Version 6.

1
 Sedex Audit Reference: 2022VNZAA419888703 SMETA Corrective Action Plan Report (CAPR) Version 6.1

Audit Details
Sedex Company ZC: 419315546 Sedex Site Reference: ZS: 419524803
Reference: (only available on Sedex
(only available on Sedex System)
System)

Business name KHANG THANH COMPANY LIMITED

(Company name):
Site name: KHANG THANH COMPANY LIMITED
CÔNG TY TNHH KHANG THÀNH
Site address: Lot 103/6, Road 5, Country: Viet Nam
(Please include full Amata IP, Long Binh
address) Ward, Bien Hoa City,
Dong Nai Province,
Vietnam.
Lô 103/6, đường số 5,
KCN Amata, phường
Long Bình, Thành phố
Biên Hòa, Tỉnh Đồng
Nai, Việt Nam

Site contact and job Mr. Nguyen Duy Tin/ CS Supervisor

title:
Site phone: 0912400254 Site e–mail: Tinh.nguyen@khangthanh.com
SMETA Audit Pillars: Labour Health & Environment Business Ethics
Standards Safety (plus 4-pillar
Environment 2-
Pillar)
Date of Audit: 23 June 2022

Audit Company Name & Logo:

Bureau Veritas Consumer Products Services Report Owner (payer):

(If paid for by the customer of the site
please remove for Sedex upload)

KHANG THANH COMPANY LIMITED

Audit Conducted By

Affiliate Audit Purchaser

Company Retailer

Brand owner NGO Trade Union

Audit company: Bureau Veritas Consumer Products Services Report reference: 10221361582 Date: 23/6/2022 2
 Sedex Audit Reference: 2022VNZAA419888703 SMETA Corrective Action Plan Report (CAPR) Version 6.1

Multi– Combined Audit (select all that apply)

stakeholder

Audit Content:
(1) A SMETA audit was conducted which included some or all of Labour Standards, Health &
Safety, Environment and Business Ethics. The SMETA Best Practice Version 6.1 (March 2019)
was applied. The scope of workers included all types at the site e.g. direct employees,
agency workers, workers employed by service providers and workers provided by other
contractors. Any deviations from the SMETA Methodology are stated (with reasons for
deviation) in the SMETA Declaration.

(2) The audit scope was against the following reference documents
2-Pillar SMETA Audit
• ETI Base Code
• SMETA Additions
• Universal rights covering UNGP
• Management systems and code implementation,
• Responsible Recruitment
• Entitlement to Work & Immigration,
• Sub-Contracting and Home working,
4-Pillar SMETA
• 2-Pillar requirements plus
• Additional Pillar assessment of Environment
• Additional Pillar assessment of Business Ethics
• The Customer’s Supplier Code (Appendix 1)

(3) Where appropriate non-compliances were raised against the ETI code / SMETA Additions
& local law and recorded as non-compliances on both the audit report, CAPR and on
Sedex.

(4) Any Non-Compliance against customer code shall not be uploaded to Sedex. However,
in the CAPR these ‘Variances in compliance between ETI code / SMETA Additions/ local
law and customer code’ shall be noted in the observations section of the CAPR.

Audit company: Bureau Veritas Consumer Products Services Report reference: 10221361582 Date: 23/6/2022 3
 Sedex Audit Reference: 2022VNZAA419888703 SMETA Corrective Action Plan Report (CAPR) Version 6.1

SMETA Declaration
I declare that the audit underpinning the following report was conducted in accordance
with SMETA Best Practice Guidance and SMETA Measurement Criteria.

(1) Where appropriate non-compliances were raised against the ETI code / SMETA Additions & local law
and recorded as non-compliances on both the audit report, CAPR and on Sedex.

(2) Any Non-Compliance against customer code alone shall not be uploaded to Sedex. However, in
the CAPR these ‘Variances in compliance between ETI code / SMETA Additions/ local law and
customer code’ shall be noted in the observations section of the CAPR.

Any exceptions to this must be recorded here (e.g. different sample size):
This audit includes elements beyond the scope of a Social Compliance Audit as defined
by the APSCA Competency Framework. The association of the auditor’s APSCA number
with this report is limited to those elements outlined in the APSCA Competency
Framework. APSCA makes no representations with respect to the auditor’s competency
to professionally evaluate compliance with any other audit elements.

