HANOI--Vietnam announced several measures to support foreign
enterprises affected by riots in the country last week, sparked by
anti-Chinese protests after the deployment of a Chinese oil rig in
disputed South China Sea waters.
The government will delay the collection of tax from the damaged
businesses for up to two years and will consider cutting import and
export taxes for them, Prime Minister Nguyen Tan Dung said in a
statement announced late Tuesday.
Tension with China has risen to the highest level in years,
driven by a Chinese state-run energy company's deployment early
this month of a gigantic oil rig 130 nautical miles from Vietnam's
shore, well within an area Vietnam claims as its "exclusive
economic zone."
Anti-Chinese protests followed across the country. Some turned
violent last week, leaving several Chinese killed and injured and
hundreds of foreign-owned factories--not just Chinese-owned but
Taiwanese, South Korean and Japanese, burned or damaged. Both
Vietnamese and Chinese governments said two Chinese people were
killed in the riots, but Metallurgical Corp. of China said Tuesday
the riots left four of its employees dead.
Mr. Dung said Vietnam will also reduce the special consumption
tax by 30% for these firms, with the tax reduction not exceeding
the total damage.
The prime minister said Vietnam will also consider waiving or
cutting land rents for the affected companies and will facilitate
the visa process for foreign workers coming to work at them.
Mr. Dung also urged insurance businesses to quickly assess the
damage and pay out compensation. Vietnam hasn't announced the total
cost of damage caused by the rioting.
He also told the State Bank of Vietnam to instruct local
financial institutions to extend loans to the affected companies to
help them quickly return to normal operation.
Meanwhile, Vietnam Coast Guard said late Tuesday that China
still maintained round 90 vessels at the site of the oil rig.
Speaking to Vietnamese media on the sideline of an ASEAN defense
ministers summit in Myanmar on Tuesday, Vietnamese Defense Minister
Phung Quang Thanh said he hopes both Vietnam and China will
exercise restraint and actively consult with the leaders of the two
communist parties and states to settle the issue and restore
stability to the region.
"I have told the Chinese side that Vietnam wants to protect its
sovereignty and maintain a peace and politically stable environment
and promote the comprehensive strategic partnership with China for
socioeconomic development," Mr. Thanh was quoted by the official
Vietnam News Agency as saying.
Mr. Thanh said he told his Chinese counterpart that Vietnam will
protect its sovereignty by peaceful measures in accordance to
international laws, including the U.N. Convention on the Law of the
Sea of 1982, according to the report.
Write to Vu Trong Khanh at trong-khanh.vu@wsj.com
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