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    VEDAN

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    Vedan, a Taiwanese company that produces monosodium glutamate in Vietnam, has faced significant issues from pollution over the years. It has discharged hazardous waste like cyanide into local rivers in violation of standards, damaging the environment, human health, and local economy by destroying fisheries. Though fined and required to pay compensation, criminal liability was not possible under Vietnamese law as it only applies to individuals, not organizations. The pollution has had severe consequences for local residents, governments, and Vedan's operations and reputation in Vietnam.

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    VEDAN

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    Vedan, a Taiwanese company that produces monosodium glutamate in Vietnam, has faced significant issues from pollution over the years. It has discharged hazardous waste like cyanide into local rivers in violation of standards, damaging the environment, human health, and local economy by destroying fisheries. Though fined and required to pay compensation, criminal liability was not possible under Vietnamese law as it only applies to individuals, not organizations. The pollution has had severe consequences for local residents, governments, and Vedan's operations and reputation in Vietnam.

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    Vedan, a Taiwanese company that produces monosodium glutamate in Vietnam, has faced significant issues from pollution over the years. It has discharged hazardous waste like cyanide into local rivers in violation of standards, damaging the environment, human health, and local economy by destroying fisheries. Though fined and required to pay compensation, criminal liability was not possible under Vietnamese law as it only applies to individuals, not organizations. The pollution has had severe consequences for local residents, governments, and Vedan's operations and reputation in Vietnam.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    45 views33 pages

    VEDAN

    Uploaded by

    My Name?
    Vedan, a Taiwanese company that produces monosodium glutamate in Vietnam, has faced significant issues from pollution over the years. It has discharged hazardous waste like cyanide into local rivers in violation of standards, damaging the environment, human health, and local economy by destroying fisheries. Though fined and required to pay compensation, criminal liability was not possible under Vietnamese law as it only applies to individuals, not organizations. The pollution has had severe consequences for local residents, governments, and Vedan's operations and reputation in Vietnam.

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    © All Rights Reserved
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    of 33

    MICROECONOMICS

    Illustrate the case of Vedan.


    Who are suffering from
    pollution?

    Group 2
    MEMBERS

    Vu Minh Trang
    Nguyen Thi My Duyen
    Nguyen Le Hien Anh
    Nguyen Tuong Vy
    Nguyen Thi Minh Anh
    Pham Ha Vy
    Truong Nhat Anh
    TABLE OF CONTENTS

    01 BACKGROUND 05 VIOLATIONS

    02 INFLUENCES 06 INDEMNIFICATION

    03 VEDAN'S CASE 07 CONSEQUENCES

    04 REACTIONS 08 FAILURE TO PURSUE


    CRIMINAL LIABILITY
    BACKGROUND

    In 1954, Ve Cheng Food- the initial name of


    VEDAN, was established in Taichung, Taiwan

    VEDAN was officially lauched in 1970

    Produce glutamic acid products, converting


    sugar cane molasses into monosodium
    glutamate
    In 1991, VEDAN Vietnam was established
    in Phuoc Thai, Long Thanh , Dong Nai, at
    the same time as Ajinomoto Vietnam.

    VEDAN Vietnam has invested in


    expanding its subsidiaries all over the
    country in Hanoi, Phuoc Long, Binh
    Thuan, Ha Tinh, Ho Chi Minh City
    IN 2011

    VEDAN’s monosodium glutamate


    and broth mix were present in
    almost 64 provinces and cities in
    the country
    INFLUENCES TO
    VIETNAM

    Microeconomics
    POSITIVE

    VEDAN’s products were consumed in Vietnam and


    exported to food supply companies, international
    trading companies

    Prestigious awards: National Quality Gold Award,


    Top 500 Largest Enterprises in Vietnam, Golden Rice
    Award, High Quality Vietnamese Goods Award...

    Vedan has given thousands of scholarships to poor


    students, supporting the needy with valuable gifts.

    Influence to Viet Nam


    NEGATIVE
    Besides many achievements in the
    business process, VEDAN Vietnam also
    experienced environmental incidents

    The company is located next


    to the Thi
    Vai river, the company decided to
    discharge raw waste directly into this
    river without any treatment.

    The company's waste contains many


    environmental pollutants, but the most
    ominous is Cyanide

    VEDAN'S CASE 1994

    2004

    2006

    2007

    2008
    1994
    After the official operation, Vedan Company
    discharged waste that polluted the
    environment of the Thi Vai River, causing
    mass deaths of fisheries.
    Company also proposed to dump the post-
    fermentation waste into the sea
    At that time there was a few industrial
    activity in the Thi Vai river basin
    This waste has similar characteristics to the
    liquid waste Vedan still discharges "thieves"
    daily as discovered by the inspection team
    and the Environmental Police Department
    2004

    Ministry of Natural Resources and Environment


    inspected the environmental protection

    The inspection results determined that the


    company discharged wastewater 2 time more
    than permissible standard
    2006
    Vedan Company discharged wastewater
    exceeding permissible standards
    Cyanide exceeded 7.6 to 5,600 times;
    Total coliform exceeded 100 times;
    COD exceeded from 1.2 to 4.1 times;
    BOD5 exceeded 6.4 times;
    N-NH3 exceeded between 13.6 and 60 times)

    Vedan was requested to install flow measuring


    equipment and automatic monitoring
    2007
    44,800m3 of liquid and untreated
    wastewater were discharged into Thi Vai
    River every month, mainly organic matter.

