Vietnam's domestic garment and textile sector has to import a large quantity of cotton as the country’s cotton output meets only one per cent of local producers’ demand.Cotton has been the industry’s principal raw material. Vietnam needs more than 4,00,000tonnes to meet the rising demand and imports would continue to be the main source of cotton for the industry.
Farmers are earning more income from the planting of other crops and have become indifferent to cotton. The total land area planted to cotton in Vietnam has been reduced from 30,000 hectares to 10,000 hectares.
Most of the raw materials for the sector come from Africa and are sold to Vietnamese manufacturers through intermediary French and Swiss wholesalers.
The garment and textile sector wants to develop a direct international supply chain with African nations. Eliminating the middlemen would lead to increased price competitiveness in the global marketplace.
Vietnam imports raw cotton from Mozambique, Uganda, Tanzania and Zimbabwe. African cotton is of fairly good quality, reasonably priced and suitable for yarn production.
Cotton growers in Vietnam have had to face numerous difficulties though a cotton development program will be implemented from 2015 to 2020. This will establish areas for cotton plantation.
