VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 11/2022 ISSUE

NOVEMBER 2022
For internal circulation only
MONTHLY REPORT
MONTHLY REPORT
MONTHLY REPORT
MONTHLY REPORT
Cotton an d Yarn stati sti c
Vietnam Cotton and Spinning Association
Collected & Edited: Information and Communication Dept.

Newsletter November 2022
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REMARKABLE INFORMATION
NATIONAL NEWS
INTERNATIONAL NEWS
Import price of raw cotton will increase in near future
Prices and quantities of imported raw fiber are expected to continue to decline
Import prices of raw yarn are expected to continue to decline
Eyeing the future: Antimicrobial textiles
Ranked: The World’s Top Cotton Producers
Brazil farmers bet on environmentally friendly cotton
China’s yarn export declines for Xinjiang cotton ban by US
China trade: decade-low import of cotton yarn reflects ‘global slowdown’ in clothing demand
Clothing spends to sink, but consumers prioritize sustainability – study

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INTERNATIONAL NEWS
Eyeing the future: Antimicrobial textiles
H
ealth and hygiene have
always been a high point
of concern for everyone,
across the globe. However, the
factors of hygiene started playing
a big role in people’s minds once
the Covid-19 pandemic hit. With
an expansion in the healthcare
business and an increase in
personal hygiene awareness,
the textile industry is embracing
sanitation using antimicrobial
materials.
How does antimicrobial
fabric help the textile industry?
Antimicrobial fabrics find
diverse usages all across the
industry. From clothes and hospital
scrubs, as well as medical mattress
covers, fabric, and upholstery,
specially treated textiles can be
used extensively to reduce the
risk of disease transmission and
prevent infection. The fabric used
for wound dressing and even
for special medical care are all
necessarily antimicrobial in nature
and support the healing process
completely.
Another important application
for antimicrobial fabric is military
and defense contracting, where it is
a component of counter-chemical/
biological warfare garments and
related equipment. Antimicrobial
fabrics also make an excellent
choice for footwear and athletic
wear, where they help control
or prevent odors. Depending on
the health and hygiene concerns
antimicrobial fabrics find diverse
usage across industries ranging
from automotive and contract
furniture fabric to food packaging,
safety gear, air filters, the apparel
industry, and more.
Here are a few more
applications of the anti-microbial
fabric:
• These fabrics find diverse
usage in household textiles.
• In case of commercial
applications, these fabrics are
included in air filters and food
packaging.
• The sportswear industry
has ample requirements for this
fabric all across.
According to a survey by ResearchAndMarkets, the antimicrobial textile market is predicted to
develop at a CAGR of more than 4% between 2020 and 2025.

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• Antimicrobial fabric is
also an apt fabric that is used for
storage, ventilation and water
purification systems.
The industry application for
these fabrics is slowly increasing
given their importance and
relevance in the current times
and this is only increasing by the
day, given the rising demand for
getting health conscious.
Antimicrobial fabric will
rule the future
Antimicrobial fabric offers
protection against bacteria, mold,
mildew, and other hazardous
microbes. To develop antimicrobial
fabric, the normal textile needs
to be treated with a proprietary
topical chemical that inhibits the
growth of pathogens or by using
yarns that are designed to provide
inherent microscopic antimicrobial
functionality.
In combination, these yarns
fight microbes from developing
while simultaneously promoting
moisture movement to the fabric
surface, thereby maximizing
comfort and extending the
life of the fabric and product
life. Antimicrobial fabrics are
environment-friendly and skin-
friendly too. So, there is no way
that they cause any harm to the
wearer. This is a special character
that is closely taken care of when
it comes to antimicrobial fabrics, as
it is used to treat wounds etc.
Why antimicrobial fabric is
considered to be so important?
Antimicrobial fabrics are
considered highly important
owing to their nature and how
they constantly work towards
fighting germs etc. The fabrics
by nature work the same way as
antimicrobial soaps and sanitizers
do — by attacking pathogens on
a cellular level to prevent their
growth and reproduction.
Different chemicals and
textiles have different levels of
effectiveness. So, depending on
the chemical used to treat the
fabrics the products can slow the
spread of pathogens over time,
while others can actively work
towards killing bacterium cells on
contact.
Antimicrobial compounds
can both kill and prevent germ
growth. So, depending on the
manufacturer’s capacity, and the
budget the fabric can be tuned to
work in a way that they deem fit
to keep germs and diseases at bay.
Triclosan, chitosan, cyclodextrin,
quaternary ammonium, and other
antibacterial agents are used in
the textile production process to
specially treat fabrics and make
them highly potent to fight germs
and bacteria growth to keep
diseases at bay.
Keeping all these factors in
mind, we can easily see how these
fabrics are on a rise and are set
to define the future of the textile
industry in due course.
Source: Texcoms

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Cotton is present in our everyday life, from clothes
to coffee strainers, and more recently in masks to
control the spread of COVID-19.
As the most-used natural fiber, cotton has
become the most important non-food agricultural
product. Currently, approximately half of all textiles
require cotton fibers.
The above infographic lists the world’s top
cotton producers, using data from the United States
Department of Agriculture.
The Top Cotton Producers
Ranked: THE WORLD’S TOP COTTON PRODUCERS

