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Dong Nai supports riot-hit businesses

Update: August, 22/2014 - 09:54

Hung Chih Hsing, deputy general director of Formosa Taffate Dong Nai Company, which suffered the biggest loss — of VND103 billion ($4.8 million)— urged the local authorities to persuade insurance companies to settle their claims.— Photo baodongnai

DONG NAI (VNS) — Authorities in the southern province of Dong Nai have provided support to factories damaged in the riots on May 13-14 and are set to provide more, they said at a meeting with affected companies in Bien Hoa city on Wednesday.

"It is difficult to compensate the mental fear, the loss of time, even the business opportunities, suffered by enterprises," Phan Thi My Thanh, deputy chairwoman of the province People's Committee, told the meeting.

"But we hope that investors realise the goodwill and active support of the local government."

The riots caused a loss of over VND376 billion (US$17.8 million) to 205 companies in the province. Of them, 82 suffered small losses and resumed work on their own, while 123 others received support from the authorities.

Fifty of them got tax refunds of over VND322 billion ($15 million) and other tax breaks.

The province also waived or reduced land rentals to the extent of VND12.75 billion ($601,000) for 19 businesses each of which suffered property losses of over VND1 billion ($50,000).

The province customs department helped 34 affected companies with customs procedures and condoned their loss of digital signatures, tax declaration documents, and delay in completing customs procedures.

Infrastructure companies have deferred tariffs, in many cases for up to six months.

"Several enterprises were also allowed by banks to delay payment of interest on loans," Thanh said.

The province has asked workers to share their employers' difficulties by not asking for wages for the days the company was closed or agreeing to accept only half wages.

Hung Chih Hsing, deputy general director of Formosa Taffate Dong Nai Company, which suffered the biggest loss — of VND103 billion ($4.8 million)— urged the local authorities to persuade insurance companies to settle their claims.

"An insurance settlement advance of VND37.6 billion was paid to 34 damaged enterprises and we have recently asked the insurance companies to speed things up," Thanh said.

"We also continue to ask the Ministry of Finance to direct the insurance companies to quickly make the settlements for the enterprises to resume production."

Workers at only three companies were not paid wages – many of the firms insisted on paying even when their employees agreed to forego salaries — and the province will compensate those that paid to the extent of VND42 billion ($1.9 million). — VNS

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