2017 CORPORATE SOCIAL RESPONSIBILITY REPORT CSR Report.pdf · Awards 1.4. Organizational Structure...
Transcript of 2017 CORPORATE SOCIAL RESPONSIBILITY REPORT CSR Report.pdf · Awards 1.4. Organizational Structure...
2017
CORPORATE
SOCIAL
RESPONSIBILITY
REPORT
CHINA STEEL SUMIKIN VIET NAM
JOINT STOCK COMPANY
I. INTRODUCTION
1.1. Overview
1.2. Chronology of Major Events
1.3. Awards
1.4. Organizational Structure
1.5. Our Business
II. OUR PEOPLE
2.1. Overview
2.2. Employee Welfare and Fringe Benefits
2.2.1. Transportation
2.2.2. Training and Development
Opportunities
2.3. Employee Activities
III. ENVIRONMENT MANAGEMENT
3.1. Environment Management
3.2. Environment and Energy Management
Committee
3.3. Key EMS Program
3.4. Promotion of environmental risk
management
3.5. Promotion of environmental performance
3.6. Energy and green process
3.7. Campaign spreading a green plant
IV. SAFETY&HEALTH
MANAGEMENT
4.1. Culture & Management System
4.2. Management Committee
4.3. General activities
4.4. Education
4.5. Featured activities in 2017
4.6. Performance index
V. MARKETING AND PRODUCT
DEVELOPMENT
5.1. Overview
5.2. New Product Development and
Promotion
5.3. Product Marketing
VI. CONTRIBUTION TO SOCIETY
6.1. Overview
6.2. Employee Engagement
6.3. Contribution to Local Communities
TA
BL
E O
F C
ON
TE
NT
From the very first beginning, CSVC has been
fully aware of the importance of corporate social
responsibility to the sustainable operation of any
enterprises. Therefore, we have non-stop
committed to exercise it and maintain good
relationship with all stakeholders of the
Company.
During 2017, CSVC had to endure severe price
competition from Chinese imports as well as
local Vietnamese re-rollers. In addition, the low
price offered to EU customers had an impact on
CSVC’s revenue and made the total profit fall
short to our expectation. In the export market, the
investigation of Section 232 and the Anti-
Circumvention case of CR and CORE triggered
by US Department of Commerce (USDOC) had
obviously dampened CSVC business in the US
market. However, with all the efforts of CSVC’s
leaders and employees, the Company has not
only overcome this crisis but also met our
commitments of CSR promises and gained
significant achievements in 2017.
Specifically, with substantial contribution to
national and regional economic prosperity in the
progress of international economic integration,
on May 7th, 2017, CSVC was granted “Asia-
Pacific Outstanding Brand 2017”. Besides
creating economic value, CSVC has always been
intimately connected to healthy social and
environmental systems. In Dec 2017, CSVC
managed to pass the final audit of the
Certification Body TÜV Rheinland for ISO
50001:2011 Certificate and expected to obtain
the Certificate in Mar 2018. This is a proof for
our endeavor in innovating technologies to be
friendly to the environment. Especially, by
meeting all sustainable development criteria in
economic, environmental and social aspects, on
Dec 6th, 2017, CSVC won hundreds of excellent
enterprises in Vietnam to be awarded in “Top
100 Vietnam Sustainable Enterprise in 2017”.
This CSR report summarizes our efforts and
activities carried out in 2017. We hope through
this report, it will encourage our key audiences a
greater commitment to promote sustainable
living in the future.
CHEN, CHUNG-SHIN
CHAIRMAN AND GENERAL DIRECTOR
STATEMENT FROM
THE GENERAL DIRECTOR
I. INTRODUCTION 1.1. OVERVIEW To catch up with the rapid flow of development in steel market within East
Asia, on May 17th, 2009, on the basis of a joint venture between famous steel
companies in the industry's global steel production in Taiwan and Japan,
which are notably China Steel Corporation (CSC) and Nippon Steel &
Sumimoto Metal Corporation (NSSMC), China Steel Sumikin Vietnam Joint
Stock Company (CSVC) was established with headquarters located at Ba Ria
– Vung Tau Province, one of the key economic zones of Southern Vietnam.
With the total investment capital of 1,148 billion US dollars and high-tech
equipment transferred from mother companies, after 4 years going into
official operation, CSVC has gradually affirmed its brand to become one of
local leading companies in the field of manufacturing high quality steel plates.
This achievement also results from the effort of the Company in enhancing
waste and pollution reduction processes as well as providing positive
improvements towards our community and employees. Besides focusing
attention on establishing a management system of international standard
which can thoroughly handle all safety issues and continuously improve labor
environment, CSVC has been continuously innovating the steel production
lines and productivity to widen product range, create superior quality
satisfying all demand of customers. We are actively promoting the 04 core
products: Pickled and Oiled Steel Coils (PO), Cold Rolled Steel Coils (CR),
Galvanized/ Galvannealed Steel Coils (CG) and Electrical Steel Coils (ES).
As protectionism intensifies in almost all areas around the world, CSVC has
diversified export market portfolio and expanded from the existing markets of
ASEAN and USA to others such as Europe, Middle-East and South-Asia etc,
to reduce our reliance on just a few markets and avoid trade risks.
VISION
“OUR QUALITY, YOUR
BETTER LIFE”. Customers’
benefit will always be our
concern. CSVC believes that
high-quality products,
technology and services will
create a better future and
improve the quality of life of
customers and stakeholders.
CSVC tends to be a
trustworthy steel company
with high-quality products
and competitive price in steel
market.
MISSION
With the concept “Customer’s
Trust”. CSVC turns technology
and knowledge into value for
the customer’s benefit.
With over 800 outstanding
professionals working together,
CSVC will satisfy the
customers with brands and
products that are good for them
and good for environment.