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Originating from the Arabic word “quton,”
meaning fancy fabric, cotton is a staple fiber made up
of short fibers twisted together to form yarn.
The earliest production of cotton was around
5,000 B.C. in India, and today, around 25 million tons
of cotton are produced each year.
Currently, five countries make up around 75%
of global cotton production, with China being the
world’s biggest producer. The country is responsible
for over 23% of global production, with approximately
89 million cotton farmers and part-time workers.
Cotton’s importance cannot be understated, as it
is the primary input for the Chinese textile industry
along with many other nations’ textile industries.
The United States is the leading global exporter
of cotton, exporting three-fourths of its crop with
China as the top buyer.
Despite its importance for the global economy,
cotton production faces significant sustainability
challenges.
Cotton is one of the largest users of water among
all agricultural commodities, and production often
involves applying pesticides that threaten soil and
water quality.
Along with this, production often involves
forced and child labor. According to the European
Commission, child labor in the cotton supply chain is
most common in Africa and Asia, where it comes from
small-holder farmers.
In 2020, U.S. apparel maker Patagonia stopped
sourcing cotton from the autonomous territory of
Xinjiang because of reports about forced labor and
other human rights abuses against Uighurs and other
ethnic minorities.
L Brands, the parent company of Victoria’s Secret,
has also committed to eliminating Chinese cotton
from its supply chain. Whether these changes in
supply chains impact China’s cotton production and
its practices, cotton remains essential to materials
found across our daily lives.
Source: Elements
Fancy Fabric
The Controversy Over Cotton
Cotton bales in a field at Pamplona farm in Cristalina, Brazil on July 14, 2022

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Brazil farmers bet on environmentally friendly cotton
A combine harvests cotton
in a field at Pamplona farm in
Cristalina, Brazil on July 14, 2022
T
he road through Cristalina,
Brazil is in the middle of
the tropics, but the fields
on either side look like they are
covered in snow—little white puffs
of cotton stretching to the horizon.
The alabaster plants
interspersed with the corn and
soybean fields outside the central-
western town are part of a silent
revolution in Brazil: facing negative
attention over the agribusiness
industry’s environmental impact,
farmers are increasingly turning to
cotton and adopting sustainable
techniques to produce it.
After increasing exports 15-
fold in the past two decades, Brazil
is now the world’s second-biggest
cotton supplier, after the United
States—and the biggest producer
of sustainable cotton.
No less than 84 percent of
the cotton grown in the South
American agricultural giant is
certified by the Better Cotton
Initiative (BCI), an international
non-profit group to promote
sustainable cotton farming.
“Consumers have changed.
People don’t want to buy products
any more that don’t respect nature
and its cycles,” says entomologist
Cristina Schetino of the University
of Brasilia, who specializes in
cotton farming.
In 2005, the Brazilian Cotton
Producers’ Association (Abrapa)
launched a sustainability
training program for farmers and
introduced protocols on efficiently
using water and pesticides and
phasing out toxic products in favor
of biological fertilizers.
A new tracing program
launched with Brazilian clothing
brands,meanwhile,letsconsumers
check how cotton goods were
produced.
Last season, cotton farmers
in Brazil replaced 34 percent of
chemical pesticides with biological
ones, Abrapa says.
They have also started using
drones to apply pesticides more
efficiently.
Switching to sustainable
techniques is “a re-education
process,” says Abrapa’s executive
director, Marcio Portocarreiro.
“At first, farmers tend to think
mainly about the impact on their
bottom line. But when they get
past that phase... they realize that
farming sustainably gives them a
guaranteed market,” he told AFP.

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Located outside Cristalina,
around 130 kilometers (80 miles)
south of Brasilia, the capital,
Fazenda Pamplona is one of
Brazil’s biggest proponents of
sustainable cotton.
The 27,000 - hectare
(67,000 - acre) operation, run by
agribusiness giant SLC Agricola,
is like a small city in the middle of
the countryside, with a banquet
hall, a children’s park, sports fields
and housing for employees.
The farm produced more than
600,000 tonnes last year, 99
percent of it for export.
Sustainable cotton sells for
prices up to 10 percent higher than
conventional cotton.
But cotton remains one of the
most pesticide-intensive crops,
using more than double that of soy
per hectare.
The problem is the prevalence
of pests such as boll weevils and
the absence of organic products to
stop them, says Schetino.
“There’s still a lot of
dependence on chemical
products, which have a negative
environmental impact,” says the
entomologist, who is researching
alternatives.
Brazil cultivates around 1.6
million hectares of cotton a year.
It is a key supplier for the global
garment industry, exporting to the
likes of China, Vietnam, Pakistan
and Turkey.
Abrapa has set itself the
ambitious goal of surpassing the
US to become the world’s biggest
cotton supplier in 2030.
Source: Science X
Added value
Aiming high
Workers take samples from cotton bales at Pamplona farm in Cristalina, Brazil on July 14, 2022

