CHAPTER 3

3.1. Learning objective

Given the country's circumstances, we have chosen to integrate into the global
economy despite numerous challenges, resulting in trade-offs for development. As a
result, in competitive races, businesses have done everything possible. Another option
is to keep investment sources while ignoring environmental factors. It must be
admitted that our environmental "fence" is too low, allowing businesses to exploit this
point to push out environmental costs while increasing profits through illegal acts such
as. In the case of the Formosa company, it has had numerous consequences. In
summary, our learning objectives are:

3.1.1. Understand the environmental consequences

The Ministry of Natural Resources and Environment also stated that “The
environment must truly be identified as one of the three pillars of sustainable
economic development, alongside the economy and society. However, in recent years,
many localities have prioritized attracting investment over environmental protection”
(Baotuoitre, 2017).

Figure 1: Mr. Nguyen Huu Thanh (60 years old, Loc Thuy commune, Phu Loc district,
Thua Thien - Hue province) with dead sea fish washed ashore - Photo: Nhat Linh -
Graphics: Vi Cuong (Baotuoitre, 2017)
In this case, the Formasa enterprise had a significant impact on the marine
environment, resulting in numerous consequences and losses for the country's
environmental resources. Businesses that want to achieve long-term and sustainable
development must collaborate to protect the environment and accept clear legal
responsibilities.

In this article, we look at the illegal acts that have had an impact on Formosa's marine
resources. The company's disruptions to the marine food chain may have long-term
environmental consequences, including a loss of biodiversity and local fisheries
resources. This helps us understand how important it is for businesses to protect the
environment and follow the law.

3.1.2. Understand and evaluate the economic consequences

We conduct an in-depth analysis of the impact of this environmental incident caused

by the Formosa company on various economic sectors. The company has caused
direct economic losses while also affecting fishing output, quality, and market prices.
Furthermore, we have demonstrated that the environmental impact will be linked to
tourism, spreading to other sectors such as business and services, and causing long-
term economic damage in larger areas.

Assess the socioeconomic impact, including the multifaceted consequences for the
community and the problem area in particular. Formosa has caused harm not only
physically but also mentally, particularly to individuals in the region, causing their
lives to deteriorate; additionally, migration patterns and job losses have resulted in
economic hardship.

3.1.3. Understand the importance of responsible industry practices

We envisioned an exemplary responsible industrial practice as a result of the Formosa

case study analysis. Evaluate the use of sustainable technologies, waste management
systems, and eco-friendly manufacturing processes.
At the same time, we contrast these cases with those in which companies abandoned
responsible practices, highlighting the contradictory outcomes and consequences for
reputations and capabilities long-term survival.

Above all, learn about the company's stakeholder engagement strategy, which includes
communities, environmental organizations, and regulatory agencies. Understand how
inclusive decision-making processes, transparency, and shared value creation help to
create a more sustainable and responsible industrial landscape.

3.1.4. Understand the importance of supervision and responsibility of the

Government

Drilling down into the specifics of the legal framework governing industrial activities
highlights the importance of stringent, well-enforced regulations that establish clear
environmental standards. Examine the role of regulatory assessment, auditing, and
updating in adapting to changing industry practices and environmental knowledge. In
addition, there is cooperation between the government and industry. Investigate how
shared responsibility, collaborative initiatives, and compliance incentives can result in
a more proactive approach to environmental protection that benefits both industry and
the country.

3.1.5. Understand the importance of building awareness

With the incident, now is the time for us to launch a media campaign and raise public
awareness. Examine the effect of media coverage on public awareness and perceptions
of environmental incidents. Examines successful public awareness campaigns that
effectively communicate the consequences of industrial incidents, with a focus on the
media's role in shaping public opinion and influencing corporate behavior.

In education, these cases demonstrate the importance of incorporating practical

elements to instill a sense of responsibility. Implement awareness programs in schools,
communities, and businesses to teach people about their role in environmental
protection and sustainable development, fostering a sense of responsibility.
By expanding on these specific elements, the learning objectives outlined in this paper
can serve as the foundation for a comprehensive educational program that not only
imparts knowledge but also encourages critical thinking judgment, practical
application, and a deeper understanding of the complex interaction of environmental
and economic factors in the context of industrial incidents, with a focus on the
Formosa company.

