months of
2023, fiber imports into Vietnam
amounted to 302 thousand tons,
valued at US$391 million. This
represented an 8.7% increase in
quantity but a 1.3% decline in value
compared to the corresponding
period in 2022.
Vietnam imported fiber from
33 markets during the initial nine
months of 2023, signifying an
increase of 7 markets in comparison
to the same period in 2022.
China remained the largest
supplier of fiber to Vietnam, with
September 2023 imports reaching
17.72 thousand tons valued at
$19.83 million. This indicated an
increase of 21.8% in quantity and
18.2% in value compared to August
2023, and a substantial surge of
85.2% in quantity and 62.9% in value
For the entire first nine months of
2023, fiber imports from China to
Vietnam totaled 144.59 thousand
tons valued at $167.15 million,
constituting 47.8% of the total fiber
imports. This represented a 20.4%
increase in quantity and a 5.9%
rise in value compared to the same
period last year.
Imports of fiber from the Thai
market secured the second position,
reaching 5.08 thousand tons valued
at $6.87 million in September 2023.
This reflected a 40.8% increase in
quantityandaremarkable68%surge
in value compared to August 2023,
and a substantial 64.7% increase in
quantity and an impressive 82% rise
in value compared to September
2022. Throughout the entire first
nine months of 2023, fiber imports
from Thailand to Vietnam summed
up to 40.51 thousand tons valued at
$49.61 million, constituting 5.3% of
Vietnam's total fiber imports. This
represented a 20.5% increase in
quantity and an 8.9% rise in value
compared to the same period last
year.
Generally, during the first nine
months of 2023, imports of fiber
from major supplier markets to
Vietnam showed an overall increase,
except for a sharp decrease of
40.1% in quantity from the South
Korea.
Notably, fiber imports
experienced significant growth from
certain markets during this period,
such as Bangladesh and Hong
Kong.
Vietnam’s fiber imports in 2022-2023 (thousand tons)
Source: VITIC
Source: VITIC
Vietnam’s fiber imports
1.2. Fiber import prices slightly decreased
Jan Feb Mar Jun
Apr Jul
May
2022 2023
Aug Sep Oct Nov Dec
18 vcosa.vn

In September 2023, the
average import price of fiber to
Vietnam stood at $1,264 per ton,
marking a 3.4% decrease from
August and a 10.4% decline from
September 2022. Throughout
the first nine months of 2023, the
average import price of fiber to
Vietnam hovered around $1,294
per ton, indicating a 9.2% drop
compared to the same period last
year.
Among these figures, the
import price of fiber from
Bangladesh was the lowest at
$690 per ton, followed by China at
$1,119 per ton; Taiwan's imports
were valued at $1,179 per ton,
while the import price from South
Korea was the highest, reaching
$1,826 per ton.
In September 2023, the import price of fiber
experienced a slight decrease in Vietnam, maintaining
a low level. In response, fiber yarn manufacturing
enterprises must strategize to balance production
resources and restructure their commodities and
markets. This proactive approach aims to identify
optimal solutions for sustaining production and
fostering business growth amidst the market's
ongoing fluctuations.
The average import price of fiber in 2022-2023 (USD/ton)
Import price of fiber
Source: VITIC
Source: VITIC
2022 2023
Jan
1,100
1,200
1,600
1,300
1,400
1,500
Feb Mar Jun
Apr Jul
May Aug Sep Oct Nov Dec
19

