Vietnam riot payouts reach $220,000

Chinese mainland enterprises that suffered losses in the anti-China riots in Vietnam in May had as of Wednesday received about $220,000 in compensation, the Xinhua News Agency reported.

Xinhua said some 39 mainland companies in southern Vietnam had suffered losses in the riots, among which nine had suffered direct impacts, such as having their factories burned down. Two suffered considerable indirect losses and the rest suffered losses on a relatively smaller scale.

In total, these 39 companies have lost a total of 100 million yuan ($16.6 million). Three enterprises have received partial compensation from insurance companies, totaling an amount of $220,000.

As for companies in northern Vietnam, Xinhua quoted the Chinese Embassy in Vietnam as saying that only a small number of them had suffered losses and that they have yet to receive any compensation.

"About one third of the losses will be compensated by insurance companies in cash. The rest will be compensated through tax cuts," a representative of a Chinese enterprise in Vietnam, who requested anonymity, told the Global Times. His company lost about 7 million yuan in the riots.

"Although a majority of the compensation will not come in the form of cash, the Vietnamese government is offering plans such as a reduction on rent or import tariffs," said Miao Renlai, chairman of the China Business Association Ho Chi Minh City Branch.

Anti-China demonstrations broke out in Vietnam in May after China started an oil rig operation in the waters of the Xisha Islands, an area also claimed by Vietnam.