VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 09/2022 ISSUE

MONTHLY REPORT
MONTHLY REPORT
Cotton and Yarn Statistic
SEPTEMBER 2022
---For internal circulation only---

www.vcosa.org.vn Newsletter September 2022
https://vietnamyarnprice.com 2
REMARKABLE INFORMATION
DOMESTIC MARKET
GLOBAL MARKET

É Imported cotton decreased in the first 7 months of 2022

É Import price of fiber increased sharply

É Import price of yarn decreased slightly

É Export of fiber and yarn decreased in the first 7 months of 2022

É Egypt to begin pilot operation of world’s largest spinning factory in 2023

É Polyester Yarn Makers’ Growth Spree To Continue This Fiscal – CRISIL

É Farmers struggle as Texas cotton fields decimated by extreme heat, drought

É Are we headed for a cotton crisis?

É India asks for duty relief on cotton imports

3
https://vietnamyarnprice.com
REFERENCE FROM NEWSPAPERS
T
he factory, owned by the
public Masr Spinning and
Weaving Company, is
dubbed Ghazl 1 Factory and is
being constructed over an area of
64,000 square metres.
The factory has around
185,000 spinning mills and a
planned daily production capacity
of 30 tons of fine-spun yarn and
25 tons of thick spun yarn, a
statement by the ministry said
after Minister Mahmoud Essmat
went on an inspection tour at the
site on Sunday.
In July 2020, Egypt’s Cotton,
Spinning, Weaving and Clothing
Holding signed a contract to
establish the new factory for a total
cost of EGP 780 (approximately $
40 million), according to media
reports.
The factory was planned to be
inaugurated in March 2022, but
the repercussions of COVID-19
and spillovers from the war in
Ukraine delayed the opening.
The construction works and
trial operation are scheduled to be
completed in 2023, according to
Sunday’s statement. Construction
work at Ghazl-1 Factory is 80
percent complete, the Egyptian
state news agency MENA reported
on Saturday.
The new factory is part
of a broader plan already set
into motion by the Egyptian
government to upgrade the public
sector spinning and weaving
industry at a total cost of EGP 25
billion.
The plan, under which 23
state-owned textile companies
have already been merged into
eight, includes developing the
infrastructure of the companies
concerned and obtaining advanced
new machines.
It also includes developing
Masr Spinning and Weaving
Company by establishing six new
factories, upgrading two existing
ones (Ghazl 4 Factory and Ghazl
6 Factory), developing a training
centre, and automating work
systems, production, sales, quality,
Egypt to begin pilot operation of
in 2023
world’s largest
spinning factory
Egypt is set to start in 2023 the experimental operation of a new spinning factory, described by the
government as the world’s largest factory, located in the Nile Delta’s El-Mahalla city, according to a
statement by the Ministry of Public Business Sector.
Minister of Public Business Sector Mahmoud Essmat during an inspection tour
development work at Masr Spinning and Weaving Company on Sunday 28/8/2022
(Photo: Ministry of Public Business Sector)

