Vietnam’s biggest importer of textiles and garments is China though exports to the US this year are also estimated to go up four per cent against last year. The EU, Japan, India, Brazil, Russia and Canada were also large importers of Vietnam textile and garments in 2016.

However, buyers want higher quality and are moving forward delivery deadlines. Increasing production costs, limited orders and pressure by exporters to reduce selling prices have placed a burden on corporations. Lower selling prices by 18 to 20 per cent, and even 30 per cent, hasn’t helped as buyers find partners who are less expensive in other countries.

The country’s textile and garment sector would continue facing challenges in 2017 due to fierce competition by other major exporters – including China, India, Bangladesh and Pakistan –while global demand is forecast to slow down. Vietnam’s textile and garment exports to the US and the EU are expected to see negative impact, as consequences of Brexit and the new US administration, which opposes the TPP trade pact.

So the sector anticipates an export growth rate of just five to seven per cent next year. It has asked for support measures like strengthening the management of both domestic and foreign investment projects in the industry and reviewing policies on minimum wage increases and working hours.