Twenty one violence hit businesses not claim compensation - Twenty one violence hit businesses not claim compensation - Website Ho Chi Minh City
Twenty one out of 33 companies hit by anti-China violence do not claim compensation for their damage, the Ho Chi Minh City Industrial and Export Processing Zone Authority (HEPZA) said on July 16.
The 33 enterprises suffered a total damage of VND5.4 billion (US$255,000) due to anti-China violence hit in mid-May. Of them, 13 have bought insurance and the rest of them have not.
Twenty one companies undergoing VND684 million in losses have taken the initiative to repair the damage without compensation claims. Nine are working with insurance companies for about VND3.8 billion indemnity.
Three companies do not take out insurance but still ask for compensation of VND850 million.
According to HEPZA, most enterprises do not suffer much direct damage on material facilities. However they have to experience indirect losses from contract cancellations, destroyed material sources and being unable to collect debts.
Moreover, they must provide their workers with paid holidays, find other material supplies and pay penalties for failing to deliver goods as per contracts.