VCCI moves to allay protest fears

Tuesday, May 20, 2014 08:31

Confectionary production resumes at the foreign-invested URC Company in the Viet Nam-Singapore Industrial Zone in southern Binh Duong Province. The Viet Nam Chamber of Commerce and Industry has assured foreign firms that the Government has restored stability after protests occurred last week. — VNA/VNS Photo Quach Lam
HA NOi (Biz Hub) — The Viet Nam Chamber of Commerce and Industry (VCCI) yesterday moved to re-assure foreign businesses following the anti-China protests in Binh Duong, Dong Nai and Ha Tinh provinces.

Chamber chairman Vu Tien Loc said the Vietnamese Government had taken prompt action to contain the situation and restore social order.

"About 80-90 per cent of the companies that closed because of the protests have restored normal production," Loc said.

On May 13-14, many extremists are reported to have taken advantage of the situation to go on the rampage, burning factories and destroying property. Hundreds of protestors were detained for investigation.

Loc said the Government had taken measures to ensure the assets of foreigners were protected. He said the Vietnamese Government would not tolerate actions that could harm foreign businesses and employees.

The Chamber said it would implement measures to help foreign businesses resume operations. It will also advise foreign governments to continue business and investment in Viet Nam.

After petitions calling for insurance and compensation were raised by trade associations of countries, Le Xuan Thanh, a senior official from the Ministry of Labour , Invalids and Social Affairs said the ministry had assessed the damage to businesses and asked provinces to tell local employees to respect the law.

Deputy Director of the Ministry of Finance's Tax Office, Le Duc Huy, said the finance minister had sent a notice to provinces, customs departments and tax offices to carry out measures to assist businesses.

Regarding insurance, the Minister of Finance asked authorities to investigate and consider compensation for damaged property to help companies quickly return to production.

He also assigned Viet Nam Customs to help businesses by keeping data and accounting declarations and invoices for import-export activities.

In addition, the minister also required tax and customs offices to allow valued-added tax deductions if businesses suffered from losses.

He said the ministry would also consider reducing export-import tariffs or offer tax refunds if goods were lost or damaged.

Nguyen Ba Cuong, Deputy Director of the Foreign Investment Agency said that the Ministry of Planning and Investment had contacted the departments of planning and investment and management boards of industrial parks and export processing zones to develop security measures.

Meanwhile, many foreign businesses have shown confidence in Viet Nam, saying that the incidents were unintentional. Many said they would not leave Viet Nam. — VNS

Comments (0)