Australian delegation visits the spinning mill of Vinatex Phu Hung JSC.
This delegation represents the second in-market visit to Vietnam from the Australian cotton industry in the past 12 months.
In 2022, Vietnam was the largest export market for Australian cotton, with a 38.80 percent market share. From 2020 to 2022, Australia’s exports of cotton to Vietnam increased from A$78 million to an incredible A$1.69 billion.
Vietnam has several 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.
Senior Trade and Invesment Commisioner, Austrade, Rebecca Ball, shared that they were 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.
"The week in Vietnam is a chance to celebrate existing relationships and build new ones,” she said.
The Australian Cotton Vietnam week 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.