maintenance, human resources
and store sectors.
The plan targets growing the
company’s total production four-
fold, with plans to export around
75 percent of the new production
to foreign markets.
The minister also inspected
the 24,000 square metre
Ghazl 4 Factory, which is being
rehabilitated as part of the
overhaul plan and includes nearly
71,000 spinning mills with a daily
production capacity of 13.5 tons of
yarn.
The facility is due to start
operation in early 2023, the
ministry’s statement added.
Minister Essmat also inspected
Ghazl 2 Factory and Ghazl 6
Factory, which have a daily
production capacity of 20 tons and
16 tons of yarn respectively.
Today’s tour was the first by
the newly appointed minister
of a company affiliated with his
ministry.
During his tour, the minister
said the project is part of a plan
to upgrade public spinning and
weaving companies, with a view
to regaining Egypt’s leadership
in this industry and maximising
the value of Egyptian cotton, as
well as increasing exports and
employment opportunities.
The project is not meant at to
compete with the private sector,
but rather promotes cooperation
and integration and provides the
raw material needed for operation
at a high quality and competitive
prices in a way that serves the
national industry.
Egypt’s textile manufacturing
industry is the second-largest in
the country. Due to the COVID-19
pandemic, Egypt’s textile exports
shrank by 14 percent in 2020
to $2.8 billion, down from $3.7
billion in 2019, according to the
Textile Exports Council.
Source: Ahram Online
Polyester Yarn Makers’ Growth Spree To Continue
This Fiscal – CRISIL
H
ealthy demand from
end user industries, and
increased blending with
cotton yarn due to decadal
high prices of cotton, will drive
revenue growth of 18-20% this
fiscal for India’s polyester yarn
manufacturing sector.
To add icing on the cake,
operating profitability of polyester
yarn segment is also expected to
increase by 100 basis points to
around 11% this fiscal, driven by
continued high-capacity utilisation
(over 90%) due to demand
growth and healthy polyester
yarn spread (difference between
prices of polyester yarn and its raw
materials). Better profitability and
expected modest capital spending
will improve credit profiles of
polyester yarn manufacturers,
shows an analysis of 24 players
that account for about 40% of the
sector’s revenues.
Polyester yarn is used mostly
in athletic and leisure wear, home
textiles and garments. Recovery
in demand from these end-user
segments and multiple price hikes
hadledtoarevenuegrowthof60%
last fiscal, though on a low base,
with sales volume picking up 15%.
Demand is seen to remain healthy
this fiscal too, with garments and
home textiles segments expected
to grow at 16-18% and 12-13% in
fiscal 2023 respectively, driven by
recovery in domestic demand and
moderate growth in exports.
The continued wide price
differential between cotton
yarn and polyester yarn will
result in higher blending among
downstream players, further
spurring demand for polyester
yarn.
Purified terephthalic acid (PTA)
and mono-ethylene glycol (MEG),
both crude derivatives, account
for 80% of raw material cost for
polyester yarn manufacturers.
Their prices have increased sharply
due to supply chain issues arising
from the Russia-Ukraine conflict.
However, buoyant demand
and timely pass-through have
supported the polyester yarn
spreads vis-à-vis its key raw
materials. The average spreads
rose to a five-year high of Rs
29 per kg last fiscal from Rs 22
per kg in the previous fiscal and
“Polyester yarn is cost effective to blend with cotton yarn, and since cotton yarn
prices have risen by almost 25% over the past year, higher blending has increased
the demand for polyester yarn. With increased differential between cotton and
polyester yarn prices to sustain, we expect 4-5% of cotton yarn demand to shift to
polyester yarn. This shift is expected to continue for most part of this fiscal as end
user segments operate in a price competitive environment.”
Gautam Shahi, Director, CRISIL Ratings

5
extreme heat, drought
extreme heat, drought
Farmers struggle as Texas
cotton fields decimated by
should sustain at Rs 28-29 per kg
this fiscal.
Polyester yarn sector will
also benefit from favourable
demand-supply dynamics as
no large capacity addition is
expected in the industry over
next two fiscals, while demand
is expected to grow at 7-8% for
the same period. Says Sushant
Sarode, Associate Director, CRISIL
Ratings, “With capital spending
expected to remain moderate,
better cash generation and
gradual debt repayment will drive
improvement in the credit profiles
of polyester yarn manufacturers
over the next few fiscals. Ratios of
interest coverage and gearing are
expected to improve to 11 times
and 0.5 time, respectively, this
fiscal from 7.6 times and 0.6 time,
respectively, in the last.”
Volatility in crude oil prices
as well as any resurgence in
Covid-19 cases impacting the
demand-supply situation will
remain the key monitorables over
the near term.
Source: Textile Excellence
A
majority of Texas is
experiencing some level
of drought, and those
conditions are costing farmers
their cotton crop.
The production has been
decimated by drought and extreme
heat this year, costing Texas
High Plains farmers and other
agricultural industries at least
$2 billion, according to reporting
by Jayme Lozano with The Texas
Tribune.
“It’s pretty catastrophic,” said
Kody Bessent, CEO of Plains
Cotton Grower. “This has been one
of the worst years we have seen
on record since 2011.”
That year, more than a dozen
states and thousands of farmers
and ranchers experienced a
historic drought.
“West Texas is the biggest
cotton patch in the world, and
that’s because as far as the heat
that we have and the rainfall
amounts that we receive” third-
generation Texas cotton farmer
Thomas Kennedy said.
The Texas Panhandle
produces more than a third of
American cotton, but the state’s
farmers are worried they’ll see
the worst cotton crop in years.
Texas cotton farmer Thomas Kennedy has lost 100% of his 10,000
acres of cotton. (Robert Ray / FOX Weather)

