Financial Crisis In Vietnam, Enterprises Wake Up Investment Paradise

Vietnam, as an emerging market in recent years in Asia, has been a vision for investors. But after its economic crisis, the views on "investment boom no longer, investors should not touch hands" are frequently seen in newspapers.

Guo Sizhi, director of Ping He securities, said: "the situation in Vietnam is a matter of concern, high inflation and huge increase in financing costs, which really brings great pressure to the financial situation of enterprises."

"It is suggested that Chinese enterprises should wait and see. The volatility has been relatively large in recent times, especially if the currency is not stable.

Gu Zhaoqing, vice president of the Chinese Chamber of Commerce in Hanoi, is also not optimistic about the investment of Chinese enterprises in Vietnam.

Zhang Diansheng, general manager of Hengsheng (Vietnam) investment consultant, a consultancy for Chinese funded enterprises, said he knew that in the Zhan Peng Industrial Zone, which was concentrated in 23 Chinese enterprises and located in the southwest of Vietnam, two factories recently stopped construction because of the rising price of construction materials and currency depreciation.

"There are two main considerations for Chinese funded enterprises to invest in Vietnam: first, to avoid anti-dumping in Europe and America and to enjoy local tax preferences.

As one of the ASEAN member countries, Vietnam's manufacturing products enjoy a certain tariff advantage in the ASEAN region, while the bilateral trade agreement provides a broad export market for Vietnamese products.

Two, Vietnam has not yet made special regulations on environmental pollution.

These advantages have not disappeared with the economic turmoil. "

Zhang Diansheng has not totally denied the future trend of Chinese enterprises' investment in Vietnam. "Although Vietnam will control the environment one day, it has not yet been put under control, and it should have ten years of vitality, so there is room for development in leather, chemical, printing and dyeing industries."

A research report by the Institute of world economics and politics of the Chinese Academy of Social Sciences also pointed out that Vietnam has become a vital part of the global division of labor.

With the development of manufacturing pfer and intra industry specialization in Vietnam, Vietnam will be an important link in the international production chain.

After China's further development, it will also pfer investment to Vietnam and other places, which will be a win-win for China and Vietnam.

In the short span of two months, the real estate market in Vietnam has been booming from a boom to a rebound.

Morning Post reporter was informed that Vietnam's housing prices recently plunged nearly half, a large number of real estate development enterprises have been set up in Vietnam, the local government investment projects have also been halted.

The government investment project halt the China Construction Engineering Corporation, which will soon enter the A share market in the form of IPO, is one of the largest international contractors in Vietnam, and is responsible for the construction of a large number of Vietnamese government projects.

Yesterday morning reporter yesterday interviewed Zhang Pei, chairman of Vietnam construction branch of China Construction Group Corporation. He was informed that the local government had stopped many government investment projects under the influence of the economic crisis.

Zhang Pei said that most of the projects undertaken by China Construction Corporation in Vietnam were government projects, mainly infrastructure, including local bridges, roads, etc. all projects were signed directly with the Vietnamese government. Therefore, the project has government credit as a guarantee.

Zhang Pei said that the company felt more obvious in Vietnam, and the price of building materials and rice rose significantly.

The price of steel and cement for building main materials has increased by more than 30%, while grain prices have more than doubled.

Because the open contract is signed with the local government, the government will compensate the project cost when the price of building materials exceeds a certain extent, so the price factors can also be quickly digested.

Although international projects are protected by government credit, the impact of the economic crisis is indeed very obvious for the Vietnamese government itself.

Zhang Pei pointed out that the recent economic situation has allowed the Vietnamese government to stop many government investment projects.

At the same time, some small developers in Vietnam have been hit harder than the Vietnamese government's investment projects.

In the past few years, Vietnam's market has been known as the most valuable investment market after the Chinese market. The price of housing has been rising by more than 20% per year.

Bao Jia Real Estate Company is a local real estate enterprise in Taiwan. Its main projects are concentrated in Taipei.

Like many of Taiwan's counterparts, the booming Vietnamese market has allowed them to enter the local real estate market.