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C
hina exports cotton yarn,
polyester yarn, blended yarn
and other types of yarn to
many countries. Due to the ban,
China’s exports of cotton yarn
and cotton blended yarn have
taken a hit.
Researchers say Xinjiang
produces 85% of cotton grown in
China, constituting one-fifth of the
world’s cotton.
In April 2022, China’s yarn
exports were $1,265.512 million,
which increased to $1,472.494
million in May.
As products made of cotton
originating from Xinjiang cannot be
supplied to the US, the shipment
slipped to $1,433.541 million in
June, $1,323.384 million in July,
$1,172.470 million in August and
$1,096 million in September 2022.
The country shipped yarn
worth $11.722 billion in the
first nine months of this year.
Its exports were worth $13.769
billion in 2021, $9.724 billion in
2020, $12.397 billion in 2019 and
12.695 billion in 2018.
In May 2022, scientists
discovered Xinjiang cotton in shirts
and T-shirts made by Adidas,
Hugo Boss, and Puma clothing.
Experts believe that the
Xinjiang authorities are forcing
more than half a million Uighurs,
Kazakhs and other ethnic groups
to take up arms under the guise
of state-sponsored “poverty
alleviation” projects.
Source: Textile Today
C
otton-yarn imports into
China plunged this year
to their lowest level in
a decade, sending exporting
countries such as India on a hunt
for alternative destinations.
China is the world’s largest
importer of cotton yarn from the
likes of India, Vietnam, Pakistan
and Uzbekistan, as its own
spinning mills do not produce
enough to feed its apparel and
textile industry.
However, the value of China’s
cotton-yarn imports declined
by 33.2 per cent in the first nine
months of this year to US$2.8
billion, from US$4.3 billion in the
same period last year, according to
its customs data.
And the loss of such a large
volume of orders from China
reflects a “global slowdown in
apparel demand”, according to
Manish Daga, managing director
at cotton consultancy CottonGuru
in India.
“The apparel and garments
market is not doing well,” Daga
said. “That’s why yarn imports by
China have reduced significantly.”
China’s yarn export declines for Xinjiang cotton ban by US
China trade: decade-low import of cotton yarn reflects “global slowdown”
in clothing demand

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In an “unheard of” move this
year, China actually exported yarn
to India, he said.
“China’s cotton prices are
lower than India’s, which has
rarely happened before,” Daga
noted. “That is the reason yarn is
now being imported to India rather
than exported from India.”
The shortfall in China’s yarn
imports this year is equivalent to
3.5 million bales of cotton lint,
according to a report released
last week by the United States
Department of Agriculture.
The world’s second-largest
economy accounts for more than
30 per cent of global apparel
exports, and its major buyers are
the European Union, US, Japan
and Association of Southeast
Asian Nations countries.
However, with Russia’s
invasion of Ukraine, fuel and raw
material prices have increased
substantially.
Annual inflation in the
European Union was at 10.9
per cent in September, and as
costs for garment manufacturers
and retailers have increased,
consumers are spending less and
retail sales have declined across
Europe.
China’s domestic apparel sales
and cotton-product exports each
fell by 5 per cent from January to
September, reflecting the declining
demand for the country’s apparel,
said the US agricultural report.
The report also attributed the
decline in China’s yarn imports
to its stringent zero-Covid policy
that has seen multiple cities
and districts under lockdowns,
disrupting production and denting
domestic demand.
“There is uncertainty among
manufacturers [in China],” Daga
said. “That is why they have
lowered consumption [of yarn].
They are not building inventory
because they don’t know when
lockdowns will be imposed again.”
Foreign trade policies,
especially by the US, that bar
imports of all products made with
Xinjiang cotton, have also played
a role, said the report, as brands
move to ensure that their supply
chains are compliant.
“There has been an
increase in orders to the US,”
Shahidullah Azim, vice-president
of the Bangladesh Garment
Manufacturers and Exporters
Association, told the Post.
According to Textile Today, an
apparel magazine in Bangladesh,
the country also saw a 51.5 per
cent year-on-year increase in the
value of garments exported to the
US during the financial year that
ended in June.
Preliminary customs figures
in Vietnam show that fiber and
yarn exports to China in October
reached only 51,900 tonnes, down
33.3 per cent over the same period
last year, according to the Vietnam
Cotton and Spinning Association.
India traditionally exports
around 1 million tonnes of yarn
every year, of which 60-70 per
cent will go to China directly or
indirectly, Daga said. However,
declining import orders from China
have forced Indian exporters to
seek substitute markets.
“China was our major buyer,
A worker in Bangladesh hangs freshly dyed cotton thread to dry in the sun this week. The country has
been seeing a large increase in clothing orders from the United States. Photo: DPA