CSVC will develop the unique
process for each customer,
which will meet the customer
needs and exceed customer
expectation.
May 12, 2009
Ba Ria-Vung Tau Industrial Zone
Authority (BIZA) issued the Investment
Certificate to CSVC.
October 1, 2009
Staffs of CSC and NSSMC officially
moved to the Representative Office in Ho
Chi Minh City, Vietnam.
February 28, 2011
The Board of Management elected Dr. Wong,
Chao-Tung as CSVC Chairman and General
Director.
May 26, 2011
The first pile was erected in the Blessing
Ceremony at 09:16 a.m.
September 8, 2011
CSVC celebrated the Ground Breaking
Ceremony.
October 1, 2012
CSVC’s second largest shareholder,
Sumitomo Metal Industries, merged with
Nippon Steel Corporation as NSSMC which
became the second largest steel corporation
in the world.
At the end of December 2012
The installations of CAL, CGL and ACL
were finished completely, and their
individual tests were started totally on
January 2, 2013.
April 23, 2013
The Annealing and Coating Line (ACL, The
first production line in ASEAN) produced the
first qualified Electrical Steel coil (ES).
October 14, 2013
CSVC celebrated the Grand Opening
Ceremony.
November 29, 2013
BSI issued the ISO 9001 Certificate to CSVC.
In December 2013
PLTCM smoothly achieved three indexes of
the rolling technology, 0.2mm thick strip (the
thinnest strip of the equipment specification),
50CSV470 coil (the highest steel grade of ES)
and 780Y coil (the highest strength steel grade
with the low yield ratio).
2009
2011
2012
2013
1.2. CHRONOLOGY OF
MAJOR EVENTS
From June to August 2014
CSVC passed the product certifications of
Malaysia (SIRIM), Indonesia (SNI) and Thailand
(TISI).
May 07, 2014
CSVC started offering dormitory to national
employees, serving about 400 people.
October 07, 2014
CSVC was formally granted Certificate of
conformity by Quality Assurance and Testing
Center 3 (QUATEST 3) for PO, CR, GI, GA
products.
October 11, 2014
Vietnam Steel Association came to CSVC to
discuss GI anti-dumping case.
October 30, 2014
CSVC finally got all PINK COVERS (Certificates
of land use rights, house and land-attached assets)
for whole plant from DONRE.
March 31, 2015
CSVC was granted a Certification as a DA
(Digital Appliance) member of Samsung
Electronics Co., Ltd.
July 17, 2015
Sumitomo Corporation (SC) officially transferred
all its shares to China Steel Corporation (CSC).
Up till this moment, CSVC has 6 founding
Shareholders: CSC, NSSMC, NSSBC, FHS, Hsin
Kuang and Chun Yuan.
September 2015
CGL line reached full capacity.
September 23, 2015
CSVC achieved shipment volume of 1 million
tons for finished products.
November 25, 2015
CSVC was honored to receive “Golden Brand
Award” from Ministry of Industry and Trade
(MoIT)
January 15, 2016
The Board of Management elected Mr. Chen,
Min-Hun as the new Chairman and General
Director of CSVC.
March 12, 2016
CSVC got ISO/TS16949:2009 for Automotive
Quality Management Systems
December 1, 2016
The Board of Management elected Mr. Chen,
Chung-Shin as the new Chairman and General
Director of CSVC.
March 1, 2017
CSVC passed the final audit of SGS Certification
Organization and achieved OHSAS 18001.
April 13, 2017
CSVC had the honor to receive merit certificate
from the provincial People’s Committee for
many achievements in safety & health activities
in 2016.
May 7, 2017
CSVC was granted “Asia-Pacific Outstanding
Brand 2017” and given QR code for product
identification worldwide.
Dec 6, 2017
CSVC won hundreds of excellent enterprises in
Vietnam to be awarded in “Top 100 Vietnam
Sustainable Enterprises in 2017”
2014
2015
2016
2017
n May 7th, 2017, CSVC was granted “Asia-
Pacific Outstanding Brand 2017” for
substantial contribution to national and
regional economic prosperity in the progress of
international economic integration. This event has
offered CSVC an opportunity to join in a voluntary
activity of installing 10 water purifiers for several
primary schools and kindergartens in difficult and poor
area in Binh Phuoc Province and Son La Province,
allowing the children here to have clean water to drink
and save them from several serious diseases that may
lead to death such as diarrhea, bacterial infections…
orporate Sustainability Index (CSI) is one of VCCI’s initiatives to promote sustainability in the
business community as a gauge of corporate value based on sustainable development criteria in
economic, environmental and social aspects. CSI is also a tool to identify measurable objectives
and administer changes for greater sustainability.
The Index was developed and advised by top-
notched sustainability specialists from VCCI,
governmental agencies, domestic and
international organizations, VCCI members and
other independent experts.
By meeting the following conditions: (1) Have
comprehensive sustainable development strategy,
(2) Understand the benefit of sustainable
development as the main framework for the
business to build operating apparatus and
optimize business processes and supply chains,
(3) Have economically effective operations, on
Dec 6th, 2017, CSVC won hundreds of excellent
enterprises in Vietnam to be awarded in “Top 100
Vietnam Sustainable Enterprise in 2017”.
The award accordingly helps enhance reputation
and competitiveness of CSVC as well as facilitate
the process of international integration.
O
C
ASIA-PACIFIC OUTSTANDING BRAND 2017
1.3 AWARDS
TOP 100 VIETNAM SUSTAINABLE ENTERPRISE IN 2017
CSVC Chairman at the Announcement Ceremony of
Asia-Pacific Outstanding Brand 2017
CSVC Chairman received the Award
1.4. ORGANIZATIONAL STRUCTURE
1.5. OUR BUSINESS
Thanks to the relentless efforts and devotion of skillful and experienced staffs with professional
knowledge, advanced and modernized production facilities, excellent product quality and diligent
customer service in line with the motto “Our Quality, Your Better Life”, CSVC has recorded
spectacular growth rate. Customer satisfaction has been successfully achieved and continuously
MANAGEMENT DIV. PRODUCTION DIV. COMMERCIAL DIV.
