Mr. Vo Manh Hung, Chief Representative of the American Cotton Corporation (CCI) in Vietnam: The United States is Vietnam's largest export market for textiles and garments.

​According to the Vietnam Textile and Garment Association, in 2017 Vietnam imported about 1.2 million tons of cotton with turnover of 2.4 billion USD. In particular, cotton imports from the US market account for over 50% of the ratio. This is also the largest export market of Vietnam's textile and garment products.

 Mr. Vo Manh Hung, Chief Representative of the American Cotton Corporation (CCI) in Vietnam.

Each other’s major markets

For many years as a representative of CCI in Vietnam, how do you evaluate the domestic textile industry?

- Vietnam is the world's largest exporter of textiles and garments and its annual turnover has been rising steadily, so the demand for cotton for textile and garment production is huge. In recent years, more than 99% of the production of cotton for spinning is imported from countries such as India, Australia, United States ... Specifically, each year Vietnam must import more than 1 million tons of cotton. The amount of cotton imported rises quite high each year. In 2016, Vietnam only spent more than 1.66 billion USD on cotton import, which has increased to 2.4 billion USD in 2017.
   By 2018, Vietnam's apparel exports will reach $ 34-34.5 billion, an increase of $ 3-3.5 billion over 2017, meaning that cotton imports of domestic firms will maintain its high growth in output. Vietnam's textile industry is quite developed and highly appreciated in the international market both in terms of quality and professionalism.By 2018, Vietnam's apparel exports will reach $ 34-34.5 billion, an increase of $ 3-3.5 billion over 2017, meaning that cotton imports of domestic firms will maintain its high growth in output. Vietnam's textile industry is quite developed and highly appreciated in the international market both in terms of quality and professionalism.

More than 50% of Vietnam's cotton imports come from the United States. Importing cotton from this market, what benefits will businesses enjoy?

- Currently, the United States is the largest textile export market of Vietnam, accounting for more than 30% of total export turnover, but this is also the market that Vietnamese businesses import the most cotton with more than 660 thousand tons /year. Cotton is imported from the United States has the advantage of clear origin, stable quality and the partner companies are reliable. When cotton prices rise, US businesses still supply goods in accordance with contracts. Therefore, businesses have signed contracts to buy cotton with US businesses can be assured of quality, quantity and delivery deadline.
   Thus, in recent years, many textile and fiber companies in Vietnam have switched to importing cotton from the United States. The origin of cotton in the United States is clear, so Vietnamese garment enterprises can export end-user products to the United States, Europe, Japan, Korea and other countries.
Is Vietnam a big cotton export market of the US?
- CCI is very important in the Vietnamese market as it is a large export market that accounts for more than 25% of total US cotton exports. In 2017, Vietnam imported about 660,000 tons of cotton from the United States and is expected to increase by more than 10% in 2018. CCI is continuing to expand its cotton exports to Vietnam as it is a potential market with relatively high annual growth rates.
   The United States is leading the world in cotton export. Vietnam's demand for cotton imports increases every year and domestic firms tend to import materials from the United States due to its assured quality.

Is the cotton price of the United States competitive compared to that of major cotton countries?

- Compared to countries with large cotton exports such as India, Australia, Brazil, Ivory Coast, the cotton price of the United States is quite competitive, many Vietnamese businesses have increased cotton imports from the United States. Vietnam is importing cotton from 10 countries in the world, but cotton imports from the United States account for more than 50%. Cotton is the raw material for the production of cotton fiber for domestic garment and for end-user product export. Vietnam is now the fifth largest garment exporter in the world and garment is the second largest among the export items, and has maintained its high growth rate over the past five years.
   The increase in textile and garment exports has led to an increase in the demand for cotton as raw materials by 20% on average per year. Specifically in 2016, Vietnam imported about 1.020 million tons of cotton, in 2017 the amount increased to nearly 1.2 million tons of cotton. Vietnam, along with Bangladesh and China, are the three largest cotton importers in the world.The increase in textile and garment exports has led to an increase in the demand for cotton as raw materials by 20% on average per year. Specifically in 2016, Vietnam imported about 1.020 million tons of cotton, in 2017 the amount increased to nearly 1.2 million tons of cotton. Vietnam, along with Bangladesh and China, are the three largest cotton importers in the world.

Incentives for garment and textile industry
What are CCI’s preferential policies for Vietnam, a major import market for cotton?
- Vietnam is a big potential import market for cotton. Therefore, CCI is very interested in facilitating enterprises in terms of goods delivery procedures reducing time and cost. In 2017, for the first time, CCI organized a festival in Vietnam to introduce US cotton to Vietnamese garment enterprises, policies and procedures for import and export as well as contact information in case of difficulties or problems that occur during the delivery.
In addition, CCI also provide assistance to Vietnamese fashion firms using cotton fiber from the United States in the design, promotion and promotion of domestic and foreign trade. These policies will be maintained and expanded to foster the development of Vietnam's textile and garment industry.
Recently, many businesses have hoped for a bonded warehouse for American cotton imported to Vietnam . How does CCI and the Vietnam Textile and Garment Association support this?

- Immediately after the recommendations of Vietnam garment enterprises on this issue, the Vietnam Textile and Garment Association and the CCI have jointly recommended the Government for early implementation in order to facilitate cotton importing enterprises. I think this will be implemented in the near future, as it facilitates Vietnam's garment industry in quick access to raw materials for production, thus contributing to the growth of the industry.
Dong Nai imports large quantity of cotton to serve the textile industry, which agencies will businesses which want to switch to importing cotton from the United States need to contact for quick support in procedure?

- CCI has a representative office in Vietnam so when the company needs to learn more about import policies or partners, they can contact the office directly. CCI is a not-for-profit organization that represents the entire seven segments of the US cotton industry, with approximately 20 representative offices operating in 50 countries around the world. The United States ranks third in the world in cotton production, but it is the leading exporter of this item. Cotton imported from the United States has clear origin, so textile products with materials imported from this country will have more advantages when exported to the market.

Thank you!
Dong Nai is among the four largest cotton importing provinces in Vietnam and also one of the leading textile and garment exporters in the country. In 2017, Dong Nai imported more than 334.1 thousand tons of cotton with a turnover of about 607 million, accounting for nearly 30% of the country's cotton imports. Nearly 60% of Dong Nai's cotton material for production is imported from the United States. For the first two months of 2018, Dong Nai businesses imported about 71,000 tonnes of cotton, equivalent to $ 131.3 million. The United States is now the largest textile and garment export market of Dong Nai.

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