Fatal riots in Vietnam have eroded the interest of some Chinese companies in investing in the country, according to a garment industry official.

Some textile companies in Foshan of South China's Guangdong province suspended trips to Vietnam that had been planned to assess the investment environment, said Wu Haoliang, secretary-general of Foshan Textile and Garment Industry Association on Tuesday.

Vietnam riots 'threaten ties and investment'

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A Foshan-invested textile plant in Ho Chi Minh City was slightly damaged, although no one was injured, he said.

The plant remains in operation, but some local workers stayed home, he said, adding that the impact of the riots on Foshan-invested companies in Vietnam is still under assessment.

The impact of the riots on investor confidence will be major and long-term, Wu said.

Some domestic manufacturers still need to relocate their operations overseas due to rising labor costs at home, but they will take greater care in selecting locations for such a move, Wu said.

At least two Chinese nationals were killed and more than 100 injured in last week's protests against foreign companies in central and southern Vietnam. The injured were flown home aboard chartered flights.

Wang Dongfeng, general manager of Ningbo Zhongzhan International Exhibition Co, said company representatives were in Ho Chi Minh City for a May 15-17 import/export exhibition organized by the Zhejiang Business and Commercial Bureau. But due to the violent situation in Vietnam, the exhibition was not opened.

"Two girls and I had just finished decorating the exhibition in the hall on evening of May 14 when more than 300 Vietnamese cars surrounded the hall, asking Chinese to leave. We were too frightened to go out until some of them broke into the hall, searching for Chinese. Luckily, they did not harm us but tore the advertisements down into pieces," Wang recalled.