Observation of Overseas Cotton Textile Market in 2023

Vietnam

Vietnam's "Investment News" reported on August 25 that Vietnam's textile industry still has a lot of room for development, and there is a huge demand for foreign capital. According to statistics from the Foreign Investment Bureau of the Ministry of Planning and Investment of Vietnam, as of May 18, 2022, Vietnam's textile industry has a total of 2,787 effective foreign direct investment projects with a total registered capital of 31.3 billion US dollars. Ruan Yingjun, deputy director of the Foreign Investment Bureau of the Ministry of Planning and Investment of Vietnam, said that Vietnam's textile industry lacks the connectivity of the value chain. Vietnam has a large trade surplus in yarn and clothing, but also a large trade deficit in cloth. The yarn produced is mainly used for export, while domestic fabrics only meet nearly 50% of the demand, making Vietnam import more than US$10 billion of various fabrics every year. The shortage of fabrics is a potential market that attracts foreign investment in Vietnam's fabric and yarn production.

India

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

Pakistan

Since mid-June, South Asia bid farewell to the dry weather and ushered in monsoon rains. Pakistan began to experience rainfall far exceeding normal levels in previous years, which caused severe floods. As one of the major cotton-producing countries in the world, Pakistan has been affected by floods in the four major cotton-producing areas. Among them, Sindh Province has been severely affected. Some Pakistani officials and market stakeholders initially estimated that the new crops affected by the floods accounted for about four to five become. The initial economic damage from the floods could be at least $10 billion, and it could take five years to rebuild and recover from the flood damage.