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Formosa to be compensated for Vietnam riot

By: Steve Toloken

July 28, 2014

Taiwan’s Formosa Plastics Group will receive $2.39 million from the Vietnamese government and insurance companies for damages suffered during the anti-China protests there in May, according to news reports.

Vietnamese rioters stormed many foreign-owned factories in the country in mid-May, following demonstrations against the Chinese government for putting an oil-drilling rig in waters claimed by both countries. News reports suggested rioters confused Taiwanese and mainland Chinese firms.

Several contractors at a Formosa-owned steel mill were killed, and the company’s plastics facilities in Vietnam also were targeted.

The Vietnamese government will pay Formosa $1.44 million, while Vietnamese insurance companies will contribute just under $1 million, according to news reports. The company had reportedly sought $3 million in compensation.

About one-third of the 950 foreign companies in Vietnam’s Binh Duong province were damaged in the rioting, including 161 Taiwanese, 24 Korean and 11 mainland Chinese firms, according to a Vietnamese government analysis seen by the Financial Times newspaper.