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but now … we have started selling
more yarn to domestic mills and
countries like Bangladesh and
markets in Africa and Europe,”
said Alkesh Gangani, managing
director at cotton yarn exporting
company Niva Exports.
Niva’s sales to China this year
have totalled less than half of the
1,000 tonnes ordered last year.
Exporters also pointed to
persistent logistics concerns due
to China’s zero-Covid policy.
“Oftentimes, our containers
are stopped, and there is no
reliability,” said Arun Dwivedi, the
owner of Charun Enterprise, an
Indian exporter of organic cotton.
“The transit time is longer.”
Normally it would take 25-
35 days, he said, but coronavirus
restrictions and a container
shortage have made the trip about
twice as long.
Dwivedi said that his company
shipped 25,000 bales of cotton to
China late last year, but this season
there have been no exports.
Pointing to the shifting trends
inapparelmanufacturing,anearlier
US Department of Agriculture
report from August said: “China’s
role as a cotton importer appears
to have peaked, while other
countries are increasing their share
of imports.”
The report projected that,
by 2030, Vietnam, Pakistan,
Indonesia, Bangladesh and Turkey
will together account for 47 per
cent of the world’s cotton imports.
China, which accounted for
more than 50 per cent of all cotton
imports at its peak in 2012-13,
saw that figure fall to 26 per cent
last year, and it could dip to about
24 per cent by 2030 due to rising
production costs and the growing
use of synthetic fibres, according
to the report.
“The trend also reflects
strategic plans espoused by
Chinese planners, including
‘high-quality opening’ and
[Belt and Road Initiative-type]
strategies, which are responses
to the changing economics of the
industry,” the report added.
Source: SCMP
R
esearch from Ernst
Young has revealed 47% of
consumers will spend less
on clothing over Christmas as the
cost-of-living crisis intensifies.
The latest Ernst Young (EY)
Future Consumer Index has found
nearly half of UK consumers (43%)
expect to spend less over the
festive season with 7 out of 10
“extremely concerned” about the
rising cost of living.
The 11th edition of the survey
of over 1,000 UK consumers
found that falling consumer
confidence due to the cost-
of-living crisis will have
an impact on a number of
Christmas spending habits.
The survey also
found that consumers are
increasingly likely to do their
bargain hunting in-store
this year, although online
shopping remains key with two-
fifths (41%) of shoppers planning
on doing most of their deal hunting
online this year.
Clothing spends to sink,
but consumers prioritize sustainability - study
“In the face of rising inflation, rising energy prices and rising interest rates, consumers are being
cautious in the run-up to Christmas. Our survey shows that consumers are concerned about saving
and affordability and are making more considered choices about what they spend their money on”.
Silvia Rindone, EY UKI retail lead

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The EY Future Consumer Index
surveyed UK consumers just after
the mini-Budget in October and
found consumer confidence at
an all-time low, with just 26%
of respondents saying they are
confident about the future, down
from 50% in June.
Sixty-nine (69%) per cent of
consumers said they did not expect
the economy to recover in the next
twelve months, up from 31% in
June, while 43% of consumers
expect to be financially worse off
in 12 months.
As identified in the last edition
of the survey (published in June
2022), there continues to be a
widening gap between cash-
strapped consumers watching
every penny and those who
are willing and able to spend if
retailers can entice them to do so.
High-income consumers are more
than three times less likely to see
themselves as being financially
worse off this time next year (14%)
than low-income consumers
(51%).
Rindone said: “As consumers
look to cut back spending, retailers
andbrandswillneedtounderstand
the price sensitivity of their
customers and react accordingly
if they want to continue to win
spend in the run up to Christmas.
Navigating this K-shaped
consumer profile will require
retailers to cater to financially
resilient high-income consumers,
while also appealing to mid- and
low-income consumers with
value-focused ranges and pricing
that reflect their budgets.”
The survey also finds that
responsible consumerism is still
a key consideration for shoppers,
with more than three-quarters
(79%) saying they don’t feel a need
to keep up to date with the latest
fashion trends and more than two-
thirds (68%) saying they would
prefer to repair than replace.
Rindone added: “While
affordability is a major concern for
consumers, they still want to do
the right thing from a sustainability
perspective and responsible
consumption ticks the box for both
priorities. This shift towards more
considered shopping behavior will
have profound implications for
brands and retailers, as consumers
start to prioritize durability and
quality over fashion.”
Source: just-style
Consumer confidence at all-time low

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VCOSA’S
EVENTWASORGANIZEDINNOVEMBER2022
Let’s look back at the event through photos: Cotton Brazil Outlook 2022
hosted by ABRAPA (the Brazilian Cotton Growers Association), in partnership with ANEA
(Brazilian Cotton Shippers Association), APEX-BRASIL (Brazilian Trade and Investment Promotion
Agency), VCOSA (Vietnam Cotton and Spinning Association) and the Brazilian Embassy in Vietnam.
1. Ha Noi - 22/11/2022
From left to right: Mr. Fernando Apparicio, Brazillian Ambassador in Vietnam; Mr. Nguyen An Toan, VCOSA’s Chairman;
Mr. Julio Busato, President of ABRAPA in turn delivered the opening speech of the conference in Hanoi.
Delegates attended the conference and networked with the Brazilian delegation in Hanoi.
The organizers took pictures with all delegates present at the conference.
QA and roundtable

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S EVENT
2. HỒ CHÍ MINH - 25/11/2022
Delegates attended the conference, asked questions to the panelists and networked with the Brazilian delegation in HCMC.
Mr. Nguyen An Toan delivered the opening speech in HCMC; and
Mr. Marcelo Duarte on behalf of ABRAPA coordinated the discussion.
VCOSA presented conical hats - a special symbol of Vietnam - to the Brazilian delegation
to celebrate the suc cessful 2022 business trip.
QA and roundtable

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sinh thái công nghiệp trên khắp Châu Phi với sự hợp tác của các chính phủ Châu Phi.
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REPORT AND DATABASE
In October 2022, Vietnam imported 140.2 thousand
tons of cotton, worth 413.2 million USD, down
0.9% in volume and 3.3% in value compared to the
previous month, up 11.7% in volume and 64.7% in
value compared to October 2021.
Fiber yarn imported into Vietnam was 73.5
thousand tons, worth 166 million USD, down 1.7%
in volume and down 8.1% in value compared to the
previous month; up 0.4% in volume and down 8.8%
in value compared to October 2021.
According to preliminary data in October 2022, Vietnam imported 140.2 thousand tons of cotton, down
0.9% compared to the previous month. Imported of fiber and yarn was 73.5 thousand tons, down 1.7%
compared to the previous month.
1. Monthly Import Statistics

