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    Vedan

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    Phạm Tùng
    Vedan Vietnam Enterprise Corporation Limited, a Taiwanese-owned company established in 1991, operated factories along the Thi Vai River in Vietnam that produced monosodium glutamate, lysine, and modified starch. For over 14 years, Vedan illegally dumped untreated wastewater into the river at rates far exceeding standards, severely polluting the water, soil, and air and damaging the health of local residents and agriculture. In 2008, investigations found Vedan responsible for 89% of the river's pollution. The government fined Vedan $267,500 and required them to pay $127 million in environmental fees owed. Local communities claimed over $218 million in compensation for losses, and the company was ordered

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    Vedan

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    Phạm Tùng
    135 views7 pages
    Vedan Vietnam Enterprise Corporation Limited, a Taiwanese-owned company established in 1991, operated factories along the Thi Vai River in Vietnam that produced monosodium glutamate, lysine, and modified starch. For over 14 years, Vedan illegally dumped untreated wastewater into the river at rates far exceeding standards, severely polluting the water, soil, and air and damaging the health of local residents and agriculture. In 2008, investigations found Vedan responsible for 89% of the river's pollution. The government fined Vedan $267,500 and required them to pay $127 million in environmental fees owed. Local communities claimed over $218 million in compensation for losses, and the company was ordered

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    Vedan Vietnam Enterprise Corporation Limited, a Taiwanese-owned company established in 1991, operated factories along the Thi Vai River in Vietnam that produced monosodium glutamate, lysine, and modified starch. For over 14 years, Vedan illegally dumped untreated wastewater into the river at rates far exceeding standards, severely polluting the water, soil, and air and damaging the health of local residents and agriculture. In 2008, investigations found Vedan responsible for 89% of the river's pollution. The government fined Vedan $267,500 and required them to pay $127 million in environmental fees owed. Local communities claimed over $218 million in compensation for losses, and the company was ordered

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    135 views7 pages

    Vedan

    Uploaded by

    Phạm Tùng
    Vedan Vietnam Enterprise Corporation Limited, a Taiwanese-owned company established in 1991, operated factories along the Thi Vai River in Vietnam that produced monosodium glutamate, lysine, and modified starch. For over 14 years, Vedan illegally dumped untreated wastewater into the river at rates far exceeding standards, severely polluting the water, soil, and air and damaging the health of local residents and agriculture. In 2008, investigations found Vedan responsible for 89% of the river's pollution. The government fined Vedan $267,500 and required them to pay $127 million in environmental fees owed. Local communities claimed over $218 million in compensation for losses, and the company was ordered

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    of 7

    1.

    Background information of Vedan

    Name: Vedan Vietnam Enterprise Corporation Limited (Vedan Vietnam), a


    company wholly owned by Taiwanese investors.
    Year of establishment: 1991 in accordance with Investment Certificate No.
    171/GP issued by the State Committee of Copperation and Investment on 08/3/1991.
    Location: Phuoc Thai Commune, Long Thanh district, Dong Nai Province,
    Viet Nam.
    Principal activities: production of monosodium glutamate (MSG), lysine,
    and modified starch.
    Business philosophy: Taking roots in Vietnam- Developing long-term
    business.
    Related to environmental governance, on its website, the company asserted that
    since its establishment, it has put into use modern sewage treatment system and
    equipment as well as implemented resource of recycled products for reuse and
    will keep efforts basing on foundation of protecting environment, sustainable
    development in order to gain the long-term business targets.
    2.

    Vedan casse

    2.1 Thi Vai pollution


    Thi Vai River is 76km long, flowing through Long Thanh district (Dong
    Nai) and Tan Thanh district (Ba Ria Vung Tau). By dint of the rivers geographic
    advantage, local residents mainly live by fishing and breeding shrimps and fishes.
    -

    Vedan had built its factories in an area of 120 hectares near Thi Vai river.

    Since Vedans first plant was put into operation in 1994, it had dumped wastewater
    into Thi Vai river, causing deaths of living creatures in the river and local farmers
    losses. In 1995, after negotiation, the company agreed to pay the farmers a
    compensation of VND 15 billion.
    However, the pollution had become more and more serious, destroying farmland
    nearby the river and pushing farmers to the edge of bankruptcy. Further, local
    people, due to consuming contaminated water, suffered a series of diseases such as
    skin rashes, digestive problems, and even cancer.


