Vietnam's textile exports have grown nine per cent since the beginning of the year. But this is the lowest growth recorded for the last three years, and well below the 19 per cent recorded for the same period last year. Exports have reached $12 million but only 27.5 per cent of this was from domestic firms. Foreign-invested firms account for the vast majority.

The textile industry has faced many difficulties this year, with smaller orders coming from regular markets such as Japan and the EU. Orders are still being placed but most are still small. And the situation is likely to continue. When Vietnam’s textiles to the EU and Japan reach consumers their prices are much higher and fail to sell. Although the US market is showing some positive signs it cannot compensate for declining orders from Japan and the EU.

The reasons behind smaller orders include an increase in exchange rate as well the economic crisis in Greece, which is affecting the EU economy. Textiles are a major export of Vietnam. The textile and clothing industry represents a key source of industrial employment, especially for women, and is a leading industry for overall growth and industrialization.