Officials from the cotton sector recently paid a visit to the Texhong Renze's Vietnam factory.
The Cotton Council International (CCI) organized the trip. Texhong Renze's SAP software system, which correctly tacks cotton as it moves through supply chains, was demonstrated to attendees.
“We’re proud of our traceability program and we are inviting all of our customers to examine it directly, and to provide feedback,” senior manager of marketing and development Department of Texhong Kenneth Chen said.
On a yearly basis, the factory uses more than 100,000 tons of cotton that is reported from the U.S. Vietnam is one of the biggest purchasers of tax industrial cotton from the United States, and in exchange, the United States imports around 42% of all textile and apparel produced in Vietnam. In 2021, Vietnam exported yarn worth about $5.6 million, up to 20% of which came from Texhong. The group of cotton executives included CCI executive director Bruce Atherley, past chairman of the National Cotton Council Kent Fountain, CCI head of technical services Joerg Bauersachs, upcoming ACSA chairman Tommy Hayden and Cotton USA Vietnam and Cambodia Program representative William Hung.
Texhong is one of the largest purchasers of U.S. cotton. The group has been active this year in setting up partnerships. A group of Texhong executives visited Lubbock County, Texas earlier this year, which is one of the highest yield counties in the United States for cotton producers, Texas Business Daily reported.
The U.S. Department of Agriculture estimates that the U.S. produced 20 million cotton bales in 2019, with a market value of $7 billion. More than 200 pairs of trousers or 1,200 t-shirts can be made from one bale of cotton. After China and India, the United States is the third-largest producer of cotton, with its fields accounting for 35% of global cotton exports.
Vietnam’s export of cotton products grew at a rate of 17% per year from 2014 to 2019 and is notching annual revenues worth $39 billion of which the bulk of which was in clothing exports, according to Vietnam Briefing.
A textile company with its headquarters in Hong Kong, Texhong Textile Group Ltd. primarily conducts business in mainland China, Vietnam and Macao. It is significantly involved in the production and marketing of colored clothing as well as the processing of cotton, Reuters noted. It has a market value of about $1 billion.