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According to the latest import and export data
from the General Department of Customs, in October
2022, Vietnam imported cotton worth 413.2 million
USD, down 3.3% from the previous month; fiber and
yarn imports worth USD 166 million, down 8.1%;
fabric imports valued at USD 1,065 billion, down
5.7%; imports of raw materials for textiles, apparel,
and footwear decreased by 17.7% over the previous
month, valued at US$488.7 million.
According to preliminary data in October 2022, imported of fiber and yarn was about 73.5 thousand tons,
down 1.7% compared to the previous month, up 0.4% over the same period last year.
According to preliminary data in October 2022, Vietnam imported 140.2 thousand tons of cotton, down
0.9% from the previous month, but increasing by 11.7% over the same period last year.

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In 10 months of 2022, Vietnam imported cotton
worth 3.39 billion USD, up 25.1% over the same
period last year; import of fiber and yarn valued at
USD 2.21 billion, up 6.5%; import of fabric valued at
USD 12.51 billion, up 7.7%; import of raw materials
for textile, garment, leather and footwear increased
by 10.4% over the same period last year, worth USD
5.73 billion.
According to statistics of the General Department
of Customs, cotton imports to Vietnam in
October 2022 reached 140.2 thousand tons, worth
413.2 million USD, down 0.9% in volume and down
3.3%. in value compared to September 2022; up
11.7% in volume and 64.7% in value compared to
October 2021.
Generally, in the first 10 months of 2022, cotton
imported to Vietnam reached 1.2 million tons, worth
3.39 billion USD, down 16.7% in volume but up
25.1% in value over the same period last year 2021.
1.1. Import price of raw cotton will increase in the near future
Source: VITIC

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In the 10 months of 2022,
there are 10 markets supplying
raw cotton to Vietnam, stable
compared to the same period in
2021.
The US is the largest raw
cotton supplier to Vietnam in the
first 10 months of 2022, with a
volume of 431 thousand tons,
worth 1.26 billion USD, down
25.9% in volume but up 13.3% in
value compared to the same period
in 2021, accounting for 35.9% of
total cotton imports. Particularly
in October 2022, cotton imports
from this market reached 28.51
thousand tons, worth 81.76
million USD, down 40.3% in
volume and 42.8% in value
compared to September 2022; up
32.4% in volume and 88.7% in
value compared to October 2021.
Cotton imports from the
Australian market reached 299
thousand tons, valued at US$909
million, up 58.8% in volume
and 130.7% in value compared
to the first 10 months of 2021.
Particularly in October 2022,
cotton imports from this market
reached 82.7 thousand tons,
worth $256.81 million, up 74.7%
in volume and 149.5% in value
compared to October 2021.
In addition, cotton imports from
some other markets increased
sharply in the first 10 months of
2022 compared to the same period
in 2021 as imports from Argentina
increased by 68.1% in volume and
134.4% in value.
Vietnam’s cotton import
Source: VITIC
About price: The price of cotton imported into
Vietnam in October 2022 was at $2,947/ton, down
2.4% compared to September 2022, but up 47.5%
compared to October 2021. In the first 10 months
of 2022, the price of cotton imported to Vietnam
averaged $2,822/ton, up 50.2% over the same period
in 2021.
Source: VITIC

www.vcosa.org.vn
The average price of imported cotton from major
markets in October 2022 decreased compared
to September 2022. In which, the price of cotton
imported from the US market decreased by 4.1% to
US$2,867/ton, the price of cotton imported from the
Australian market decreased by 0.2% to US$3,105/
ton.
World cotton prices have hit a 22-month
low, largely due to falling demand due to global
inflationary pressures. A general slowdown in the
global economy, tight currencies in emerging and
developing countries, coupled with reduced demand
in major export markets, including the United States,
the European Union (EU) and China, is the main
reason for the rapid decline in global cotton prices.
Import price of cotton
US cotton price in 2022 (USD/pound)
Source: VITIC
Source: macrotrends.net

