Anti-China Riots in Vietnam Scare Taiwan

In the territorial dispute between Vietnam and China, the Taiwanese are collateral damage. Since Vietnamese protests against a Chinese oil rig in disputed waters turned ugly on May 13, officials in Hanoi have been trying to reassure foreign factory owners that the country is still a safe place to invest. In Binh Duong province just north of Ho Chi Minh City, the local government chairman on May 20 met with representatives from almost 100 foreign companies to apologize and promise to help with the recovery effort. The next day, the central government announced a series of tax breaks and other measures for companies damaged by the attacks.

But the Taiwanese may need more than kind words and pledges. Vietnamese protesters set fire to 16 Taiwan-owned factories, possibly because of their Chinese names, and at least 500 Taiwanese-owned plants were damaged, according to a preliminary estimate by the Council of Taiwanese Chambers of Commerce in Vietnam. “Many factories will need completely new construction and new equipment,” says Serena Liu, the council’s chairwoman. “All the damage is still being assessed.” James Liu, chairman of the Taiwan Business Association in Binh Duong, told the Nguoi Lao Dong newspaper, “Whenever I meet companies, they all ask me if it is secure enough to keep their investments in Vietnam.”