Vietnam's clothing companies have asked to focus on the Russian and Japanese markets, because competition in the US market is expected to heat up, and the US recession has reduced consumer spending.

Vietnam's textile and clothing export units need to prepare for next year's panda competition from China's export units, Vietnam's industrial officials warned.

As the country's first export sector, the textile sector has struggled, and the global economic crisis has reduced demand, forcing local companies to cut production and lay off workers.

Diep Thanh Kiet, vice president of clothing, textiles, embroidery and real associations in Hu Zhiming, said the situation will be more severe next year, and the US quota for clothing and textiles protection in China will end in January 1, 2009.

With the cancellation of quotas, China will be more free to export more textiles and clothing to the United States.

The United States is the main export market of Vietnam's clothing and textile industry, accounting for 55% of its export earnings.

Besides, the United States has not announced whether it will continue to monitor clothing imported from Vietnam next year.

According to a plan terminated in January 1st, the US authorities have the right to choose restrictions on trousers, shirts, underwear, swimsuits and sweaters exported from Vietnam to the US market.

Li Guoan, President of the Vietnam textile and clothing association, predicted last month that the United States would extend the special surveillance plan for at least one year.

If China's exports to the US are no longer subject to quota restrictions, Vietnam's exporters will find it difficult to compete directly with Chinese manufacturers in terms of low and medium price.

Another possibility is that both China and Vietnam will encounter monitoring plans, Diep Thanh Kiet said.

In this case, local production units hope that Vietnam's products will not be subject to stringent monitoring plans like Chinese products.

The export units of textiles and clothing sectors in China and Vietnam have been hit hard by the global economic deterioration.

Yang Jing: editor in charge