Cotton is the state’s largest
agricultural export and is
responsible for thousands of jobs
across many sectors.
“We produce 10,000 acres
roughly, and we will have no yield,
absolutely zero this year,” Kennedy
said.
The losses are extraordinary.
To put this in perspective, the
island of Manhattan in New York
is just under 14,500 acres of land.
Fifteen miles from Kennedy’s
scorched acres, across dusty roads
with layers of sand, are fields that
look like a deserted beach as the
sun beats down, and the winds
kick up the particles.
While much of Texas has seen
rain during the past few weeks, it’s
two months too late for this year’s
crops, Lozano reports.
“And as you can see, what we
have is really small bulbs, about
a third of the size of normal,”
said Walt Hagood, who has been
farming cotton for 43 years in
Texas. “Out here in the cotton field,
the two biggest risks that we have
are markets and the weather. Now
you add this high input cost, and
you got three big risks.”
For Hagood, the rising cost
of supplies because of national
inflation is that troublesome input
cost.
According to Lozano, once
crop insurance adjusts the value
of the fields next month, many
cotton farm productions will be
considered a loss. Across this
region, it’s expected that only
2 million acres of cotton will be
harvested – slightly less than half
of last year’s yield.
Source: Fox Weather
India asks for duty relief on cotton imports
T
he Southern India Mills
Association (SIMA) has
appealed to the union
government not to levy import
duty on cotton during the next
cotton season, which starts in
October.
This, says SIMA, will enable
the industry to achieve its
potential growth rate and sustain
its financial viability apart from
protecting the jobs of over 35
million people employed in the
cotton textile value chain. Cotton
price even during the beginning of
the cotton season (October 2022
to September 2023) when arrivals
will be high are anticipated to be
more than the minimum support
price.
Hence,dutyfreeimportswould
not affect farmers. If needed, the
government can consider levying
the duty only during the peak
arrivals of the season (December
to March) to avoid recurrence of a
crisis during the end of the cotton
season 2022-2023.
Following the removal of the
import duty on cotton in April and
the changes brought about in MCX
cotton trading, domestic prices
have softened. MCX cotton prices
have reduced over 25 per cent in
the last one week. Domestic cotton
arrivals have started early and
the cotton prices have reduced.
However, Indian cotton prices are
still higher by 15 per cent to 20
per cent compared to international
prices, especially with countries
such as Pakistan and China.
Source: Fashionating World

7
A
perfect ecological and
political storm is emerging
that threatens cotton’s
dominance as the preeminent
raw material for so many home
products. A one-two punch of
seriously rising prices combined
with severely limited supplies
is already starting to impact
the marketplace, but the full
effect of these changes will not be
apparent until 2023. And it will be
at least 2024 before there’s any
relief in sight.
The same environmental
factors that are taking a human toll
and devastating food crops around
the world are also impacting cotton
fields. The impending shortage
of such an essential material, one
that many of us have likely taken
for granted, could upend the home
furnishings business in new ways
over the short and long-term.
No matter where you look,
cotton is in crisis. In the U.S.,
which is the third-largest grower
of cotton in the world and the
largest exporter, this year’s crop
is likely to be significantly smaller
due to drought in prime growing
areas. The U.S. Department of
Agriculture has cut its forecast
for 2022 cotton production by
28 percent, the lowest level in
a decade. The worst-hit area is
Texas, which accounts for more
than half of the country’s output.
Forecasts say that could be cut by
half from last year, totaling more
than $2 billion in cotton. A recent
New York Times article reported
that many Texas cotton growers
aren’t even planning to harvest
large swaths of their fields due to
the meager crop they will yield.
Things could be even worse
in Pakistan, the fifth-largest
source for cotton. The problem
there isn’t too little water, it’s
too much. Recent storms have
produced catastrophic flooding,
and early estimates are that as
much as one half of the country’s
crop was destroyed. Across the
border in India, which is now the
largest cotton grower in the world,
flooding has also been a problem.
A recent Quartz article found
that “pests” have also destroyed
crops this year, and the Cotton
Association of India is estimating
about a 6 to 8 percent fall in total
cotton output amid reports that the
country is now importing cotton.
In China, which had historically
been the largest source for cotton
for years but has now fallen to
number two, excessive heat has
been a challenge—similar to
what number-five producer Brazil
has faced. But the real problem
in China is more political than
environmental, especially for
the American market. The Biden
administration has banned the
use of cotton from the Xinjiang
region of China, the source of
as much as 20 percent of global
cotton supplies—due to the
alleged brutal treatment of the
local Uyghur population by the
Xi Jinping administration (the
Chinese government denies the
charges). It’s likely that products
using cotton from the region are
Are we headed for a COTTON CRISIS?
For decades, cotton has been the foundation of many home furnishings products—sheets, towels,
upholstery fabrics, bedding, rugs, to name a few. That could change soon… very soon.