3.2. Solutions

3.2.1. Apologize in public to the Vietnamese people and government.

An essential and crucial step in managing the fallout and regaining the public's and
stakeholders' trust is Hung Nghiep Formosa Ha Tinh Iron and Steel Co., Ltd.'s public
apology and acceptance of responsibility for the environmental incident. Formosa
respects and attends to the needs of the community and demonstrates seriousness and
commitment to problem-solving by honestly and publicly acknowledging
responsibility (Baocongan, 2016).

Figure 1. The executives of the Formosa Ha Tinh company expressed regret

The CEO of Formosa stood in front of the public and government representatives
during the press conference to formally apologize and accept responsibility for the
environmental disaster the company caused. Regarding the severe effects that the
company's actions have had on the community and environment, he expressed regret
and shame. "We accept responsibility and sincerely apologize to the people of
Vietnam, especially the people of Ha Tinh, Quang Binh, Quang Tri, and Thua Thien
Hue. We sincerely regret that our recent environmental incidents have negatively
impacted people's ability to produce, their ability to find work, and the environment in
Central Province. We apologize to the Party, State, National Assembly, Government,
and Prime Minister of Vietnam for this”, stated Mr. Tran Nguyen Thanh, Chairman of
the Board of Directors of Formosa (VnExpress, 2015).

3.2.2. Compensation for economic losses and recovery assistance

Formosa paid people for their losses, encouraged career transitions, and contributed
11,500 billion VND, or $500 million, toward the restoration of the marine
environment (Baocongan, 2016). Formosa's plan to rebuild and recover from the
environmental incident includes support for career transition in addition to financial
compensation for losses incurred. The business is dedicated to helping the community
grow and remain stable in the future in addition to providing a solution to the issue at
hand. Formosa will offer financial assistance, coaching, and training opportunities
through career transition support programs to workers whose prior employment was
directly related to an environmental incident that is seriously impacted by this
environmental incident.

Formosa promised to contribute significantly to the process of restoring the marine

environment in addition to making up for financial losses. The long-term process of
compensating for and restoring the marine environment calls for everyone's
cooperation. Effective communication and coordination between all parties involved,
a careful examination and appraisal of the damage, as well as publicity and
transparency, are necessary to guarantee the success of compensation and the
restoration of the marine environment's openness throughout the execution process.
Furthermore, it is imperative to enhance the oversight and monitoring of the
enforcement of marine environmental protection regulations, elevate the proficiency
of operational agencies, and raise community awareness regarding marine
environmental protection.

3.2.3. Thoroughly overcome the limitations of the waste treatment system

To stop similar environmental incidents from happening again, Formosa Ha Tinh
Company is also dedicated to fully eliminating the flaws and limitations of the waste
and wastewater treatment system, refining production technology, and making sure
that toxic waste is properly treated before being released into the environment at the
request of Vietnam's State management agencies (BaoHaTinh, 2016).

Formosa has committed to investing heavily in research and development of new,

more advanced technology to improve performance and safety during the waste
treatment process to fully overcome the limitations of existing wastewater and waste
treatment systems.

 Research and develop advanced technology

Formosa will carry out research projects to create new technologies in the field of
waste and wastewater treatment in collaboration with local and international expert
partners (Vũ, 2017). The business plans to invest in the use of cutting-edge
technologies, including intelligent and automated treatment systems, advanced
chemical wastewater treatment techniques, and biological treatment methods, to
optimize processing.

 Test and evaluate new technology

Formosa will thoroughly test and evaluate new technologies' performance, efficiency,
and stability before integrating them into the production process. This will guarantee
that the solutions used produce the intended effects without unintentionally harming
the environment.

 Training and improving human resource capacity

Formosa plans to allocate resources towards the education and skill-building of its
workforce employed in the waste treatment and environmental sectors. This will
involve offering courses and training on topics like new technologies, safe operating
procedures, and environmental protection. By providing this training, they hope to
guarantee that their staff members possess the knowledge and abilities needed to run
and maintain efficient treatment systems.
  Continuous monitoring and evaluation

Formosa is dedicated to conducting ongoing performance and efficacy assessments of

recently installed waste treatment systems. They intend to set up monitoring and
measurement systems to keep an eye on crucial variables like wastewater flow,
pollution levels, and the quality of both input and output wastewater. To attain
maximum efficiency, the business will modify and enhance procedures and
technology in light of the assessment's findings.

