Home / Knowledge / News / Textiles / 'Vietnamese cotton industry needs to manage risk' – Expert
'Vietnamese cotton industry needs to manage risk' – Expert
22
Jun '11
Vietnam's cotton industry can protect itself against volatile world market prices by enhancing its focus on risk management, says Dr. Gary Adams, Vice-President of the National Cotton Council of America's Economic and Policy Analysis.

While addressing a seminar in Ho Chi Minh City, Dr. Adams said that it is essential for Vietnam to identify ways to deal with the fluctuating cotton prices.

“Vietnam would have to work out ways for hedging of some costs of raw inputs, formulating strategies within the future market or hedging to cut down on that risk”, Adams said and added that some of the textile units could even consider working with traders supplying cotton.

He, however, also said that though adopting some strategies and risk management techniques while working with these traders may prove helpful, these may not necessarily lead to reduction in cotton prices. But, it may possibly alleviate some of the risks that come with volatility in prices, he added.

General Secretary of the Vietnam Cotton and Spinning Association, Nguyen Hong Giang said that Vietnam needs to depend on imports, to fulfil its domestic demand. He added that around 40 percent of the country's shortfall is met through imports from the US, 15-16 percent from India and the rest through imports from Australia, former Soviet Union nations and West Africa.

To cope with this heavy dependence, cotton growers are given several incentives to persuade them to undertake cotton cultivation, as the Government intends to enhance the self-reliance in yarn supply, for which cotton is a raw input.

Giang further said that domestic production remains low, as cotton production is undertaken in the country on a very small scale which hardly comes to one hectare per household. Due to this, it has become difficult to introduce mechanisation in cotton cultivation, which increases the cost of production.

Presently, cotton is grown in Vietnam in Son La, a northern upland province, and in the south-central provinces of Ninh Thuan and Binh Thuan in the Tay Nguyen (Central Highlands) province of Dak Lak, Giang said.

Adams said that he foresees Vietnam will continue exporting cotton textile items, particularly to the US.

He said that Vietnam is emerging as a textile item supplier to the US and that much depends on rise in demand for cotton textile items from the US's customers, as Vietnam is as competitive as other countries to get a market share in the US.

Editor's note-Risk management in the face of volatile market prices is recommended as a necessary tool everywhere.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 20th Feb 2017

UK textile & apparel exports up 7.05% in 2016: UKFT

The exports of apparel and textiles from the UK have increased by...

Textiles | On 20th Feb 2017

Himatsingka Seide incorporates subsidiary in Europe

Himatsingka Seide Ltd, one of the largest producers of home textiles...

Courtesy: Green Initiatives

Apparel/Garments | On 20th Feb 2017

Green Initiatives launches Re:Form to end textile waste

Green Initiatives, a non-government institution, has launched...

Interviews View All

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search