Required Report: Required - Public Distribution Date: April 04, 2025

Report Number: VM2025-0013

Report Name: Cotton and Products Annual

Country: Vietnam

Post: Hanoi

Report Category: Cotton and Products

Prepared By: Kiet Vo

Approved By: Andrew Anderson-sprecher

Report Highlights:

Cotton imports are forecast to grow by six percent to 7.6 million bales in marketing year (MY) 2025/26
based on expected growth in the textile and yarn sector. Post reduces forecast MY 2024/25 cotton
imports by 200,000 to 7.2 million bales based on partial year import statistics and economic challenges
faced by cotton spinners. Stocks remain low as producers try to manage the risk of sliding cotton-fiber
and cotton-yarn prices. Brazil has surpassed Australia and the United States to become the largest cotton
supplier to Vietnam.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY
STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY
SITUATION AND OUTLOOK

Textile Industry
Vietnam textile and apparel exports grew 11 percent in calendar year (CY) 2024 to $42 billion due to
higher demand in major export markets, including the United States, Japan and European Union.1
Exports in the first two months of 2025 were up eight percent over the same period last year, totaling
$6.4 billion. Orders have already been placed for the second quarter. Some apparel exporters have opted
for shorter contracts on an expectation that prices will rise in the second half of the year.

Figure 1: Vietnam Textile and Apparel Exports from 2023 to February 2025
5.0
4.0
Value (billion USD)

3.0
2.0
1.0
0.0
Feb

Jun
Jul

Sep

Feb

Jun
Jul

Sep

Feb
Dec
May
Apr

Aug

Oct
Nov

Apr
May

Aug

Oct
Nov
Dec
Jan

Mar

Jan

Mar

Jan
2023 2024 2025
Source: Vietnam Customs data

Local producers continue to pursue reforms in sourcing and manufacturing processes to comply with
regulations related to traceability, sustainability, forced-labor prevention, and climate protection in large
developed markets. The Vietnam Textile and Apparel Association (VITAS) is encouraging members to
also develop alternative export markets and suppliers to avoid over dependence on one source or market.
VITAS forecasts that Vietnam’s textile and apparel exports will increase 8-10 percent in CY2025.

Figure 2: Vietnam Textile and Apparel Exports Over Years

$50
Value (billion USD)

$46.2
$45 $42.9 $42.2

$40 $38.9 $38.3

$35

$30
2021 2022 2023 2024 2025
Source: Vietnam Customs data, post estimate for 2025

1
Vietnam Customs data for textiles and apparel, yarn of all types, and technical fabrics. Does not include footwear materials
and accessories.
Yarn exports
All-type yarn exports expanded 5 percent in CY2024 to 1.9 million metric tons (MT). Over 70 percent
of Vietnam’s yarn were shipped to China, South Korea and the United States. While most yarn exported
to China, South Korea and other markets is cotton-contained yarn, yarn shipped to the United States is
mostly man-made fiber yarn.

Table 1: Vietnam all-type Yarn Export

Average unit value
Quantity (metric tons) Value (million USD)
Country (USD/MT)
CY2023 CY2024 CY2023 CY2024 CY2023 CY2024
China 882,715 882,850 2,317 2,141 2,625 2,425
South Korea 138,802 153,118 384 437 2,770 2,852
United States 105,490 141,742 147 190 1,397 1,343
Bangladesh 36,651 53,676 134 189 3,659 3,514
Taiwan 31,744 43,090 87 106 2,750 2,462
Pakistan 17,476 41,978 48 109 2,741 2,601
Japan 40,420 39,991 103 97 2,543 2,425
Philippine 37,765 39,671 83 81 2,189 2,033
Indonesia 35,548 37,654 106 107 2,987 2,848
Brazil 27,432 31,068 41 54 1,494 1,738
Others 430,177 408,360 905 897 2,105 2,195
Total 1,784,220 1,873,198 4,356 4,407 2,441 2,353
Source: Vietnam Customs

Vietnam’s cotton yarn spinning capacity remains unchanged

in CY2024 with no new investment or shutdowns recorded.
Post estimates that there are 121 cotton yarn-contained
spinning mills operating in Vietnam (Table 2), with 44
percent located in the South. The largest concentration of
spinning mills is in Thai Binh, Thua Thien Hue, Dong Nai,
and Long An province. While Quang Ninh province only
has four spinning mills, the two belonging to Texhong
Group in the province have a total capacity of
approximately one million spindle equivalence. Figure 3
provides a visual map of Post’s analysis of spinning mill
information in the market.
Table 2: Vietnam’s Cotton Yarn Spinning Capacity
Murata Vortex Spindles
Spinning mills Spindles Rotors
Spinning equivalence
Foreign Invested 46 5,039,910 47,932 10,000 5,709,230
South 34 3,694,110 27,712 4,061,230
North 11 1,260,800 19,220 10,000 1,553,000
Center 1 85,000 1,000 95,000
Locally Owned 75 3,926,058 79,670 320 4,725,958
North 37 2,015,894 54,910 2,564,994
South 20 1,134,864 22,072 320 1,358,784
Center 18 775,300 2,688 802,180
Grand Total 121 8,965,968 127,602 10,320 10,435,188
Source: Joint research by Post, Cotton Council International, and the Vietnam Cotton and Spinning
Association.