still ending up in American stores,
but the restrictions are certainly
adding to the global cotton
squeeze.
Given these disruptions, it’s
quite likely that the 2022 cotton
crop, whose harvest runs from
now through November, could be
as much as a third less than last
year’s and one of the smallest
outputs in recent memory. (And
for those of you who skipped
Agriculture 101 in school, cotton is
an annual crop, so any relief won’t
be apparent until at least the fall
of 2023.)
All of this is of course being
reflected in cotton prices. Yahoo
Finance reported that The World
Bank expects cotton prices to
surge 40 percent this year, and
“the upward movement isn’t
expected to stop anytime soon.”
“Cotton prices have soared
lately,” Dennis Sweeney, president
of Infinity Brokerage, told Yahoo
Finance. “Availability is scarce.
… [and] looking forward, cotton
demand remains firm and the
outlook for the coming growing
season looks quite challenging.”
Cotton futures have been
trading recently at about $1.08 a
pound, down from their 52-week
high of about $1.50 a pound, but up
substantially from the trailing year
low of 85 cents a pound, according
to numbers from Nasdaq. By point
of comparison, cotton was under
50 cents a pound at the start of
the pandemic in the spring of 2020
and has generally traded in the 60
cents to 80 cents range for much of
the past 10 years, according to the
Trading Economics website. But
this new spike is sending shivers
to all the people who were around
the industry in 2011, when another
set of circumstances—then as
much speculative as ecological—
drove cotton prices up to almost
$2 a pound. Prices stayed above
$1 for almost a year and caused
widespread shifts—not to mention
panic—in the marketplace.
Many sheet and towel
producers began switching their
products from all cotton to cotton
blends, and some to 100 percent
polyester. The rise of so-called
“microfiber” sheets—a great
marketing name for a totally
synthetic product that was
inexpensive to make and often
of an inferior quality—exploded,
and even today, they account for
a healthy share of sales in the
marketplace.
The excessive cost of cotton
also gave an advantage to other
fibers, including cellulose-based
ones like modal as well as wool,
linen and even hemp, one that has
persisted even as cotton prices
returned more to historic levels.
In upholstered furniture
fabrics, the cotton crisis of a
decade ago coincided with the rise
of performance fabrics that relied
more on synthetic fibers. There’s
no doubt that cotton-based
coverings have lost market share
in the furniture segment ever since.
So far, suppliers of home textiles
products say they are not yet
abandoning cotton products. But it
stands to reason that, as demand
for home furnishings continues to
subside and inflation prices out
some sheet and towel products,
the industry will once again turn to
alternative fibers. We can expect
to see the larger impact of this as
business in 2023 develops.
America’s love affair with
cotton goes way back and was
cemented by Cotton Incorporated’s
famed 1989 campaign, The Fabric
of Our Lives. But now it’s quite
possible that relationship could be
in danger of a dramatic breakup.
Source: Business of Home

9
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.

11
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.

REPORT AND DATABASE
In Aug 2022, Vietnam’s cotton imports reached
133.8 thousand tons, worth 406.2 million USD, up
27.6% in volume and 30.8% in value compared to
the previous month, up 0.2% in volume and 51.6% in
value compared to Aug 2021.
Fiber & yarn imported to Vietnam was 89.5
thousand tons, worth 213.7 million USD, down 1.9%
in volume and down 10% in value compared to the
previous month; up 26.6% in volume and 21,3% in
According to preliminary data in Aug 2022,
Vietnam imported 133.8 thousand tons of cotton, up
27.6% compared to the previous month. Imported of
fiber and yarn was 89.5 thousand tons, down 1.9%
compared to the previous month.
1. Monthly Import Statistics

13
According to statistics of the General Department
of Customs in Aug 2022, Vietnam imported cotton
worth 406.2 million USD, up 30.8% compared to
the previous month; import of fiber and yarn valued
at 213.7 million USD, down 10%; fabric import was
1.2 billion USD, up 5%; import of raw materials for
textiles, garments and footwear increased by 5.6%
compared to the previous month, valued at 574
million USD.
According to preliminary data in Aug 2022, imported of fiber and yarn was about 89.5 thousand tons,
down 1.9% compared to the previous month, up 26.6% over the same period last year.
According to preliminary data in Aug 2022, Vietnam imported 133.8 thousand tons of cotton, up 27.6%
over the previous month, up 0.2% over the same period last year.

