What's wrong with so called "socialist" states?

I start to think that the first conversation once one arrives to a country they have never been before is very illustrative. I already have posted an anecdotal conversation with a migration officer at a Seam Reap International airport.

Now I am in Ho Chi Minh City (former Saigon), Vietnam. My first conversation was last night with a guy from the reception at my hostel. He asked me:
- Where are coming from?
- Phnom Pehn
- How long you will stay here?
- I don't know... few days in Ho Chi Minh and two - three weeks in Vietnam. I will travel north to Hanoi and then I will go China...
- Why do you want to go to China?!? Don't go to China?
- I have to cross China, because I go to Russia.
- Don't go to China. Fly to Russia.
- There are no cheap flights to Russia from Hanoi. It's very expensive to flight to Russia.
- Go to Singapore and fly from there to Russia
- ....

Those of you wondering why the guy was so aggressive against China, please check some headlines bellow:

 

http://www.theguardian.com/world/2014/may/15/vietnam-anti-china-protests-oil-rig-dead-injured

http://www.theguardian.com/world/2014/may/14/vietnamese-workers-torch-foreign-factories-over-chinese-sea-claims

http://www.aljazeera.com/news/asia-pacific/2014/05/dozens-killed-vietnam-anti-china-protests-201451524632499784.html

http://www.bbc.com/news/world-asia-27434945

Here we come to the question that I raised in the title: 'what's wrong with so called "socialist" states?

We can start to talk how so called "People's Republic" of China and so called "Socialist Republic" of Vietnam at one point took a little bit wrong turn and now can be located somewhere between "What do you mean from each according to his ability, to each according to his need?" and "Fossil Fuel Fetishism - RULES!!!".

@ former (?) Saigon