Home / Knowledge / News / Textiles / 'Vietnamese cotton industry needs to manage risk' – Expert
'Vietnamese cotton industry needs to manage risk' – Expert
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 1st May 2017

FESPA to showcase digital, screen, textile industries

Stage is set for FESPA 2017 at the Hamburg Messe, Germany during May...

Textiles | On 30th Apr 2017

Government revamping tech mission on cotton

Indian Government is working to revamp the technology mission on...

Apparel/Garments | On 30th Apr 2017

Columbia Sportswear records Q1 net sales of $543.8 mn

Columbia Sportswear Company has announced record net sales of $543.8...

Interviews View All

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Ashok Desai
Bombay Textile Research Association

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

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Ritu Kumar
Label Ritu Kumar

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

Sonam & Paras Modi

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

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
April 2017

April 2017

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


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search