A major financial crisis in the industrial sector of Vietnam has given birth to a wave of strikes which has in turn affected the development speed of the economy. A dual consequence of these circumstances is also that enterprises from Hong Kong are finding it difficult to enter into the domestic market.
RMB appreciation and rising cost of production in China, had forced shoe making enterprises like Huajian Group, to move its manufacturing base to Vietnam. However, with the situation becoming more or less similar in Vietnam as well, other Hong Kong enterprises are now reconsidering their earlier decisions.
Huajian Group had started investing in Vietnam several years ago and by now has shifted only two production lines to the country, but in the current situation of never ending strikes and unstable social conditions, the company has put a halt to any further transfer of production base.
It is therefore quite obvious that stable working environment and economy are the prerequisites for attracting Hong Kong enterprises and other foreign investments.
Fibre2fashion News Desk - China
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