THE BUSINESS INFORMATION CENTER AT THE VIETNAM CHAMBER OF COMMERCE AND INDUSTRY

No.1 (4) April 2004

   

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Issue No. 22
Access to land
:: Article  :: Viewpoints
 

Issue No. 21
The state capital
investment corporation
:: Article  :: Viewpoints
 

Issue No. 20
Streamlining the
business startup process
:: Article  :: Viewpoints
 

Issue No. 19
Effective Implementation of the new Enterprise and Investment Laws
:: Article  :: Viewpoints
 

Issue No. 18
Starting a business in Vietnam
:: Article  :: Viewpoints
 

Issue No. 17
Streamlining
Business Licensing
:: Article  :: Viewpoints
 

Issue No. 16
Women's entrepreneurship
:: Article  :: Viewpoints
 

Issue No. 15
Private Credit Bureaus
:: Article  :: Viewpoints
 

Issue No. 14
Efforts in improving business environment
:: Article  :: Viewpoints
 

Issue No. 13
Corporate governance
:: Article  :: Viewpoints
 

Issue No. 12
The common investment law
:: Article  :: Viewpoints
 

Issue No. 11
Private sector firms
:: Article  :: Viewpoints
 

Issue No. 10
The unified enterprise law
:: Article  :: Viewpoints
 

Issue No. 9
Investment incentives
in Vietnam
:: Article  :: Viewpoints
 

Issue No. 8
Business Environment in Vietnam - Overview 2004
:: Article  :: Viewpoints
 

Issue No. 7
Business Development Services
:: Article  :: Viewpoints
 

Issue No. 6
Local governance
& Economic growth
:: Article  :: Viewpoints
 

Issue No. 5
SOE Valuation
:: Article  :: Viewpoints
 

Issue No. 4
Corp. Social Responsibility
:: Article  :: Viewpoints
 

Issue No. 3
Trademark protection
:: Article  :: Viewpoints
 

Issue No. 2
The stock market
:: Article  :: Viewpoints

 

Issue No. 1
The revised draft Land Law
:: Article  :: Viewpoints

 

 

VIEWPOINTS
 

... of Vietnamese Manufacturing Companies

 

  • Viet Tien has SA 8000 and WRAP certification, and we also apply the CoCs of our big buyers including Nike, Adidas, FILA and JC Penny. This year we plan to implement two major changes to benefit our workers, which are air-conditioning in all of our manufacturing plants and a minimum wage of VND 550,000/worker/ month.
    To achieve this year's revenue target of US$20 million from our garment manufacturing operations, the Board of Directors must not only seek new sources of materials, markets, and machinery but must also improve employees' working and living conditions. We want our workers to consider themselves part of a big family and commit themselves to achieving the company's goals.
    We know that multinational companies always check to see whether a supplier meets safety and environmental standards before placing an order. Thus, we are proactive in applying SA 8000 because it is an internationally recognized standard that gives our buyers a clear picture of working conditions in Viet Tien's plants. I must admit, when we first started applying various CoCs, our senior management and plant managers felt a certain degree of pressure. But we set goals to meet all of our buyers' requests, because we knew that if we did not adopt CSR standards we could not survive. As a result of our high CSR standards, nearly 50% of Viet Tien's export turnover has been earned from the US market in the last two years.

Mr. Le Viet Toa, Deputy General Director
Viet Tien Garment Export and Import Company (Viet Tien)


  • Bitis gives priority to environmental and social responsibility and considers it a means to increasing its competitiveness. Although there are no official statistics on benefits of CSR within the company, employee loyalty is a very good indication. Many of our employees have stayed with the company for 10 to 20 years; most stay at least 5 years. This loyalty enhances sustainability, increases productivity, and reduces costs for recruiting and training new employees.
    Bitis has implemented many CoCs, including those of Mark Spencer and Nexx. We are currently in the process of doing our research about SA 8000 as we hope to export to the American market. Through preliminary surveys, we have learned that although multi-national companies like Wal-Mart and Pay Less have their own CoCs, they consider SA8000 a good reference point.
    Employees in Vietnamese garment and apparel enterprises, and especially in wood processing enterprises, are working in very polluted environments. Companies making products for the domestic market do not usually pay attention to environment, health, and labor standards. I think the government should vigorously promote CSR to the general public, because informed consumers can have an impact on the producers who are not following good standards. I know that in Europe, enterprises that do not implement CSR often find their products boycotted by consumers.
    Let me just add that to Bitis, we find it quite easy to implement our buyers' CoCs and uphold high standards of CSR, as most of these standards are required by Vietnamese law.

Mr. Nguyen Van Toan, Export Manager, Binh Tien Limited Company (Bitis)


  • I think that SA 8000 offers many benefits. It contributes to long-term health and well-being, and makes workers feel more secure and satisfied with their working environment - a decisive factor for an enterprise's success. In my 36 years working in the textile industry, I have witnessed many generations of male and female workers whose health has deteriorated due to poor working conditions. Generally they can only work for a maximum of 10 to 15 years. Therefore, if we don't find a way to protect the health of workers, we will eventually lose valuable human resources. For me this is the critical importance of CSR.
    We are simultaneously applying ISO 9001, ISO 14001, SA 8000 and OHSAS 18001 to our operations. Doing so is not at all a burden, first because the management processes of these systems are not that different from one another, and second because we are doing this proactively and voluntarily to help ourselves rather than defensively. These systems help workers by ensuring a stable working environment and policies, no matter who is on the Board of Directors. These systems are also periodically examined and evaluated by a third party to ensure that the company is meeting its promises to our workers.
    CSR has not yet been implemented very widely in Vietnam because the majority of enterprises have not seen its benefits and many buyers do not require it yet. This is an area where the government should be proactive. For example, as a result of countless training courses and conferences conducted by offices of the Ministry of Science and Technology, ISO 9000 and ISO 14000 quality management systems are widely known in Vietnam. CSR needs to be promoted the same way. Vietnam highlight cheap labor as our competitive advantage - in some ways it's a shame, because [the cheap labor is a result of] our workers having low levels of education and skills. CSR application will help workers have better health and develop better professional skills through training, and this, in turn, will boost productivity and sustainability. I suggest that the government and donors support programs that educate enterprises about CSR and its benefits to create favorable conditions for its application. I would also recommend to enterprises that they should apply CSR standards to their operations, because doing so truly does benefit both business and society.

Mr. Khieu Thien Thuat, Chairman, Coats Phong Phu


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