Monday, November 24, 2014   




Investment appetite takes hit after riots

Ling Wang

Thursday, May 15, 2014


Hong Kong merchants said they will be more cautious when investing in Vietnam and described the situation as very critical following the anti-China riots.

Chinese Manufacturers' Association of Hong Kong president Irons Sze Wing-wai said even Vietnamese who work in Chinese factories "were being beaten up."

As of July last year, Hong Kong is Vietnam's sixth- largest foreign direct investor, involved in 737 projects worth US$126 billion (HK$982.8 billion). They are mainly in textile and clothing, food, packaging and toys.

Among Hong Kong-listed firms, Mainland-based Texhong Textile (2678) said minor damage was caused to the group's properties, including panels of machinery, windows and computers. The company expects to restart operation in a short time.

Mainland electronic component maker Fittec International (2662) said its factory was torched and looted by rioters. It had been temporarily suspended from operation. The company could not estimate the losses. Shares of Fittec International fell 3.8 percent before it halted trading yesterday afternoon.

Li & Fung (0494), which supplies retailers like Kohl's Corp and Wal-Mart Stores with clothing, toys and other products, said some of its suppliers in Vietnam had halted production as a precautionary measure.

Taiwan's Yue Yuen Industrial (0551), maker of footwear for companies such as Nike and Adidas, said it had also suspended production. But a spokesman said the riots will not have a significant influence o
n the company's business. Yue Yuen shares slumped by 5 percent yesterday to HK$22.1.

Lee & Man Paper Manufacturing (2314) chief executive officer Lee Man- bun said its business is in a remote area and managed by Japanese and has not been affected.

Hong Kong-Vietnam Chamber of Commerce president Jonathan Choi Koon-shum said he hopes the protests will calm down soon, "otherwise investment appetite will be affected."


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