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  • 6.9.5-MARKET PROFILES-EXPECTED MARKET DEVELOPMENTS

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  • Expected market developments

    Chapter 6 - Market profiles - Vietnam  

     
     

    As mentioned earlier, the production of cotton in Viet Nam is in competition with other crops of higher value for exports. Furthermore, since 2005 the quotas imposed on imports of cotton have been removed, and since January 2007 the import tariff has been reduced to 0% for both uncarded and uncombed and carded or combed cotton. As a result, the domestic production of cotton is not projected to increase to replace imports.

    As shown in table 21, the total consumption of uncarded and uncombed cotton (HS 520100) in Viet Nam increased by 32% in 2004, 17% in 2005, and 11% in 2006.

    Based on the conservative assumption that in the next three years the total consumption of raw cotton in Viet Nam will increase by 11% per year on average, and domestic production will continue at the same level of 28,359 tons per year as in 2006, Viet Nam will need to import about 187,000 tons of cotton in 2007, 211,000 tons in 2008, 237,000 tons in 2009, and 266,000 tons in 2010.


    6.9.5-en1 

    The International Cotton Advisory Committee (ICAC)'s projected supply of and demand for raw cotton in Viet Nam are presented in table 38.

     6.9.5-en2