Vietnam’s cotton yarn exports (HS code 5205 and 5206) increased one percent by volume in 2024 to
974,000 MT but dropped 6 percent by value to $2.5 billion according to Trade Data Monitor statistics.
Local spinning mills have been struggling with low yarn prices along with rising labor, power and
freight costs. Foreign invested mills have been able to navigate the adverse business environment more
easily as many belong to vertically integrated groups that allow them to capture more of the value chain.

China remains the largest market for Vietnam’s cotton yarn exports, accounting for 82 percent of cotton
yarn exports in 2024. Exports to South Korea, Vietnam’s second largest export market, grew 12 percent
to 77,000 MT. Cambodia surpassed Thailand and Indonesia to become the third largest export market in
2024 (Figure 4). Post forecasts that Vietnam’s total cotton yarn exports will expand five percent in
CY2025 to 1.02 million MT based on an expected recovery in demand (Figure 5).

Figure 4: Vietnam 2024 Cotton Yarn Export

Others
Cambodia
8%
2%

South
Korea
8%

China
82%

Source: Trade Data Monitor LLC

Figure 5: Vietnam’s Cotton-contained Yarn Exports

1,200,000 1,136,000

1,100,000 1,022,700
974,000
Quantity in MT

961,000
1,000,000
870,000
900,000

800,000

700,000

600,000
2021 2022 2023 2024 2025*

Source: Trade Data Monitor LLC. *Post forecast

Yarn imports
Vietnam all-type yarn imports jumped 18 percent in in CY2024 to 1.2 million MT. Cotton yarn
accounted for 9 percent of the total imports. Strong domestic cotton yarn production capacity supplies
most local and export demand.

Table 3: Vietnam Imports of All-type Yarn from Global Market (thousand MT)
Calendar Year Market share
Reporting Country
CY2024
2020 2021 2022 2023 2024
Total yarns imported 1,047 1,092 1,040 1,053 1,243 100%
China 581 626 638 679 857 69%
Taiwan 147 163 147 104 92 7%
Thailand 74 60 67 75 98 8%
South Korea 70 67 59 46 35 3%
Indonesia 57 64 55 59 48 4%
Others 118 112 74 90 113 9%
Cotton yarn imports 102 119 78 90 107
Cotton yarn share of yarn
9.7% 10.9% 7.5% 8.5% 8.6%
imports
Source: analysis of trade statistics from Trade Data Monitor LLC and Vietnam Customs

PRODUCTION
Vietnam remains a net importer of cotton. Post estimates that domestic cotton accounts for less than
one percent of total market demand. For a further discussion on the decline in planted area, please see
GAIN Report VM7019: Cotton and Products Annual 2017.
TRADE
Cotton imports during the first seven months of MY2026 (August 2024-February 2025) totaled 948,000
MT (4.4 million bales) according to Vietnam customs data, up 15 percent over the same period last year.
Over two thirds of the imported cotton went to FDI spinning mills. Based on import trends, post
estimates MY2024/25 cotton imports at 7.2 million bales. Post forecasts MY2025/26 cotton imports at
7.6 million bales on expected continued growth in the sector.

While the cotton yarn and textile sector in Vietnam is showing signs of recovery, some mills still face
challenges. Four more local spinning mills and trading companies were added to the International
Cotton Association’s defaulter list in February 2025. Spinning mills in Vietnam continue to prioritize
cotton purchases from bonded warehouses, afloat or the spot market to minimize the risk of price
volatility.

Figure 6: Vietnam’s Cotton Imports by Marketing Year (August-July)

8,000
Volume (1,000 bales)

7,500 7,276 7,200

6,915 6,923
7,000 7,600
6,471
6,500
6,600 6,597
6,000 6,472
5,500
5,000 5,508
4,500
4,000

Source: Post's processing on Vietnam Customs data, * Post’s estimate and **Post’s forecast

Top Cotton Suppliers to Vietnam

Brazilian cotton exports to Vietnam surged 129 percent in the first half of MY2024/25 (August –
January) to 1.5 million bales due to ample supply and lower prices compared to U.S. and Australian
cotton. Brazil is now the largest cotton supplier to Vietnam. However, local industry contacts report
problems with high contamination of animal hair and honeydew in Brazilian cotton.