Auditor Team (s) (please list all including all interviewers):

Lead auditor: Tram Do
Team auditor: Nhu Cao
Interviewers: Tram Do/ Nhu Cao

Report writer: Nhu Cao

Report reviewer:

Date of declaration: June 23, 2022

Note: The focus of this ethical audit is on the ETI Base Code and local law. The additional elements will not be audited in
such depth or scope, but the audit process will still highlight any specific issues.

This report provides a summary of the findings and other applicable information found/gathered during the social audit
conducted on the above date only and does not officially confirm or certify compliance with any legal regulations or
industry standards. The social audit process requires that information be gathered and considered from records review,
worker interviews, management interviews and visual observation. More information is gathered during the social audit
process than is provided here. The audit process is a sampling exercise only and does not guarantee that the audited
site prior, during or post–audit, are in full compliance with the Code being audited against. The provisions of this Code
constitute minimum and not maximum standards and this Code should not be used to prevent companies from
exceeding these standards. Companies applying this Code are expected to comply with national and other
applicable laws and where the provisions of law and this Code address the same subject, to apply that provision which
affords the greater protection. The ownership of this report remains with the party who has paid for the audit. Release
permission must be provided by the owner prior to release to any third parties.

Audit company: Bureau Veritas Consumer Products Services Report reference: 10221361582 Date: 23/6/2022 4
 Sedex Audit Reference: 2022VNZAA419888703 SMETA Corrective Action Plan Report (CAPR) Version 6.1

Audit Parameters
Audit Parameters

A: Time in and time out Day 1 Time in: 09:00 Day 2 Time in:NA Day 3 Time in:
Day 1 Time out: 18:00 Day 2 Time out: NA
NA Day 3 Time out:
NA

B: Number of auditor days used: 2 auditors * 1 day

C: Audit type: Full Initial

Periodic
Full Follow–up
Partial Follow–Up
Partial Other

If other, please define

D: Was the audit announced? Announced

Semi – announced: Window detail: weeks
Unannounced

E: Was the Sedex SAQ available for Yes

review? No
E1: If No, why not?

F: Any conflicting information Yes

SAQ/Pre-Audit Info to Audit findings? No
If Yes, please capture detail in appropriate audit by clause

G: Who signed and agreed CAPR Mr. Nguyen Duy Tinh/ Supervisor
(Name and job title)

H: Is further information available Yes

(if yes, please contact audit company for No
details)

I: Previous audit date: Nil

J: Previous audit type: Nil

K: Were any previous audits reviewed Yes No

for this audit
N/A

Audit attendance Management Worker Representatives

Senior management Worker Committee Union representatives

representatives

Audit company: Bureau Veritas Consumer Products Services Report reference: 10221361582 Date: 23/6/2022 5
 Sedex Audit Reference: 2022VNZAA419888703 SMETA Corrective Action Plan Report (CAPR) Version 6.1

A: Present at the opening meeting? Yes No Yes No Yes No

B: Present at the audit? Yes No Yes No Yes No

C: Present at the closing meeting? Yes No Yes No Yes No

D: If Worker Representatives were N/a. There was no requirement to establish worker representative.
not present please explain reasons
why (only complete if no worker reps
present)

E: If Union Representatives were not N/a.

present please explain reasons why:
(only complete if no union reps present)

Audit company: Bureau Veritas Consumer Products Services Report reference: 10221361582 Date: 23/6/2022 6
 Sedex Audit Reference: 2022VNZAA419888703 SMETA Corrective Action Plan Report (CAPR) Version 6.1

Guidance
The Corrective Action Plan Report summarises the site audit findings and a corrective, and preventative
action plan that both the auditor and the site manager believe is reasonable to ensure conformity with the
ETI Base Code, Local Laws and additional audited requirements. After the initial audit, the form is used to re-
record actions taken and to categorise the status of the non-compliances.

N.B. observations and good practice examples should be pointed out at the closing meeting as well as
discussing non-compliances and corrective actions.