3.2.4. Work with authorities to coordinate and create synchronous solutions

To guarantee the efficient implementation of marine environmental control measures

and to avert similar incidents in the future, Hung Nghiep Formosa Ha Tinh Iron and
Steel Co., Ltd. is dedicated to collaborating closely with local authorities and
communities to develop timely and sustainable solutions (Anh, 2020). As per the
terms of this agreement, Formosa will work closely with both national and local
environmental management organizations, such as the Ministry of Agriculture and
Rural Development, the Ministry of Natural Resources and Environment, and the
People's Committees of the affected provinces and cities. Furthermore, Formosa will
engage in the comprehensive and efficient development and execution of
environmental protection and marine resource management policies and regulations.

To better safeguard the marine environment going forward and to help prevent
pollution incidents, Formosa Company is working to establish a synchronous and
efficient marine environmental management system. Furthermore, they place a high
priority on close collaboration with local authorities to boost community and
stakeholder trust and support for the company's operations.

3.3 Recommendations

3.3.1. Recommendations for Government and Business

The government needs to establish strict and regular control mechanisms for factories
and production lines, including Formosa. Periodic and unannounced inspection
measures will help promptly detect violations and prevent pollution and occupational
accidents from occurring. At the same time, businesses need to promote compliance
with environmental and labor safety regulations by taking necessary measures and
providing transparent and reliable environmental and labor safety information. trust.

The government needs to strengthen cooperation with countries and international

organizations to share information, experience, and funding in solving global
environmental problems. This cooperation not only helps find effective solutions but
also creates international consensus and support while increasing pressure on local
businesses and governments to implement effective measures. environmental
protection and sustainable development.

Encouraging and supporting companies, especially in the chemical and manufacturing

industries, to transition to cleaner and greener technologies and production methods is
an important recommendation. Instead of using traditional production methods that
pollute the environment, applying green and clean technology helps minimize
negative impacts on the environment and the community. Companies can be
encouraged through stimulus policies and financial support packages to invest in
research and development of new technologies, as well as promote the adoption of
strict standards and regulations. strict on the environment and labor safety. Driving
this transformation needs to go hand in hand with creating effective transparency and
oversight mechanisms to ensure that companies deliver on their commitments and do
not compromise their performance. harmful to the environment and community
health.

Governments and companies need to promote increased communication and public

debate on environmental and occupational safety issues with communities and
stakeholders. This requires providing clear, reliable, and transparent information about
their activities and their impact on the environment and public health. Governments
and companies need to establish mechanisms and platforms to continue to
communicate effectively with the public, including the organization of public
meetings, and debate sessions, and the use of Social media and other mass media
channels to share information and listen to community opinions. By promoting open
communication and public debate, governments and companies can create consensus
and increase public trust. This also helps reduce tension and conflicts in relationships
between stakeholders, while creating a positive and cooperative working environment
to effectively resolve environmental and labor safety issues the most effectively.

3.3.2 Recommendations for Communities and Non-Governmental

Organizations

Local communities need environmental training and education so they can better
understand the impacts of industrial activities and how to protect the environment. The
government should support environmental education and awareness programs in the
community, including organizing seminars, courses, and media campaigns to increase
awareness of environmental issues and encourage environmental protection actions
from the community.

Non-governmental organizations and social activities need support so they can

propose and promote environmental protection measures. Governments can provide
funding and technical support to these organizations. At the same time, the
government also needs to listen to the opinions of communities and non-governmental
organizations, and actively support them to improve the environmental condition and
protect the health of the community.

Non-Governmental Organizations can offer legal aid and support services to

communities affected by environmental pollution, helping them navigate complex
legal processes and access justice in cases of environmental harm. This can involve
providing legal advice, representing affected communities in court proceedings, and
advocating for compensation and remediation measures on their behalf. By offering
legal support, NGOs can empower communities to assert their rights and seek redress
for environmental violations, thereby holding polluters accountable and promoting
environmental accountability and corporate responsibility.

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