In July 2018, Vietnam imported 163kt of cotton, up 69.8% year on year and up 11.4% month on month. Cotton imports continued to rise in July, to hit a three-year high. For import origins, U.S. took the first place still, and its proportion rose. Australia ranked the second place due to intensive arrivals, with volumes up to 38.4kt in Jul, up 106% year on year.

I. Cotton imports hit a 3-year high in Jul

Vietnam exported $2.871 billion of textiles and garments in July 2018, an increase of 16.5% year on year and 4.6% month on month. In the first seven months of 2018, textile and garment exports totaled $16.527 billion, up 15.67% from the corresponding period of last year. End-user consumption kept good growth rate. Cotton consumption is expected to keep up in 2018, and may reach a new high further. Export structure is stable, and exports to U.S. remained the largest proportion.

In Jul 2018, cotton imports approached 163kt, an upswing of 69.8% year on year and 11.4% month on month. From Jan-Jul 2018, cotton imports amounted to 988.6kt, up 27.6% year on year. The increase in Jul was mainly attributed to the higher imports of U.S. and Australian cotton. U.S. cotton shipments were delayed one to two months this year due to transport system reform.

II. Australian cotton imports rise significantly

In terms of import structure, the major imported cotton were from U.S., Australia and India in July. Imports of Australian cotton climbed up to 38.4kt, an increase of 106% year on year due to intensive arrivals. Brazilian cotton imports decreased to 2.1kt in July, but the total imports from Jan to Jul moved up largely.

In Jan-Jul, U.S. cotton imports reached 522.8kt, higher about 15.57% compared to the corresponding period of last year; Indian cotton imports totaled 180.2kt, up 39.31% year on year; Brazilian cotton imports rose by 292% year on year to 90.5kt; Australian cotton imports were 60.6kt, up 96% year on year.

Cotton imports of Vietnam and unit prices in Jul, 2018
Origins	Volumes (ton)	Yearly change	Monthly change	Unit price (cent/lb)
U.S.	86,079	85%	6%	87.8
Australia	38,371	106%	215%	78.5
India	14,570	38%	-46%	89.9
Cote d'ivoire	5,774	93%	54%	91.1
Brazil	2,120	164%	-19%	89.5
South Korea	326	279%	-16%	60.2
Indonesia	140	39%	-72%	76.2
Taiwan China	92	44%	61%	43.7
Mainland China	38	6%	-61%	123.7
Argentina	0	-100%	-100%	76.9
Pakistan	0	-100%	-100%	72.7
Other	15,473	0%	-14%	89.2

In terms of unit prices, U.S. cotton prices continued to rise. Australian cotton prices also moved up, which may be attributed to the additional 25% tariff on U.S. cotton from China, and the higher competition from China as China will allocate additional 800kt of sliding-scale duty quotas. It can be seen that the proportion of high-grade cotton has been increasing, and textile industry may face structural change.