Overseas cotton textile market observation

Overseas cotton textile market observation

Vietnam

Vietnam's textile industry still has a lot of room for development and a huge demand for foreign investment, Vietnam Investment News reported on Aug. 25. According to statistics from the Foreign Investment Agency of Vietnam's Ministry of Planning and Investment, as of May 18, 2022, there were 2,787 valid FDI projects in Vietnam's textile industry with a total registered capital of US$31.3 billion. Nguyen Anh Tuan, deputy director of the Foreign Investment Department of the Ministry of Planning and Investment, said Vietnam's textile industry lacks connectivity in the value chain. Vietnam has a large trade surplus in yarn and garments, but also a large trade deficit in fabrics. The yarn produced is mainly for export, while domestic fabric only meets nearly 50% of the demand, making Vietnam import more than $10 billion of various fabrics every year. The fabric shortage is a potential market to attract foreign investment in Vietnam's fabric and yarn production.

India

Following an extensive crop survey, the Bathinda-based industry body ICAL recently announced that cotton production in Punjab, Haryana, Upper Rajasthan and Lower Rajasthan is expected to increase to 5.83 million bales in the new 2022-23 season. Officially, the new cotton year starts in October and ends in September next year. The market is expected to gain significant growth in mid-September. A portion of the new cotton crop in the region is already available.

Pakistan

Since mid-June, South Asia said goodbye to dry weather to usher in monsoonal rains, Pakistan began to experience rainfall well above normal levels in previous years and triggered major floods. Pakistan as one of the world's major cotton producing countries, the four major cotton producing areas are affected by the floods, including Sindh province was seriously affected by the situation, some Pakistani officials and market stakeholders preliminary assessment of the floods affected by the new crop accounted for about forty to fifty percent. The initial economic losses caused by the floods may be at least $10 billion, and it may take five years to rebuild and restore the losses caused by the floods.