In the first 8 months of 2022, Vietnam imported
cotton worth 2.55 billion USD, up 19.5% over the
same period last year; import of fiber and yarn valued
at 1.86 billion USD, up 7.3%; fabric import was
10.31 billion USD, up 8.3%; import of raw materials
for textiles, garments and footwear increased by
7.6% over the same period last year, valued at 4.64
billion USD.
According to statistics of the General Department
of Customs, the import of raw cotton to Vietnam
in July 2022 reached 104.88 thousand tons, worth
310.59 million USD, up 12.2% in volume and 14.4%
in value compared to June 2022; down 25.3% in
volume and 13% in value compared to July 2021.
Generally, in the first 7 months of 2022, cotton
imported to Vietnam reached 785 thousand tons,
worth 2.14 billion USD, down 23.1% in volume but
up 15.1% in value over the same period year 2021.
1.1. Imported cotton decreased in the first 7 months of 2022
Source: VITIC

15
In the first 7 months of 2022,
there were 10 markets supplying
raw cotton to Vietnam, down 1
market compared to the same
period in 2021. Vietnam’s raw
cotton imports from some main
markets decreased sharply
compared to the same period in
2021 as the US, Brazil, India...
Specifically:
Cotton imports from the US
market were the largest in the first
7 months of 2022, reaching 303
thousand tons, worth USD 887
million, down 33.1% in volume
but up 3.5% in value over the
same period in 2021, accounting
for 38.7% of total cotton imports.
Particularly in July 2022, cotton
imported from this market reached
56.44 thousand tons, worth $171
but up 20.5% in value compared
to July 2021.
In the first 7 months of 2022,
cotton imports from the Brazilian
market decreased by 29.4% in
volume but increased by 5% in
value compared to the first 7
months of 2021, reaching 189
thousand tons, worth 506 million
USD. Particularly in July 2022,
cotton imports from this market
reached 7.39 thousand tons,
worth 22.06 million USD, down
68.8% in volume and 51.9% in
value compared to July 2021.
In addition, cotton imports
from some other markets
increased sharply in the first 7
months of 2022 compared to
the same period in 2021 such as:
imports from Argentina increased
by 352% in volume.
About price: The price of
cotton imported into Vietnam in
July 2022 averaged at $2,961/ton,
up 1.9% compared to June 2022
and 51.3% higher than July 2021.
Generally, in the first 7 months of
2022, the average import price of
cotton to Vietnam reached 2,726
USD/ton, up 49.7% over the same
period in 2021.
The high price of imported
cotton has caused cotton
imported to Vietnam to decrease
significantly in the first months
of 2022. World cotton prices are
forecasted to increase because of
the forecast that the US cotton crop
will decrease due to unexpected
weakness quality in the US cotton
crop has raised concerns about the
US cotton supply in the current
season. Therefore, it is forecasted
that the price of cotton imported
into Vietnam will increase in the
coming time.
Source: VITIC
Vietnam’s import cottons in July 2022

— All data are accurate, relevant and verified from sources: the Ministry of Industry and
Trade, General Department of Vietnam Customs, General Statistics Office of Vietnam,
International Trade Center, Cotton Incorporated and other reliable sources.

— This text provides general information. VCOSA assumes no liability for the information
given being complete or correct. Due to varying update cycles, statistics can display
more up-to-date data than referenced in the text.
Communication and Information Department

In July 2022, the price of cotton
imported from most key markets
into Vietnam increased by 1-5%
compared to June 2022. However,
the price of imported cotton
from some markets fluctuated
sharply such as the price of
cotton imported from India
decreased by 16.8%, from Ivory
Coast decreased by 10.5%, from
Indonesia increased by 50%, from
South Korea down 21.2%.
Generally, in the first 7 months
of 2022, the average price of
imported cotton from Vietnamese
markets all grew at a double-digit
rate, in which, the price of cotton
imported from Argentina market
increased the most, up 54.4%,
and the price of cotton imported
from China increased the lowest,
only increasing by 0.6% over the
same period in 2021, reaching
$1,980/ton.
Source: VITIC
Import price of cotton in July 2022
Source: VITIC