To ensure that good practice examples are highlighted to the supplier and to give a more ‘balanced’ audit
a section to record these has been provided on the CAPR document (see following pages) which will
remain with the supplier. They will be further confirmed on receipt of the audit report.
Root cause (see column 4)
Root cause refers to the specific procedure or lack of procedure which caused the issue to arise. Before a
corrective action can sustainably rectify the situation, it is important to find out the real cause of the non-
compliance and whether a system change is necessary to ensure the issue will not arise again in the future.
See SMETA BPG Chapter 7 ‘Audit Execution’ for more explanation of “root cause’’.
Next Steps:
1. The site shall request, via Sedex, that the audit body upload the audit report, non-compliances,
observations and good examples. If you have not already received instructions on how to do this
then please visit the web site www.sedexglobal.com.
2. Sites shall action its non-compliances and document its progress via Sedex.
3. Once the site has effectively progressed through its actions then it shall request via Sedex that the
audit body verify its actions. Please visit www.sedexglobal.com web site for information on how to
do this.
4. The audit body shall verify corrective actions taken by the site by either a "Desk-Top” review process
via Sedex or by Follow-up Audit (see point 5).
5. Some non-compliances that cannot be closed off by “Desk-Top” review may need to be closed off
via a “1 Day Follow Up Audit” charged at normal fee rates. If this is the case, then the site will be
notified after its submission of documentary evidence relating to that non-compliance. Any follow-
up audit must take place within twelve months of the initial audit and the information from the initial
audit must be available for sign off of corrective action.
6. For changes to wages and hours to be correctly verified it will normally require a follow up site visit.
Auditors will generally require to see a minimum of two months wages and hours records, showing
new rates in order to confirm changes (note some clients may ask for a longer period, if in doubt
please check with the client).

Audit company: Bureau Veritas Consumer Products Services Report reference: 10221361582 Date: 23/6/2022 7
 Sedex Audit Reference: 2022VNZAA419888703 SMETA Corrective Action Plan Report (CAPR) Version 6.1

Corrective Action Plan

Corrective Action Plan – non-compliances

Non- New or Details of Non- Root cause Preventative and Timescale Verification Agreed by Verification Evidence Status
Compliance Carried Over Compliance (completed by the Corrective Actions (Immediate, Method Management and Open/Closed
Number Is this a new Details of Non-Compliance site) Details of actions to 30, 60, Desktop / and Name of Comments or comment
non- be taken to clear 90,180,365) Follow-Up
The reference Responsible Details on corrective action
number of the compliance non-compliance, and [D/F] evidence
Person:
non- identified at the system change to
Note if
compliance the follow-up prevent re-
management
from the Audit or one carried occurrence (agreed
agree to the non-
Report, over (C) that is between site and
compliance, and
for example, still outstanding auditor)
document name
Discrimination of responsible
No.7 person

Management Per document review Training It is recommended 60 D Agree

system 1 and management Systems that factory shall Ms. Do Thi Kim
confirmation, it was Costs ensure to update Hong/ HR Staff
noted that the internal lack of workers internal regulation
regulation had been Other – please as legal
established and give details: requirement.
registered with the local
labor authority bureau on
25 March 2021. However,
the factory regulation
was not updated the
content of with sexual
harassment in the
workplace; overtime
working hours,
reassignment of
employees; person who
taking disciplinary
measures the new
requirement of Labor
Law 2019.

Theo đánh giá tài liệu và

xác nhận của ban quản lý,
có lưu ý rằng quy chế nội

Audit company: Bureau Veritas Consumer Products Services Report reference: 10221361582 Date: 23/6/2022 8
 Sedex Audit Reference: 2022VNZAA419888703 SMETA Corrective Action Plan Report (CAPR) Version 6.1

bộ chưa được thiết lập và

đăng ký với cơ quan quản
lý lao động địa phương vào
ngày 2 tháng 1 năm 2020.
Tuy nhiên, nội quy của nhà
máy không được cập nhật
nội dung về quấy rối tình
dục tại nơi làm việc; làm
thêm giờ, phân công lại
người lao động; Người bị
xử lý kỷ luật theo quy định
mới của Luật Lao động
2019.

Management During document review, Training It is recommended 60 D Agree

system 2 worker interview and Systems that factory shall Ms. Do Thi Kim
management Costs ensure to have Hong/ HR Staff
confirmation, it was lack of workers child care facility
noted that the factory Other – please or child care policy
had policy to provide give details: to support for all
childcare allowance of workers who have
VND 100,000 for only children of nursing
female employees who and kindergarten
had children of nursing ages.
and kindergarten ages
instead of both male and
female employees in
place.

Trong quá trình xem xét hồ

sơ, phỏng vấn công nhân
và xác nhận của ban lãnh
đạo, ghi nhận rằng nhà
máy có chính sách hỗ trợ
tiền trông trẻ 100.000 đồng
cho nhân viên nữ sinh con
trong độ tuổi nhà trẻ thay vì
cả nam và nữ tại chỗ.

