Vedan Vietnam Case
Case 8: Vedan
Phần 1: Giới thiệu Vedan
-Vedan Vietnam was established in 1991 as a Vietnamese subsidiary of Vedan International (Holdings) Ltd, a Taiwanese-owned company listed on the Hong Kong stock exchange
- Vedan factory is located in Long Thanh, Dong Nai Province, near Thi Vai River, Viet Nam.
- The company is Asia’s leading producer of fermentation-based amino acids, food additive products and cassava starch-based industrial products.
-Vedan describes its management style as based on “modesty, responsibility, innovation” and part of a “compassionate corporate culture.
- Vedan has attained ISO 9001:2000 certification and has been recognized by the Vietnamese government
Phần 2: The Cause of Vedan’s Problems
Production began with two product lines.
A waste water treatment system for those lines released treated water into the Thi Vai River through a large underground pipe visible at the bank of the river.
Because the company experienced rapid increases in sales and production, new product lines were added and greater volumes were produced.
The company, however, failed to increase the capacity of its waste water treatment plant.
By 1996, villagers began to take note of the pollution.
Vedan responded by donating VND 700,000 to VND 1 million to each affected fisherman to help them find other livelihoods.
In 2002 the plantations had absorbed as much of this type of fertilizer as possible without making the soil too acidic, so farmers refused to take any more.
A revision of the 1994 Law on Environmental Protection (LEP) in 2005 increased Vedan’s legal risks concerning the pollution it was causing.
The 2005 law required regional protection authorities to report polluting establishments to the community
Environmental scientists at the Natural Resources and Environment Institute at Bach Khoa University in Ho Chi Minh City were appointed reporting to the authorities on river pollution
“For a stretch of at least 11 kilometers of the river,
Phần 1: Giới thiệu Vedan
-Vedan Vietnam was established in 1991 as a Vietnamese subsidiary of Vedan International (Holdings) Ltd, a Taiwanese-owned company listed on the Hong Kong stock exchange
- Vedan factory is located in Long Thanh, Dong Nai Province, near Thi Vai River, Viet Nam.
- The company is Asia’s leading producer of fermentation-based amino acids, food additive products and cassava starch-based industrial products.
-Vedan describes its management style as based on “modesty, responsibility, innovation” and part of a “compassionate corporate culture.
- Vedan has attained ISO 9001:2000 certification and has been recognized by the Vietnamese government
Phần 2: The Cause of Vedan’s Problems
Production began with two product lines.
A waste water treatment system for those lines released treated water into the Thi Vai River through a large underground pipe visible at the bank of the river.
Because the company experienced rapid increases in sales and production, new product lines were added and greater volumes were produced.
The company, however, failed to increase the capacity of its waste water treatment plant.
By 1996, villagers began to take note of the pollution.
Vedan responded by donating VND 700,000 to VND 1 million to each affected fisherman to help them find other livelihoods.
In 2002 the plantations had absorbed as much of this type of fertilizer as possible without making the soil too acidic, so farmers refused to take any more.
A revision of the 1994 Law on Environmental Protection (LEP) in 2005 increased Vedan’s legal risks concerning the pollution it was causing.
The 2005 law required regional protection authorities to report polluting establishments to the community
Environmental scientists at the Natural Resources and Environment Institute at Bach Khoa University in Ho Chi Minh City were appointed reporting to the authorities on river pollution
“For a stretch of at least 11 kilometers of the river,