Vietnam’s textile-garment exports are up 10 per cent in 2015 as against 2014. Apparel shipments to the US have climbed nearly 13 per cent this year while exports to the EU have grown six per cent, to Japan by eight per cent and to South Korea by 8.77 per cent.

However, despite a jump in apparel exports this year, profits remained low as firms have had to cut prices to compete with rivals amid a global economic slump and fall of many currencies against the US dollar. For instance, China, India and Indonesia devalued their currencies, making exports more competitive. Therefore, Vietnamese manufacturers have had to cut prices, leading to lower profits. On the other hand, cotton prices have plunged below 60 cents per pound and filament polyester prices dipped to their lowest in October. This left a negative impact on cotton producers, who had to lower prices or suspend deliveries.

The textile-garment sector will have to cope with a slew of challenges in 2016 as the exchange rate with the dollar will likely fluctuate. This will affect firms’ export prices, revenue and profit. However, Vietnam’s participation in bilateral and multilateral free trade agreements has made the country’s textile-garment products attractive to importers.