ANNUAL REPORT: PVCFC

SOCIETY

GRI
403
OCCUPATIONAL HEALTH AND SAFETY

The Company applies ISO 45001:2018 management system (quality, safety, environment, appraised and tested by PVCFC) to monitor occupational safety and labor hygiene at the Company

In order to ensure occupational safety for employees and contractors working at the Ca Mau Fertilizer Plant, PVCFC always focuses on identifying hazard, assessing possible risks

Based on current regulations of the Law, instruction documents of equipment manufacturers, hazard related instructions in the working process, PVCFC has evaluated, identified possible risks and hazards. Then, the Company works out prompt prevention and response measures appropriate to risks or hazards that may have significant impacts on occupational health and safety of laborers.

In addition, on a yearly basis, and based on a list of significant risks, PVCFC conducts rescue drills to deal with possible risks and ensure timely response, preventing loss of life, minimizing damage to environment and property at the plant.

Based on closely controlled activities, PVCFC has recorded not serious incidents or work-related accidents in 2023.

The Company seriously carries out periodic health checks for employees in accordance with the State’s regulations, implementing periodic health examination and screening to detect occupational diseases for employees working in high-pressure, toxic and dangerous environments with a frequency of twice a year.

The Company seriously carries out training on occupational health and safety, preparing personal protective equipment as stipulated; training activities on occupational health and safety is organized in every 02 years, status of employee training in 2022 and 2023 is as follows:

  • In 2022: organizing self-training courses on occupational health and safety for 1,042 employees (100% of employees are trained), hiring an organization to provide training services for 754 employees (human resource training based on professional expertise)
  • In 2023: organizing self-training courses on occupational health and safety for 241 employees.

Employees’ health is a valuable asset of any company. Being aware of this, apart from fully implementing periodic health check and screening, PVCFC also expands the scope of health screening to timely detect employees’ diseases.

The Company also pays toxic allowances and in-kind compensation for employees working in toxic and dangerous environments as stipulated by the State.

On a monthly basis, the Company conducts pesticide spraying (twice a month) at public housing area, factory area to prevent epidemic.

On a yearly basis, the Company carries out working environment monitoring in accordance with regulations of the Law. PVCFC outlines solutions and measures to timely deal with toxic & dangerous environment related incidents, ensuring a safe working environment for employees, and monitoring indicators within allowed limits.

The Company prepares personal preventive equipment for employees in accordance with regulations to minimize impacts due to dangerous or toxic elements on employees’ health.

In 2023, the Company recorded no work-related accidents

The Company has recorded no cases of occupational disease.

GRI
404
HUMAN RESOURCE TRAINING AND DEVELOPMENT
PVCFC pays special attention to human resource training and development, creating favorable conditions for employees to attend training courses. Besides, the Company also focuses on evaluating periodic work performance for 100% of employees, supporting employees to uphold their personal strength to contribute to the sustainable development of the Company.

In 2023, the Company organized training courses to improve professional skills, knowledge, career skills for employees to ensure business and production, specifically:

  • Total training hours: 29,697hours
  • Average training hours: 26hours/person/year (GRI 404-1)
  • Number of training hours based on employee classification

996

hours/year

Senior leadership (Executive Board, Heads/ Deputy Heads of Divisions and equivalent):

1,690

hours/year

Mid-level leadership (Heads, Deputy Heads of Departments and equivalent, shift leader, team leader):

