* Says any disruption to mainly affect US clients
* Impact limited so far - Li & Fung chairman
(Adds quote, stock impact on firms with factories in Vietnam)
By Yimou Lee
HONG KONG, May 15 Global exporter Li & Fung
, based in Hong Kong, said the factory facilities of
some suppliers in Vietnam had been damaged during anti-China
protests and that the disruption caused would mainly affect
clients in the United States.
"Each day, it is quite volatile in Vietnam. Most factories
are closed so that workers are not at risk," Li & Fung chief
executive Bruce Rockowitz said at the company's annual general
meeting in Hong Kong on Thursday.
Thousands of Vietnamese set fire to foreign factories in
industrial zones in the south of the country to protest against
Chinese oil drilling in a part of the South China Sea claimed by
Vietnam, officials said on Wednesday.
Vietnam accounted for 7 percent of sourcing last year at Li
& Fung, which supplies retailers like Kohl's Corp and
Wal-Mart Stores Inc with clothing, toys and other
Chairman William Fung said he was concerned about the
situation in Vietnam and was still assessing the damage. The
impact so far was limited, he said.
Scores of factories in industrial zones in the south of
Vietnam have halted production, rattling investors who are
worried about the impact on companies' profits. Li & Fung bucked
the trend among companies with exposure to Vietnam, with its
stock up more than 1 percent, beating a 0.4 percent gain for the
Shares of shoemaker Kingmaker Footwear Holdings Ltd
and fabric maker Texhong Textile Group slid
more than 6 percent on Thursday after they said production in
Vietnam had been suspended.
Fittec International Group Ltd, which makes
printed circuit boards and electronic components, tumbled more
than 10 percent after it said its factory in Vietnam had been
torched and looted. It said it was too early to estimate the
cost of the damage.
Shares of other Hong Kong-listed companies with facilities
in Vietnam also fell, with motorcycle maker Vietnam
Manufacturing and Export Processing (Holdings) down
more than 4 percent.
Shoemaker Yue Yue Industrial Holdings Ltd, maker
of footwear for companies such as Nike Inc and Adidas
, eased 0.2 percent, extending a 5 percent drop on
Wednesday after it said it too had halted production in Vietnam.
Vietnam accounts for about a third of Yue Yuen's global
production capacity, which amounted to 313 million pairs of
shoes last year.
(Additional reporting by Donny Kwok; Writing by Anne Marie
Roantree; Editing by Kenneth Maxwell)