Formosa to be compensated for Vietnamese rioting

Taiwanese conglomerate Formosa Plastics Group will receive US$2.39 million in compensation from the Vietnamese government and a Vietnamese insurance firm for damages incurred to its plant in Ha Tinh province during anti-China protests in May, according to news reports.

The company is building what has been said will be the largest steel mill in Southeast Asia in the province, but work has remained suspended after the construction site was partly burned down. The protesters had mistakenly believed that Formosa was a China-based company.

Formosa is the biggest foreign investor in Vietnam, according to local media.

The protests were sparked after Chinese state oil companies moved an offshore drilling rig into disputed waters of the South China Sea to drill an exploratory well. More than 100 factories across Vietnam, many of which are owned by Taiwanese and Chinese, were looted and burned down during riots.

The company estimated earlier a loss of US$10 million for each day construction is delayed, and an additional US$3 million on equipment damages. The project's contractor, Metallurgical Corp. of China, said earlier four of its workers were killed and more than 100 were injured.

Hanoi is trying to rebuild its image as a manufacturing hub in Southeast Asia.


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