The first two years, the company took land in Hu Zhiming, ready to develop.

In early Vietnam, Hu Zhiming city showed a bright light. Because of less supply, local housing prices continued to rise. By the end of last year, local housing prices had exceeded 2000 US dollars per square meter.

The price of the elite area is far more than 10 thousand US dollars per square meter.

A domestic developer told reporters that when he visited Vietnam last year, he found that the price of the local land had been quite amazing. The price of the high quality land reached about 600 US dollars per square meter, which was close to the land price of Shanghai.

With Vietnam's inflation becoming more and more serious, local housing prices are at a turning point. In just a few months, housing prices in major parts of Vietnam have plunged sharply. The price of Hu Zhiming has fallen by more than half, while Hanoi's housing prices have fallen by more than 20%.

With the drop in house prices, the local turnover is shrinking rapidly. Zhang Pei told reporters that there is hardly any deal in the real estate market, even if the price is reduced.

With the decline in house prices and shrinking volume, many local developers are facing serious financial crisis, and some developers have to stop developing their properties.

The same is true for Bao Jia, and the company has to suspend the Vietnam project.

Cai Weimin, a real estate expert in Taiwan, told reporters that like Bao Jia, many real estate enterprises in Taiwan had encountered the same crisis in Vietnam.

"There is no way to deal with it, it can only be put there, the land is empty, and the construction project is temporarily suspended."

Cai Weimin said.

New hope: there will be no delay in building factories in Vietnam. New hope for 4 factories in Vietnam (000876) Deng Xiaohua, general manager of overseas business department, said yesterday in an interview with the Morning Post reporter that the 3 factories that had been put into operation were mainly affected by the cost of raw materials, but the market sales had not been affected. The new hope would not delay the construction progress of fourth factories.

Nearly 20% of the profits have been eaten by the exchange rate, which is one of the early Chinese enterprises expanding into Vietnam.

At present, the company has built feed production factories in Hanoi, Hu Zhiming and Haiphong, and fourth factories located in the same tower are also under construction.

Deng Xiaohua said that at present, the production and operation of the 3 factories are normal, and the impact is limited to the cost of raw materials, which is mainly due to the rapid fluctuation of exchange rate.

Of the 3 factories, 60% of the raw materials were imported from abroad. They were settled in US dollars at the time of import, and then settled by Vietnamese Dong in sales.

With the depreciation of the Dong shield, the import cost of enterprises has also increased rapidly.

Some of these raw materials are imported from China, on the one hand, the appreciation of the renminbi, on the one hand is the depreciation of the Vietnamese shield, and the two losses must be borne by the company.

Of course, the company can pass on the increased cost to the customers, but considering the acceptance ability of the market, the new cost can not be completely digested by the customers, and the company must also take part in it.

At present, the company's sales situation has not been affected too much, but rough calculation, compared with the normal state, the company's profit should be reduced by more than 20%.

However, Deng Xiaohua said that the company has completed its annual profit target in the first half of this year.

Fourth factory construction remains unchanged. "The progress of fourth factories under construction will not be delayed."

Deng Xiaohua said that for Vietnam's financial crisis, the company's basic judgement is still optimistic.

The financial crisis first hit the financial industry, followed by industrial enterprises, and agricultural enterprises were less affected.

Therefore, the company will not modify the existing investment plan. The construction progress of the fourth factories will not be delayed, and will still be completed and put into operation in January next year as planned.

Deng Xiaohua said that the next Vietnamese government will inevitably introduce measures to protect people's livelihood, and will not exclude the provision of preferential fiscal and tax policies for the food industry, which may be an opportunity for new hope.

At present, the company is only producing feed in Vietnam, but it has always wanted to establish feed, breeding, slaughtering, processing, marketing, and logistics industry chain.

If Vietnam supports relevant policies, it will give the company the opportunity to expand upstream and downstream.

In addition, the financial crisis will also lead to industry reshuffle. Some small businesses will withdraw from the market and leading enterprises will further expand their market share.

At present, the new hope (10.55, -0.14, -1.31%, bar) occupies 5% of the Vietnam feed market share.

