Building a Vietnam bonded warehouse for U.S. cotton would benefit both countries, Vietnam Textile and Apparel Association (Vinatas) chairman Vu Duc Giang said Friday.
“In the absence of such a warehouse in Vietnam, whether it is an American or Vietnamese investor who can build, all are welcomed. Maybe the first warehouse of this type should be present in Ho Chi Minh City, then in Hanoi or so,” Giang told a press briefing in HCMC on Cotton Day Vietnam 2022, set for October 4.
U.S. cotton imports have been favored by Vietnamese textile and garment companies and used on a large scale for years but have been waiting for so long to see such a facility to help them save time, cut transport costs as well as reduce capital costs, while increasing use of this high-quality American material, the Vitas chair stressed.
He added that global cotton prices fluctuated while Vietnamese spinning companies must import lots of this material, with more than half the imports from the U.S.
“Vietnam’s annual spending on cotton imports averages $4.1 billion to $4.4 billion,” Giang said, adding that Vietnam has been buying U.S. cotton for more than 20 years, a long time for an investor to recognize a real need to build at least one bonded warehouse in the country.
As one of the world’s leading textile and garment exporters, Vietnam needs high-quality cotton, especially American shipments, though they are more expensive than supplies from other sources, the Vitas chair noted.
As for Cotton Day Vietnam 2022 on October 4 at the Sheraton hotel in HCMC, co-held by Vitas and the U.S. Cotton Council International (Cotton USA), the event will include sector-leading speakers who will provide the most updated information on the global cotton market, said Vu Manh Hung, the organization’s Vietnam representative.
Cotton USA president Carlos Garcia will join Lorena Montero, a cotton director from Cargill, and Beau Stephenson, senior vice president, Omnicotton, as key event speakers. Cargill is a world-leading agri-business giant, while Omnicotton is a leading U.S. cotton merchant with experience worldwide.
Green farming and production has become a clear trend worldwide, therefore the Vietnamese textile and garment sector needs to catch up to maintain its export position, said the Cotton USA representative.
The sector earned $30.2 billion in export revenue in the first eight months of this year, a 20% year-on-year increase, according to a report by the Vietnam National Textile and Garment Group. The report said the January-August growth rate was the highest in 10 years.
The industry looks to a total performance of $44 billion for this year, compared to last year’s total export revenue of $40.3 billion, according to Ministry of Industry and Trade data.