Wages & Base on payroll record Training It is recommended 60 F Agree

Benefits 1 and management Systems that the factory Ms. Do Thi Kim
interview, it was noted Costs shall paid monthly Hong/ HR Staff
that 10 out of 10 selected lack of workers wage sufficiently
workers were underpaid base on labor

Audit company: Bureau Veritas Consumer Products Services Report reference: 10221361582 Date: 23/6/2022 9
 Sedex Audit Reference: 2022VNZAA419888703 SMETA Corrective Action Plan Report (CAPR) Version 6.1

lower contracted salary Other – please contract

because of wrong give details: according to legal
calculation by mistake. requirement.
For example: The worker
was signed labor
contract with VND
4,871,000 per month, but
paid at VND 4,496,307
per month in Feb 2022
because this month had
24 working day, but the
factory set up monthly
wage as 26 working days
for all month of the years.

Ghi nhận vào hồ sơ bảng

lương và phỏng vấn ban
giám đốc, có thể thấy
rằng 10 trong số 10 công
nhân được chọn bị trả
lương thấp hơn theo hợp
đồng do tính nhầm. Ví dụ:
Công nhân được ký hợp
đồng lao động 4.871.000
đồng / tháng nhưng đến
tháng 2/2022 được trả
4.496.307 đồng / tháng
do tháng này có 24 ngày
làm việc nhưng nhà máy
quy định tiền lương tháng
là 26 ngày làm việc cho
tất cả các tháng trong
năm.

Wages & During document review, Training It is recommended 60 F Agree

Benefits 2 employees and Systems that factory should Ms. Do Thi Kim
management interview, Costs apply correct Hong/ HR Staff
it was noted that lack of workers calculation
overtime working salary Other – please method when
10 of out of 10 sampled give details: computing
workers in Feb 2022 were overtime wage for
underpaid since the

Audit company: Bureau Veritas Consumer Products Services Report reference: 10221361582 Date: 23/6/2022 10
 Sedex Audit Reference: 2022VNZAA419888703 SMETA Corrective Action Plan Report (CAPR) Version 6.1

factory applied wrong workers as legal

calculation method. requirement.
Current practice, the
factory calculated salary
by dividing contracted
salary into 208 hours
(contracted salary +
additional allowance
/26/8) instead of
maximum 192 hours
(contracted salary +
additional allowance
/actual working days per
month/8) as legal
requirement in Feb 2022.

For example: Worker with

basic salary at VND
4,871,000/month and
worked 10.4 overtime
working hour was paid
overtime compensation
at VND 22.986/hour
instead of VND
25.369/hour.
Remark: However, in a
month with 27 working
days (March 2022), the
worker will get the
overtime salary higher
legal requirement
because the factory
calculated overtime
compensation by
dividing the contracted
salary into 26 standard
working days instated of
27 actual working days of
the month in March 2022.

Trong quá trình xem xét

tài liệu, phỏng vấn nhân
viên và ban lãnh đạo,

Audit company: Bureau Veritas Consumer Products Services Report reference: 10221361582 Date: 23/6/2022 11
 Sedex Audit Reference: 2022VNZAA419888703 SMETA Corrective Action Plan Report (CAPR) Version 6.1

người ta nhận thấy rằng

10 trên 10 công nhân
được lấy mẫu vào tháng
2 năm 2022 đã bị trả
lương thấp hơn do nhà
máy áp dụng phương
pháp tính sai.
Thực tế hiện nay, nhà
máy tính lương bằng
cách chia lương khoán
thành 208 giờ (lương
khoán + phụ cấp / 26/8)
thay vì tối đa 192 giờ
(lương khoán + phụ cấp /
số ngày làm việc thực tế
trong tháng / 8) như quy
định của pháp luật trong
tháng 2. 2022

Wages & During the document Training It is recommended 60 F Agree

Benefits 3 review, workers interview Systems that factory shall Ms. Do Thi Kim
and management Costs ensure to pay Hong/ HR Staff
confirmation, It was lack of workers adequately for
noted that: Other – please overtime as legal
give details: requirement.
+ 5 out of 10 sampled
workers who working at
coating/ laminating
section was not paid
adequately for overtime
on regular days in
February 2022.
+ 5 out of 10 sampled
workers who working at
cutting/ QC section was not
paid adequately for
overtime on regular days
in September 2021.
For example 2 sampled
worker: His time record
showed 15 OT hours in
Feb 2022 but the relevant

Audit company: Bureau Veritas Consumer Products Services Report reference: 10221361582 Date: 23/6/2022 12
 Sedex Audit Reference: 2022VNZAA419888703 SMETA Corrective Action Plan Report (CAPR) Version 6.1

payroll record indicated

no OT hours were paid
and balance 15 overtime
hours were not paid.
His time record showed
16.5 OT hours in Feb 2022
but the relevant payroll
record indicated 13.3 OT
hours were paid and
balance 3.2 overtime
hours were not paid.