17
A
ccording to statistics of
the General Department
of Customs, imported fiber
to Vietnam in July 2022 reached
32.65 thousand tons, worth
51.98 million USD, up 3.1% in
volume and up 13 .5% in value
compared to June 2022, and up
8.1% in volume, up 30.9% in value
compared to July 2021.
of 2022, the import of raw fiber
reached 222.45 thousand tons,
worth 316.45 million USD, down
9.5% in volume but up 0.7% in
value over the same period in
2021.
China is the largest supplier of
fiber materials to Vietnam in July
2022, with imports reaching 13.94
thousand tons, worth US$ 20.76
and down 4.4% in value; up 3.4%
in volume and 23.1% in value
of 2022, the import of raw fiber
from the Chinese market reached
USD 129.82 million, accounting
for 44.2% of the total import
volume, down 7.9% in volume but
increased by 5% in value compared
to the first 7 months of 2021.
Import of raw fiber from
Taiwan market reached 3.74
thousand tons, worth 5.51 million
USD, down 18% in volume and
down 13.1% in value compared
to June 2022; increased by 5.9%
in volume and 41% in value
of 2022, imports of raw fiber from
Taiwan market reached 32.24
thousand tons, worth US$44.07
million, accounting for 14.5% of
Vietnam’s total import of raw fiber,
decreasing 16.3% in volume but
up 4% in value compared to the
first 7 months of 2021.
In general, in the first 7 months
of 2022, imports of raw fibers
from main markets into Vietnam
decreased, except for imports from
Korea, which increased by 4.9%,
and Thailand by 1.2% in volume.
Notably, imported fiber from
some markets increased sharply in
the first 7 months of 2022 such as
Bangladesh, UK.
1.2. Import price of fiber increased sharply
Source: VITIC
Vietnam’s import fiber in July 2022

Source: VITIC
Source: VITIC
About price: In July 2022, the price of imported
fiber to Vietnam reached an average of USD 1,611/
ton, up 10.1% compared to June 2022 and up 21.1%
Generally, in the first 7 months of 2022, the price
of imported fiber to Vietnam reached an average of
1,423 USD/ton, up 11.3% over the same period in
2021.
In July 2022, the lowest price of raw fiber
imported from India reached 1,362 USD/ton; followed
by Taiwan market at 1,473 USD/ton and the highest
import price from Japan market at 3,825 USD/ton.
The price of raw fiber imported into Vietnam
continued to increase sharply in line with the price
fluctuation of the world. In the coming time, factors
such as inflation, continuing transport crisis, broken
supply chain due to conflict between Russia and
Ukraine... will continue to affect world commodity
prices, including prices of raw fiber.
Currently raw material prices are fluctuating, up
or down along with world oil prices. When the up-
and-down cycle cannot be controlled and the market
volatility is too fast, the only solution is to buy raw
materials that are enough to use, not to buy large
batches.
It is forecast that the price of imported fiber to
Vietnam will adjust in the coming months but will
remain high compared to the same period in 2021.
Vietnam’s import fiber in July 2022

19
Source: VITIC
According to the statistics of the General
Department of Customs, the import of raw yarn
in July 2022 reached 54.94 thousand tons, worth
174.54 million USD, down 9.7% in volume and
12.4% in value compared to June 2022; down 10.5%
in volume and 9% in value compared to July 2021.
Generally, in the first 7 months of 2022, the
amount of raw yarn imported to Vietnam reached
425 thousand tons, worth 1.32 billion USD, down
6.7% in volume but up 7.1% in value over the same
period last year 2021.
Import price of fiber in July 2022
1.3. Import price of yarn decreased slightly
Source: VITIC

China is the largest supplier of
yarn to Vietnam, with the import
volume in July 2022 reaching
109.43 million USD, down 11.8%
in volume and 19.5% in volume.
7% in value compared to June
2022; down 6.2% in volume and
5.5% in value compared to July
2021.
of 2022, the import of raw yarn
from the Chinese market reached
US$795.55 million, accounting
for 64.1% of the total import
volume, down 1.2% in volume
but increased by 17.4% in value
compared to the first 7 months of
2021.
In July 2022, the import of raw
yarn from Taiwan market reached
8.14 thousand tons, worth 24.66
million USD, down 7% in volume
but up 3.1% in value compared to
June 2022; down 6.1% and 1.2%
in value compared to July 2021.
of 2022, the import of raw yarn
from Taiwan market reached 60.28
thousand tons, worth US$ 168.54
million, accounting for 14.2% of
Vietnam’s total import of raw yarn,
a decrease 10.6% in volume and
0.4% in value compared to the first
7 months of 2021.
In general, in the first 7
months of 2022, the main markets
supplying yarn to Vietnam
decreased, except for Thailand,
which increased by 26.6% in
volume.
Notably, the volume of raw
yarn imports from the Brazilian
market increased sharply in the
first 7 months of 2022.
In terms of price: Import price
of yarn in July 2022 was at $3,177/
ton, down $97/ton compared to
June 2022 and up $54/ton from
July 2021. Generally, in the first
7 months of 2022, the price of
imported yarn to Vietnam reached
an average of 3,105 USD/ton,
up 14.9% over the same period in
2021.
In which, the price of yarn
imported from Malaysia market
reached the lowest level of 2,633
USD/ton; followed by China with
USD 2,865/ton… and the import
price from Hong Kong market
reached the highest level of USD
8,978/ton.
As forecasted in previous
newsletters, the price of imported
raw yarn has decreased but
the decrease is not deep. It is
forecasted that in the last months
of 2022, yarn prices will continue
to decrease but remain high
compared to the same period in
2021. Due to the unprecedented
increase in global raw material
prices, yarn factories have to
downsizing production. Some
export markets such as India only
allow exports of cotton and yarn
after domestic demand is met.
Vietnam’s import yarn in July 2022
Source: VITIC

