In 2020, 52% of the imported cotton yarns and 61% of the imported cotton knits in Vietnam came from China. The table below shows the proportion of cotton products imported from China to Vietnam in the first half of 2022 (data from the General Department of Vietnam Customs).

The Act threatens to cut Vietnamese producers off from the US market unless they can prove that Xinjiang cotton, or other apparel products, are not used in the production of their goods. Vietnamese firms will need to wean themselves off raw materials produced in China's Xinjiang region in order to ensure long-term access to the US market. Vietnam is the second largest apparel supplier of the US, and the US is the largest importing country of Vietnam’s garments and textiles (tables below). Thus, this Act has tremendously impacted the operations of Vietnamese firms in the industry.