Trong quá trình xem xét tài

liệu, phỏng vấn người lao
động và xác nhận của quản lý,
Người ta lưu ý rằng:
+ 5 trong số 10 công nhân
được lấy mẫu làm việc tại bộ
phận tráng / cán không được
trả lương đầy đủ cho việc làm
thêm giờ vào các ngày bình
thường trong tháng 2 năm
2022.
+ 5/10 công nhân được lấy
mẫu làm việc tại bộ phận cắt
/ QC không được trả lương
đầy đủ khi làm thêm giờ vào
các ngày bình thường trong
tháng 9/2021.

Regular During the document Training It is recommended 30 days D Agree

Employment review, employees Systems the factory shall be Ms. Do Thi Kim
Is Provided 1 interview and Costs updated labor Hong/ HR Staff
management lack of workers contract annex as
confirmation, it was Other – please legal requirement.
noted that 10 out of 10 give details:
observed personnel file
records did not update
the labor contract annex
for adding contents as
required including the
salary increase regime

Audit company: Bureau Veritas Consumer Products Services Report reference: 10221361582 Date: 23/6/2022 13
 Sedex Audit Reference: 2022VNZAA419888703 SMETA Corrective Action Plan Report (CAPR) Version 6.1

as legal requirement. The

improvement courses
from effective on April
01, 2022.

Ghi nhận qua xem xét hồ sơ,

phỏng vấn công nhân viên và
quản lý nhà máy, nhà máy
chưa cập nhật phụ lục hợp
đồng khi có sự tang lương từ
tháng 4/2022.

Health & During site observation Training It is recommended 30 D Agree

Safety No.1 and management Systems that the factory Ms. Do Thi Kim
confirmation, it was Costs shall ensure to Hong/ HR Staff
noted that 02 out of 05 lack of workers replace the new
electric wirings were Other – please electric wiring in
joined by plastic tape give details: lack of security room.
instead of replacing the monitoring
new one in the coating
section.

Trong quá trình quan sát

hiện trường và xác nhận
bởi quản lý, ghi nhận rằng
02/ 05 mẫu dây điện
được nối bằng băng
nhựa ở bộ phận cán phủ.

Health & During site observation Training It is recommended 30 D Agree

Safety No.2 and management Systems that the factory Ms. Do Thi Kim
confirmation, it was Costs shall ensure that all Hong/ HR Staff
noted that 06 out of 06 lack of workers emergency exit
observed emergency Other – please doors are opened
exit doors at the coating give details: lack of outward to
section, laminating monitoring facilitate an
section, printing section, emergency
packing section, finished evacuation in the
goods area were rolling event of any
and sliding doors instead accident or fire.

Audit company: Bureau Veritas Consumer Products Services Report reference: 10221361582 Date: 23/6/2022 14
 Sedex Audit Reference: 2022VNZAA419888703 SMETA Corrective Action Plan Report (CAPR) Version 6.1

of outward opened
doors.
Remark: As observed,
the factory equipped
locking mechanism to
keep sliding door at
opening position during
working hours.
Trong quá trình quan sát
hiện trường và xác nhận
quản lý, ghi nhận rằng 06
trong số 06 cửa thoát
hiểm quan sát được ở
phần phủ, phần cán,
phần in, phần đóng gói
là cửa cuốn và cửa trượt
thay vì cửa mở ra ngoài.

Health & During the factory tour Training It was 30 D Agree

Safety No.3 and management Systems recommended Ms. Do Thi Kim
interview, It was noted Costs that the factory Hong/ HR Staff
that the evacuation plan lack of workers shall ensure that
was missing in the sewing Other – please the evacuation
section. give details: lack of plan is available at
monitoring each area in the
Trong chuyến tham quan factory.
nhà máy và phỏng vấn
quản lý, ghi nhận sơ đồ
thoát hiểm không có ở
khu vực chuyền may

Health & During the factory tour Training It is recommended 30 D Agree

Safety No.4 and management Systems that the chemical Ms. Do Thi Kim
confirmation, It was Costs containers shall be Hong/ HR Staff
noted that 15 out of 18 lack of workers labelled clearly as
chemical labels were Other – please legal requirements.
insufficient safety give details: lack of
information as legal monitoring
requirements in the
printing section,

Audit company: Bureau Veritas Consumer Products Services Report reference: 10221361582 Date: 23/6/2022 15
 Sedex Audit Reference: 2022VNZAA419888703 SMETA Corrective Action Plan Report (CAPR) Version 6.1

chemical storage area,

coating section.

