The affect of a sharp fall of cotton price on Vietnam clothes manufacturers

During the last 6 months of 2011, the cotton price was at peak on March worthing 229.67 cents per pound of cotton.
 

Many of Vietnam clothes manufacturers had to endure with this high price at the time because they need to import 80% of this type of materials to be able to make enough yarn for export.
 

However, the price of cotton dropped considerably in April and May. At the end of May the price of a pound of cotton was recorded to be 165.52 cents per pound. This was a hit on Vietnam clothes manufacturers causing a great loss to their production.
 

Besides, “The import price, inclusive of cost, insurance and freight, has dropped from US$4.2 per kilo when the contract was signed to nearly US$3.2 when the cargo arrived in the storehouse in Vietnam that took nearly one month. After production, the yarn currently has the new sales price at only US$3.9 per kilo and that explains why many yarn manufacturers incur losses,”