group assignment fundamentals of management

Formosa Ha Tinh Steel Joint Stock CompanyFormosa Ha Tinh Steel Joint Stock Company is a steel manufacturing companybased in Vietnam''''s Vung Ang economic zone.. The complex''''s iron and stee

GROUP

ASSIGNMENT

Fundamentals of Management

Group’s Members

Le Hong Hao Manh Le Tram Lai Thi Dieu Thuy Dang Thi Thanh Hoa Nguyen Xuan Nhat Huy

MGT103_Teacher: Du Tieu Duong

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I Overview 3

1 Formosa Ha Tinh Steel Joint Stock Company 3

2 Situation 4

II Briefly explain why the action is bad 5

III The Management concepts 6

IV The consequences of Formosa’s incident 9

1 Environment 9

2 People’s Life: 10

3 Their customer 12

V REFERENCES 13

1 Formosa Ha Tinh Steel Joint Stock Company

Formosa Ha Tinh Steel Joint Stock Company is a steel manufacturing company based in Vietnam's Vung Ang economic zone Hung Nghiep Formosa Ha Tinh Iron and Steel Company Limited (FHS), a subsidiary of Taiwan's Formosa Plastics Group, is the official name of Formosa

Formosa began investing in the Son Duong iron and steel complex project in 2008, with a total investment of almost ten billion dollars, and plans to expand capital to nearly twenty-seven billion dollars The overall project implementation area is more than 3,300 hectares, including more than 2,025 hectares of land and more than 1,293 hectares of water surface area (Son Duong port) The land lease is for 70 years, with a total land rent of more than 96 billion VND over the duration of the lease

FHS registered 11 business lines, some important industries such as manufacturing and trading of iron and steel; port business; Cement Production; trading thermal power plants and water treatment plants; construction, installation, operation and sales of gas plants, sale of compressed gases, and liquids used in industry such as oxygen, nitrogen ; manufacturing, processing, trading and importing and exporting products related to coking coal, tar, light crude oil, and real estate business

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The complex's iron and steel project, Son Duong Formosa Vung Ang Ha Tinh Group (Project) of the Formosa Ha Tinh Iron and Steel Company (Formosa Ha Tinh Company), was given an investment certificate in 2008 with a total number of workers The total registered capital for the project's first phase is $10,548 billion USD

The 2016 Vietnam marine life catastrophe was a water pollution issue in central Vietnam, impacting the provinces of Hà Tinh, Quang Binh, Quang Tri, and Thua

2 Situation

Since as least April 6, 2016, fish carcasses have been washing up on the beaches

of Hà Tinh province Later, on the shores of Hà Tinh and three other provinces (Quang Binh, Quang Tri, and Thua Thien Hue), a large quantity of dead fish were discovered till April 18, 2016 Formosa Ha Tinh Steel, a steel company owned by Taiwanese business Formosa Plastics, unlawfully released hazardous industrial waste into the ocean via drainage pipes After months of denial, Formosa finally admitted responsibility for the fish fatalities on June 30, 2016

On 1 May 2016, Vietnamese residents protested in several cities, advocating for a cleaner environment and demanding openness in the investigative process as a result of the enormous marine life destruction

After receiving information about the incident of mass fish deaths in Vietnam in 2016, also known as the Formosa Incident, the Ministry of Science and Technology presided over, organized data collection and analysis, and had independent criticism According

to international experts, there is a large waste source originating from Vung Ang area,

Ha Tinh province, containing toxins such as phenol, cyanide, combined with iron hydroxide, forming a mixed complex (Mixel) ), which has a higher density than seawater, following the North-South current moving from Ha Tinh to Thua Thien-Hue, causing mass death of seafood and marine life, especially in the bottom layer and discovered Hung Nghiep Formosa Ha Tinh Iron and Steel Company Limited-FHS (hereinafter referred to as Formosa Ha Tinh Company) violated, discharging untreated wastewater causing serious environmental problems, making seafood sudden death, causing great damage to the socio-economic and marine environment; adversely affect people's life, security, social order, and safety This action of company F caused the

 Mass death of fish in Vung Ang sea (Ha Tinh province) started from April 6,

2016, and then spread to the waters of Quang Binh, Quang Tri, and Thua Thien Hue

 On the coast of Guangdong, Vung Chua, there are hundreds of grouper species from 40-50 kg drifting ashore and dying

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 By April 25, Ha Tinh province had 10 tons, Quang Tri had 30 tons, on April 29, Quang Binh had more than 100 tons of sea fish suddenly died ashore