Chongqing's "Gang Bang" launched an emergency plan. The recent sharp turbulence in Vietnam's financial market has made Chongqing motorcycle enterprises investing in Vietnam suffer no small losses.

The Morning Post reporter learned from yesterday's Chongqing Lifan, Zong Shen and the Chongqing Dongli machinery company, which produces motorcycle engines in Vietnam, and has produced emergency plans to closely monitor the changes in the Vietnamese market. Some enterprises have begun to lay off workers and reduce production scale. However, they have not planned to divest from Vietnam.

Vietnam is a famous motorcycle country.

Because of the relatively narrow streets, motorcycles have become a means of pportation for every household, and some families have several motorcycles. This also makes Vietnam's 84 million population have 15 million motorcycles.

It can be said that motorcycles in Vietnam are just as common as Chinese bicycles, which also attracts Chongqing's "Gang" to go for gold rush.

It is understood that at present, more than 20 enterprises in Chongqing have invested in Vietnam, the vast majority of which are motorcycle enterprises.

"Today, there is no longer an hour to announce the exchange rate of the Dong Dong against the US dollar. The remedial measures of the Vietnamese government have worked."

Yesterday, Vietnam's largest Chinese invested company, Chongqing Dongli machinery company, told the Morning Post reporter that the market has basically stabilized after the Vietnamese government cracked down on the black market of foreign exchange and allowed it to trade at bank prices.

It is understood that a few days ago, the dollar should be queued for 15 days, but it could be exchanged at any time yesterday.

"The current market is selling 1 dollars to 16234 Vietnamese Dong, and buying 1 dollars for about 17700 Dong Dong."

The source told reporters that with such a rule, the people no longer panic.

It is reported that because the company's factory is bought, the possibility of divestment is minimal.

"I couldn't sleep every day last week."

Dongli machinery, the man recalled.

Last week, because of the fast depreciation of the Dong shield, Hanoi issued an exchange rate of the Dong Dong dollar against hourly dollar every hour. Because the company was settled by Vietnamese shield with its local customers, the pressure was so great at that time.

For this reason, on the one hand, the company stepped up its collection, and on the other hand, it had to scale down. First of all, it reduced production and laid off about 2000 people, accounting for more than 3 of the total number of employees, of which Chinese employees accounted for more than 2.

"At present, we are mainly digesting raw materials in stock, and the future depends on the market changes."

This person told reporters that because the stock market in Vietnam was also not good, the company's plan for listing in March was also shelved indefinitely.

Data show that in 2007, the annual output value of the company in Vietnam has reached four hundred million yuan.

It is understood that Dongli machinery started construction in Vietnam six or seven years ago, providing supporting services for local motorcycle enterprises.

At that time, it was just the best time for Chinese motorcycles in Vietnam.

At that time, Chinese motorcycles accounted for 70% to 80% of the motorcycle market in Vietnam.

The Lifan car brake is affected by the Lifan Group, which is pforming to the car industry.

It is understood that in view of the current economic instability in Vietnam, Lifan's joint venture in Vietnam has had to brake.

According to the original plan, this month, Lifan is going to invest formally.

Yin Mingshan, chairman of Lifan Group, has disclosed that the Lifan Group's investment in Vietnam's factory will invest 50 million US dollars. In the future, it will export to Vietnam based on Vietnam, and take the form of technical cooperation to improve the production and purchase level of the spare parts in Vietnam, and further expand the influence of Lifan Group in Vietnam.

It is estimated that in 2011, the car factory of Lifan Vietnam will produce 50 thousand cars per year.

Lifan automobile overseas division official said recently that the company is reviewing the strategy of car in Southeast Asia, and does not exclude other considerations.

At present, the projects that can be carried out in Vietnam will continue to do so, and the promised maintenance services will continue to be guaranteed.

"Will stick to the position" although the car project is postponed, but Lifan in Vietnam motorcycle joint venture will still stick to its position.

Yin Mingshan, chairman of Lifan Group, told reporters yesterday that its joint venture factory in Vietnam had withdrawn all investment and capital return in only a year and a half after it was put into operation in 2002.