Group (NHG). Of them, NHG has the largest investment volume. It has set up three branches in Hanoi, Ho Chi Minh City and Haiphong, with total assets of $200 million. Its revenues and profits generated in Viet Nam both surpassed 10 percent of the group's total revenues and profits.

An announcement released by NHG says that its factories in Viet Nam are not yet affected by the economic crisis and that sales in Viet Nam remain as healthy as in China. Although inflation in Viet Nam increased prices of raw materials, and subsequently raised the prices of finished products, sales are still stable because of the large market demand.

Supor, a Chinese investor in the home appliances industry, also recently announced that the economic crisis has not had a severe impact on its business and the company is optimistic about its factory in Viet Nam. It believes that the factory will help promote the company's business performance and brand recognition in the future.

According to Midea, which mainly produces home appliances like electric and electromagnetic cookers in Viet Nam, since its investment volume is small, its sales performance is not influenced by the devaluation of Vietnamese dong.

TCL made an emergent assessment on its investment projects in Viet Nam and the result shows that losses are not substantial. Established in 1999, the Viet Nam branch of TCL sells consumer electronics and computers. The group says it will continue its development strategy in Viet Nam.

The most severely affected Chinese companies are Hubei Yihua and Chongqing Lifan.

In an announcement released on June 12, Hubei Yihua said that the company decided in 2005 to set up a chemical engineering company in Viet Nam to produce and sell fertilizers such as urea. Because of the economic fluctuations in Viet Nam, the company has recalled its staff in the country and only hires a translator for liaison of the project.

Chongqing Lifan, meanwhile, suspended production of its motorcycle factory in Viet Nam. At present, the products of Lifan in Viet Nam include automobiles and motorcycles. Since exports of automobiles are settled with U.S. dollar, there won't be a large influence-except in decline of export volume. In contrast, sales of motorcycles in Viet Nam are settled in Vietnamese dong and there will be huge losses if dong is not changed to