25
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On the other hand, the decline
in cotton prices is due to a decrease
in global demand for cotton yarn
and clothing. This downtrend is
likely to continue over the next
few months as recession fears,
Covid restrictions in China,
rising interest rates and rising
inflation have impacted consumer
purchasing power.
However, according to data
from https://www.macrotrends.
net/, the US cotton price also
corrected up in the first half of
November 2022, the price on
November 16, 2022 at $0.89 /
pound, up 14.1% from 0.78 USD/
pound on October 16, 2022.
Because the price of cotton
imported into Vietnam compared
to the world cotton price has a
certain lag, so the price of cotton
imported into Vietnam is expected
to increase again in the following
months.
In the first nine months of
2022, Vietnam imported raw fiber
from 30 markets, an increase of
five markets compared to the same
period in 2021. In which,
China is the largest supplier
of fiber to Vietnam in September
2022, with imports reaching
9.57 thousand tons, worth 12.17
million USD, down 21.4% in
volume and down 22 .9% in value
compared to August 2022; down
8.3% in volume and 12% in value
compared to September 2021.
In the first nine months of 2022,
the import of raw fiber from the
Chinese market reached 120.1
thousand tons, worth $157.78
million, accounting for 43.1% of
the total amount of imported raw
fiber, down 6% in volume but
increased 4.7% in value over the
same period in 2021.
Import of raw fiber from Taiwan
marketinSeptember2022reached
million USD, up 105.5% in volume
and 83.9% in value compared to
August. 2022; increased 53.1%
compared to September 2021.
In the first nine months of 2022,
imports of raw fiber from Taiwan
market into Vietnam reached
million USD, accounting for 14.7%
of Vietnam’s total import of raw
fiber, down 10.7% in volume but
up 9.2% in value over the same
period in 2021.
In general, in the first nine
months of 2022, imports of raw
fibers from supplying markets to
Vietnam all decreased slightly
compared to the same period in
2021, except for imports from
South Korea, which increased by
6.6% and Thailand by 14. .6% in
volume…
Notably, the amount of
imported fiber materials from
some markets increased sharply in
the first nine months of 2022 such
as Bangladesh, UK, Japan...
Vietnam’s import fiber in 2021-2022 (thousand tons)
According to statistics from the General
Department of Customs, the amount of imported
fiber materials of Vietnam in September 2022 reached
25.9 thousand tons, worth 36.52 million USD, down
13.9% in volume and down 16.4 % in value compared
to August 2022; increased 13% in volume and 23.1%
in value compared to September 2021.
Generally, in the first nine months of 2022,
imports of raw fiber reached 278 thousand tons,
worth 396 million USD, down 5.4% in volume but up
5.2% in value over the same period in 2021.
1.2. Prices and quantities of imported raw fiber are expected to
continue to decline
Source: VITIC

www.vcosa.org.vn
Vietnam’s fiber import
Import price of fiber 2021-2022 (USD/ton)
Source: VITIC
Source: VITIC
About price: In September 2022, the price of
imported fiber to Vietnam averaged $1,410/ton,
down 2.9% compared to August 2022 but up 8.9%
compared to September 2021. In which, the price
of raw fiber imported from Indonesia is the lowest,
reaching 1,192 USD/ton; followed by from Thailand
market reached 1,223 USD/ton… and the import price
from Japan market reached the highest level at 2,440
USD/ton.

27
www.vcosa.org.vn
Import price of fiber
Source: VITIC
As forecasted in previous
edition, the price of imported raw
fiber has turned down, but in the
long term, the world cotton fiber
price market has not shown any
positive signs in the near future.
The impact of the increase
in the USD/VND exchange rate
also affects the activities of
enterprises in the textile and
garment industry. Although most
textile companies record revenue
in USD, many of their expenses are
also denominated in USD, such as
raw material costs, logistics costs
and interest expenses. Therefore,
the increase in the USD/VND
exchange rate will continue to
negatively affect the business
results of textile and garment
exporters.
According to experts,
Vietnam’s textile and garment
orders will continue to be affected
by concerns about inflation and
recession until the first half of
2023. Although better input
material prices will have a positive
impact. gross margin, but the
average selling price is under
downward pressure from retailers.
Thus, the decrease in export
textile and garment orders of
Vietnam in the last months of
the year will affect the import of
textile materials in general and the
import of fiber in particular. It is
forecasted that in the last months
of 2022, fiber import prices will
continue to adjust and fiber import
volumes will also decrease.
— 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

www.vcosa.org.vn
Vietnam’s import yarn in 2021-2022 (thousand tons)
AccordingtostatisticsfromtheGeneralDepartment
of Customs, the import of raw yarn in September
2022 reached 52.56 thousand tons, worth 151.24
million USD, down 7.7% in volume and 9.5% in value
compared to August 2022, up 39.5% in volume and
21.1% in value compared to September 2021.
In the first nine months of 2022, the import
volume of this item reached 534 thousand tons,
worth 1.63 billion USD, down 1.2% in volume but up
9.1% in value over the same period in 2021.
1.3. Import prices of raw yarn are expected to continue to decline
Source: VITIC
China is the largest supplier of
raw yarn to Vietnam in September
2022, with imports reaching 33.53
thousand tons, worth $ 78.91
million, down 16.1% in volume and
down 20 .4% in value compared to
August 2022; up 40.7% in volume
and 5.9% in value compared to
September 2021. In the first nine
yarns from China market into
Vietnam reached 345.99 thousand
tons, worth US$973.56 million,
accounting for 64.7% of Vietnam’s
total import of raw yarns, up 4.9%
compared to the first nine months
of 2021.
In September 2022, the import
of raw yarn from Taiwan market to
Vietnam reached 5.37 thousand
tons, worth 15.81 million USD,
down 23.5% in volume and down
29% in value compared to the
previous month August 2022;
up 28.7% in volume and 35.7%
in value compared to September
2021. In the first nine months of
2022, the import of raw yarn from
Taiwan to Vietnam reached 72.68
thousand tons, worth 206.62
million USD, accounting for 13.6%
of Vietnam’s total import of raw
yarn, down 6.5% in volume but
up 4.3% in value compared to the
same period in 2021.
In general, in the first nine
yarn from markets to Vietnam all
decreased compared to the same
period in 2021, except for the
Chinese market, which increased
slightly by 4.9% in volume.
Notably, the import volume
of raw yarn from some markets
increased sharply in the first nine
months of 2022 such as Brazil.

