Cotton prices rise Vietnam textile companies operating in crisis

According to Vietnamese textile industry experts, the price per metric ton of imported cotton in Vietnam in early September (2010) ranged from US$1,900 to US$2,000, up 9% and 45% respectively from August of the same year and the same period last year, leading to the top The main reason for the rising import prices of goods was the restrictions on export cotton from India, and the drought and flooding in Pakistan and China.

Vietnam's cotton production can only meet 5% of the domestic textile industry's raw material needs, and it must import large quantities of cotton from the United States, India, and Africa each year.

According to statistics of the Vietnam Textile and Clothing Association (Vitas), Vietnam imported 300,000 metric tons of cotton last year for production of export goods and domestic sales. Vietnam has imported 260,000 metric tons of cotton, worth about US$500 million, from the beginning of the year to the present. Compared with the same period last year, it grew by 30%. It is estimated that 370,000 metric tons of cotton will be imported this year.

According to the view of Vu Huy Dong, Chairman of Damsan Spinning Co., Ltd. of Vietnam Taiping Province, the global cotton price has started to rise at the beginning of this year, especially in the past two months, the increase in cotton price has continued to rise, and the Vietnamese textile industry imports raw materials. In the structure, cotton accounted for 70%, and other raw materials and supplies accounted for only 30%. Therefore, if the imported cotton price continues to rise, it will seriously affect the operation of textile manufacturers.