Trong chuyến tham quan

nhà máy và xác nhận
của ban quản lý, Người
ta lưu ý rằng 15 trong số
18 nhãn hóa chất không
đủ thông tin an toàn
theo yêu cầu pháp lý
trong phần in ấn, khu vực
lưu trữ hóa chất, phần
sơn phủ.

Health & During the site tour and Training It is recommended 30 D Agree
Safety No.5 confirmation of Systems that the factory Ms. Do Thi Kim
management, It was Costs shall ensure that all Hong/ HR Staff
noted that secondary lack of workers chemical
containers were not Other – please containers must be
equipped for 12 out 15 give details: lack of equipped with
observed liquid monitoring secondary
chemical bottles (name's containers.
chemical: printing ink,
FG100, T-100…) in the
printing section, coating
section, chemical
storage area.

Trong quá trình tham

quan thực tế và xác
nhận của ban quản lý,
Người ta đã ghi nhận
rằng 12 trong số 15 chai
hóa chất lỏng quan sát
không được trang bị
thùng chứa thứ cấp (hóa
chất tên: mực in, FG100,
T-100…) trong phần in,
phần cán, kho chứa hóa
chất.

Audit company: Bureau Veritas Consumer Products Services Report reference: 10221361582 Date: 23/6/2022 16
 Sedex Audit Reference: 2022VNZAA419888703 SMETA Corrective Action Plan Report (CAPR) Version 6.1

Health & During the site tour and Training It is recommended 30 D Agree
Safety No.6 confirmation of Systems to the facility to Ms. Do Thi Kim
management, it was Costs provide safety Hong/ HR Staff
noted that the facility did lack of workers guards to
not provide safety guards Other – please machines
for production machines give details: lack of
in the production monitoring
workshop. Detail as
following:
- 08 out of 08 observed
single needle sewing
machines were not
provided with the needle
guard.
- 02 out of 02 automatic
sewing machines were
not provided with eye-
guard.

Trong quá trình tham

quan thực tế và xác nhận
của ban quản lý, ghi nhận
rằng cơ sở này không
cung cấp dụng cụ bảo vệ
an toàn cho các máy
móc sản xuất trong xưởng
sản xuất. Chi tiết như sau:
- 08 trong số 08 máy may
một kim được quan sát
không được cung cấp
bảo vệ kim.
- 02/ 02 máy may vi tính
không có tấm chắn kim.

Health & During the factory tour Training It is recommended 30 D Agree

Safety No.7 and management Systems to the facility to Ms. Do Thi Kim
interview, it was noted Costs ensure that all exits Hong/ HR Staff
that 03 of 06 exit aisles lack of workers are free from
cutting section, coating Other – please obstruction.
section, and laminating give details: lack of
section were partially monitoring
blocked by the material
during working hours.

Audit company: Bureau Veritas Consumer Products Services Report reference: 10221361582 Date: 23/6/2022 17
 Sedex Audit Reference: 2022VNZAA419888703 SMETA Corrective Action Plan Report (CAPR) Version 6.1

Trong quá trình tham

quan nhà máy và phỏng
vấn ban giám đốc,
chúng tôi ghi nhận rằng
03 trong số 06 phần cắt lối
ra, phần cán phủ và
phần cán đã bị vật liệu
chặn một phần trong giờ
làm việc.

Health & During the factory tour Training It is recommended 30 D Agree

Safety No.8 and management Systems to the facility to Ms. Do Thi Kim
interview, It was noted Costs ensure that the Hong/ HR Staff
that: lack of workers inspection
+ The safety inspection Other – please certificate shall be
certificate for 01 out o 01 give details: maintained and
of the air compressor available for
tank expired on May 27, review
2022.
+ The safety inspection
certificates for 02 out of
02 forklifts were not
available for review.
Trong chuyến tham quan
nhà máy và phỏng vấn
ban lãnh đạo, Người ta
đã lưu ý rằng:
+ Giấy chứng nhận kiểm
định an toàn 01 trên 01
bình nén khí hết hạn
ngày 27/5/2022.
+ Không có giấy chứng
nhận kiểm định an toàn
của 02 trong số 02 xe
nâng để xem xét.