21
Import price of yarn in July 2022
Source: VITIC
Source: VITIC

2. Monthly Export Statistics
In Aug 2022, Vietnam exported 124.6 thousand
tons of fiber and yarn, worth 354.5 million USD, up
13.1% in volume and 9.9% in value compared to the
previous month; down 20.3% in volume and 26.3% in
Fiber and yarn exports in Aug 2022 were valued
at 354.5 million USD, up 9.9% over the previous
month; fabric exports reached 261 million USD, up
11.4%; materials for textiles, leather and footwear
reached 199.9 million USD, up 4.6%; technical textile
exports decreased by 2.5% compared to the previous
month, worth 75.1 million USD.

23
Vietnam’s fiber and yarn exports in Aug 2022 reached 124.6 thousand tons, worth 354.5 million USD, up
13.1% in volume and 9.9% in value compared to the previous month.
Textile and apparel exports in Aug 2022 reached 4 billion USD, up 8.7% over the previous month.

According to preliminary data in Aug 2022, textile and apparel exports reached 4 billion USD, up 8.7%
MoM, up 50.8% YoY.
In the first 8 months of 2022, Vietnam’s fiber
and yarn exports were worth 3.45 billion USD,
down 5.3% compared to the same period last year;
fabric exports reached 1.93 billion USD, up 20.1%;
raw materials for textile, garment, leather and
footwear reached 1.57 billion USD, up 20%; technical
textile exports increased by 19.8%, valued at 605.6
million USD.

25
According to statistics from the General
Department of Customs, Vietnam’s exports of
textile fibers and yarns in July 2022 reached 110.1
thousand tons, with a turnover of 322.5 million USD,
down 16.1% in volume and 20% in value compared
to June 2022; down 37.3% in volume and 37.7% in
turnover compared to July 2021.
In the first 7 months of 2022, Vietnam’s exports
of fibers and yarns reached 964.16 thousand tons,
with a turnover of 3,097 billion USD, down 17.1%
in volume and 2.1% in turnover compared to same
period in 2021.
In particular, the average export unit price of
Vietnam’s fiber and yarn products to Hong Kong
market reached the highest level in July 2022,
reaching 14,855 USD/ton and the export price to the
UK market reached the lowest level 998 USD/ton.
With not very positive forecasts about US cotton
production, it is forecast that world cotton prices will
still increase, which will push up Vietnam’s fiber and
yarn export prices in the coming time.
In terms of prices: Contrary to the price increase
of world cotton prices, Vietnam’s export prices of
fibers and yarns have decreased in recent months.
Specifically, the average export price of Vietnam’s
textile fibers and yarns in July 2022 reached $2,929
per ton, down 6.2% compared to June 2022 and
down 0.7% compared to July 2021. Generally, in the
first 7 months of 2022, the average export price of
Vietnam’s fibers and yarns reached 3,213 USD/ton,
up 18.1% over the same period in 2021.
2.1. Export of fiber and yarn decreased in the first 7 months of 2022
Source: VITIC
Source: VITIC

Vietnam’s exports of textile
fibers and yarns to markets in
general decreased in July 2022
compared to June 2022 as well
as July 2021, however, exports to
some markets still increased such
as Philippines, Colombia, Italy, UK.
In general, in the first 7 months
of 2022, Vietnam exported the
most fibers and yarns to the
Chinese market, accounting for
45.3% of the total volume and
accounting for 46.6% of the total
export turnover of this item.
However, exports of fibers and
yarns to this market decreased
by 31.1% in volume and 16.3%
in turnover in the first 7 months
of 2022 compared to the same
period in 2021.
In contrast, exports of fibers
and yarns to some other markets
still increased in the first 7
months of 2022 compared to
the same period in 2021 such
as: Bangladesh, USA, Indonesia,
Thailand, India...
• Export market:
Export price of fiber and yarn in July 2022
Source: VITIC