No.1 Sales
No.2 Sales
Procurement &
Transportation
Human Resources
Finance & Accounting
General Affairs & Public
Relationship
Information Technology
Safety & Environmental
Management
Cold Rolling
Annealing & Galvanizing
Electrical Steel & Finishing
Quality Control & Assurance
Maintenance & Engineering
Production Control & Logistics
Utility
General Director Office
CHAIRMAN
DEPUTY GENERAL DIRECTORS
SHAREHOLDERS
BOARD OF
MANAGEMENT
GENERAL
DIRECTOR
Special Assistant
Labor Safety & Health Committee
M1
M2
M4
M5
P1
P2
P6
P7
P8
P3
P4
P5
C3
C2
C1
maintained as demand on CSVC’s products is robustly booming and stably flourishing in both
domestic and export markets.
During 2017, CSVC managed to gain annual profit for the second consecutive year, which is
substantially higher than the whole year 2016.
In fact, the annual profit achieved last year is inevitable outcome of (1) the optimism over steel
demand bolstered by recovery in global economy, (2) the improvement in the market price, (3) the
efforts of CSVC in expanding export market with favorable sales price and high demand and
developing market share in domestic market where demand on CSVC’s products is high with
stable increase in price.
The improvement in CSVC’s trading status through years can be seen clearly as below table:
Unit: USD
Year 2014 2015 2016 2017
Revenue 356,943,760.00 287,861,439.00 432,741,169.00 563,428,108.00
Loss/Profit after Tax -58,307,683.00 -83,853,053.00 1,052,370.00 1,917,161.00
Loss/Profit Per Share -0.06 -0.09 0.00 0.00
Dividend 0.00 0.00 0.00 0.00
II. OUR PEOPLE
2.1. OVERVIEW
CSVC is a multinational company with over
800 employees. We create a very unique
culture and international working
environment which is friendly, cooperative,
unified and motivating. CSVC makes every
effort to train, support and enhance
employee’s capabilities and develop skills
through their work so that they can achieve
individual growth.
All employees in CSVC have gradually
overcome the difficulties ahead, strive to
fulfill production and business target and
achieve high results such as: Ensure timely
shipment; increasingly consolidate product
quality to meet customer’s demand;
promote innovation and creativity in
working methods, improve methods of
evaluating the ISO quality, constantly
explore, learn to increase production
efficiency, product quality and
consumption indicators of products.
2.2. EMPLOYEE WELFARE AND BENEFITS
2.2.1. Transportation
The company provides daily commute bus to all employees in nearby areas including Ho Chi Minh
City (Thu Duc District & District 1), Bien Hoa City and Ba Ria - Vung Tau Province to make sure
the employees can conveniently reach the workplace.
In addition, CSVC also offers shuttle bus free of charge to those employees having demand to
travel from Vung Tau to Ho Chi Minh City or vice versa at weekend for entertainment or any
personal issues.
CSVC always takes time to listen to our staff. We try to understand their requirements, aspirations
and work out the best way to improve the management and quality of vehicles. It was proved when,
last year, the Company considered changing the new car for Ho Chi Minh route immediately after
receiving requests from employees.
With the motto “LUON AN TOAN”, CSVC also strengthens the inspection and maintenance of
shuttle bus monthly to handle in time and minimize any problem occur during use. Seatbelts for
all passengers and procedures of solving emergency are pasted on vehicles to always bring a sense
of security and peace of mind for everybody.
2.2.2. Training and Development Opportunities
In order to fully equip knowledge and skills, as well as create conditions for staff development,
CSVC always pays attention on human resource training and development.
Besides on-job training
courses conducted by
superiors, CSVC employees
also have opportunity to
attend specialized training
courses with professional
external lectures. We believe
that this policy will not only
help the employees feel more
satisfied with their current
work, but also enhance their
sense of responsibility and
contribution to the increase
of labor productivity and higher profitability for the Company.
In 2017, CSVC spent in total 2,627 man-days on conducting training courses. From the chart below,
we can see that last year the training program of CSVC was allocated quite equally with great
concern to the three fields: Environmental, Safety & Health; Manufacturing/ Production and
Performance Development, which accounted for 32%, 25% and 26% of the total training hours
respectively. Training courses on Quality/Assurance are organized frequently to make sure the
products provided to our customers always in the best quality. We also focused on some courses
which enhanced management skills for management positions.
The Newcomers Training has been improved to welcome and equip the basic knowledge, to create
better conditions for newcomers. On-the-job training, professional training and skills training are
also regularly held to update knowledge and improve skills on time.
With the goal of comprehensive development for employees, CSVC has built up a Training
Structure, drawing a long-term training and development path for employees. The Training
Structure has defined the knowledge and skills that employees need to be equipped (determined
by rank, position or by topic).
32%
25%8%
26%
2%
7%
TRAINING DISTRIBUTION CHART
Environtmental, Safety and Health
Manufacturing/Production
Management
Performance Development
Human Resources
Quality & Assurance
2.3. CSVC’S ACTIVITIES
Besides giving relaxing
moments that can create a
greater sense of harmony
and balance in the current
busy work-life and bring
everyone together, the most
important meaning of
activities organized by
CSVC is to improve and
make a positive impact on
society.