27.011

hours/year

Staff

GRI
401
TALENT ATTRACTION AND RETENTION
Policy to attract talent and employee benefits
PVCFC always pursues a civilized working environment, continuously improving its employee policies from salary, bonus to benefits. The Company also creates the best conditions for employees to uphold the potential by flexible recruitment policies and in-depth training programs.
Job quits rate and new hires
  • Job quits rate Trend of job quits keeps decreasing, specifically, total of employees quitting their jobs was 14, down 33.33% as of 2022, of whom 02/14 female employees quitting jobs equivalent to 14.29% (no female management personnel quitting job), 12/14 male employees quitting jobs equivalent to 85.71%.
  • New hires: Personnel increase in 2023 was 68, up 65.85% as of 2022, of whom 20/68 are female employees equivalent to 29.41% (no increase in female management personnel), 48/68 are male employees equivalent to 70.59% (3/48 are male management personnel). In 2023, PVCFC expanded its production scale, business market and invested in product development projects toward long-term development strategies of the Company.
  • Maternity leave in 2023:
    • Total employees entitled to maternity leave were 13 with total maternity pay of 1,236,803,300 VND
    • Total employees returned to work after parental leave were 08/13, 05/13 people will return to work in 2024 according to regulations, rate of employees returning to office after parental leave and retention rate in 2023 was 100%.
SUSTAINABLE SUPPLY CHAIN
Impacts of business and production activities of PVCFC on environmental and social issues not only come from internal activities at the plant. We are fully aware of environmental and social impacts caused by business and production activities and process of material, chemical supply as well as input services for business and production activities. Therefore, in the process of selection of suppliers, it is required to select suppliers who fully comply with environmental and social regulations. In the following years, we will step by step work out deeper assessment criteria on environmental and social issues to evaluate suppliers.
GRI
405
GRI
408
LABOR AND HUMAN RIGHTS
Structure of human resource by gender

Total employees by December 31, 2023 were

1,096 peoples

5%

as of 2022; 203/1,096 are female employees, equivalent to 18.52%

Cơ cấu cấp quản lý theo giới tính
  • Executive Board (BOD, EB, Supervisory Board, Chief Accountant):15/1,096, equivalent to 1.47%, down 6% as of 2022, 01 BOD member resigned under social insurance policy (retirement). 02.15 are female members equivalent to 13.33%, the number of female members of the Executive Board remained unchanged as of 2022.
  • Management leaders at division and unit levels (management levels of divisions, units and workshops, not including the Executive Board): 130/1,096 equivalent to 16.42% on overall personnel, up 0.9% as of 2022; 25/163 are female equivalent to 15.15% of management leaders at division and unit levels and accounting for 2.28% of total personnel of the Company. In 2023, the number of female managers of divisions, units remained unchanged as of 2022.
  • Employees: 899/1,096 equivalent to 82.03%.
Gender pays gap

PVCFC applies 3P salary system including: position, performance and capacity, so there are no income inequalities by genders.

Human rights policy

The Company applies non-discrimination policy by gender, religion, political opinions, age, etc.

PVCFC applies no child labor policy, no forced and compulsory labor, these contents are stipulated in recruitment regulations of the Company (Clause 8.2, Article 8 of recruitment regulations).

PVCFC became one of Vietnam’s first companies to secure GEARS (Gender Equality Assessment, Results and Strategies) Certification for gender equality - evaluated and certified on April 20 2023.

FARMER/CUSTOMER WELFARE
PVCFC’s policy for farmers

PVCFC secures comprehensive cooperation and commit to ensuring farmer welfare, supporting farmers to improve their lives by following key policies:

phuc-loi

PVCFC continuously conducts research and provides new high-quality products, ensuring nutritional values for crops, creating added values for farmers, minimizing risks to human health and environment.

PVCFC supplies fertilizer products with affordable prices and ensures accessibility to small-scale farming households, especially those in remote areas through effective distribution channels. An extensive system of agencies of PVCFC in all regions closely follow and update the farming situation of localities, timely proposing support measures for local farmers.

PVCFC has transferred technical advances and new solutions on crop nutrition management and agricultural farming. The Company coordinates with central and local agricultural extension centers to implement training programs, providing agricultural extension services to farmers, improving knowledge and experience in using high quality fertilizers in an effective and economic manner. In addition, PVCFC provides instructions on applying new technical advances and sustainable agricultural practices.

PVCFC has made maximum efforts to maintain a balance of harmonious benefits between the Company and farmers. The Company not only provides fertilizer products but also connects with companies/enterprises in the entire agricultural product value chain such as seed -crop protection companies and agricultural products processing units and exporters to support farmers save production costs and improve their income, contributing to improvement of Vietnamese agricultural product value.

