According to foreign analysts, despite the negative impact of COVID-19, Vietnam's spinning mill has been tested and gained the import demand from China. In 2020 / 21, Vietnam's cotton yarn exports to China reached 984000 tons, a year-on-year increase of 13 percent .
In order to meet the demand of textile production and export, Vietnam's cotton import also increased by 12 percent to 1.59 million tons, but the US cotton import decreased by 20 percent year-on-year to 673000 tons, due to the increase of China's procurement of US cotton and the fierce competition from Brazilian cotton and Australian cotton. The US agricultural counsellor predicted that Vietnam's cotton imports in 2021 / 22 would be 1.7 million tons, a year-on-year increase of 7 percent .
According to the report, COVID-19 made a greater impact on Vietnam's textile production and exports in 2021. In order to prevent and control the epidemic, the Vietnamese government has adopted strict blockade measures, requiring textile enterprises to provide employees with accommodation and living needs and nucleic acid testing. The above measures have led to the temporary closure of many factories or a significant reduction in the startup rate, which has had a great impact on Vietnam's textile production, supply and export. The growth from January to July 2021 partially offset the sharp decline starting in August, but the textile and garment exports for the whole year of 2021 will return to the level of 2019.
Vietnam textile and Garment Association predicts that Vietnam's textile and garment exports will be US 36.5 billion in 2021, with a year-on-year increase of 3-4 percent , but a decrease of 7-8 percent over 2019. In addition, the shortage of containers also has a negative impact on Vietnam's textile and garment industry. Fortunately, the impact on Vietnam's spinning mills is less than that on the garment industry. Due to the small number of workers in the factory, spinning is more mechanized than clothing, and the large production scale of the factory, almost all spinning factories can achieve social isolation. At present, they have not been closed.
Vietnam's spinning mills are expected to successfully survive in 2021 due to increased demand in China and rising global yarn prices. According to Vietnam customs data, from January to October 2021, Vietnam's total exports of various types of yarn were 1.6 million tons, with an export volume of US 4.6 billion, an increase of 16.4 percent and 55 percent respectively year-on-year. It is estimated that the annual export volume in 2021 is expected to reach a record high of 2 million tons, and the export volume will exceed US 5.5 billion. In addition, according to Vietnam's trade monitoring data, from January to September 2021, Vietnam's cotton yarn export volume was 861000 tons, a year-on-year increase of 14 percent , and the export volume was US 2.5 billion, a year-on-year increase of 40 percent , mainly due to the maintenance of cotton yarn production, strong import demand in China and the rise of global cotton yarn prices.
Vietnam's cotton yarn exports increased by 1.6 million tons year-on-year, driven by a strong year-on-year increase in China's cotton yarn imports in 2020. Although the price of cotton fluctuated sharply, Vietnam's domestic yarn mills obtained China's import demand. With the recovery of global demand for clothing and the control of the epidemic in Vietnam, Vietnam's cotton imports are expected to reach 1.7 million tons in 2021 / 22, an increase of 7 percent year-on-year, provided that the epidemic in Vietnam and China US trade relations remain unchanged.