CSVC Soccer
Tournament 2017
CSVC Sports
Day 2017
International Women’s
Day 2017 at CSVC
CSVC Year End
Party 2017
III. ENVIRONMENT REPORT
3.1. ENVIRONMENTAL MANAGEMENT
We strive to become a truly environmentally friendly corporation by conducting business activities
from an environmental and ethical perspective.
EMPLOYEE
To encourage behaving in a
responsible manner and
maintaining sound
environmental practices. The
company will offer education and
awareness-raising programs for
employees, disclose
environmental information on an
adequate and timely basis to
remain always trusted and highly
appreciated by society.
COMPLIANCE
To meet the requirements of
relevant legislation in the
country and region in which we
operate. CSVC understands that
many coming challenges in
Vietnam can only be solved with
coordination and support from
the Government authorities. By
following their policies, CSVC
could ensure our development
business in ethical way.
IMPROVEMENT
To improve the Environmental
performance of our processes
and products through research
and development of new
technologies, preventing and
reducing emissions and
releases, minimizing waste,
energy consumption etc. and
controlling noise.
SYSTEM
To make primary approach for addressing
environmental aspects during operation.
Besides complying with environmental law
and regulations, CSVC cooperate with
customers and suppliers in promoting activities
to reduce Environmental impacts at every stage
of business activities from production
processes to transportation, further improving
environment preservation, efficiency of
resources and energy, enhancing reduction and
recycling of waste in/outside the company.
COMMUNITY
To respond to the increasing concern of local
authorities and other interested parties on
environmental issues as well as to protect the
general environmental and wildlife habitats in and
around CSVC sites. Focusing efforts on
developing modern technologies which can deal
with the future issues of the environment and
natural resources and provide society with
products that contribute to Environmental
preservation, Energy & resource conservation.
1 2 3 4 55
1 Further enhancement and
promotion of
Environment & Energy
management
3
Promotion of reducing
Hazardous waste and Energy
preservation
2 Promotion of adequate
actions to prevent
Environment accidents 4
Contribution to the
awareness of Employees
about EMS
Medium-Term Environmental Management Plan for 2018
MESSAGE FROM TOP MANAGEMENT
Strategies and policies deliver sustainable value
In CSVC, we are sharpening our focus on raising employees’ awareness of a management philosophy
rooted in continuous innovation, with a long-term and forward-thinking perspective. I hope and believe our
strategies and policies will soon deliver sustainable
value and returns for the Company. Mr. Chen, Chung-Shin
Chairman/ General
Director
Enhance individual
responsibility
Improve smooth
communication
between relevant
departments
Hold awareness
training courses on
EMS for employees
Set and maintain
general standards in
EMS for leadership
Enhance competency
& qualification
CSVC
Environmental
Management
Vision and
Strategy
CSVC
VISION
3.2. ENVIRONMENT & ENERGY MANAGEMENT COMMITTEE
CSVC operates an Environmental Management Committee which is chaired by Chairman. The
Committee reviews the overall environmental management of CSVC (i.e. details of implementation
plan, achievement, difficulty etc.) and holds regular annual meetings to analyze the environmental
trends. In addition, it helps guide medium-to-long term environmental strategies in CSVC.
Specifically, any issues identified as critical to the development of CSVC are decided upon as part
of overarching business strategy, and then will be reported at monthly meetings and Management
Review Meetings, both chaired by Chairman.
Chen, Chung-Shin Chairman
Toru Kaneko DGD
Leou, Jiing-Kuen DGD
DGD
Hu, Chih-Sheng GM
Lee, Chien-Hui MVP
Hideaki Mochizuki MAVP
Katsumi Okutani PVP
Chen, Hsi-Kun PAVP
Chou, Chi-Hung CVP
Head of EMS
EMS Coordinator
EMR
EMS Manager EMS Manager EMS Manager EMS Manager EMS Manager
ducation - Environmental Awareness
Training
CSVC provides various programs to
enhance our employees’ understanding and
awareness of environmental protection.
Environmental management training is
provided and opened to
outsourcing and suppliers as
well. All related
departments’ employees
are encouraged to
participate in
environmental
activities. Training
on ISO 14001
internal auditing is
annually provided to
managers in CSVC as
well as outsourcing
workers.
idening - Environmental
Information Exchange
Under provisions of our mother
companies, CSC, an environmental technical
meeting is annually held targeting environment
within operation. The meeting is a place for
communication and exchange to enhance the
capabilities of environmental managers through
discussions. In addition, CSC operates and
remains a website to enable managers in charge of
the environment at CSVC to exchange and collect
information contributing to the environmental
management system.
ominate - Environmental
Management Awards
To create competitiveness in
environmental management,
“Environmental Management
Awards” is held by Human
Resources Department to
award employees who
achieve an outstanding
environmental
performance. We hope
that these awards
encourage corporate-
wide awareness on
environmental
management and can
lead to better
environmental
business achievements.
ubstance - Environmental Risks
CSVC annually analyzes and manages
risk to minimize their impact on the
environment, as well as the
environmental impact on management. We
consider changes on internal issues (i.e. products
and services, structure, roles, responsibilities,
leadership, cultures etc.), external issues (i.e.
political, economy, technical service, legal, law
etc.). Cooperation between relevant departments
and environmental management department
enables us to identify environmental risks. We
then evaluate and review the highest risks to
those environmental aspects, after that minimize
their impact to environment. In addition, to
respond to relevant potential risk such as energy
usage, global warming or pollution prevention,
CSVC continuously monitors and identifies
potential risks to contribute toward developing
reasonable environmental policies.
E
W
N
S
3.3. KEY EMS PROGRAM
3.4. PROMOTION OF ENVIRONMENTAL RISK MANAGEMENT
CSVC is promoting management of environmental risk with the aim of continually enhancing and
controlling environmental aspects causing the potential risks to environment, which differ by each
operational period and factory. Since qualifying for ISO 14001, the international standard for
environmental management system, beginning from 2015, CSVC has conducted evaluation with
relevant departments on an annual basis. Once a year, before management review meeting, our
environmental management department will implement an internal inspection. The results are
reported to top management and utilized in making newly changed environmental strategies and
setting objectives for an efficient environmental management system.
