Australian cotton industry strengthens relationships with Vietnam’s textile manufacturers

The Australian Cotton Trade Delegation to Vietnam will launch with a series of activities in HCMC, Hue and Hanoi from August 7-11 aimed at strengthening the relationships between Vietnam’s textile manufacturers and Australian cotton producers.

This delegation represents the second in-market visit to Vietnam from the Australian cotton industry in the past 12 months – highlighting the importance of the Vietnam market to Australia; especially in the year that Australia and Vietnam celebrate 50 years of diplomatic relations.

The first Australian Cotton Seminar in HCMC on 7 August
The first Australian Cotton Seminar in HCMC on August 7.

In 2022, Vietnam was the largest export market for Australian cotton, with a 38.8% market share and on current trends it appears Vietnam will remain on of the largest export market for Australian cotton.

From 2020 to 2022, Australia’s exports of cotton to Vietnam increased from A$78 million to an incredible A$1.69 billion. Key supply factors such as favourable weather conditions, increased national crop, premium quality, proven sustainability track record, competitive prices, and proximity are key advantages that have buoyed Australia cotton exports to Vietnam.

Vietnam has several other competitive advantages as an export destination that Australian cotton producers are able to take advantage of including free trade agreements and increasing demand from apparel manufacturers.

Currently, there are three FTAs supporting Australian cotton exports to Vietnam including the ASEAN-Australia-New Zealand FTA (AANZFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Regional Comprehensive Economic Partnership (RCEP).

Australian raw cotton, when it meets the conditions outlined in relevant international Decrees will receive a preferential import tax under these agreements.

Ms Rebecca Ball – Senior Trade and Investment Commissioner, Austrade spoke at the Australian Cotton Seminar.
Ms Rebecca Ball – Senior Trade and Investment Commissioner, Austrade spoke at the Australian Cotton Seminar.

Ms. Rebecca Ball – Senior Trade and Invesment Commisioner, Austrade shared: “We are so delighted to welcome back representatives of Australian cotton to Vietnam with an expanded and more diverse delegation this year, comprising of iconic and innovative brands, workwear, school wear and leisure brands as well as a leading cotton specialist from the CSIRO. Australian Cotton is a success story we should be very proud of. It highlights modern Australian farming – embracing reduced insecticide and water usage to produce a premium product. The week in Vietnam is a chance to celebrate existing relationships and build new ones.”

The Australian Cotton Vietnam week is led by the Australian Cotton Shippers Association (ACSA) and Cotton Australia and supported by the Australian Trade and Investment Commission (Austrade); will include visits to the mills and manufacturers and a series of Seminars in HCMC, Hue and Hanoi. The seminars provide an overview of the Australian cotton industry, updates on the 2023 season and the broader market, brand demands; as well as deepening the knowledge of Vietnam’s textile manufacturers of the Australian cotton supply chain and Australian sustainability practices.

Since becoming the first Australian agricultural industry to independently assess its environmental impacts in 1991, the Australian cotton industry has been committed to continuously improving their sustainability. Australia applies the industry’s sustainable framework named PLANET.PEOPLE.PADDOCK, contributing to 11 of the United Nations’ 17 Sustainable Development Goals (SDGs). Since 1992, industry research data shows an improving trend in many areas. Producing a bale of Australian cotton now requires 52% less water, 97% less insecticides and 34% less land.

Australian cotton industry’s PLANET.PEOPLE.PADDOCK framework contributes to 11 of the United Nations’ 17 Sustainbale Development Goals (SDGs)
Australian cotton industry’s PLANET.PEOPLE.PADDOCK framework contributes to 11 of the United Nations’ 17 Sustainbale Development Goals (SDGs).

Mr Rob Cairns, Export Marketing Consultant of ACSA shared: “The Australian industry wants to build deeper relationships with the local textile and apparel industry as demand and growth is anticipated to increase in the coming years. This trip is the first of its kind with ACSA, Cotton Australia joined by brands and CSIRO researchers to deliver the story of ‘the complete package’ about why Australian cotton should be the fibre of choice for the textile industry in Vietnam.”

Ms Ashley Hollis, Brand Relations Manager of Cotton Australia shared: “The key benefits from this trip are - hearing from spinners about their love for Australian cotton, its quality, colour and strength, driving suppliers demands to continue to work with it. Also, bringing together a diverse group of brands on the tour has opened valuable conversations and knowledge sharing, particularly around traceability, quality, social and environmental strategies. This is what is driving these brands to shift to Australian cotton. It has been such a rewarding week.”

The Australian Cotton Trade Delegation includes representatives of Sportscraft, Struddys, Big W, AS Colour, Modibodi, Workwear Group, New Romantic and Michell Wool.

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(Source: Australian Embassy in Vietnam)