 This disaster has a great impact on the production and daily life of fishermen,

on coastal aquaculture households, on sea tourism and on the lives of residents

in the Central region

 Quang Binh province alone has 18 communes specializing in marine occupations with more than 14,000 households and 24,000 marine workers

 VnExpress quoted information from the national tourism agency in November as saying that waste pollution from Formosa company along the central coast in April had almost completely destroyed the region's tourism industry when revenue from Tourism is down 90%

 Affecting the lives of more than 200,000 people, including 41,000 fishermen

III The Management concepts

Having scientific evidence, concurrently taking advantage of every opportunities, through many different channels and measures (political, diplomatic, judicial, information propaganda ) to fight and convince, on June 28, 2016, FORMOSA HA TINH STEEL CORPORATION (FHS) accepted responsibility for causing environmental problems, causing mass seafood deaths in 4 provinces from Ha Tinh, Quang Binh, Quang Tri, and Thua Thien Hue during the period and commit:

 The company needs to apologize publicly to the Government and Vietnamese people

 Making a commitment to pay damages for economic losses and support career change; treating the contamination and marine environment restoration in 4 central provinces of Vietnam with a total amount of USD 500 million, equivalent

to VND 11,500 billion divided into 2 times, within 3 months

 Making good the damage thoroughly, accomplishing the production technology, ensuring to dispose hazardous wastes before being discharged into the environment by requests of the State management agencies of the central government and Ha Tinh province to prevent the recurrence of environmental incidents

 Coordinating with ministries of Vietnam and Central Provinces to provide solutions to control the marine environment in the Central region, ensuring pollution prevention, and preventing environmental pollution to establish trust with Vietnamese and international people

 The enterprise must properly and fully implement the above commitments, not repeat violations of the law on the protection of the environment and water resources if the company breaks the laws, they will be punished in accordance with Vietnamese law

- Nowadays, the biochemical and industrial wastewater streams that have been treated to meet national technical regulation standards at FHS's local wastewater treatment stations after going through the biological lake system continue to be treated, improving parameters and always meet national technical regulation permission, and satisfy National technical regulations on surface water quality

- About the change of coke cooling method from wet to dry (CDQ system) and installation of some additional waste gas treatment equipment for the Sintering

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Factory: by March 2019, FHS has put the CDQ system in No 1 was put into trial operation, in June 2019, the CDQ system No 2 and 01 additional exhaust gas treatment equipment for the Sintering Factory were put into operation, and on October 2, 2019, the remaining exhaust gas treatment equipment also run

- In terms of dust, emissions (through taking and analyzing samples and online emission monitoring data) at chimneys and exhaust pipes all meet National technical regulations

- In regard to solid waste, FHS has demarcated and classified generated solid wastes and arranged 19 temporary storage areas for waste Waste management at FHS is classified into the following groups: Non-recyclable, recyclable solid waste includes domestic waste, ordinary industrial waste, and hazardous waste which is transferred to appropriate authorities

- Up to now, all items of improvement and supplementation of environmental protection works as required by the Ministry of Natural Resources and Environment have been completed by FHS and certified by the Ministry of Natural Resources and Environment for official operation

|Succeeding in solving marine environmental problems|

- Up to now, the exploitation, farming, trading of aquatic products, salt production, beach resorts, and beaches of 4 central provinces have been back to normal Consumers feel secure when using seafood products Tourism began to recover, domestic tourists to attractions, resorts, and entertainment during holidays, and Tet increased significantly Fortunately, aquatic resources have recovered, many types

of floating fish such as anchovies, scads, potato fish, shrimp have reappeared The number of fishing vessels at sea has increased slightly

- Evaluating the results after more than 3 years of repairing the damage, Mr Hoang Van Thuc - Deputy Director of the General Department of Environment (Head of the Inter-sectoral Monitoring Team at FHS) said: “Beside troubleshooting and violations, FHS has invested and improved the system to do the best in environmental protection So far, all 53 environmental violations have been remedied, ensuring environmental improvement.”