    9/2008: Receiving numerous complaints from the local community, the state
    agency conducted an investigation at Vedans factories along Thi Vai River. Their
    initial discovery as follows.
    -

    Vedans discharging amount was 5-10 times higher than that allowed.

    More seriously, it was revealed that in addition to a registered sewage


    treatment system, Vedan had erected an underground system to illegally dispose of
    untreated sewage into Thi Vai River.
    With the grave violation, the Ministry of Natural Resources and Environment
    (MONRE) carried out further investigations and research on the pollution caused
    by Vedan. The conclusion as follows:
    Vedan had been poisoning Thi Vai river for a period of 14 years (1994-2008)
    by directly dumping untreated wastewater into the river at a rate of 105,600 cubic
    meters per month, constituting systematic violations of environmental regulations.
    Vedans sewage was the main culprit polluting Thi Vai river, contributing to
    about 89% of the pollution. Consequently, water, soil and air in the surrounding
    area had been severely contaminated by toxic chemicals with the level hundreds of
    times exceeding acceptable standards.
    4. Effect
    4.1Negative effect with VN government
    - Reduce the trust with VN government. In Congress meeting, Environment
    Minister was asked 24 questions about this case. But his answer was considered
    irresponsible.
    - Vedan case creates a seriously environment pollution:
    +) Vedan discharged direct of untreated water into environment for over 14 years
    +) This caused over 10 serious environmental problems
    - Causing serious damage about environment and financial. To improve the
    water environment, VN government used over than 127 billion VN.
    - Over 2000 ha fishery was affected, lands also affected, many area can not use
    for planting anymore Government must spent approximately 107 billion VN
    to solve these problem

    4.2 Negative effect on resident

    -First of all, the Thi Vai pollution brought out serious influence on local residents
    health.
    -Contamination of groundwater by Vedans effluents leaded to pollution in soil, air
    and water of surrounding area throughout 14 years.
    -The pollution has even contaminated underground water while many wells in the
    area are foul and unusable. A local resident in Phuoc Binh Commune, Tran Thi
    Son, said that the water has a bad odor and color; he cannot find fresh water any
    more although he had drilled other new wells because all of them were foul. It
    directly caused the ill-effects on the local residents health such as skin rashes,
    respiratory diseases and headaches.
    -These consequences not only happen in several years, within several people; they
    last a long time and affect from this generation to the next ones. Since it is difficult
    to recover the pure environment of Thi Vai River area like before Vedans actions.
    4.3 Negative effect on company
    From feedback and annoyance of local residents about the status stealthily
    discharging untreated waste into the environment, after more than 3 months of
    follow-up, September 13, 2008, inter-agency inspection team was caught in the act
    Vedan stationed in Long Thanh district, Dong Nai province discharge a large
    amount of waste water untreated into the Thi Vai river. According to estimates,
    Vedan can discharge waste water to 5,000 m3 / day into the river. [1] According to
    the original exhaust system installation services of Vedan's waste in violation of the
    provisions of the law on environmental protection. [2]. According to Colonel
    Luong Minh Thao, violations are extremely serious. At the scene, Deputy Director
    of the office Vedan Vietnam has acknowledged violations of the company. [1]
    September 19, the Ministry of Natural Resources and Environment announced the
    results of the investigation of Vedan 10 violations, including:

    1. Discharge of wastewater exceeds permitted standards by 10 times or more for


    manufacturing modified starch company.

    2. Discharge of wastewater exceeds permitted standards by 10 times or more for


    the MSG factory and the company's lysine.
    3. Discharge of wastewater exceeds permitted standards by 10 times or more for
    the company's other plants.
    4. Submitting incomplete survey data, survey, monitoring and other relevant
    documents to the agency data storage environmental information under the
    provisions of the state agency having jurisdiction.
    5. No registration is committed to protecting the environment with the state
    authorities on environmental protection for pig farms.
    6. Do not report environmental impact assessment which was built and put into
    operation projects for investment projects to raise capacity xut- acid factories from
    3,116 tonnes / month to 6,600 tons / month.
    7. Do not make reports on environmental impact assessment that has been built and
    put into operation projects for investment projects to raise capacity of monosodium
    glutamate factory from 5,000 tons / month to 15,000 tonnes / month, starch
    denaturation of 2,000 tonnes / month to 4,000 tons / month, lysine from 1,200
    tonnes / month to 1,400 tons / month, senior spice powder 20 tons / month, PGA
    700 tons / year, 70,000 tons of fertilizer Combination / year (solid) , 280,000 tons /
    year (liquid).

