Textile industry faces difficulty due to increasing price in imported cotton

In early September, the price of imported cotton was estimated at $1.9-2 per kilogram, equivalent to $1,900-2,000 per tonne, increasing by 9 percent against the previous month, and up 45 percent year-on-year.

The statistics released by Vietnam Textite and Garment Association (Vitas) showed that last year, Vietnamese textile firms had to import 300,000 tonnes of cotton for production and export purposes. From the beginning of the year up to now, the country’s textile industry has imported 260,000 tonnes of cotton valued at $500 million, a year-on-year increase of 30 percent. This year, Vietnam was predicted to import about 370,000 tonnes of cotton.

Vu Huy Dong, chair of management board cum general director of Damsan Textile Joint Stock Co in Thai Binh province said that the cotton price increased sharply since early 2010, especially in the past two months, resulting in the accelerating prices of the company’s products.

Nguyen Ngoc Binh, former general director of Vietnam Cotton Corp recealed that from now til the end of 2010 and the whole year of 2011, the world cotton price would tend to increase significantly, because of the imbalance between import and export. Some potential countries have already increased the import volume for reserving purposes. However, Vietnam textile firms couldn’t do the same due to limited capital. – Dautu

Tags: Vietnam textile industry

Posted by VBN on Sep 26 2010. Filed under Garment Textile. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry