1/ Overview of the Global Cotton Yarn Market
What we are seeing is that the cotton yarn market is going through a period of strong growth, with positive news showing that the cotton yarn category is still on a remarkable growth trajectory expected to reach a compound annual growth rate (CAGR) of 7.8%. Specifically, from 72.7 billion USD in 2024, the market will increase to 78.3 billion USD in 2025 and is estimated to reach 192.8 billion USD in 2037. This development reflects the increasing demand for cotton yarn globally, with the potential for continued expansion in the future, which is entirely feasible.
2/ Vietnam’s Competitive Edge in the Textile Industry
In Vietnam, where we are always ready to provide global customers with quality products, with many outstanding competitive advantages:
• Free Trade Agreements (FTAs): Agreements such as CPTPP, EVFTA and RCEP help Vietnamese textiles and garments benefit from tariffs in major markets such as the US, EU and Japan.• Low raw material costs: with cotton and fabric prices currently at their lowest since 2020, creating optimal conditions for cutting production costs
• Strong production units and workforce: More than 7,000 enterprises and 3 million workers with solid expertise ensure product quality
The strong resilience of the industry is demonstrated by the Industrial Production Index (IIP), the garment industry increased by 10.3% in the first 10 months of 2024, reinforcing the belief in our country’s outstanding development.
3/ Vietnam’s Export Achievements and Future Goals
• In 2024, the Vietnamese textile and garment industry achieved impressive achievements in exports, with a turnover of 44 billion USD, an increase of 11% compared to 2023
• Orienting for the future, the industry aims to achieve 48 billion USD in export revenue by 2025, affirming sustainable development and great potential in expanding the international market.
COTCO is extremely proud to share with our partners that the Vietnam Textile and Apparel Association – VITAS has just celebrated its 25th anniversary, with the beginning mainly serving domestic consumption needs, the export turnover is very small compared to Thailand, Indonesia, Philippines… to now rise to the position of the third largest exporting country in the world, only after China and Bangladesh.