- The inter-sectoral council considers FHS's discharge plan to ensure the environment and ensure the criteria Currently, the additional work items have been completed, operated stably, and have been evaluated, certified, and accepted by the Ministry of Natural Resources and Environment and other ministries and branches in accordance with the standards and regulations of the law In addition, Formosa has also invested funds for environmental improvement items at the request of the Ministry to best protect the environment Deputy Minister Vo Tuan Nhan affirmed: “Today, Formosa waste is strictly controlled, the quality of wastewater and exhaust gas meets regulations before being discharged into the environment”

IV The consequences of Formosa’s incident

1 Environment

The case of marine pollution caused by Formosa company "revealed" from the phenomenon of deaths on April 6, 2016, in the waters of Vung Ang port in the territory of Ky Anh Town, Ha Tinh Province The phenomenon of dead aquatic products spread on a large scale, starting from the coastal area of Ha Tinh,

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continuing along with the coastal areas of Quang Binh, Quang Tri, and Thua Thien-Hue provinces

The reason for the ecological episode that caused the mass demise of fish in the seaside spaces of four focal areas was dictated by the Formosa organization during the preliminary activity of the plant complex, there was infringement and permitted

to occur Incidents, leading to wastewater containing phenol and cyanide toxins that have not been treated up to standards and discharged into the environment Formosa had to admit 53 mistakes, including big mistakes such as arbitrarily converting coking technology from dry coking (using inert gas) to wet waste (using water) More specifically, in the report of the Vietnamese government, it was revealed that: Formosa did not build a filter tank for the biochemical wastewater treatment plant as the commitment they accepted in the environmental impact assessment report

Moreover, Formosa Ha Tinh admits to importing a large amount of detergent, because when operating for a long time, it must have detergent to clean the pipeline to avoid clogging According to Mr Do Thang Hai - Deputy Minister of Industry and Trade, from both 2015 to May 2, 2016, Hung Nghiep Formosa Ha Tinh Iron and Steel Co., Ltd had imported nearly 384 tons of chemicals Including 103 chemicals Particularly from the beginning of 2016 until now, it has been approved

to import 224 tons of chemicals with 43 types of chemicals From the beginning of

2016 up to now, this company has used about 51 tons of chemicals, with 248 tons

of chemicals left in stock Mr Hoang Quang, a Formosa diver, said that 21 divers of

Nibelc International Construction and Labor Supply Joint Stock Company had symptoms of seawater poisoning in the Vung Ang area That much data has shown

us the huge amount of waste that Formosa Ha Tinh has brought to the central coast

2 People’s Life:

The Ministry of Agriculture and Rural Development has made statistics of related damages after the incident and the impacts on fishing activities Specifically, the total number of fishing boats of the four provinces is 16,444, of which 14,474 vessels have a capacity of less than 90 CV and 1,970 vessels with a capacity of over 90 CV with about 50,000 people directly affected and 176.334 people indirectly affected

For those fishing in waters beyond 20 nautical miles, there are a total of 1,970 offshore fishing vessels (with a capacity of 90 CV or more) and 15,800 direct workers, from April 6, 2016 Only 50%-80% of vessels participate in the exploitation, however, the selling price of catches has been seriously reduced For ships engaged in fishing in waters within 20 nautical miles, there are 9,212 motorized fishing vessels under 90 CV (of which 2,249 ships with engines from 20 to under 90

CV are) affected more than 90% of ships have to stay ashore and over 46,060 direct workers do not have stable jobs and low incomes; mining productivity is very low (equal to about 10% compared to before the time of environmental incidents)

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Not stopping at the impact on fishing and seafood exploitation activities, aquaculture activities also decreased, in which the shrimp farming area that was completely killed was 5.7 hectares, equivalent to nine million VND shrimp seed and about seven tons of commercial shrimp are about to be harvested Over 3,000 hectares of intensive and semi-intensive shrimp culture have stocked but cannot get additional water due to unsafe water quality leading to high salinity in the pond, deterioration of the environment, slow growth of shrimp, the occurrence of diseases, and over 350 hectares of shrimp farming died scattered 3,218 fish cages died (about 49,884 m3), equivalent to 1,000 tons of fish

The Formosa environmental incident also caused many difficulties in the process of consuming aquatic and seafood products The selling price of seafood products decreased sharply (average 20%-30% compared to the same period in 2015) In particular, the consumption of seafood products from the markets of the four affected provinces has decreased significantly Organizations and individuals trading in seafood have lowered their selling prices, even accepted to sell at a loss, but it is still difficult to sell in the market On November 4, 2016, the Vietnam National Administration of Tourism announced the operation situation for the first 10 months of the year, showing that Quang Binh was the province that suffered the most with the loss exceeding 1,500 billion VND Nghe An, Quang Tri, Ha Tinh, and Thua Thien Hue also suffered tourism damage The national tourism agency said waste pollution from the Formosa company along the central coast in April had almost destroyed the region's tourism industry as revenue from tourism fell by up to 90%