Vietnam: Chinese factories burned or closed

By

Matthieu Guinebault

Published
May 20, 2014

About fifteen Chinese garment factories in Vietnam have been burned in recent days. As a precaution, others have announced suspensions of production. The country is facing a strong anti-China movement following Beijing’s recent placement of an oil rig near the Paracel islands, also claimed by Hanoi.

Violence against Chinese nationals in Vietnam is such that China has ordered their evacuation. Usually quick to quell protests, the Vietnamese government appears reluctant in this case, as measures taken against protesters might be viewed as capitulation to Beijing.

The disorder and confusion is such that looting and attacks have also targeted Taiwanese and South Korean factories, mistaken for Chinese companies. Many factories in affected areas have opted to suspend production.

Such is the case for Yue Yuen, which produces shoes for Adidas and Nike. "We support the decision,” declared the American sportswear company, indicating that they will monitor the situation closely.

Vietnam exported 14.5 billion euros worth of garments last year, a new record. The country is the seventh biggest garment supplier to the European Union, which imported 1.8 billion euros of goods in 2013 (+3%). But the country’s biggest customer is by far the United States, at 6.2 billion euros of goods (+14.2%), representing 43% of total garment exports.