29
www.vcosa.org.vn
Vietnam’s yarn import
Import price of yarn 2021-2022 (USD/ton)
Source: VITIC
Source: VITIC
About price: ImportpriceofrawyarninSeptember
2022 was at $2,877/ton, down 1.9% compared
to August 2022 and down 13.2% compared to
September 2021. In the first nine months of 2022,
the price of imported raw yarn to Vietnam reached an
average of 3,064 USD/ton, up 10.4% over the same
period in 2021.

www.vcosa.org.vn
In which, the price of raw
yarn imported from China was
the lowest, reaching 2,353 USD/
ton; followed by from Indonesia
reached 2,764 USD/ton… and the
price of raw material imported
from Hong Kong market reached
the highest level at 5,843 USD/
ton.
The Covid-19 epidemic is
basically under control on a
global scale will create favorable
conditions for promoting
economic recovery and increasing
commercial activities.
As for the raw yarn group,
currently the global price of raw
material has been adjusted down.
Many major cotton and yarn
export markets in the world such
as India allow exporting cotton
and yarn after domestic demand is
met. This will create opportunities
for countries to boost the import
of raw yarns for production and
export. It is forecasted that the
global yarn price in the last months
of 2022 will continue to decrease.
Accordingly, the price of raw
yarn imported into Vietnam will
also continue to decrease in the
near future, along with that, the
amount of raw yarn imported
into Vietnam will also increase to
serve domestic demand as well as
export.
Import price of yarn
Source: VITIC
2. Monthly Export Statistics

31
www.vcosa.org.vn
Fiber and yarn exports in October 2022 reached
US$308 million, down 4.7% over the previous month;
fabric exports reached 178.4 million USD, down 7%;
export of raw materials for textile, garment, leather
and footwear reached 161.7 million USD, down
7.7%; technical fabric exports fell 14.7% month on
month, worth $60.5 million.
Vietnam’s fiber
and yarn exports
in October 2022
reached 116.7
thousand tons, worth
308 million USD, up
0.6% in volume but
down 4.7% in value
compared to the
previous month.
Textile and
garment exports
in October 2022
reached $2.7 billion,
down 0.8% from the
previous month.
In October 2022, Vietnam exported 116.7 thousand
tons of fiber and yarn, worth US$308 million, up
0.6% in volume but down 4.7% in value over the
previous month; down 21.2% in volume and 34.2%
in value compared to October 2021.

www.vcosa.org.vn
According to preliminary data in October 2022, textile and garment exports reached $2.7 billion, down
0.8% month on month, up 2.2% over the same period last year.
In the first 10 months of 2022, Vietnam’s fiber
and yarn exports were valued at $4.08 billion, down
10.6% over the same period last year; fabric exports
reached 2.31 billion USD, up 13.5%; export of
textile, garment and footwear raw materials reached
US$1.91 billion, up 20.1%; technical fabric exports
increased by 13.5%, valued at US$737.1 million.

33
www.vcosa.org.vn
3. Cotton Outlook
3.1. Price movement
3.2. Price outlook
T
he recent volatility in NY/ICE
futures has been attributed
to various factors, including
short covering in the futures
market and import interest from
China.
The steep increases in early
November can also be interpreted
as a sensitivity to potential
increases in demand for U.S.
exports. U.S. stocks are low this
crop year, and U.S. shipments
would have to be rationed by
prices if the appetite exists from
the demand side.
However, there are questions
whether there will be enough
demand to sustain prices at higher
levels. At each stage of the supply
chain, there have been reports of
increases in inventory and order
reductions. These reports of
inventory accumulation precede
what is expected to be a global
economic downturn in 2023.
Chinese government policy
related to imports is uncertain,
but China accumulated significant
stocks at gins last crop year, and
that cotton remains available.
In addition, the Chinese crop is
expected to be larger than last
year, and Chinese prices are
currently lower than the export
offers represented by the A Index
(traditionally, the CC Index is
15-20 cents/lb higher, but it is
currently 8 cents/lb lower than
the A Index).
This indicates that global
export prices are not attractive
in China. Higher external prices
should be a headwind for Chinese
cotton fiber and yarn imports.
Lower Chinese yarn imports
imply lower mill demand for yarn
exporters like Vietnam. In turn,
Vietnam is a major importer of
cotton fiber, and lower Vietnamese
spinning demand suggests
lower fiber import demand from
that important market. Lower
import demand from China may
eventually weigh on global export
prices.
Lower prices will make cotton
less competitive for acreage in
Ĳ Movement in the December NY/ICE futures contract was
extreme, with a series of limit up and down moves over
the past month. After touching levels near 70 cents/
lb near the end of October, prices shot higher in early
November and lifted values over 85 cents/lb.
Ĳ The A Index moved parallel to NY/ICE futures. Values fell
below 90 cents/lb near the end of October but surged
over 100 cents/lb in early November.
Ĳ Chinese prices represented by the China Cotton
Index (CC 3128B) decreased in late October and into
November. After holding to levels between 98 and 100
cents/lb for much of the past month, prices eased to 96
cents/lb by early November. In domestic terms, values
traded between 15,500 and 16,000 for much of the
past month but decreased to 15,400 RMB/ton by early
November. The RMB weakened against the USD over
the past month, from 7.10 to 7.30.
Ĳ Indian spot prices (Shankar-6 quality) decreased in a
comparatively uniform fashion over the past month, with
values falling from 110 to 99 cents/lb between early
October and early November. The decline was from
71,000 to 64,500 INR/candy in domestic terms. The INR
was steady near 82 INR/USD over the past month.
Ĳ Pakistani prices also decreased in a relatively linear
manner, falling from 102 to 90 cents/lb over the past
month. In domestic terms, prices dropped from 18,300
to 16,500 PKR/maund. The PKR weakened against the
USD from 217 to 221 PKR/USD.
Volatility dominated NY/ICE futures and the A Index
last month. Other major benchmark prices
moved lower.