Air
management
CSVC applies
various systems
to improve air
emission quality before
discharging through our stacks.
First, our system sets a lower
standard compared to
environmental regulations and
standards. Secondly, we insert
absorption system to reduce
the concentration of indicators
before discharging through
stacks. Specifically,
understanding the importance
of dust in ambient air, CSVC is
taking measures to insert
effective equipment, including
equipment that could less
discharge dust into air. The
result is shown that within 3
years, CSVC already achieved
to reduce the concentration of
TSP in jobsite area, not only
ensuring our employee’s
health, but also effort to reach
our concern to civilization
living nearby. We also conduct
annual monitoring and
periodically measuring
ambient air parameters to
ensure that no abnormal
emissions are released into the
environment.
Water
management
CSVC uses
appropriately
1,2 mil m3 of
freshwater a
year in all of our
administrative works and
factory. This big amount
contains a significant damage
to the water resources. In order
to reduce the bad significant
impact on natural resources,
we try to re-use and re-
circulate the fresh water
provided to the cooling water
system.
Soil
management
With respect to
environmental
preservation
specifically for soil and
underground water, we are
responding appropriately in
compliance with regulations of
local government. Normally,
environmental department will
patrol and inspect the status of
soil around factory. If soil is
contaminated, we will hold an
emergency response drill
immediately.
Twice per year, we invite
competent authorities to
evaluate the soil parameters
and make reports to the
Government. If soil
contamination is detected, we
take appropriate action in
accordance with instructions
issued by Ministry of Natural
Resources and Environment.
ow good quality we produce, if our health,
safety and environment management system is
not good, our effort will become zero. Safety
and environment are our first priorities at work.
Comprehensive control of discharge
Normally, wastewater discharging during operation
of plant is enormous (i.e. cooling water, industrial
water arising from production process, domestic
waste and rainwater runoff). Except rainwater
runoff, all kinds of wastewater generated from the
operation phase have been sent to the wastewater
treatment system to meet the local regulation before
discharging into centralized wastewater treatment
system of My Xuan Industrial Zones. Under the
supervising of utility department, we ensure
thorough control by checking the balance including
the amount of chemical substances concerned, the
amount discharging to environment, and disposal
volume. According to the regulation from
Department of Industry and Trade, annually we
report the amount of chemical substances
manufactured.
Considering the importance of preventing water
pollution, we have installed equipment, devices such
as censors, detectors, shut-off valves or emergency
pits; established safety job procedure to work them
effectively; provided periodical training so that
wastewater will not be discharged outside our
factory in emergency.
In addition, we make daily effort to monitor and
inspect the wastewater quality, as well as maintain
and improve the performance of our equipment in
wastewater treatment process.
MESSAGE FROM TOP MANAGEMENT
Clean environment is a matter of public health As the owner of this plant, what we do concern is
not only employees’ health but also the living of nearby residents. Being honest and taking
responsibility for what we’ve done is the key point
for our future better improvement MESSAGE FROM TOP MANAGEMENT
Worthless without environmental protection As an expert from one of the most popular steel worldwide, we understand that no matter how
good quality we produce, if our health, safety and environment management system is not
good, our effort will become zero. Safety and
environment are our first priorities at work.
Mr. Okutani
Katsumi
Vice President of
Production Division
Mr. Chen, Hsi-Kun
Assistant Vice President
of Production Division
15%
54%
23%
0%
8%
NON-CONFORMITIES
IN 2017
Polution, water, air, soil Classification
Documentation Training
Minor
3.5. PROMOTION OF ENVIRONMENTAL PERFORMANCE
CSVC has built an environmental management
system to reduce environmental risks, which are
promoted by combining external and internal audits
and rotating the plan-do-check-act (PDCA) cycle.
Management system
CSVC effectively rotates the management cycle of
PDCA under the Environmental Management
Committee, which convenes meetings annually to
promote environmental performance. Besides,
regular meetings are also held for General Managers
of relevant departments to discuss about
environmental issues. In particular, with respect to
dust, drainage and waste that pose critical
environmental risks, experts from each field will
conduct a meeting to devise measures for risk
prevention and reduction.
Currently, CSVC control environment in accordance
with ISO 14001:2015 which is the international
standard for environmental management system and
the most widely used EMS in the world, with over
thousand organizations certified worldwide.
Achieving ISO 14001 certification shows the
commitment of the board of management and staff to
reduce our environmental impacts and to
continuously improve the sustainability of our
business operations. It has aligned our business
process with our strategies of using energy efficiently
and manufacturing products friendly with the
environment.
Environmental audits
In accordance with the International standard ISO
14001, CSVC has built an environmental
management system, in which General Managers of
relevant departments serve as the responsible person.
Environmental department also participates in these
audits to cross-check. Any non-conformities will be
figured out and solved immediately. Annually, the
final report will be submitted to top manager for
reviewing the situation.
