China releases Vietnamese ship after $800,000 compensation payment

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A Vietnamese ship detained in China in a commercial dispute is expected to head back to Vietnam Sunday, after its owner, state-owned Vietnam Shipping Lines (Vinalines), paid US$800,000 in compensation.

 

The payment was made in accordance with a decision made by a Chinese court, Vinalines Director General Nguyen Canh Viet said Thursday.

 

According to Vinalines, the Vinalines Global ship, which boasts Vietnam's largest loading capacity (73,350 DWT), was hired by an Indian company which failed to pay its transportation fees.

 

As a result, Vinalines Ho Chi Minh City, which directly manages the ship, decided to keep the goods on board, but these belonged to a Chinese company which had already paid the Indian firm for it.

 

The Chinese court last Friday concluded that Vinalines was wrong and had to compensate the goods' owner by Thursday, or it would order the ship sold.

 

While paying the compensation, Vinalines said it has ordered its branch in HCMC to work with the Indian firm to demand that the latter repays it.

 

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