Vietnam’s riot bill—compensation now, or the loss of billions in investment later

[Raphael]

Vietnam’s riot bill—compensation now, or the loss of billions in investment later – Quartz

What will the ultimate costs be for Vietnam’s deadly riots? Taiwanese businesses bore the brunt of riots triggered last week when China parked an oil rig in disputed waters, and now they are seeking compensation for the loss of life and property, along with assurances that Hanoi will be able to provide security when—or if—the factories re-open.

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Taiwan’s government yesterday rejected a proposed compensation plan (paywall) from Vietnam for damage incurred by hundreds of Taiwanese factories, and is sending Shen Jong-chin, Taiwan’s vice minister of economic affairs, to Vietnam to negotiate further.

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The tense talks underline the risk—one of several facing Vietnam—that the country’s fourth-largest investor may pull out entirely because of protesters who couldn’t—or at least chose not to—distinguish between businesses and nationals from mainland China and those from Taiwan. “We kept telling the rioters that we are Taiwanese, not Chinese, but they wouldn’t listen,” the head of a Taiwanese business association” told Vietnamese television (paywall) last week.

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Taiwan is one of Vietnam’s largest investors, behind only Japan, South Korea, and Singapore. Last year, Taiwan invested $1.2 billion in Vietnam, accounting for a third of Taiwan’s outbound foreign direct investment. The two countries have a generally friendly relationship—though Taipei also claims some disputed areas in the South China Sea, it has been on the sidelines of China’s dispute with Vietnam and rejected the idea of cooperating with Beijing on the issue.

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But now, there’s a possibility that some of the more than 200 Taiwanese factories that were attacked last week may not return. According to the Financial Times, 161 Taiwanese firms (paywall) in the southern province of Binh Duong were damaged, versus 11 from mainland China. (A smattering of Japanese and South Korean firms also came under fire.) Asama, a bicycle manufacturer from Taiwan, has moved all production back to Taiwan from Vietnam and said it was reviewing its investment plan in the Southeast Asian country.

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Formosa Ha Tinh Steel, which is building what would be Southeast Asia’s largest steel mill in Vietnam, is also reconsidering. “The Vietnamese government must give us a firm and clear assurance that our staff, including our contractors, and our assets will be fully protected in the future,” Formosa chairman Lin Hsin-I told the Wall Street Journal. “Otherwise we won’t continue to build the plant.”

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Meanwhile China said its state-owned China Metallurgical Group Corporation, which had more than 3,500 workers at the under-construction Formosa steel mill, had four die during the rioting, along with 23 who were seriously injured..

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“The Vietnamese government should learn a lesson and take effective measures to protect the safety of Chinese institutions, enterprises and personnel still remaining in Vietnam,” said Qin Gang, a foreign ministry spokesman, in a press briefing. “It should also compensate the Chinese government, enterprises and personnel for their losses.”

So the Viet government offered a compensation package to Taiwan, probably payment in bananas and banana discounts, but Taiwan rejected it. As the article correctly states: if Vietnam wants to restore international investor confidence, it needs to:

1. Offer full and substantial compensation to all parties affected by the deadly mob riots.
2. Offer assurances that they will take steps towards treating the "jungle mentality" that afflicts many Viets and provokes them to lash out in spontaneous and unpredictable violence. One root cause is too rapid urbanization. People who have lived in jungles for generations suddenly find themselves confronted by concrete roads and factories, and they find it a bewildering change from their native habitat that provokes them into a rage. Vietnam should consult with the World Health Organization on how to balance urbanization with treating the mental wellbeing of Viets.

 

[EastSea]

Vietnam’s riot bill—compensation now, or the loss of billions in investment later – Quartz



So the Viet government offered a compensation package to Taiwan, probably payment in bananas and banana discounts, but Taiwan rejected it. As the article correctly states: if Vietnam wants to restore international investor confidence, it needs to:

1. Offer full and substantial compensation to all parties affected by the deadly mob riots.
2. Offer assurances that they will take steps towards treating the "jungle mentality" that afflicts many Viets and provokes them to lash out in spontaneous and unpredictable violence. One root cause is too rapid urbanization. People who have lived in jungles for generations suddenly find themselves confronted by concrete roads and factories, and they find it a bewildering change from their native habitat that provokes them into a rage. Vietnam should consult with the World Health Organization on how to balance urbanization with treating the mental wellbeing of Viets.