4
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28
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12
62 32
73
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0
10
20
30
40
50
60
70
80
90
Po
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TREND OF NON-CONFORMITIES
2015 2016 2017
MESSAGE FROM TOP MANAGEMENT
Better than the best
Enhance responsibility of each one individual
are core values of 2017. Let’s work as effective
team, as well as protecting environment when
working. Together, we will be better than the
best. Mr. Leou, Jiing-Kuen
Deputy General Director
Hazardous waste control
CSVC has recognized the importance of hazardous
waste effect on the environment of local community and
thus strengthened the producing process to minimize the
amount of hazardous waste generated. To minimize risk
factors accompanying hazardous waste, CSVC has been
developing the technologies, which can reduce the
amount of waste generated or can re-use it. In 2017,
CSVC already achieved the target to reduce 7%
hazardous waste generated compared to 2016. This is an
achievement of all production lines and environment
department to reduce the impact caused by hazardous
waste. Furthermore, to raise awareness and enhance
spirit of employees about environmental protection, we
will maintain the objectives to reduce 10% hazardous
waste generated compared to 2016. Through this scheme,
we can not only contribute to the sustainable
development in region by miles but also
prove that we serve as a public example for
providing and maintaining the sustainable
working environment within operation.
Hazardous waste chemical control
To avoid potential risks associated with
hazardous waste chemical, CSVC has built
Acid Regeneration Plant, which can re-use
or re-circulate the hazardous waste acid.
With the basic effort, we also increase the
number of educated managers and
employees with chemical degree in
operation and make a periodical
emergency response to cope with chemical
leakage. Furthermore, employees working
in ARP condition were provided special
health check to actively control their
respiratory.
3.6. ENERGY AND GREEN PROCESS
Steel is one of the pillars of the well-being of modern
societies and it continue to play an important role in the
21st century. This nature basic material is one of the most
environmentally benign mass products due to its high
recycling rate and comparatively low quantities of
energy for its making. However, the emission of CO2 is
a serious problem for steel industry because steel
industry relies heavily on fossil fuels as energy sources
and limestone for the purification of iron oxides. Steel
industry contributes around 6-7% to total anthropogenic
emission of CO2. Understanding this theoretical
program, our mother company, CSC, has strived to
promote the green process within operation by increasing
productivity through the adoption of more efficient and
cleaner technologies in the manufacturing sector to be
effective in merging economic, environmental, and
social development objectives. Inherit the awareness
about importance of reducing emission CO2 from our
mother company, CSVC intends to take effort in
minimizing this side effect. We try to contribute to the
productivity growth, sustainable development against
global warming and CO2 emission. In addition, in 2017, CSVC already achieved ISO 50001:2011 certificate to serve as an example of
enterprises put endeavor to change technologies to be friendlier to environment.
Steel industries have always played a crucial role in the socio-economic development of a country. They
have contributed primarily to increase prosperity, greater employment and livelihood opportunities. On
the other hand, steel industries are accused of accelerating the consumption of scarce fossils fuels and of
polluting the local, regional, and global environment by releasing solid, liquid and gaseous pollutants to
their surroundings.
P2-PL, 5%
P2-TCM, 35%
P2-ARP , 1%
P2-RS, 0%
P3-CAL, 13%
P3-CGL, 12%
P4-ALL, 9%
ADM & No.1
office, 1%
P81, 20%
P82, 3%
ENERGY CONSUMPTION BY AREA IN 2017 (KWH)
P2-PL
P2-TCM
P2-ARP
P2-RS
P3-CAL
P3-CGL
P4-ALL
ADM & No.1 office
P81
P82
3.7. CAMPAIGN SPREADING A GREEN PLANT
Beginning from 2014, CSVC launched the campaign spreading green cover on province. We try
to promote and cooperate with Government agencies to contribute to the ecosystem in Ba Ria -
Vung Tau province by planting trees surrounding. The greatest benefit from this activity is the
conversion from CO2 to O2 and the amazing cooling effect.
3.8. ENERGY SAVING ACTIVITIES IN 2017
In addition to concerned effort to reduce CO2 emission in manufacturing process, CSVC has
implemented a regulation about lights-out during lunch breaks, no-working days, and work side,
drive side etc., as part of the energy saving activities (i.e. improved production yield, waste heat
recovery, lighting and air conditioning system control, compressor system optimization).
To summarize our results, energy performance indicators (EnPIs) of electricity consumption in
2017 decreased significant through months. We will further strive to improve this activity by
identifying the most significant electricity usage area, then focus strongly on those areas.
SAFETY CULTURE
In CSVC, greeting whenever whoever
wherever by “LUÔN AN TOÀN” is
company culture to together exchange wishes
of safety.
Implemented since the end of 2014 up to
now, “LUÔN AN TOÀN” has been common
greeting applied for all activities, meetings…
at CSVC for the past 3 years. Cohesion and
team work with the commitment of “LUÔN
AN TOÀN” has been transferred to each
employee of CSVC.
Greeting “LUÔN AN TOÀN” with clear and
loud voice together with prime and strict
posture help to create focus spirit, unity and
safety for everyone anytime anywhere in
CSVC as well as display discipline and
fighting spirit in work at all CSVC members.
Greeting “LUÔN AN TOÀN” is applied for
all persons including employee to employee,
employee to contractor, contractor to
contractor, employee to guest, etc. building
up connection between all members in
company.
SAFETY & HEALTH MANAGEMENT
SYSTEM
Aiming to manage thoroughly different
safety issues, improve continuously labor
environment and meet international standard,
CSVC has strengthened and maintained
continuously our safety management system
in accordance with OHSAS 18001 using
Plan-Do-Check-Act Process. By the best
effort of all CSVC’s Top Management
Board, Managers and Members, CSVC
passed 2017 surveillance audit of SGS
certification organization and maintained
OHSAS 18001 certificate successfully
4.1. CULTURE & MANAGEMENT SYSTEM
Kaneko Toru
Deputy S&H Chief Executive Director (DGD)
Leou, Jiing Kuen
Lee,
Chien Hui
Chen, Chung Shin
S&H Chief Executive Director
(Chairman, GD)
Mochizuki
Hideaki
Okutani
Katsumi
Chen,
Hsi Kun
Chou,
Chi Hung
Hu, Chih-Sheng
Representative S&H Manager (VP & AVP of each Division)
S&H Manager (GM of each Department)
Deputy S&H Manager (SM of each Section)
S&H Leader (Foreman of each workplace)
Executive S&H Manager
(P1 GM)
Safety & Health (S&H) is the
first priority concern of CSVC.
