Vietnam effect varies for Chinese companies

SHANGHAI: Chinese companies with large investments in Vietnam are complying with the stock exchange's requirement to report their real and potential risk exposure in the economically troubled country.

Chengdu-based New Hope Agriculture Stock Co, which owns four businesses in Vietnam, was among the first Chinese groups to declare the extent of its risks.

The Shenzhen Stock Exchange-listed company, announced last Saturday that its Vietnam businesses has to provide for an increase in financing costs deriving from higher bank charges for opening letters of credit. In addition, manufacturing, logistics and labor costs have all increased due to the sharp depreciation of the Vietnamese dong against the US dollar.