Anti-China protests in southern Vietnam have resulted in several factories being set on fire, as tensions rise over China's controversial deployment of an oil rig in the South China Sea.

Thousands of Vietnamese had gathered on Tuesday to protest China's placing an oil drilling rig in waters previously claimed by the Vietnamese government.

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The protests escalated as marchers stormed through the industrial park and set fire to at least three factories.

Strikers reportedly targeted factories with foreign signs written in Chinese, the result being that Taiwanese factories were mistaken for Chinese companies and bore the brunt of the attacks.

Police stated that gates to the factories were smashed and windows were broken before the factories were set on fire.

No casualties have been reported, but officials released a statement saying that many arrests were made in the aftermath of the incident.

Taiwan has issued a statement showing concern for Taiwanese nationals in the area who may be targeted as Chinese. The country urged Vietnam to guarantee the safety of workers from Taiwan.

Singapore, another country with a factory in the same industrial complex, demanded that Vietnam regain control of the situation and numerous other countries such as South Korea and Japan have shut down their factories for the day in order to ensure employee safety.

China and Vietnam have been locked down in a long-standing dispute over territory in the South China Sea which both countries lay claim to.

China's move to position an oil rig in the area has sparked multiple, anti-China protests across Vietnam with over 1,000 protesters gathering in Hanoi and slightly-smaller groups demonstrating in Ho Chi Minh City on Sunday.

The two countries have also experienced several skirmishes near the oil rig as vessels from the two countries have struggled against one another to regain control of the area.