    8. Discharge of fetid, unpleasant odors directly into the environment without


    limiting environmental equipment.
    9. Management of hazardous wastes in contravention of regulations on
    environmental protection.
    10. The company discharging wastewater into water sources incorrectly specified
    location in the license. [3]
    11. October 6, Chief Inspector of the Ministry of Natural Resources and
    Environment decision sanctioning of administrative violations of environmental
    protection for the total fine Vedan is 267.5 million, forced to retrospectively pay
    protection fees more than 127 billion VND environment. 12. October 13, the Prime
    Minister of Vietnam is directing the relevant authorities to urgently and resolutely

    implementing measures to handle violations of legislation on environmental


    protection for the Public Vedan. [4]
    5.

    Reactions and solutions

    5.1.

    The government

    According to the decision of the MONRE on handling of Vedan violations of


    environment protection, Vedan must:
    Pay administrative fine : VND 267,500,000
    Pay accrued environmental fee owed by the company for 14 years: VND
    127,268,067,520.
    Temporarily close its four factories that released improperly treated sewage.
    Entirely dismantle the underground discharge system and create a detailed
    operational diary of the registered discharge system.
    Upgrade the sets of treatment equipment at the plants to ensure the compliance
    with the national technical standards.
    The other factories allowed to operate need to be put under strict oversight of
    local environmental authorities to ensure its compliance with the national
    standards.
    Take measures to remedy the pollution.
    Vedans response: full compliance. It paid the fine and accrued fee between 2008
    and 2009, invested approximately in upgrading the existing treatment system,
    installing new modern equipment and adding recycling facilities
    5.2

    The local communities

    Require Vedan to be liable for damages they suffered, i.e. their losses of
    investment in farmland and breeding aquatic creatures, as a consequences of
    pollution caused by the company.
    To assist the farmers, the Prime Minister required provincial authorities in Dong
    Nai, Ba Ria Vung Tau and HCM City to conduct research to determine the
    economic and environmental damages Vedan caused to local people. The damage
    claimed by the three local communities:

    Community

    Number of household

    Compensation claimed

    Ba Ria Vung

    affected (households
    1255

    (VND billion)
    53.6

    Tau
    Ho Chi Minh

    839

    45.7

    City
    Dong Nai

    5,064

    119.5

    Vedans response:
    - Commit to compensate affected farmers.
    - However, during the negotiations, express its lack of responsibility and goodwill:
    Intention to prolong the process without valid reasons:
    + Upon receiving documents stating the damages, the company had delayed
    responding for several times until intervention of the local authorities.
    + The MONRE sent an official document requesting the Chairman of Vedan,
    who was in Taiwan, to attend the meeting with farmers representatives and local
    agencies but the Chairman refused because of being occupied. In fact, the
    Chairman had never come to Vietnam to deal with the problems. His
    communication with the other parties was via correspondence.
    Arguments about damage measure and the companys liability.
    The damage measure was inaccurate and exaggerated without legal basis.
    The compensatory damages the company offered

    Local communities Compensation claimed


    (VND billion)
    Ba Ria Vung Tau 53.6
    Ho Chi Minh City 45.7
    Dong Nai
    119.5

    Compensation
    offered (VND billion)
    10
    12
    15

    - Inconsistent behaviours: Although Vedan signed the minutes of the meeting with
    Ba Ria - Vung Tau farmers on 27/5/2010 stating that the compensatory amount was
    VND 31.9 billion, it then only accepted to pay VND 10 billion.
    - The amount Vedan offered to Dong Nai farmers, who are most seriously
    impacted by the pollution, was 15 billion. Despite the severely poisoning of the
    environment for 14 years, Vedan offered the same as that it had paid farmers for its
    environmental effects in 1995. Then, experiencing local residents strong
    opposition, the company increased the amount to VND 30 billion.
    Because there have been a number of companies operating along Thi Vai river,
    Vedan should not be the only company which had to be responsible for the
    pollution.
    - The period of negotiations lasted from 2008 to 2011 (roughly 3 years).
    Facing Vedans unwilling and uncooperative attitudes, the local communities
    intended to take legal action.
    5.2.

    Customers

    - Consumer boycotts
    A boycott of Vedans products arose from consumers discontent with Vedans
    environmental violations and irresponsibility for local residents losses. The
    statement calling for anti-Vedans products appeared on websites, personal pages
    and facebook.
    Finally, Vedan agreed to paid local people 100%

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