Programs of accompanying farmers in 2023

Implementing demonstration models and experience fertilizer products

  • Demonstrating and experiencing NPK Ca Mau Polyphosphate technology
  • Demonstrating and experiencing NPK PolyS
  • Demonstrating and experiencing N46. TRUE for winter-spring rice crop 2023-2024.
  • Demonstrating and experiencing N46.C+ for winter-spring rice crop 2023-2024.
  • 02 technical seminars on effective nutrition solutions for rice
  • 02 technical seminars on effective nutrition solutions for fruit trees
  • 03 technical seminars on effective nutrition solutions for coffee and durian
  • 10 seminars on summarizing model of demonstration and experience
  • Fertilizer training workshop for farmers
LOCAL COMMUNITIES
By identifying sustainable development as an integral part of community responsibilities, PVCFC always maintains its mission of “nurturer” and brings happiness to the community. 2023 is the second consecutive year that PVCFC has been honored “The enterprise for community”. This is a motivation for PVCFC to persistently succeed in its development journey, making Vietnam's agricultural sector more sustainable and prosperous.
Corporate social responsibility- community policy of PVCFC

With 75% owned by the State, PVCFC implements social security activities based on the allocation resolution of Vietnam Oil and Gas Group. Detailed programs of the resolutions closely follow guidance toward community, education and livelihoods.

To honor partners, customers and farmers, PVCFC spends the budget on social activities where the Company is operating.

Up to 2024, in a a 13-year journey of development, PVCFC has been implementing many educational and health projects, giving financial support to people with difficult circumstances with an estimated value of over 500 billion VND. The Company has built nearly 2,000 houses of great solidarity, 65 schools, 15 medical stations, hundreds of bridges and large and small traffic projects in remote areas, and dozens of thousands of scholarships for poor students. PVCFC has allocated an annual budget of 5-10 billion VND provide scholarship awards, giving water tanks and water storage bags to poor farmers hit by drought, saline intrusion; giving fertilizers to farmers in natural disaster and disease hit regions to recover production; giving Tet gifts to poor households; installing clean water supply system for schools in remote areas, etc.

Every project becomes a motivation for all employees of PVCFC to continuously make efforts in carrying out its mission as a “nurturer” for the agricultural sector and the process of “growing people”.

PVCFC’s CSR budget for 13 years is estimated over 500 billion VND

Typical community activities in 2023

In 2023, PVCFC has continued its journey of sowing trust and bring new vitality to people in all regions, committing to promoting benefits for local communities, accompanying Vietnam in solving social security issues.

Donating 4 billion VND to build house of gratitude

On June 6 2023, PVCFC organized the groundbreaking ceremony of the project of building 80 houses of gratitude in Bac Lieu province with a total investment capital of 4 billion VND. This is a whole-hearted effort of PVCFC to accompany local communities to support families under preferential treatment policies, families with meritorious contributions to the revolution. Through such a practical program, PVCFC hopes to accompany local communities taking care of people’s lives, helping local residents quickly stabilize their housing and striving for a better life.

Handing over 10 houses of great solidarity to people with difficult circumstances.

On July 17, 2023, PVCF coordinated with Ca Mau Department of Labor, War Invalids and Social Affairs to continuously hand over 10 houses of great solidarity to households with difficult circumstances. This is a part of the Company’s plan on building houses of great solidarity in 2023. Accordingly, the Vietnam Fatherland Front Committee of Ca Mau province has built a total of 300 houses of great solidarity for poor households in Ca Mau province. PVCFC has funded 50 million VND for each house.

Awarding "For Golden Harvests" scholarships for school year 2023-2024

With a message of “Nourishing our hope and future”, from August 2023 to December 2023, PVCFC has continuously awarded 2,440 scholarships worth over 2.5 billion VND. On September 5 2023, amidst excitement of the first day of school, PVCFC awarded "For Golden Harvests" scholarships for the 2023-2024 school year at elementary, middle and high schools nationwide. Each scholarship is a valuable source of spiritual encouragement and motivation for students to overcome difficulties and complete their academic tasks.

