Local authorities in Vietnam’s Ha Tinh Province have given more than US $2 million to Formosa Plastics as compensation for damage to the company’s facilities in the province during anti-China riots in May.
Vietnam’s Ministry of Finance and local authorities formally presented the compensation money at a ceremony on Saturday.
Around US$950,000 came from insurance companies. Vietnam’s government has requested that insurance companies pay companies affected by the riots upfront even though the forms required for making insurance claims are not yet ready.
A further US$1.4 million came from the local People’s Council. The council gave the money in the hope that operations at the Formosa Plastics plant in Ha Tinh Province can return to normal as soon as possible.
China’s decision to move an oil rig into an area of the South China Sea claimed by both China and Vietnam sparked a wave of anti-China riots in Vietnam in May. Rioters targeted businesses with Chinese language signs, including a number of Taiwanese businesses.