www.vcosa.org.vn
2023/24. Price ratios for 2023/24
futures market prices for cotton
over corn and soybeans are among
the lowest in the modern era. The
threat of lower acreage next crop
year may provide some support for
the market when projections are
released around the start of the
calendar year.
H o w e v e r ,
the effects of
any reductions
in acreage and
production could
also be delayed.
For cotton prices to
increase, it needs to
have buyers willing
to bid up values. It
is unclear when that
demand might surface with the
recent accumulation of inventory
throughout supply chains and
slowing global macroeconomic
conditions. The latest forecasts
from the International Monetary
Fund (IMF) suggest that all of the
world’s largest economies will
simultaneously experience slower
than-average growth in 2023.
Recoveries follow recessions
and both times that cotton prices
reached sustained levels over
100 cents/lb over the past couple
decades (2010/11 and 2020/21)
coincided with recoveries that
came after the financial crisis
and the COVID-driven recession.
An eventual recovery from the
expected economic downturn in
2023 may enable price increases
at some point, but the full effects
of inflation, rising interest rates,
and inventory accumulation may
need to be digested first.
Source: CI
Source: CI

35
www.vcosa.org.vn
Với khả năng truy
xuất và xác minh dữ
liệu hiện đại nhất,
U.S. Cotton Trust
Protocol® là một
công cụ hữu hiệu giúp
đảm bảo tính bền
vững cho chuỗi cung
ứng của quý vị. Tất
cả chương trình đều
miễn phí cho thành
viên của U.S. Cotton
Trust Protocol® và
COTTON USA™.
Nông nghiệp tái sinh
được xây dựng dựa
trên các tác động tích
cực đến môi trường
của các thực hành
bền vững, hướng tới
một cách tiếp cận
toàn hệ thống đối với
các thực hành bền
vững tích cực.
Nghiên cứu được thực
hiện bởi US Cotton
Trust Protocol, một
sáng kiến dựa trên cơ
sở khoa học, cấp trang
trại đang thiết lập
một tiêu chuẩn mới về
bông phát triển bền
vững hơn, cho thấy
rằng 61% các thương
hiệu và nhà bán lẻ đã
chứng kiến nhu cầu
về các sản phẩm bền
vững từ người tiêu
dùng ngày càng tăng.
Ngày nay, hơn bao
giờ hết, người tiêu
dùng trên toàn cầu
muốn biết rằng quần
áo trong tủ quần áo
của họ có nguồn gốc
bền vững.

www.vcosa.org.vn
WHO WE ARE?
™ The Vietnam Cotton and Spinning Association (VCOSA) is a non-governmental organization, established
and operating under Decision No. 1225/QD-BNV dated October 27, 2010 of the Vietnam Ministry of
Home Affairs on the basis of merging the Vietnam Cotton Association and Vietnam Spinning Association.
™ VCOSA is the legal representative for the member enterprises, spinning and affiliated industry. VCOSA’s
mission is to promote the development of the spinning industry, contributing to the overall development
of the textile and garment industry in Vietnam.
HOW WE DO?
What benefits user get from VYP? Where is the price data source?
™ Yarn prices are shared and contributed by users in Vietnam and other countries.
™ Prices are referenced from international market.
™ Prices are referenced from domestic market of China, India, Pakistan, Bangladesh.
WHAT WE DO?
™ VietnamYarnPrice, abbreviated as VYP, is one of products of VCOSA. VYP is built and developed according
to the needs of members. VYP is operated and developed by members and enterprises (called users) by
the information that users contribute every day.
™ What kind of information that you can get from VYP?
1. Fiber prices: cotton fiber, polyester fiber, semi-finished products from PE, visco fiber.
2. Yarn prices: CD, CM, OE, TC, CVC, PE, Rayon, PC, Pe-Rayon... Multi yarn count.
3. Yarn prices for weaving or knitting.
4. Prices of fibers and yarns of various types and specifications contributed by users from Vietnam.
5. Prices of fibers and yarns of various types and specifications contributed by users from abroad.
6. Historical data from 3-10 years.
7. Range of volatile price in 1 day, 1 week and 1 month for fibers and yarns.
8. Chart of price movements over each period.
9. Document download in EXCEL/PDF.

Head Office
15/Fl., Block B, Viettel Complex Tower, 285 Cach Mang Thang Tam str., ward 12, dist. 10,
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

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