Growing 28,000 green trees in Ca Mau City

On September 12 2023, more than 100 members of PVCGC youth unions and youth union members of Thoi Binh District participated in a tree planting campaign. This is a part of a program of growing 28,000 trees in 4 districts and Ca Mau City. At the program, PVCFC has awarded 02 houses of great solidarity, 20 student bags, this presents a high sense of social security responsibilities of PVCFC. It is expected, in the coming time, PVCFC together with other localities to grow additional 200,000 trees in protective forest and 100,000 urban green trees in districts and cities in Ca Mau province.

PVCFC hopes to contribute to the journey of cultivating beautiful values for society. It is more significant when a part of the social security fund raised and donated from unpaid working days of PVCFC’s employees. In order to optimize resources and bring practical effectiveness to communities, PVCFC, instead of implementing alone, always coordinates with Vietnam Fatherland Front Committee, Party Committees and local leaders at all levels, etc. to ensure right purposes, right subjects and creating a resonant power, spreading sense of corporate social and community responsibilities.

CUSTOMER BENEFITS

Ca Mau Fertilizer has become a familiar brand of farmers nationwide thanks to high quality and other significantly shared activities. Apart from winning the trust of millions of farmers, Ca Mau Fertilizer also earns great support for the business agent system nationwide.

Ca Mau Fertilizer is proud of receiving great support from valued agents nationwide. With a widespread system of business agents nationwide, PVCFC can be able to bring its high-quality product - Ca Mau Fertilizer - to the hands of farmers, optimizing the farming process and helping farmers reap golden harvests.

IMPACTS OF PRODUCT AND ACTIONS OF PVCFC RELATED TO CUSTOMER HEALTH AND SAFETY

Ensuring customer health and safety is a top priority of PVCFC, our products are directly connected to agricultural products and food production. Below is an analysis of key factors affecting customer health and safety.

HOW TO PROTECT CONSUMER RIGHTS

In order to protect consumer rights, maintain legal compliance and preserve brand prestige, PVCFC always ensures procedures and regulations of the Company and of the Law on handling complaints and recalling defective products, preventing impacts on environment and human health.

How to handle customer complaints

Step 1

Complaint handling unit and other related units receive customer complaints.

Step 2

Within 2 working hours, complaint handling unit checks, classify and notifies related divisions/units to verify and record customer complaints.

Step 3

Relevant divisions/units are responsible for sending personnel to verify and record customer complaints.

Step 4

Relevant divisions/units coordinate and work with customers, sending reports of verification results and proposing handling measures to customer handling units under form of BM02/MKT.02.04, attached with quality analysis results (if any).

Step 5

In case of no additional costs incurred, complaint handling unit will handle customer complaints.

Step 6

In case of costs incurred, complaint handling unit submit a written proposal, decision on complaint handling to Head of Division/Authorized person for approval, units related to complaint handling activities, Finance & Accounting Division and Accounting for approval and submitted to General Director/authorized person for approval.

Step 7

Monitoring the process of handling customer complaints.

Step 8

Complaint handling unit is responsible for:

Recording evaluation and customer satisfaction;

Reporting results of complaint handling.

In 2023, the Company received and handled 28 cases of customer complaints and handling 800 cases via hotline.

Product recall procedure

In case of defective products, PVCFC will carry out following steps:

Step 1

Receiving requests of product recall and handling.

Step 2

Evaluating errors and necessity of recalling and handling defective products.

Step 3

Making a plan of recalling defective products and submitting to leadership board for approval.

Step 4

Recalling defective products in accordance with approved plan in step 3.

Step 5

Managing defective products according to the Company’s regulations.

Step 6

Employees make reports on recall results and outline handling measures for the recalled shipments. In case that defective shipments have been distributed and consumed on a large scale, it is necessary to quickly recall to minimize risks for customers.