Vietnam textile and apparel imports and exports see signs of improvements in Q2

In June 2023, compared to the same period last year, cotton imports in Vietnam increased by 26.2%, but decreased by 19.1% month-on-month. Yarn imports increased by 3.7% year-on-year and 5.9% month-on-month. Yarn exports increased by 17.4% year-on-year but decreased by 3.9% compared to the previous month. Net yarn exports increased by 48.8% year-on-year, but decreased by 16.4% month-on-month. Imports of grey fabrics decreased by 16.6% year-on-year and 9.3% month-on-month. Textile and apparel exports decreased by 14.7% year-on-year, but increased by 4.9% compared to the previous month.

1. Vietnam's cotton imports increase y-o-y but decline m-o-m in Jun

According to statistics, Vietnam imported 117.9kt of cotton in June 2023, up 26.2% year-on-year but fell 19.1% month-on-month. As of the end of the second quarter of 2023, Vietnam's total cotton imports reached 630kt. In the first quarter, cotton imports were 242.2kt, and in the second quarter, a total of 387.9kt were imported, resulting in a year-on-year increase of 24.75% and a month-on-month increase of 60.17% in cotton imports in the second quarter.

In terms of countries, the United States was the largest source of cotton imports to Vietnam this month, with an import volume of 70,503 tons, accounting for about 59.79% of the total imports. Australia and Brazil were the second and third largest sources, with import volumes of 17,678 tons and 10,716 tons, accounting for 14.99% and 9.09% of the total imports, respectively.

2. Vietnam's yarn imports move down y-o-y but move up m-o-m in Jun

In June 2023, Vietnam imported 94.7kt of yarn, an increase of 3.7% compared to the same period last year and an increase of 5.9% compared to the previous month. As of the end of the second quarter, Vietnam imported a total of 509,200 tons of yarn. In the first quarter, yarn imports were 240,800 tons, and in the second quarter, a total of 268,500 tons were imported, resulting in a year-on-year decrease of 3.17% and a month-on-month increase of 11.51% in yarn imports in the second quarter.

In terms of countries, the main sources of yarn imports in June were China, Taiwan and South Korea. Among them, Vietnam imported 59568 tons of Chinese yarn, accounting for about 62.89% of the total imports, imported China Taiwan 8588 tons, accounting for about 9.07% of the total imports, South Korea replaced Indonesia, Vietnam's third largest importer of cotton yarn in June, imported South Korea 8078 tons, accounting for about 8.53% of the total imports.

3. Vietnam's yarn exports rise y-o-y but decline m-o-m in Jun

In June 2023, Vietnam exported 154,000 tons of yarn, a year-on-year increase of 17.4% but a decrease of 3.9% compared to the previous month. As of June, Vietnam has exported a total of 806,400 tons of yarn. In the first quarter, yarn exports were 347,900 tons, and in the second quarter, a total of 458,500 tons were exported, resulting in a year-on-year growth of 31.79% and a month-on-month growth of 10.79% in yarn exports in the second quarter.

In terms of countries, the main export destinations for Vietnamese yarn in June were still China, the United States, and South Korea. Exports to China amounted to 81,994 tons, accounting for 53.24% of the total exports. Exports to the United States were 10,879 tons, accounting for 7.06%, and exports to South Korea reached 9,804 tons, accounting for 6.37% of the total exports.

According to the latest detailed data as of the second quarter, the export structure of yarn in the second quarter of 2023 has undergone some changes compared to the same period in 2022. China remains Vietnam's main export destination for yarn, with its share rising to 56%, while the shares of South Korea and the United States have slightly decreased.

4. Vietnam's net exports of yarn rise y-o-y but fall m-o-m in Jun

In Jun 2023, the net export of yarn was 59.3kt, up 48.8% from last year's 39.8kt, and a decrease of 16.4% month-on-month.

5. Vietnam's grey fabric and woven fabric imports pare back both y-o-y and m-o-m in Jun

In June 2023, the import value of grey fabric and woven fabric in Vietnam was $1.086 billion, a year-on-year decrease of 16.6% and a month-on-month decrease of 9.3%. As of June, Vietnam has imported a total of $6.418 billion worth of grey fabric and woven fabric. In the first quarter, imports amounted to $2.985 billion, and in the second quarter, imports amounted to $3.433 billion, representing a year-on-year decrease of 21.06% and a month-on-month increase of 15% in fabric imports in the second quarter.

In terms of specific countries, in June, the main source of grey fabric and woven fabric imports of Vietnam were China, South Korea and Taiwan, of which, the import of China's grey fabric and woven fabric reached 677 million US dollars, accounting for about 62.42% of the total imports, the import from South Korea was 145 million US dollars, and those from China Taiwan amounted to 108 million US dollars, accounting for 13.34% and 9.96% of the total imports respectively.

6. Vietnam's textile and apparel exports pare back y-o-y but elevate m-o-m in Jun

Vietnam exported 2.916 billion US dollars of textile and apparel in May, a decrease of 8.0% year-on-year but an increase of 14.8% month-on-month. In May, Vietnam's textile and apparel were mainly exported to the United States, Japan, and South Korea, of which exports to the United States stood at $1.331 billion, accounting for 45.64% of the total exports, those to Japan reached $296 million, and exports to South Korea were $152 million, accounting for 10.13% of the total exports, 5.23%.

In June 2023, Vietnam exported textile and apparel products worth $3.06 billion, down 14.7% year-on-year but up 4.9% month-on-month. As of June, 2023, Vietnam's total textile and apparel exports reached $15.688 billion. The exports amounted to $7.171 billion in the first quarter, and $8.517 billion in the second quarter, resulting in a 14.04% year-on-year decrease and an 18.78% month-on-month increase in textile and apparel exports in the second quarter.

In terms of countries, the main export destinations for Vietnamese textile and apparel products in June were the United States, Japan, and South Korea. Exports to the United States amounted to $1.462 billion, accounting for 47.79 per cent of total exports, while exports to Japan and South Korea were $328 million and $198 million, respectively, accounting for 10.70% and 6.46% of total exports.

According to the latest data, the export structure of Vietnam's textile and apparel products in the second quarter of 2023 has not changed significantly compared to the same period in 2022. The United States remains the main destination for Vietnam's textile and apparel exports, although its share has slightly decreased compared to last year. While the shares of Japan, China, and South Korea have remained relatively stable.

In conclusion, Vietnam's textile industry performed modest in June in terms of imports and exports. Cotton imports, yarn exports, and grey fabric and woven fabric imports decreased compared to the previous month, while yarn imports and textile and apparel exports increased. Looking at the data as of the second quarter, the textile and apparel industry in Vietnam showed significant improvement in the second quarter compared to the first quarter. However, yarn imports, textile and apparel exports, and grey fabric and woven fabric imports were all underperformed compared to the same period in previous years, and the overall changes in import and export sources were not significant.