HDTEK views the Vietnam economy

In 2014, Vietnam that experienced a protest that escalated to a riot that caused harm to hundreds of factories and people. After the event, Vietnam’s view for security has changed.

Tran Nguyen Dung, Director of HDTEK explains that the anti-China riot was a political problem. “The riot is a big problem for our government, and it should be solved by the Vietnamese political system.” The views for Chinese products have affected sales numbers since the event, “the fact is that, the sale numbers of many products with Chinese brands have been affected, but the national economy still relies on China import. From 2014 till now, around 27 percent of import value comes from China,” explain Dung.

Though a tragedy, Dung does believe the riot is a turning point for security, as the people who started the riot had little knowledge of ongoing political events. However, the riot impacted the investment environment of Vietnam, and should happen again. “Our government is trying to do their best to let everyone know that the riot was agitated by reactionaries. Government makes sure that all the investor’s funds and properties are safe and guaranteed by the political system. Vietnam is a reliable environment to invest, so they give compensation to the damaged companies. This is a very good way to handle the situation. The evidence is that the FDI fund is still increasing,” said Dung.

The economy may be negatively influenced by the riot, but according to Dung, “recently, the real estate market has recovered a bit, the bank system problem is being solved step by step, and the stock markets are believed to be increasing, with a stable exchange rate. This is hopeful to say, the security is still erecting.”

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