Vietnam pays $800,000 to get back ship from China
VnExpress
Updated : Sat, April 16, 2011,3:56 PM (GMT+0700)
Updated : Sat, April 16, 2011,3:56 PM (GMT+0700)
State-owned Vietnam National Shipping Lines (Vinalines) has transferred US$800,000 as compensation to a Chinese company to recover its ship, Vinalines Global, which is being detained in China over a trade dispute.
Vinalines general director Nguyen Canh Viet confirmed the payment with VnExpress this morning, April 16.
“We have made the payment to get back the ship, and Vinalines Global will then resume its normal operation,” he said.
He, however, did not reveal when the payment was made and whether the Chinese company has confirmed receipt of the payment.”
Meanwhile, the deadline for payment set by a Chinese court that handled the trade dispute is April 15.
Earlier, Vinalines has leased this cargo ship to an Indian company but the company failed to pay rent to the Corporation.
At the end of last month, the Vinalines’ Ho Chi Minh City branch decided to detain all the cargos on the ship.
However, those cargoes were owned by the Chinese company that had paid transport fee to the Indian company.
The dispute was brought to a Chinese court and the Chinese company claimed a compensation of $1.8 million.
The court later judged that Vinalines was wrong in detaining the cargoes and had to pay $800,000 as compensation to the Chinese company by April 15. Otherwise, the court will sell the ship to ensure execution of its verdict.
The ship is now evaluated at tens of millions of US dollars, said Le Dinh Thanh, director of the HCMC branch of Vinalines.
It is not the first time that a Vietnamese ship has been detained by Chinese businesses over trade disputes.
A few years ago, Dien Bien 02 was taken into custody in China for the delivery of wrong goods. The Chinese business involved took legal action against the Vietnamese side and claimed a compensation of $3 million.
The defendant eventually had to pay damages to the plaintiff but at a lower rate.
Vinalines general director Nguyen Canh Viet confirmed the payment with VnExpress this morning, April 16.
“We have made the payment to get back the ship, and Vinalines Global will then resume its normal operation,” he said.
He, however, did not reveal when the payment was made and whether the Chinese company has confirmed receipt of the payment.”
Meanwhile, the deadline for payment set by a Chinese court that handled the trade dispute is April 15.
Earlier, Vinalines has leased this cargo ship to an Indian company but the company failed to pay rent to the Corporation.
At the end of last month, the Vinalines’ Ho Chi Minh City branch decided to detain all the cargos on the ship.
However, those cargoes were owned by the Chinese company that had paid transport fee to the Indian company.
The dispute was brought to a Chinese court and the Chinese company claimed a compensation of $1.8 million.
The court later judged that Vinalines was wrong in detaining the cargoes and had to pay $800,000 as compensation to the Chinese company by April 15. Otherwise, the court will sell the ship to ensure execution of its verdict.
The ship is now evaluated at tens of millions of US dollars, said Le Dinh Thanh, director of the HCMC branch of Vinalines.
It is not the first time that a Vietnamese ship has been detained by Chinese businesses over trade disputes.
A few years ago, Dien Bien 02 was taken into custody in China for the delivery of wrong goods. The Chinese business involved took legal action against the Vietnamese side and claimed a compensation of $3 million.
The defendant eventually had to pay damages to the plaintiff but at a lower rate.
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