Vietnamese Prime Minister announces compensation measures for Chinese-funded enterprises smashed in anti-China anti-Chinese demonstrations.

According to Vietnamese media reports yesterday, Vietnamese Prime Minister Ruan Jinyong issued a statement the night before yesterday (20th), announcing a series of compensation measures for foreign companies damaged in last week’s anti-Chinese demonstrations, including tax exemption and land rent reduction. A few hours before this statement, China announced that it would demand that Viet Nam "compensate China enterprises and individuals for all losses". From May 13th to 15th, anti-China anti-Chinese demonstrations occurred in many places in Vietnam, which led to the beating, smashing and looting of Chinese-funded enterprises, resulting in the death of at least four mainland engineers. Affected by this, China suspended some bilateral exchange plans between China and Vietnam, withdrew all migrant workers from Vietnam, and Chinese’s travel to Vietnam was basically suspended. From the outside world, this is a major blow to Vietnam, which relies heavily on foreign investment and tourism.

Vietnamese Prime Minister Ruan Jinyong

Vietnamese Prime Minister announces compensation measures

Vietnamese Prime Minister Ruan Jinyong held a meeting on the 20th local time to discuss measures to help foreign-funded enterprises damaged by illegal riots in Vietnam overcome the consequences, and announced a number of emergency measures to compensate the damaged foreign enterprises.

According to the news of Vietnam News Agency on the 21st, according to the request of Vietnamese Prime Minister Ruan Jinyong, enterprises affected by the violence in Vietnam will be exempted, reduced or deferred from paying various taxes and fees and get other compensation.

According to the news, Ruan Jinyong urged insurance companies to quickly assess the losses and pay compensation. He also issued instructions to the National Bank of Vietnam, requiring local financial institutions in Vietnam to issue loans to the affected companies to help the damaged enterprises quickly resume normal operations.

According to The Wall Street Journal, the specific assistance measures mentioned by Ruan Jinyong include: the Vietnamese government will postpone the taxation of the affected enterprises for up to two years, and will also consider lowering the import and export tariffs of these enterprises. Vietnam will also reduce the special consumption tax of the above-mentioned enterprises by 30%, but the tax reduction will not exceed the total loss. Vietnam will also consider exempting or reducing the land rent of the affected enterprises and providing visa facilities for foreign workers to work in these enterprises. Urge insurance companies to quickly assess losses and pay compensation. At present, Vietnam has not announced the total losses caused by the riots.

In the statement, Ruan Jinyong asked the public security department of the country to vigorously investigate, clarify and strictly deal with the perpetrators of illegal acts, and at the same time actively trace, recover and return the lost property and technical equipment to organizations, individuals and enterprises.

Prior to this, China had asked Viet Nam to compensate Chinese enterprises for all losses.

At the press conference of the State Council Office on the 20th, Zhang Ji, Director of the Foreign Trade Department of the Ministry of Commerce, responded to the impact of the recent beating, smashing and looting incident in Vietnam on Sino-Vietnamese economic exchanges, saying that there have been serious violent incidents of beating, smashing, looting and burning against foreign investors and enterprises in many places in Vietnam recently, which have caused casualties and property losses to China citizens. China demands that Vietnam immediately take effective measures to stop all acts of violence, properly resettle the attacked Chinese enterprises and personnel, severely punish all criminals according to law, and compensate China enterprises and individuals for all losses.

From the outside world, from the economic point of view, Vietnam, which relies heavily on foreign investment and tourism, has suffered serious losses in the recent violent smashing incident, and it is urgent to mend the tense relationship with China.

The data shows that the GDP growth rate of Vietnam in 2013 was 5.4%, and the economy was obviously supported by foreign companies (including thousands of overseas projects and the establishment of overseas companies in recent years) and more than 7 million overseas tourists. Industrial output from foreign companies is rising, accounting for 46% of the total industrial output in 2012, and enterprises from Taiwan, China account for the largest proportion. In addition, Vietnamese factories are heavily dependent on the supply of raw materials from China, and a quarter of their imports come from China.

Chinese Working Group: Strongly dissatisfied with Vietnam’s failure to effectively protect Chinese.

According to the website of the Ministry of Foreign Affairs, on May 20 and 21, 2014, an inter-departmental working group of the China government went to Heping Yang Province, Ho Chi Minh City, southern Vietnam, to inspect the losses of some enterprises in China that were hit by the recent violent incident of beating, smashing, looting and burning, and had a discussion with representatives of enterprises in China to express condolences to them, understand the needs of enterprises and employees, and jointly judge the security situation.

The working group also held talks with the Vietnamese joint working group led by Chen Wennan, vice chairman of Pingyang Provincial People’s Committee. Liu Jianchao, head of the working group and assistant foreign minister, said that in the violent incident of smashing, smashing, looting and burning in Pingyang province a few days ago, a Vietnamese employee was unfortunately killed and China enterprises suffered heavy losses. We strongly condemn the violence and express our strong dissatisfaction with China’s failure to take effective measures to protect Vietnamese enterprises and employees. China demands that China severely punish criminals, compensate Vietnamese enterprises for losses, properly handle the aftermath of the victims, and take concrete and effective measures to ensure the life and property safety of Vietnamese enterprises and personnel.

Chen Wennan said that the recent incident caused the death of a China citizen and the loss of enterprises in China. Pingyang provincial government will definitely bring the criminals to justice, compensate and subsidize the losses suffered by enterprises in China according to law, and will learn from the lessons and take all measures to strengthen the deployment of police forces and information reporting to ensure the safety of enterprises and personnel in China.