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| In terms of markets, the US and Australia are the two largest export markets supplying cotton to Vietnam. (Source: Cafe F) |
US, Australia earn billions of dollars from Vietnam thanks to cotton
In terms of market, the US and Australia are the two largest cotton suppliers to Vietnam, according to statistics from the General Department of Customs. Specifically, in September 2023, Vietnam imported 12,723 tons of cotton from the US with a value of more than 29 million USD, down 54.2% in volume and 46% in value compared to August 2023.
By the end of the third quarter, our country spent more than 832 million USD to import 378,973 tons of cotton from the US, up 6.28% in volume but down 29.95% in value compared to the same period in 2022.
The average import price reached 2,196 USD/ton, down 25% compared to the same period in 2022.
Vietnam's second largest cotton supplier is Australia. In September, our country imported 66,261 tons worth more than 139 million USD, up 6.54% in volume and 5.24% in value compared to the previous month. In the first 9 months of the year, Australia exported 300,816 tons of cotton to Vietnam, earning more than 668 million USD, up 39% in volume and 2.4% in value compared to the same period in 2022.
The average import price reached 2,221 USD/ton, down 26% compared to the same period in 2022.
Vietnam is currently the world's third largest cotton importer with a consumption of 1.5 million tons/year, the world's sixth largest fiber exporter, and the world's third largest textile exporter - after China and Bangladesh.
The global cotton industry is witnessing a significant decline in both production and consumption, according to the Vietnam Cotton Association. The latest report from the US Department of Agriculture (USDA) shows a large reduction in the forecast for global cotton production in the 2023-2024 season, down 4.2 million bales from the previous season. Production declines in regions such as West Africa, the US, Greece, Mexico and India have overshadowed the increase in production in Brazil.
Major consuming countries like India, China and Pakistan are facing challenges such as falling margins and yarn orders, leading to cautious cotton purchases.
Currently, cotton prices are being affected by two forces: supply and demand. Regarding supply, experts predict that it will decrease in the near future. Regarding demand, the world textile market is still very difficult, it is forecasted that total textile demand this year is likely to decrease by 8-10%, so cotton consumption demand is unlikely to recover.
Vietnam's fruit and vegetable exports hit an unprecedented record
Since the beginning of the year, there have been 18 markets reaching over 10 million USD, of which 7 markets reached over 100 million USD. The largest is China, followed by the US, South Korea, Japan, the Netherlands, Thailand...
Statistics recently released by the General Department of Customs show that in the first half of October, Vietnam's fruit and vegetable exports earned nearly 350 million USD, bringing the turnover from the beginning of the year to October 15 to 4.56 billion USD, up 75.4% over the same period last year. An unprecedented record for Vietnamese fruit and vegetables.
According to the General Department of Customs, Vietnamese fruits and vegetables are currently present in 28 major markets. Since the beginning of the year, 18 markets have reached over 10 million USD, of which 7 markets have reached over 100 million USD. The largest is China, followed by the US, South Korea, Japan, the Netherlands, Thailand, etc.
The Chinese market alone reached more than 3 billion USD, an increase of 160% over the same period last year. China also accounted for 65.3% of the country's total fruit and vegetable export turnover, many times higher than the remaining major markets.
Fruit and vegetable exports to China hit a record thanks in part to the country’s change in its Covid-19 prevention and control strategy, opening its border gates wider. At the same time, China opened its doors to a series of Vietnamese agricultural products for official export such as durian, banana, etc.
In total, agricultural, forestry and fishery products exported to China reached more than 8.7 billion USD, up 16.7% over the same period last year.
Thanks to the acceleration of fruits and vegetables, exports to China in the first 9 months of this year reached more than 42 billion USD, up 2.1% over the same period last year.
Meanwhile, Vietnam's goods exports to other major markets such as the US reached 70.9 billion USD, down 16.8%, the European market down 8.2%, the ASEAN market down 5.5%, South Korea down 5.1%, and Japan down 3%.
According to the Ministry of Industry and Trade, there is still much room for exporting goods to the Chinese market. Therefore, trade promotion activities are being stepped up to exploit potential areas.
Recently, the Prime Minister signed Decision No. 1199 approving the planning of border gates on the Vietnam - China land border for the period 2021 - 2030 with a vision to 2050. The planning of border gates on the Vietnam - China land border includes the provinces of Quang Ninh, Lang Son, Cao Bang, Ha Giang, Lao Cai, Lai Chau, Dien Bien.