Health & During the document Training It is recommended 30 D Agree

Safety No.9 review and Systems to the facility to Ms. Do Thi Kim
management interview, Costs ensure that the Hong/ HR Staff
It was noted that Earth lack of workers ECC for electrical
Continuity Conductor for and lightning

Audit company: Bureau Veritas Consumer Products Services Report reference: 10221361582 Date: 23/6/2022 18
 Sedex Audit Reference: 2022VNZAA419888703 SMETA Corrective Action Plan Report (CAPR) Version 6.1

electrical and lightning Other – please systems shall be

systems were not give details: maintained and
available for review. available for
review.
Remark: The factory
explained that on April 1,
2022, they signed the
contract with service
company and they are
now waiting for the
service company to
inspect it on site.

Trong quá trình xem xét

tài liệu và phỏng vấn
quản lý, Người ta lưu ý
rằng không có hồ sơ nối
đất cho hệ thống điện và
chống sét để xem xét.

Corrective Action Plan – Observations

Observation New or Details of Observation Root cause Any improvement actions discussed
Number Carried Details of Observation (completed by the site) (Not uploaded on to SEDEX)
The reference Over
number of the Is this a new
observation from observation
the Audit Report, identified at
for example, the follow-up
Discrimination or one carried
No.7 over (C) that
is still
outstanding

Universal Rights It was noted that the facility did not have policy or statement which expresses the
covering UNGP businesses commitment to respect human rights
No.1
Ghi nhận nhà máy chưa có chính sách nhân quyền

Audit company: Bureau Veritas Consumer Products Services Report reference: 10221361582 Date: 23/6/2022 19
 Sedex Audit Reference: 2022VNZAA419888703 SMETA Corrective Action Plan Report (CAPR) Version 6.1

Universal Rights It was noted that the facility has not designated person with responsibility for
covering UNGP management of Human rights impacts
No.2
Ghi nhận nhà máy chưa bổ nhiệm người phu trách nhân quyền

Universal Rights It was noted that the factory did not have the policy and procedure to identify
covering UNGP their stakeholder and salient issues.
No.3
Ghi nhận nhà máy chưa có chính sách/quy trình xác định nhưng bên có liên quan và các
vấn đề tác độn

Universal Rights It was noted that the factory had not measured their direct, indirect, and
covering UNGP potential impacts on stakeholders (rights holders) human rights.
No.4
Ghi nhận nhà máy chưa đo lường được các tác động trực tiếp, gián tiếp và tiềm năng
của họ đối với các bên liên quan

Universal Rights It was noted that the facility had not addressed impact on human rights within
covering UNGP any of their stakeholders and enable effective remediation.
No.5
Ghi nhận nà máy chưa giải quyết các vấn đề nhân quyền tác động lên các bên có liên
quan

Universal Rights It was noted that the factory had no transparent system in place for
covering UNGP confidentially reporting, and dealing with human rights impacts without fear of
No.6 reprisals towards the reporter

Ghi nhận nhà máy không có hệ thống minh bạch để báo cáo một cách tự tin và xử lý các
tác động nhân quyền mà không sợ bị trả thù đối với phóng viên

Management It was noted that no evidence to prove that the ETI Base Code was
system and communicated and implemented in its supply chain (e.g. suppliers,
Code subcontractors).
Implementation Cần lưu ý rằng không có bằng chứng nào chứng minh rằng Mã cơ sở ETI đã được
No. 1 truyền đạt và thực hiện trong chuỗi cung ứng của nó (ví dụ: nhà cung cấp, nhà
thầu phụ).

Business Ethics – As per management interview, the factory did not have evidence showed that
4-Pillar Audit the factory had communicated Business Ethics policy to its own suppliers.
Theo cuộc phỏng vấn của ban giám đốc, nhà máy không có bằng chứng cho
thấy nhà máy đã thông báo chính sách Đạo đức Kinh doanh cho các nhà cung
cấp của mình.

