>> Consumers and retailers boycott Vedan’s products
>> MSG maker offers to pay up, farmers say it’s not enough
Vedan has agreed to fully compensate farmers of Ho Chi Minh City and Ba Ria - Vung Tau in hopes that lawsuits against them would be dropped.
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| Vedan was busted in 2008 for discharging waste water directly into Thi Vai River. (Documentary photo). |
A meeting was held yesterday between the Ministry of Natural Resources and Environment (MoNRE), representatives from the Farmer Associations of Ho Chi Minh City, Ba Ria - Vung Tau and Dong Nai and representatives from Vedan.
At the meeting, Vedan recognised its responsibility to pay compensation for the economic damages that they caused to farmers of these areas by polluting the Thi Vai River. The MSG factory was caught committing major environmental violations which had adversely impacted thousands of farmers. Vedan has now committed to compensating farmers of Ho Chi Minh City and Ba Ria - Vung Tau 100% of the amounts that had been previously calculated by the Institute of Natural Resources and Environment (INRE) and agreed to by the People’s Committees.
The amounts Vedan agreed to compensate for farmers of Ho Chi Minh City and Ba Ria - Vung Tau are respectively VND 45.7 billion (USD 2.4 million) and VND 53.6 billion (USD 2.8 million). However, Vedan requested paying these compensation in two installments. The payments are expected to be transferred to accounts held by the People’s Committees.
In regard to the compensation amount for Dong Nai, because the figure had not collected a census agreement among the INRE, Dong Nai’s People’s Committee and Vedan, the company said that it could not yet offer its compensation for farmers of the province in question.
Dong Nai’s People’s Committee is expected to have appointed relevant agencies to work out compensation figures with Vedan in the next week as well as reporting the results to the Prime Minister.
According to the MoNRE representatives, prior to the meeting, Vedan had increased their compensation amount for farmers in Ho Chi Minh City, Ba Ria - Vung Tau, and Dong Nai respectively to VND 40 billion (USD 2 million), VND 50 billion (USD 2.6 million), and VND 70 billion (USD 3.6 million) in hopes that these proposed amounts would be accepted and the farmers would withdraw their lawsuits against Vedan.
Representatives from the three People’s Committees rejected the proposed compensation figures.
Currently, the wave of boycott against Vedan is very strong and it has created a lot of difficulties for Vedan’s business production in Vietnam. With convincing and reasonable analysis from relevant authorities, Vedan decided to pay the compensation in full amounts exactly as requested by farmers of Ho Chi Minh City and Ba Ria - Vung Tau.
Nguyen Thai Lai, Deputy Minister of Natural Resources and Environment, affirmed, “We also want Vedan to continue to operate effectively for the long-term in Vietnam with the condition that adequate compensation must be paid to affected farmers. We will create favourable conditions for Vedan in particular and businesses in general to operate effectively when satisfactory compensation is provided and the law is adhered to.”
On July 28, Vedan offered an increase in their compensation for farmers of the three areas but farmers rejected the offer and decided to take Vedan to court.
