Growth in Vietnam’s exports to the US slowed for the first time in three months, hurt by lower oil prices and a recession in the world’s largest economy.

Shipments to Vietnam’s largest market rose 20% in the 11 months through November to US$11.57 billion, according to the US International Trade Commission. That was less than the 21% expansion through October, and the first slowdown in the growth rate since August.

Shipments to the US had held up in previous months even as overall exports grew at a slower pace, raising optimism that Vietnam’s lower production costs were helping it gain market share among price-conscious American consumers. Faltering demand from the US may make it harder for Vietnam’s economy to meet the government’s 6.5% 2009 growth target.

“It will probably get worse before it gets better,” Thomas Siebert, chairman of the Ho Chi Minh City branch of the American Chamber of Commerce in Vietnam, said Wednesday. “Orders are down. (Producers of) garments are probably feeling the most pain because that is the biggest export industry to the US.”

Apparel exports to the US rose 21% to $4.75 billion through November, down from a 23% rate through October. Footwear shipments advanced 16% to $1.11 billion.

Vietnam’s footwear industry has to increase investment in the production of raw materials to improve its competitiveness, according to a report released this month by the US International Trade Commission.

Crude oil

November to $615 million, down from a 72% rate of expansion through October.

The average price of global crude futures in November was about 47% lower than in the first 10 months of the year. The country’s oil production has declined each year since 2005.

Furniture exports climbed 19% to $1.33 billion, while seafood shipments through November rose 10% to $695 million. Coffee exports to the US fell 4% to $277 million.

Global coffee prices have been hurt as investment funds “reduce their exposure to coffee in order to cover margin calls for other investments due in response to the global credit crunch,” the US Foreign Agricultural Service said in a report last month.

US exports to Viet Nam rose 59% through November to $2.5 billion, as vehicle shipments climbed 57% to $313 million. (Bloomberg)