After showing a degree of sluggishness in late 2015/16, Vietnam’s cotton imports have turned upward again in the first few months of 2016/17. August through November imports are estimated at about 1.6 million 480-lb statistical bales, an 18 percent increase over the same period in 2015/16.
As shown above, the 12-month total (Dec 2015-Nov 2016) for Vietnam has now met its record level, and is expected to move higher soon. As such, USDA has raised the 2016/17 forecast for Vietnam’s imports to 5.0 million bales.
Rising demand in Vietnam largely stems from demand for Vietnam-produced yarn from China. China customs data show August through October cotton yarn imports from Vietnam up 200,000 baleequivalents from the same point last year.
Vietnam’s spinning sector does not appear to have suffered unduly as a result of China’s internal cotton prices, which are substantially lower relative to world levels than they have been in recent years.
Many analysts expected to see spinning declines in countries that previously benefited from lower Chinese domestic spinning.
In particular, India and Pakistan have recently experienced substantial declines in yarn exports to China. However, Vietnam’s continuing strong demand is supported by a continuing rise in China’s yarn imports from Vietnam.