Each farmer will be paid VND87 million (US$4,400) through the local State Treasury office.

In September 2008, Vedan Viet Nam was caught discharging untreated wastewater into Thi Vai River in southern Dong Nai province, causing serious pollution and heavy losses to thousands fish-rearing households in Dong Nai, Ba Ria-Vung Tau and HCM City.

It turned out that the company had been doing it for 14 years.

Dang Thi Kim Phung, director of the district's State Treasury said the procedure was easy for farmers to receive their compensation. They only needed to show their house ownership certificates or identity card, she said.

Farmers would start to receive their first payments of VND42 million ($2,100) this week, said Doan Van Son, vice chairman of the district People's Committee.

The remainder would be transferred to the farmers at the end of February.

A total of 911 farmers are listed to receive compensation, thought to total over VND22 billion ($1.1 million).

Research by the Institute of Environment and Natural Resources of HCM City National University found Vedan's waste water had polluted 80-90 per cent of water in Thi Vai river which runs nearly 80km through HCM City, Dong Nai and Ba Ria-Vung Tau provinces.

Vedan Viet Nam had also paid compensation to farmers in southern Ba Ria-Vung Tau Province.

(VNS, 26/1/2011)