U.S. cotton currently has a 20% share of the import market, which is reportedly highly price-sensitive. While the United States has been the second largest supplier for at least the last four years, it has been slowly losing market share to competitors, the most noted of which is India, which jumped from a market share of 5.7% in 2005 to 18.3% in 2006.
Production:
Though cotton may be grown throughout Vietnam, commercial cotton production is concentrated in the Central Tay Nguyen Highlands and the Southeast. The largest cotton growing areas are found in Dak Lak, Dak Nong and Gia Lai provinces in the Central Highlands, which accounts for about 40 to 50 percent of Vietnam's cotton production area.
The second largest cotton growing areas can be found in the Southeast in Dong Nai, Binh Thuan, Binh Phuoc, Ba Ria and Vung Tau provinces. Commercial cotton is not produced in the lowland areas of the Red River and Mekong River Delta, which are prime growing areas for rice, Vietnam's major export commodity.
Cotton production in Vietnam is highly susceptible to weather conditions as more than 80% of the cotton production area is rain-fed, with planting initiated in the rainy season (June/July/August) and harvesting in November/December/January.
In areas with irrigation, cotton crops can be planted in the dry season (November/December) allowing for harvesting in April/May/June. Irrigated cotton areas are in decline in the face of strong competition for this resource from the more lucrative corn, beans and vegetable crops.
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United States Department of Agriculture Foreign Agricultural Service
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