Australian cotton exports to Vietnam shrink 33 percent during this period to 875,000 bales due to tighter
supply and higher prices. Australian cotton exports to Vietnam are expected to continue dropping as
more Australian cotton is going to China. U.S. cotton exports to Vietnam increased 27 percent to
610,000 bales. China’s 15 percent retaliatory tariffs on U.S. cotton will likely divert more U.S. cotton to
the Vietnam market. Post estimates U.S. cotton exports to Vietnam will increase 17 percent in
MY2024/25 to 1.5 million bales.
Figure 7: Cotton Market Share (volume in thousand MT)
August 2023 - January 2024 August 2024 - January 2025
Others
7%
Others
15% Brazil
23%
Australia Brazil
27% 47%
United
Australia States
45% 17% United
States
19%

Source: Trade Data Monitor LLC

CONSUMPTION
Post lowers estimated MY2024/2025 cotton consumption to 7.2 million bales. Cotton yarn prices
remain low and global market demand is still uncertain. MY2025/26 consumption is forecast to grow to
7.5 million bales based on expected growth in the global textile and apparel sector, better cotton yarn
prices and expansion plans by FDI cotton mills.

PRICES
Average cotton-fiber import prices have decreased in recent months, putting pressure on cotton yarn
producers. The gap between cotton-yarn export prices to China (HS code 5025) and cotton-import
prices was less than $1 per kg, which spinning contacts confirmed is less than the cost of production
(Figure 8). China accounted for 82 percent of Vietnam’s yarn exports in 2024 (Figure 4). Yarn export
prices to South Korea are still profitable, but that market accounts for just 8 percent of Vietnam yarn
exports.

Figure 8: Cotton import prices versus Cotton-yarn export prices

4.0
Value in U.S. dollars per kg

3.0

2.0

1.0
08/2023 10/2023 12/2023 02/2024 04/2024 06/2024 08/2024 10/2024 12/2024
Vietnam cotton yarn export prices to China
Vietnam cotton yarn export prices to South Korea
Vietnam cotton import prices

Source: Post analysis of trade statistics from Vietnam Customs and Trade Data Monitor LLC
STOCKS
Vietnam spinning mills continue to minimize stocks as they struggle with profitability. Cotton trade
contacts report that mills are prioritizing cotton purchases from bonded warehouses, afloat, and the spot
market. Post estimates the stocks-to-use ratio will remain low in MY 2024/25 at around 15 percent.

MARKETING/ POLICY
Vietnam textile and apparel exporters have promoted their respective products to foreign buyers through
diverse channels, from direct sales to trade missions and trade shows. SaigonTex – SaigonFabric and
HanoiTex – HanoiFabric are the most important trade shows for textile machinery and technology,
fabrics, yarn and garment accessories in Vietnam. These annual shows take place in Ho Chi Minh City
and Hanoi. More details about these shows are available at www.cpexhibition.com. Spinning contacts
also participated in trade shows in Shanghai and Pakistan to promote their yarn to foreign buyers.

The Government of Vietnam (GOV) has used free trade agreements to promote investment and exports.
Vietnam has signed and implemented 17 free trade agreements with major trading partners, providing
favorable export conditions for textiles, apparels and other products. The Government of Vietnam plans
to build specialized industrial zones to attract investors in weaving, knitting, dyeing and finishing with
an aim to increase fabric production. The expansion of fabric production will eventually support yarn
consumption and help local spinners be less dependent on export markets.

The GSM 102 Credit Guarantees program has been available in Vietnam for over two decades, but
applications for cotton purchases remain insignificant.

Tariffs on cotton
Cotton fiber (HS codes 5201, 5203) has a zero percent tariff and a five percent value added tax.

Tariff on cotton yarn

Cotton yarn (HS codes 5204, 5205, 5207) has a five percent tariff and an eight percent value added tax.
Table 4: Production, Supply, and Distribution
Cotton 2023/2024 2024/2025 2025/2026
Market Begin Year Aug 2023 Aug 2024 Aug 2025
USDA New USDA New USDA New
Vietnam
Official Post Official Post Official Post
(Units)
Area Harvested 1 - 1 - - - (1000 HA)
Beginning Stocks 1,046 1,046 1,034 1,046 - 1,046 1000 480 lb. Bales
Production 3 - 3 - - - 1000 480 lb. Bales
Imports 6,585 6,600 7,400 7,200 - 7,600 1000 480 lb. Bales
Total Supply 7,634 7,646 8,437 8,246 - 8,646 1000 480 lb. Bales
Exports - - - - - - 1000 480 lb. Bales
Domestic Use 6,600 6,600 7,400 7,200 - 7,500 1000 480 lb. Bales
Loss - - - - - - 1000 480 lb. Bales
Domestic Use and 6,600 6,600 7,400 7,200 - 7,500 1000 480 lb. Bales
Loss
Ending Stocks 1,034 1,046 1,037 1,046 - 1,146 1000 480 lb. Bales
Total Distribution 7,634 7,646 8,437 8,246 - 8,646 1000 480 lb. Bales
Stock to Use % 16 16 14 15 - 15 (PERCENT)
Yield 653 - 653 - - - (KG/HA)
Stocks to Use 2 2 2 2 - 2 (MONTHS)
Supply Less 1,049 1,046 1,037 1,046 - 1,046 1000 480 lb. Bales
Imports
Total Use 6,600 6,600 7,400 7,200 - 7,500 1000 480 lb. Bales

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