According to customs statistics,
Vietnam's yarn imports in
September 2023 reached 53.24
thousand tons, valued at 144.4
million USD, down 1.1% in quantity
but up 0.1% in value compared to
August 2023, up 1.3% in quantity
but down 4.5% in value compared
to September 2022.
In the first 9 months of 2023,
the imported quantity of this item
reached 433.59 thousand tons,
valued at 1.21 billion USD, down
18.9% in quantity and down 25.9%
in value compared to the same
period in 2022.
1.3. The import price of yarn increased slightly
compared to September 2022. In
the first 9 months of 2023, yarn
imports from the China reached
728.13 million USD, accounting for
68.2% of Vietnam's total imports
of this item, down 14.6% in
quantity and down 25.2% in value
compared to the first 9 months of
2022.
Yan imports from Taiwan in
September 2023 reached 4.87
million USD, down 0.6% in quantity
but up 0.1% in value compared
to August 2023; down 9.2% and
down 12.3% in value compared
to September 2022. In the first
9 months of 2023, yarn imports
from the Taiwan reached 41.22
million USD, accounting for 9.5% of
Vietnam's total yarn imports, down
sharply 43.3% in quantity and
down 44.2% in value compared to
the first 9 months of 2022.
In general, in the first 9 months
of 2023, yarn imports from major
supplier markets to Vietnam all
decreased sharply, except for the
Indian market which increased by
8.5% in quantity...
Notably, yarn import volumes
from some markets increased very
strongly in the first 9 months of
2023 such as the UK, France...
China is the largest
yarn supplier market
for Vietnam, imports in
September 2023 reached
37.45 thousand tons,
valued at 91.49 million
USD, down 0.3% in
quantity but up 2.2% in
value compared to August
2023, up 11.7% in quantity
and up 15.9% in value
Vietnam’s yarn imports in 2022-2023 (thousand tons)
Source: VITIC
Source: VITIC
Vietnam’s yarn imports
Jan Feb Mar Jun
Apr Jul
May
2022 2023
Aug Sep Oct Nov Dec
20 vcosa.vn

In September 2023, the
average import price of yarn stood
at US$2,712 per ton, marking a
1.2% increase from August 2023
but reflecting a 5.8% decline
Throughout the initial 9 months
of 2023, the average import price
of yarn into Vietnam totaled
US$2,802 per ton, indicating an
8.6% decrease in contrast to the
same period in 2022.
Within this context, the import
price of yarn from China held the
lowest position at US$2,443 per
ton, trailed by India at US$2,575
per ton. Conversely, the highest
import price recorded was from
Japan at US$8,848 per ton.
On the global stage, yarn prices
remained stable at low levels as
supply recovered while market
demand remained weak.
On the supply side, fiber
production is gradually recovering
after the impacts of droughts in
the main cotton growing regions
of the US in mid-2022, which
also affected the global yarn
supply. Meanwhile, yarn demand
recovered not as expected by the
market due to the sluggish global
economy.
China, the world's largest yarn
importing and exporting country, is
still showing a slow recovery pace
after lifting the Zero Covid policy,
dragging cotton and yarn import
and export activities to be less
active as well.
In Vietnam, the import price of
yarn in September 2023 increased
slightly compared to August 2023,
but with demand from the market
still at a low level, yarn import
volumes remained stable without
growth. It is forecasted that yarn
import volumes and prices to
Vietnam will recover slowly in the
latter months of 2023.
The average import price of yarn in 2022-2023 (USD/ton)
Import price of yarn
Source: VITIC
Source: VITIC
2022 2023
Jan
2,500
3,000
3,500
Feb Mar Jun
Apr Jul
May Aug Sep Oct Nov Dec
21

Fiber, yarn export in
October 2023 reached
162.7 thousand tons, up
5.8% compared to the
previous month. Fiber, yarn
export turnover reached
388.7 million USD, up 4%.
In the first 10 months
of 2023, fiber, yarn export
reached 1.48 million tons,
up 12% compared to the
same period last year.
However, export
turnover decreased by
Export data in October 2023 showed:
Ž Fiber, yarn exports reached
approximately 388.7 million USD
in October, up 4.0% compared to
the previous month.
Ž Fabric exports reached 200.8
million USD, down 0.5%.
Ž Exports of materials and
accessories for the textile and
garment industry grew quite well
at 6.6%, reaching 165.3 million
USD.
Ž Exports of technical textiles
increased 5.8% compared to
the previous month, reaching 54
million USD.
10.8% to 3.64 billion USD. In general, fiber, yarn exports in the first 10 months of 2023 continued to increase in
quantity while turnover decreased compared to the same period last year.
According to data from the
General Department of Customs,
in October 2023, Vietnam exported
162.7 thousand tons of fiber and
yarn, up 5.8% compared to the
previous month. The export turnover
of this item reached 388.7 million
USD, up 4% compared to the previous
month.
In October 2023,
Vietnam's textile and
garmentexportsreached
US$2.566 billion, down
0.1% compared to the
previous month.
2. Monthly Export Statistics
22 vcosa.vn