Audit company: Bureau Veritas Consumer Products Services Report reference: 10221361582 Date: 23/6/2022 20
 Sedex Audit Reference: 2022VNZAA419888703 SMETA Corrective Action Plan Report (CAPR) Version 6.1

Other issue During the document review and management interview, It was noted that
areas 10B4: factory did not set environment target and strategic plan to reduce environment
Environment 4– impact.
Pillar
Trong quá trình xem xét tài liệu và phỏng vấn ban lãnh đạo, người ta nhận thấy
rằng nhà máy đã không đặt ra mục tiêu môi trường và kế hoạch chiến lược để
giảm tác động đến môi trường

Good examples

Good example Details of good example noted Any relevant Evidence and
Number Comments
The reference
number of the
good example
from the Audit
Report,
for example,
Discrimination No.7

Nil Nil Nil

Audit company: Bureau Veritas Consumer Products Services Report reference: 10221361582 Date: 23/6/2022 21
 Sedex Audit Reference: 2022VNZAA419888703 SMETA Corrective Action Plan Report (CAPR) Version 6.1

Confirmation
Please sign this document confirming that the above findings have been discussed with and understood by you: (site management)
If actual signatures are not possible in electronic versions, please state the name of the signatory in applicable boxes, as indicating the signature.

A: Site Representative Signature: Mr. Nguyen Duy Tinh Title: Supervisor

Date June 23, 2022

B: Auditor Signature: Tram Do/ Nhu Cao Title Auditor

Date June 23, 2022

C: Please indicate below if you, the site management, dispute any of the findings. No need to complete D-E, if no disputes.

D: I dispute the following numbered non-compliances:

E: Signed: Title
(If any entry in box D, please complete
a signature on this line) Date

F: Any other site Comments:

Audit company: Bureau Veritas Consumer Products Services Report reference: 10221361582 Date: 23/6/2022 22
 Sedex Audit Reference: 2022VNZAA419888703 SMETA Corrective Action Plan Report (CAPR) Version 6.1

Guidance on Root Cause

Explanation of the Root Cause Column

If a non-compliance is to be rectified by a corrective action which will also prevent the non-
compliance re-occurring, it is necessary to consider whether a system change is required.

Understanding the root cause of the non-compliance is essential if a site is to prevent the issue re-
occurring.

The root cause refers to the specific activity/ procedure or lack of activity /procedure which
caused the non-compliance to arise. Before a corrective action can rectify the situation, it is
important to find out the real cause of the non-compliance and whether a system change is
necessary to ensure the issue will not arise again in the future.

Since this is a new addition, it is not a mandatory requirement to complete this column at this time.
We hope to encourage auditors and sites to think about Root Causes and where they are able to
agree, this column may be used to describe their discussion.

Some examples of finding a “root cause”

Example 1
Where excessive hours have been noted the real reason for these needs to be understood, whether due to
production planning, bottle necks in the operation, insufficient training of operators, delays in receiving
trims, etc.

Example 2
A non-compliance may be found where workers are not using PPE that has been provided to them. This
could be the result of insufficient training for workers to understand the need for its use; a lack of follow-up
by supervisors aligned to a proper set of factory rules or the fact that workers feel their productivity (and thus
potential earnings) is affected by use of items such as metal gloves.

Example 3
A site uses fines to control unacceptable behaviour of workers.

International standards (and often local laws) may require that workers should not be fined for disciplinary
reasons.

It may be difficult to stop fines immediately as the site rules may have been in place for some time, but to
prevent the non-compliance re- occurring it will be necessary to make a system change.

The symptom is fines, but the root cause is a management system which may break the law. To prevent the
problem re-occurring it will be necessary to make a system change for example the site could consider a
system which rewards for good behaviour

Only by understanding the underlying cause can effective corrective actions be taken to ensure
continuous compliance.

The site is encouraged to complete this section so as to indicate their understanding of the issues raised and
the actions to be taken.

Audit company: Bureau Veritas Consumer Products Services Report reference: 10221361582 Date: 23/6/2022 23
 Sedex Audit Reference: 2022VNZAA419888703 SMETA Corrective Action Plan Report (CAPR) Version 6.1

For more information visit: Sedexglobal.com

Your feedback on your experience of the SMETA audit you have observed is extremely
valuable. It will help to make improvements to future versions.

You can leave feedback by following the appropriate link to our questionnaire:

Click here for Buyer (A) & Buyer/Supplier (A/B) members:

http://www.surveymonkey.com/s.aspx?sm=riPsbE0PQ52ehCo3lnq5Iw_3d_3d

Click here for Supplier (B) members:

http://www.surveymonkey.com/s.aspx?sm=d3vYsCe48fre69DRgIY_2brg_3d_3d

Click here for Auditors:

https://www.surveymonkey.co.uk/r/BRTVCKP

Audit company: Bureau Veritas Consumer Products Services Report reference: 10221361582 Date: 23/6/2022 24