27
Vietnam’s export fiber and yarn in July 2022
Source: VITIC

3. Cotton Outlook
3.1. Price movement
3.2. Price outlook
Movement in benchmark prices was mixed over
the past month.
T
he December NY/ICE futures contract climbed
higher in the second half of August, but it lost
12% in the last week of the month (from 117
to 103 cents/lb between August 29th and September
2nd). More recently, values have been trading between
101 and 105 cents/lb.
After rising most of the month, the A Index also
fell near the end of August, dropping from 134 to 122
cents/lb.
The China Cotton Index (CC 3128B) has been the
lowest of all cotton benchmarks since the middle of
August. Prices moved slightly lower recently, with
current values touching the lowest levels since January
2021 (103 cents/lb, when they were 26 cents/lb higher
than the NY/ICE Nearby). The CC Index traded between
15,650 and 16,000 RMB/ton in domestic terms over
the past month. The RMB weakened against the dollar
from 6.75 to 6.95 RMB/USD.
Indian spot prices (Shankar-6 quality) have
been the highest benchmark since late June (after
surpassing the A Index, which includes shipment to
East Asian ports). Over the past month, values eased
slightly, from 158 to 143 cents/lb or from 96,000 to
89,000 INR/candy. The INR was steady against the
USD, around 80 INR/USD.
With the outbreak of flooding, Pakistani spot
prices increased from 102 to as much as 127 cents/lb
by the end of August. More recently, prices retreated to
117 cents/lb. In domestic terms, prices increased from
18,000 to 22,000 PKR/maund. The PKR weakened
against the USD, from 215 to 230 PKR/USD over the
past month.
T
raditional relationships
among cotton benchmarks
flipped in recent months.
The CC Index, which traditionally
trades at levels 15-20 cents/lb
higher than the A Index, has been
the lowest international price since
mid-August.
Indian spot prices (Shankar-6
quality), which traditionally trade
near NY/ICE futures (December
currently at 105 cents/lb), have
been the highest benchmark since
late June (currently near 143
cents/lb, easily exceeding the A
Index, which includes delivery to
East Asia ports).
The decline in Chinese prices
relative to those from the rest of the
world may affect trade in the new
crop year. China is normally the
world’s largest importer of both
cotton fiber and yarn. However,
significantly lower domestic
prices encourage consumption
of domestically grown fiber and
should discourage imports.
Last crop year, Chinese
gins aggressively purchased
seed cotton at elevated prices.
Disagreements about downstream
prices prevented much of that fiber
from flowing to spinning mills. A
result was the record accumulation
of private (non-reserve) stocks.
Those supplies are a likely factor
weighing on the Chinese market.
The U.S. ban on sourcing from
Xinjiang is another potential
contributor, but with Chinese
prices lower than those in other
markets, Chinese inventories could
be drawn down while imports of
fiber and yarn could fall.
When China drew down
its reserve stocks (2015/16-
2018/19), Chinese imports fell as
low as 4.4 million bales (2015/16).
Since then, China has imported
as much as 12.9 million bales
(2020/21). China brought in 7.8
million bales in 2021/22 and is
forecast to import 9.0 million
bales in 2022/23. The U.S. crop

29
is forecast to be 3.7 million bales
lower year-over-year in 2022/23.
If China were to return to import
volumes near 2015/16 levels,
it could erase the tightness in
exportable supply stemming from
a smaller U.S. crop.
Chinese yarn imports, which
also involve competition between
domestic and international fiber
prices, have already fallen. In the
latest available data (July 2022),
shipments were down -41% year-
over-year, dropping to the lowest
monthly volume in ten years (since
2012). China sources much of its
yarn from Vietnam (48% share
during the 2021/22 crop year), and
a possible consequence of lower
Chinese yarn import demand could
be lower fiber import demand from
Vietnam (world’s third largest
destination).
Other demand-side concerns
include another lockdown in a
major Chinese population center,
surging energy costs in Europe,
and renewed indications from
Federal Reserve officials that
the central bank is prepared to
continue to increase interest rates.
The U.S., the E.U., and China
represent the world’s largest
consumer markets for finished
cotton goods, and none of these
developments are supportive of
downstream demand.
These demand-side concerns
flared simultaneously with the
flooding in Pakistan and were likely
reasons why prices decreased
sharply that week. When paired
with a potential pullback in
Chinese fiber and yarn imports,
downstream concerns could more
than offset tightness in exportable
supply. However, recent market
volatility underlines uncertainty
in the market. Volatility could
continue as the market struggles
to balance exportable stocks
against headwinds for demand.
Source: CI
Source: CI

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

VCOSA - VIETNAM COTTON - YARN MARKET REPORT - 09/2022 ISSUE

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