Vietnam to provide subsidized loan package to riot-affected companies

Thanh Nien News

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Binh Duong Province held a meeting on Friday with executives from 100 companies affected by the May riots to review efforts to get them back to business. Photo credit: Thoi Bao Kinh Te Saigon

The government of Binh Duong Province will provide a VND1 trillion (US$47.2 million) loan package next month to companies affected by the anti-China riots that broke out in May.
The loans are intended to help the businesses purchase new equipment, rebuild vandalized factories and expand production.
The announcement was made by Le Thanh Cung, the provincial mayor, at a Friday meeting with the executives of 100 companies to review the assistance given to those affected in the riots, Thoi Bao Kinh Te Saigon (Saigon Times) reported.
Cung said the province will also subsidize 50-percent of the interest on each loan offered to the affected firms.
On May 14, the provincial People’s Committee said hundreds of companies (mostly Chinese, Taiwanese and South Korean-invested firms) with factories in industrial parks across Binh Duong had been vandalized.
Similar riots broke out in industrial zones in nearby Dong Nai Province and at a Taiwanese steel mill in Vung Ang Economic Zone in central Vietnam.
On May 2, China deployed a giant oil rig in Vietnamese waters, triggering peaceful protests that erupted into deadly riots in southern and central Vietnam two weeks later.
So far Binh Duong has tried 28 people for vandalizing and stealing property from companies in the riots.
According to a report from the provincial People's Committee, three months after the riots, the province has refunded roughly VND524 billion ($24.7 million) in tax payments to 143 affected companies and waived roughly 19 billion ($897,000) in taxes owed by 243 affected companies.
Officials are finalizing procedures to exempt and reduce 2014 land lease fees worth around VND155 billion ($7.3 million) for 594 affected companies.
The province has and will not perform environmental inspections on the affected companies this year and exempt them from obtaining construction permits to repair vandalized establishments.
During the meeting with the provincial government, many companies complained that insurance companies have been slow in paying them back, leaving them unable to resume production quickly.
The provincial government promised to put pressure on the insurers.

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