In the first 10 months of 2023, exports of textile and garment products recorded sharp declines compared
to the same period last year.
Ž Fiber, yarn: Export turnover reached US$3.64 billion, down 10.8%.
Ž Fabric: Export turnover reached US$1.996 billion, down 13.5%.
Ž Exports of materials and accessories for the textile and garment industry reached US$1.63 billion,
down 14.4%.
Ž Technical textiles: Export turnover only reached US$550.2 million, down sharply 25.4% year-on-year.
According to preliminary statistics in October 2023, Vietnam's textile and garment exports reached
US$2.566 billion, down 5.6% compared to the same period last year.
— 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.
23

T
he fall in NY/ICE futures
was preceded by losses in
the Chinese futures market
(Zhengzhou Commodity Exchange
or ZCE). ZCE futures began losing
value from the recent high set
on October 9th. NY/ICE prices
fell through support around 84
cents/lb ten days later. Since the
decreases began, the ZCE January
contract has fallen -11% (from
17,665 to 15,790 RMB/ton or from
109 to 98 cents/lb). Losses in the
CC Index were -7% over the same
time period (from 18,363 to 17,055
RMB/ton or from 114 to 106 cents/
lb), and the decline for the March
NY/ICE contract has been -10%
(from 89 to 80 cents/lb).
InChina,therehavebeensupply
concerns, with a smaller harvest
long forecasted for the 2023/24
crop year. Relative to mill needs,
supplyrelated anxiety appears
to have been alleviated with the
release of import quota and sales
from the reserve system. In data
describing the volume of cotton
purchased at reserve auctions,
uptake has slowed considerably.
Initially, the amount of cotton
offered for sale from reserves was
routinely selling out. More recently,
the proportion of cotton sold has
been significantly lower, and it has
become routine that less than half
the cotton offered is purchased.
The decreased interest in reserve
cotton may be an indication that
millsdonotneedtosecuresupplies
due to a slow downstream market.
There are widespread reports
of a sluggish demand environment
spread across most other major
spinning markets. A timely
representation of global mill
demand comes from weekly U.S.
export sales data. In those figures,
U.S. export commitment is down
-24% year-over-year, representing a
decrease of -2.1 million bales. The
U.S. crop is smaller, but that is not
enough to explain all the weakness
in sales.
It remains unknown how low
prices may go with the current
round of decreases. However, the
establishment of a reasonable
bottom may give market
participants the confidence that
the risk of further losses has
diminished. In turn, this confidence
may support an eventual recovery
in demand.
Parallel statements could be
made about the macroeconomy.
SincetheFederalReserveandother
central banks began increasing
interest rates, there has been fear
of recession. Certain markets,
notably the Euro Zone, have already
slipped into contraction, while a
recession has yet to surface in
the U.S. Nonetheless, fear of an
impending slowdown has loomed,
with forecasters persistently
suggesting a downturn is just
over the horizon. This distress,
along with other factors, including
inventory management, inflation,
and higher financing costs, have all
been likely contributors to cautious
downstream order placement.
If a definitive economic
downturn were to surface, its
arrival may facilitate the perception
of a bottom. A bottom implies the
emergence of confidence that
conditions will improve. In turn,
that confidence could lift demand
and push more orders through the
supply chain.
The trajectory of a recovery
can be expected to be affected by
the severity of any decline. but the
recent bout of inflation may have
reduced the appetite for the release
of aggressive stimulus measures,
such as the lowering of interest
rates back to levels near zero.
This may result in a more muted
recovery than was experienced
after the financial crisis and the
COVID-driven recession.
Source: CI
3. Cotton Outlook
Source: CI
24 vcosa.vn

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VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 11/2023 ISSUE

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VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 11/2023 ISSUE