Vietnam's Cotton Imports Surge

WASHINGTON - Jun 11/08 - SNS -- A sharp decline in cotton production in Vietnam this season has spurred a dramatic increase in imports, including enough from the United States to make that country its top supplier, reports the U.S. agricultural attache for the country.

Vietnam ranks among the top ten garment and textile-exporting countries in the world. Exports for 2007 increased by 33% to $7.7 billion up from the $5.8 billion earned from exports of garment and textile in 2006. Exports to the United States were valued at $4.5 billion or about 57% of Vietnam's total garment and textile export earnings for 2007. Export targets for 2008 including earnings increase of 23% for an anticipated total of $9.5 billion, with export sales to the United States expected to reach $6.1 billion.

Vietnam's cotton lint production declined sharply in 2007-08 to only 5,880 MT; a decrease of 44.3%, attributable to both lower crop area and yields. Cotton imports continue to rise to meet the increasing demand from the garment and textile industry. Vietnam's cotton imports for the first nine months of the market year (August-April) were 178,150 MT, a 10% increase over the same period of 2006-07. Cotton imports for 2007-08 will undoubtedly continue to climb in response to continued expansion in the textile sector; the year-end total is projected to reach as high as 240,000 MT. In 2007, the United States was Vietnam's leading supplier of cotton, with a market share of 31% by volume.

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