In order to thoroughly manage
as well as smoothly
communication for body-
content, decision, company
policy in Safety & Health,
Safety & Health Management
Committee is established.
Safety & Health Management is
responsibility of all CSVC
management members, therefore
Committee members is involved
Chairman - General Directors
(GD), Vice president (VP),
General Manager (GM), Section
Managers (SM), Foreman of
each workplace.
4.2. SAFETY & HEALTH MANAGEMENT COMMITTEE
Under operation of Safety & Health Management Committee, Safety & Health routine activities
have been organized to find out risks of equipment malfunction and risks caused by human factors.
After analyzing and evaluating all kinds of risks, we made a plan of how to manage risks, then we
carried out the plan, tracked what we have done and finally from the results obtained we make
suitable amendment to improve the risk management system. We organized OSH Committee
Meeting, OSH Department Meeting, OSH Workplace Meeting once a month, and Jobsite safety
audit patrol once a week at specified areas & focused on
critical risks.
Every month, Top Managers (Chairman, Deputy General
Directors, Vice Presidents & Assistant Vice Presidents of
each Division, General Managers of each Department and
Representative of each Department join in Safety & Health
Committee meeting including whole plant patrol to check jobsite condition, discuss body-content
in Safety & Health, report tracking content and review situation and difficulties of each item. After
all, Top managers will give suggestions and instructions on ways to improve incurred issues and
transfer information to each Department.
Weekly, each Top Manager takes turn to directly join
Jobsite safety audit patrol with mutual attendance from
other Departments. Purpose of Mutual patrol is to together
work out what are good points which can be referred and
applied to relevant Departments, and what are the defects
which need to be improved.
4.3. GENERAL ACTIVITIES
OSH COMMITTEE MEETING (MONTHLY)
MUTUAL JOBSITE SAFETY AUDIT PATROL
(WEEKLY)
To have prompt action for improving working condition
and environment, CSVC has cooperated with qualified
work environment measurement center to measure
related indicators at each workplace every year.
Work environment measurement provides basic
parameters from which appropriate health check items
will be selected in order to manage thoroughly about
working condition, ensure health of CSVC’s members as well as to timely detect any defects and
work out solutions for the problems.
To monitor health condition of each employee, CSVC
has cooperated with Medical center to organize
periodical general & specialized health check for all
CSVC members every year.
Member’s health sustainability is key factor to maintain
sustainable manpower for smooth production.
Therefore, health is one of the most concerning factor
beside safety for members.
Health check items applied in CSVC follow Vietnamese regulation including General health check
items: Physical check, Circulatory, Digestion, Nephrology-Urology, Endocrine, Muscle-Bone,
Nerves, Mental, Lymph systems, Respiratory system, Eyes check, Disease of ear, nose, throat,
Tooth-Jaw-Face, Blood test, X-ray (cardiopulmonary), Urinalysis (general).
WORK ENVIRONMENT MEASUREMENT
PERIODICAL HEALTH CHECK
62, 8%
530, 69%
164, 22%
10, 1%
HEALTH CHECK CLASSIFICATION IN 2017
Type I- Very healthy Type II- Healthy Type III- Normal Type IV- Weak
If physical hardware improvement is one of the company concerns for its safety management to
prevent accidents, safety skills & knowledge offered to CSVC members is also focused as one of
software parts. In 2017, CSVC managed to organize a variety of training courses for employees as
below table:
Training courses Amount of classes Amount of trainee
Lifting safety training 9 223
Radiation safety training 3 27
Chemical safety training 3 69
Boiler operation safety training 1 10
Welding & Cutting safety training 2 58
Newcomer safety training 3 75
General safety training (G1 & G4 as Law) 11 451
Firefighting training for employee 2 196
Firefighting drill with Police 2 40
Internal firefighting drill 6 100
First-aid Training 1 96
Real danger sensing training 61 630
4.4. EDUCATION
To strengthen spirit of individual responsibility and promote
safety and productivity in each responsible area, CSVC’s
Responsible Area Layout has been carefully considered,
discussed and unified by all managerial levels of the
Company.
According to Dept. responsible area layout in CSVC, the job
description and boundary map of responsible area for each
job code has been reviewed, edited and disseminated to all
CSVC members.
INDIVIDUAL RESPONSIBLE AREA SYSTEM
(IRAS)
REAL DANGER SENSING TRAINING
In 2017, CSVC conducted successfully real danger
sensing course for total 630 CSVC’s members
with the aim of raising employee awareness and
practical sense of major dangers in routine work.
After training, each trainee will be tested to re-
check their understanding of the training content.
The training will be regularly organized for
newcomers in the upcoming time.
4.5. FEATURED ACTIVITIES IN 2017
A trainee is
sensing
rotating
danger
Another
trainee is
sensing
indirect ground
welding danger
TARGET PERFORMANCE
Item Countermeasures
Contractor lost
time accident
1. Carry out Special Safety Activities to strengthen management on
implementation of Work permit & Toolbox meeting; organize training courses
to enhance sense of definite confirmation when releasing residual energy.
2. Strictly manage the compliance of company procedure and responsibility
area; strengthen individual responsible area system.
Mock drill Each Dept. is supposed to set up schedule in advance for Dept.’s internal mock
drill in 2018
Fire incident Check all similar equipment where incidents occurred before and change their
working capacity if necessary.
