Taiwan companies suffering big losses in Vietnam as China tensions grow

TAIPEI Wed May 14, 2014 8:27am IST

Stocks

   

TAIPEI May 14 (Reuters) - Taiwan companies doing business in Vietnam have lost billions of dollars as tensions mount tensions between Vietnam and China, an industry association said on Wednesday.

The losses included damage to manufacturing facilities which were set on fire, including those operated by Formosa Plastics Group, said Serena Liu, chairwoman of the Council of Taiwanese Chamber of Commerce in Vietnam.

Tensions rose in the resource-rich South China Sea last week after China positioned a giant oil rig in an area also claimed by Vietnam. Each country accused the other of ramming its ships near the disputed Paracel Islands.

(Reporting by Lin Miao-jung; Writing by Faith Hung; Editing by Kim Coghill)