Foreign manufacturers maintain faith in Vietnam despite riots


  • World
  • Monday, 19 May 2014

A protester gestures as he marches during an anti-China protest in Vietnam's southern Ho Chi Minh city May 18, 2014. REUTERS/Peter Ng

HANOI/HONG KONG (Reuters) - Most large companies operating in industrial parks hit by anti-China riots in Vietnam last week have resumed operations, underscoring the irresistible pull of the country as a low-cost manufacturing hub with a relatively skilled workforce.

Manufacturing has increasingly shifted away from China in recent years as wages there are climbing and there is a growing shortage of labour. The speed with which companies have returned to work in Vietnam's industrial parks, which were the focus of rioting just last week, demonstrates the economic draw of doing business in the country, despite the risks.

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