Vietnam's textile and garment exports in the first nine months of this year were 32% higher than the same period last year, the latest data from the Ministry of Industry and Trade shows.

But while exports rose to US$10.5bn from January to September, growth showed signs of slowing in September. During the month, export turnover was US$1.4bn, some $200m lower than in August.

In addition, the share of shipments to the US - the biggest market - is also down. The US accounted for 56.2% of Vietnam-made textile and garment products in the first nine months of 2010, but was down to 50% in the first three-quarters of 2011.

In contrast, exports to other two major markets enjoyed a strong increase. Shipments to the EU are up to 18% of total turnover from 15% in same period last year, while the Japanese market accounts for 12%.

According to Mr Le Tien Truong, deputy general director of Vietnam National Textile and Garment Group (Vinatex), local manufacturers and exporters have been facing various challenges - one of which is a lack of orders because of increasing competition from India and Indonesia.

To attract clients, exporters in India and Indonesia have reduced their prices, while local Vietnamese enterprises are struggling to cope with higher production costs, adds Mr Nguyen Van Do, general director of DHA group, a garment manufacturer located near Hanoi.