I *think* your vswitch-speed does not help here. It will throttle down speed only on the last leg (between vswitch and VM) but not upstream (between your network and vswitch). So your 1gbit-nic is receiving incomming traffic close to its max, even if it can not pass it further to vSwitch.
Concerning defense, the best is to contact your upstream-provider, and ask him to put some filtering rules into effect, like shaping incomming-traffic for that particular host/IP. But it does not make sense to filter by IPs, they are spoofed anyway.
On your side, not much can be done. One thing that comes to my mind is to use multiple NICs effectively (if you have them), i.e. to connnect vSwitch with VM being ddos-ed to one physical NIC, and all other vSwitches (VMs) to different one.