Workers at a footwear factory in Binh Duong Province, which has resumed operation after order was restored at the local industrial zone
The recent riots won’t tarnish Vietnam’s investment environment so long as the government takes drastic measures to prevent further riots and help victims deal with the recent damage, said one expert.
“This is a regrettable case. However, I don’t think that it will hurt Vietnam’s attractiveness to foreign investment,” Nguyen Mai, chairman of the Vietnam Association of Foreign Enterprises, said on the sideline of a Foreign Direct Investment conference in Hanoi on Friday.
People in Vietnam have held demonstrations against China’s recent deployment of a giant drilling rig in Vietnam’s territorial waters, but in the last few days, a number of people have taken advantage of those protests to commit illegal acts, damage property at foreign-invested companies and resist public officers on duty.
Foreign investors may have had negative initial reactions, but everything will return to normal after a few days, he said.
Investors will not move their factories out of Vietnam just because of the riots, Mai said. “Such vandalism, caused by a few bad eggs, happens in other countries as well.”
However, the government should help investors deal with their damages, by offering them incentives to business recover, he noted.
In a meeting with foreign investors on Friday, leaders from the Ho Chi Minh City People’s Committee said the city will offer investors who suffered losses from the riots tax incentives to help them recover their business.
“If localities quickly offer support to investors and protect their rights here, the investment environment will stabilize quickly,” he noted.
The government’s quick response to the situation has eased investors’ concerns.
Reuters quoted Jason Yeo, president of the Singapore Business Association Vietnam, as saying that the riots were “a very isolated incident.”
“The Vietnamese government (officials) are very concerned on this issue and will do their best to protect foreign investors in their country,” Yeo, who has been in the country for 17 years, was quoted as saying.
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