    Increased the capacity of production areas by


    two to three times and did not have an
    environmental impact assessment report

    This company increased the capacity of


    production areas by two to three times and
    did not have an environmental impact
    assessment report (DMT) ...
    2008

    Catching the company's wastewater


    discharge was extremely difficult

    Inspection Team found 100 pipeline


    discharged directly into the rainwater that
    discharged directly to the untreated
    stormwater line

    Inspection team inspected wastewater


    treatment and found that untreated
    wastewater was pumped directly from the
    tank
    CONSEQUENCES

    01 LOCAL PEOPLE

    LOCAL GOVERNMENT 02

    03 VEDAN COMPANY
    LOCAL PEOPLE

    fishermen had submitted applications to communes,


    2008-
    districts and even departments but had not received
    2009
    satisfactory answers

    At the company suddenly received the award "Safe products


    end of for public health", causing public anger, the award
    2009 was withdrawn

    7/2010 fishermen in Dong Nai, Ba Ria - Vung Tau and Ho Chi


    Minh City lawsuited Vedan.
    LOCAL GOVERNMENT
    The reaction of 3 provinces was different

    HCM City
    Directed Can Gio Farmers' Association to
    act as the leader for receiving complaints
    and from 1,824 households.

    Ba Ria- Vung Tau


    Many departments was established to receive
    claims for compensation from farmers
    Dong Nai
    Committee was quite awkward because of the
    large number of victimized households
    VEDAN'S REACTION

    After being caught red-handed, the company pleaded


    guilty on the spot

    2008-2009, Vedan did not accept compensation, only


    making commitments to support farmers

    Since the Institute of Natural Resources and Environment


    has calculated a specific amount of damage,Vedan has
    accepted negotiations on compensation
    VIOLATION
    Discharge of wastewater Incomplete submission of survey,
    exceeding permissible survey and monitoring data for
    standards at starch factories competent State agencies

    Discharge of wastewater Discharge of stench directly into


    exceeding permissible the environment without
    standards at MSG and Lysine equipment to limit
    factories environmental pollution

    Discharge of wastewater
    Improper hazardous waste
    exceeding permissible
    management
    standards in other factories
    VIOLATION
    Discharging wastewater into Discharge of sludge wastewater
    water sources at the wrong exceeding permissible standards
    places specified in the ten times or more
    permit

    Discharge of wastewater (liquid Discharge wastewater exceeding


    discharge after monosodium permissible standards from five
    glutamate fermentation with times to less than ten times at pig
    pollution parameters farms

    Discharge of wastewater
    Failure to pay environmental
    (liquid waste after Lysine
    protection fee for industrial
    fermentation has pollutant
    wastewater
    parameters)
    INDEMNIFICATION

    In 2005, Vedan compensate in the name of


    supporting aquaculture farmers with the
    amount of VND 15 billion

    Vedan was also administratively sanctioned


    VND 9 million and applied remedial measures
    INDEMNIFICATION

    Vedan was fined of VND 267.5 million, compel


    arrears of environmental protection fees of
    more than VND 127 billion

    In 2009 Vedan was confiscated VND 111 billion in


    environmental protection fees

    In 2010 Vedan accepted 100% compensation for


    damages to people in 3 provinces with an
    amount of over VND 220 billion
    01 ENVIRONMENT

    02 HUMAN HEALTH

    CONSEQUENCES
    03 ECONOMY
    ENVIRONMENT
    River water in the 10km radius area is heavily
    polluted, the water has a black smell, and the
    fish die in mass

    Thi Vai River is seriously polluted with organic


    matter, has a dark brown color and stinks ,
    the creatures are almost no longer able to live

    Dong Nai river water is contaminated with


    organic matter and suspended solids
    HUMAN HEALTH

    The system pumps out about 2 hours of waste


    each day. In which the most dangerous toxic
    waste is CYANURE

    With an amount of 3-4mg, person can lose


    consciousness, and can die after 2 hours if not
    treated promptly
    ECONOMY

    Farming and fishing activities to be


    severely affected

    By 2004, the aquatic animals died


    massively.

    Death not only exists in the river but also


    crept into the aquaculture ponds of
    fishermen in the provinces
    ECONOMY
    In Dong Nai, the number of damaged
    households is about 5,600, concentrated
    in two districts of Long Thanh and Nhon
    Trach
    Ba Ria-Vung Tau, about 1,255 households;
    Can Gio district, Ho Chi Minh City, about
    839 households

    Fish, shrimp and aquatic species were


    destroyed, making the fishermen's lives fall
    into disrepair.
    FAILURE TO PURSUE
    CRIMINAL LIABILITY
    To whom does criminal prosecution apply?

    According to Vietnamese criminal law


    "individualization of criminal liability was only
    applied to individuals and not to legal entities
    (organizations) "

    It can be affirmed that it was impossible to pursue


    criminal liability for Vedan Company as a legal
    entity
    THANK YOU
    FOR LISTENING

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