INJURY RATE
4.6. PERFORMANCE INDEX
5S Model jobsite
0 Fail ✓
Real danger sensing training
673 employees ✓
Mock drill
8 Dept.
Incident
Pup coil: 0 case ✓
Fire: 1 case
Lost time accident
Employee: 0 case ✓Contractor: 1 case
5S Model jobsite
0 Fail
Real danger sensing training
673 employees
Mock drill
13 Dept.
Incident
Pup coil: 0 case
Fire: 0 case
Lost time accidentEmployee: 0 case
Contractor: 0 case
0.510 0 0
2.91
0 0
1.02
-1
1
3
5
2014 2015 2016 2017
Fre
quen
cy r
ate
Lost time injury frequency rate
(Lost time injury per million
working hours)
Lost injury frequency rate (CSVC)
Lost injury frequency rate (Contractor)
17.26
0 0 0
31.03
0 0
15.29
0
10
20
30
40
50
2014 2015 2016 2017
Sev
erit
y r
ate
Lost time injury severity rate
(Lost days per million working
hours)
Lost injury severity rate (CSVC)
Lost injury severity rate (Contractor)
CSVC continued to be the supplier of Japanese and
Vietnamese car/motorcycle makers. Besides, we also started
exporting CR/CG products to European as material of tier 2.
Automotive Industry
CSVC started business relationship with
Japan/Korea brands like Samsung, LG, Daikin.
Home appliance industry
The product CR begin export to European
in 2017.
Drum industry
The product ES begin export to China, Taiwan
and European in 2017.
Motor industry
Expand the local and export market by
developing different high tensile grade.
Construction materials industry
V. MARKETING AND PRODUCT DEVELOPMENT
5.1. OVERVIEW
In 2017, Formosa Ha Tinh Steel Corporation (FHS) officially went into operation, making
Vietnam gradually become the most significant steel producer in ASEAN. With great export tariff
advantage as the country being one of AEC (ASEAN Economic Community) members, CSVC’s
products are getting more and more competitive to Southeast Asia/ India/China regions.
Faster economic growth means more steel consumptions will be needed to make products from
cars to buildings. Vietnam’s economic growth significantly depended on foreign investment and
the recovery of the global commodities prices. In 2017, Vietnam’s GDP grew at 6.81%, which not
only exceeded the target of 6.7% but also was recorded as the highest rate since 2011.
According to the VSA, Vietnam’s steel production has grown steadily last year despite inflows of
cheap steel from China. Because the per capita steel consumption may grow further in the next
few years from just below 300 kilograms today, there is still plenty of room for steel growth,
particularly when the steel supply chain is being formed and this industry is settling with the
development of Vietnam. As Vietnam is becoming more and more important in ASEAN, CSVC
will try to improve the steel industry by providing high-quality products to fulfill the demand of
infrastructure, home appliance as well as vehicles.
5.2. NEW PRODUCT DEVELOPMENT AND PROMOTION
1
2
3
CSVC produces high-
quality products to
satisfy customer
requests and keep
looking for new
customers. The
performance of 2017
is shown in the chart
beside:
4
5
5.3. PRODUCT MARKETING
In 2017, CSVC sold 883 KT
of the products, of which 47%
to domestic customers and the
other 53% to overseas market.
In respect of company
product, PO accounted for 8%
of the total amount, while
ASCR, CR, CG, ES
accounted for 13%, 31%, 28%
and 12% respectively.
For exports, 28% of
CSVC’s products were sold
to USA, 40% to EU and
32%to ASIA.
GIVING 2017 LUNAR NEW YEAR
GIFT TO POOR FAMILIES IN MY
XUAN COMMUNE
On the occasion of Lunar New Year Festival,
on Jan 18th, CSVC coordinated with the
Trade Union and Tan Thanh Red Cross to
visit, send New Year greetings and gifts to
poor families and solitary people in My Xuan
commune. Involved in this charity trip are
CSVC General Director, Deputy General
Directors, Vice President of Production
Division, members of the Trade Union’s
Executive Board and some other members of
CSVC.
CSVC provided 45 gifts (500,000VND/set)
to the poor families and solitary people. At
the places CSVC visited, the Company’s
leaders also had some words of sharing and
encouraging households to keep making
efforts to improve living standard and
develop family economy.
VI. CONTRIBUTION TO SOCIETY
In 2017, great efforts were made to continue improving CSVC employees’ working and living
conditions, firmly strengthening employees’ trust in CSVC as well as their relations & cohesion
with the Company. Moreover, as a foreign invested enterprise in Viet Nam, we deeply
understand our responsibility and mission to the society. Besides the highly quality products
that we provide, we have also paid much attention to the long-term well-being of local
communities.
“A drop of blood to give – A lifetime to stay”. An unexpected accident
could cause you a significant blood loss and threaten your life. Imagine
it! You will truly perceive the importance and preciousness of each blood
drop. The only condition is good health and willingness to share, your
decision to donate can save 03 lives within 10 minutes of donation.
Therefore, do not hesitate to give blood whenever possible and mobilize
other people to get involved in this noble and meaningful activity!
With an effort to save life of those less fortunate, bring them light and restore their faith in the
existence of humanity, in the morning of Jul 14th, 2017, CSVC Trade Union Executive Committee
cooperated with Cho Ray Blood Transfusion Center of HCM City and Red Cross Association of
Tan Thanh District to organize the Voluntary Blood Donation Program in 2017 right at CSVC
with the approval of the Company’s Board of Management. 118 CSVC members gathered at the
Conference Room of the Administrative Building from the early morning to get consultation,
health check and proceed blood transfusion process. Among those, some had donated blood
several times before.
Currently, many hospitals are in need of blood provided by the National Institute of Hematology
and Blood Transfusion. However, a critical shortage of blood still occurs often as most of the
blood supply come from patients’ family and those who give blood for money.
VOLUNTARY BLOOD DONATION AT CSVC
Our Quality, Your Better Life
CSVC