Refreshing News: Anti-Japan protests erupt in cities in China over disputed islands (25pics)

 

[BoQ77]

Japanese representatives talked in public media that "few years ago, when Japanese investments in China was destroyed, we get no Sorry, no Compensation, no fast response .. from China govt. But this case is different, Vietnamese said Sorry and offer the compensations and immediately stop the riots. We appreciate the responsibility of Vietnam

 

[terranMarine]

Japanese representatives talked in public media that "few years ago, when Japanese investments in China was destroyed, we get no Sorry, no Compensation, no fast response .. from China govt. But this case is different, Vietnamese said Sorry and offer the compensations and immediately stop the riots. We appreciate the responsibility of Vietnam

Funny, Taiwanese don't accept the jungle's compensation offer. I know you guys are poor but you still gonna have to pay for the damage or Taiwan isn't happy

 

[BoQ77]

Funny, Taiwanese don't accept the jungle's compensation offer. I know you guys are poor but you still gonna have to pay for the damage or Taiwan isn't happy

Taiwan also said that "That's bilaterial issue between Vietnam and Taiwan, China has no right to intervene. Taiwan is not China" ..."
That's a fact. ( Need evidence ... ? )

 

[terranMarine]

Taiwan also said that "That's bilaterial issue between Vietnam and Taiwan, China has no right to intervene. Taiwan is not China" ..."
That's a fact. ( Need evidence ... ? )

Do i represent Chinese government Vietcong? So your country is offering so little that the Taiwanese refuse the pathetic compensation. Is that how you treat your 'friend'?

 

[BoQ77]

Do i represent Chinese government Vietcong? So your country is offering so little that the Taiwanese refuse the pathetic compensation. Is that how you treat your 'friend'?

You use Viet Cong, similar to what the US called Vietnam Communism,
or Chinese Communism ...
That's not correct to call me, call us ... like that ... please take note.

That's not bad but not true ...

Chinese media is making out stories about that.
No investors want to remove their factories in Vietnam now, next year there will be more applications for new projects.

More or less compenstation by cash, and more by preference, PLUS Sorry ... always better than No compensation and No Sorry. Did Chinese govt do better than Vietnamese to Japanese investment ?

A agree with Lux Veritas ... he keep saying that Chinese mainlanders bring bad feeling to others about Chinese race. That affect to Chinese race in other countries, Singapore, Taiwan, ...

 

[EastSea]

Vietnam's human development level is so low.
This kind of mob-attacks are to be expected.
Business needs to be extra careful.
I think even with no business, bananas in the jungle can feed the Viet.

They can get some from Ph in case they ran out of bananas.

Chinese go home, let Japanese, Korean come.

 

[TaiShang]

Chinese is not valuable to compare to German, he he.

But for you, we are one and the same. That's why you plundered German businesses along with Chinese.

 

[EastSea]

But for you, we are one and the same. That's why you plundered German businesses along with Chinese.

It is not reported that German company was target for the anti-china demonstration. it should be same Hua people living in Vietnam, they are thief then did it to blame Viets.

 

[TaiShang]

It is not reported that German company was target for the anti-china demonstration. it should be same Hua people living in Vietnam, they are thief then did it to blame Viets.

Now you are pushing your imagination onto new heights.

You are a romantic.

 

[EastSea]

Now you are pushing your imagination onto new heights.

You are a romantic.

we know mentality of high IQ Chinese from 2,000 years

 

[terranMarine]

we know mentality of high IQ Chinese from 2,000 years

Yes you know we would rule you guys for over a thousand year.

 

[cirr]

The murderers must be brought to justice。

PS the Vietnamese government has also promised to compensate in full those Mainland Chinese factories that were damaged in the riots。Let's see if the Viets can honour their words by selling their underwears。

 

[EastSea]

If you check his former posts, you will know that he is living in his own imagination land will full of nonsenses.



Revenge for you? And you were saying that Chinese are Ah-Q~

The Yuan Dynasty only last only around 100 years, also most of the officers in high position were Han Chinese. There were even many Mongolian slaves owned by Han and Semu during that time. Did similar thing even happen in Vietnam under Chinese occupation~?
Manchurian rulers abandoned most of their culture and worshiped former Chinese Emperors, they claimed Manchuria is part of China and called their whole country China. Did Chinese even worshiped Vietnamese rulers nor even claimed that China is a part of Vietnam~?

What Sun Yat Sen said to Chinese people ?

"Manchurian are barbarian from Changbei mountainous area " came to China to rule Chinese people until 1911 ACE.

Don't forget it.

The murderers must be brought to justice。

PS the Vietnamese government has also promised to compensate in full those Mainland Chinese factories that were damaged in the riots。Let's see if the Viets can honour their words by selling their underwears。

The was fighting between two group of workers on construction project site.

Rest in peace.