More than 30 items have export turnover of over 1 billion USD
According to the Ministry of Industry and Trade, in the first half of October, the country's export turnover reached 14.2 billion USD, bringing the turnover from the beginning of the year to October 15 to 272.7 billion USD, down about 24 billion USD compared to the same period last year.
Notably, the country has more than 30 export items with a turnover of over 1 billion USD, some of which include: seafood, vegetables, cashew nuts, coffee, rice, plastic products, rubber, wood and wood products, textiles, footwear, phones and components of all kinds, electric wires and cables...
The strongest growth among key commodity groups was in fruit and vegetable exports. From the beginning of the year to October 15, exports of this item reached more than 4.56 billion USD, up 75.4% over the same period last year, equivalent to an increase of nearly 2 billion USD.
Mr. Dang Phuc Nguyen - General Secretary of the Vietnam Fruit and Vegetable Association said that in the remaining months, durian from other countries in Southeast Asia is out of season, while Vietnam still has durian growing areas in the Central Highlands that have not been exploited. This will be a great opportunity for the largest export item of the fruit and vegetable industry to continue to increase its turnover in the coming time. It is forecasted that fruit and vegetable exports may reach 6 billion USD, the highest level ever.
In addition, Vietnam’s textile and garment import and export activities are showing positive signs and are likely to recover in the coming months. Many businesses said that recently, partners from Europe, Northeast Asia, Southeast Asia, etc. coming to learn about garment products have tended to increase rapidly compared to previous months. Exports to the US and European markets have also improved.
On the other hand, goods imports in the first half of October reached 12.8 billion USD, bringing the total turnover from the beginning of the year to October 15 to more than 250 billion USD, down nearly 40 billion USD compared to the same period last year.
The results achieved in the first half of October brought the total import-export turnover of the country from the beginning of the year to October 15 to more than 520 billion USD, with a trade surplus of more than 22 billion USD.
Previously, in 2022, the total value of Vietnam's import and export of goods reached more than 730 billion USD. This is a record import and export level ever. In the current context, Vietnam's import and export this year is forecast to decrease by about 10% compared to last year's record level.
India is actively buying this product from Vietnam.
The General Department of Customs said that Vietnam's iron and steel exports in September decreased sharply, reaching the lowest level in the past 7 months, reaching 864,424 tons, with a value of nearly 611 million USD, down 12.5% in volume and 13.5% in value compared to August, but still up 63.6% in volume and 43.6% in value compared to the same period last year.
In the first 9 months of 2023, iron and steel exports reached more than 8.23 million tons, worth nearly 6.30 billion USD, up 27.4% in volume, but down 3.3% in value compared to the same period in 2022. The average export price of this item in the first 9 months reached 764.8 USD/ton, down 24.1% over the same period last year.
In terms of markets, the three main markets importing iron and steel from Vietnam are Italy, Cambodia and the United States. In the first 9 months of 2023, imports from Italy increased by 139% in volume and 58% in value, from the United States increased by 53% in volume and decreased by 12% in value, while exports to Cambodia decreased in both volume and value by 11.2% and 25.2%, respectively.
While steel exports to some markets are falling, one country from South Asia is sharply increasing imports.
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| While steel exports to some markets are decreasing, India is sharply increasing imports from Vietnam. (Source: VNA) |
Specifically, exports of iron and steel of all kinds to India in September reached 132,172 tons, worth more than 93.3 million USD, a sharp increase of 3,036% in volume and 1,051% in turnover compared to September 2022. This is also the month with the highest export output since the beginning of 2023.
By the end of September, iron and steel exports to this market reached more than 535,412 tons, equivalent to more than 400.1 million USD, up 1,279% in volume and 597% in value compared to previous months. India accounted for 6.5% of Vietnam's iron and steel exports in the first 9 months of the year.
In 2019, India became the world's second-largest steel producer, surpassing Japan. The South Asian country's construction sector is booming.
According to research agency ICRA, steel demand in India is expected to register double-digit growth of around 11.3% in FY2023 after growing 11.5% in FY2022. This comes on the back of the Indian government's support for infrastructure development, boosting the economy.
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