hanoi university of technology - value chains vietnam enviro... · dat hoa company is one of the...

47
Plastic Industry Environmental Review: “An assessment of the significant environmental aspects and impacts associated with plastic manufacturing in Ho Chi Minh City, Vietnam” SWISS CONTACT Emma Pethybridge VIETNAM CLEANER PRODUCTION CENTRE Dr. Tuong thi Hoi MSc. Do Trong Mui June, 2002 HANOI UNIVERSITY OF TECHNOLOGY INSTITUTE FOR ENVIRO INSTITUTE FOR ENVIRO INSTITUTE FOR ENVIRO INSTITUTE FOR ENVIRONMENTAL SCIENCE AND NMENTAL SCIENCE AND NMENTAL SCIENCE AND NMENTAL SCIENCE AND TECHNOLOGY TECHNOLOGY TECHNOLOGY TECHNOLOGY Vietnam Cleaner Production Centre

Upload: lydiep

Post on 06-Feb-2018

216 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

Plastic Industry Environmental Review: “An assessment of the significant environmental aspects and impacts

associated with plastic manufacturing in Ho Chi Minh City, Vietnam”

SWISS CONTACT Emma Pethybridge

VIETNAM CLEANER PRODUCTION CENTREDr. Tuong thi Hoi

MSc. Do Trong Mui

June, 2002

VNCPC

HANOI UNIVERSITY OF TECHNOLOGY INSTITUTE FOR ENVIROINSTITUTE FOR ENVIROINSTITUTE FOR ENVIROINSTITUTE FOR ENVIRONMENTAL SCIENCE AND NMENTAL SCIENCE AND NMENTAL SCIENCE AND NMENTAL SCIENCE AND TECHNOLOGYTECHNOLOGYTECHNOLOGYTECHNOLOGY Vietnam Cleaner Production Centre

Page 2: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

2

Table of contents page List of figures 3 List of tables 3 Abbreviations and acronyms 4 Executive summary 5 1. INTRODUCTION 6 1.1 Background 6 1.2 Purpose 6 1.3 Scope 6 1.4 Methodology 9 2. ENVIRONMENTAL REVIEW 10 2.1 Existing environmental management elements 10 2.2 Awareness and motivation 11 2.3 Legislation and regulations 11 2.4 Capability 11 2.5 Results 12 3. ENVIRONMENTAL AUDIT 20 3.1 Production process 20 3.2 Environmental effects and impacts 26 3.2.1 Water and wastewater 26 3.2.2 Energy and emissions 26 3.2.3 Waste 26 3.2.4 Material 26 3.2.5 Products 27 3.2.6 Results 27 3.3 Supply chain profile 39 4. OPTIONS FOR IMPROVMENT 40 4.1 Summary of options 40 4.1.1 Option 1 40 4.1.2 Option 2 41 4.1.3 Option 3 41 4.1.4 Option 4 41 4.1.5 Option 5 41 4.1.6 Option 6 41 4.1.7 Option 7 41 4.1.8 Option 8 42 4.2 Analysis and ranking of options 43 4.2.1 Option 1 43 4.2.2 Option 2 43 4.2.3 Option 3 43 4.2.4 Option 4 44 4.2.5 Option 5 44 4.2.6 Option 6 44 4.2.7 Option 7 45 4.2.8 Option 8 45

Page 3: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

3

5. SAMPLE ACTION PLAN 46 5.1 Implementation 46 5.2 Costs 46 5.3 Management framework 47 5.4 Expected results 47 5.5 Anticipated benefits 47 6. CONCLUSIONS 47 6.1 Recommendations 47 6.2 Future research 49 7. REFERENCES 50 List of figures Figure 1 Flow diagram for domestic goods production Figure 2 Flow diagram for cosmetic bottle production Figure 3 Flow diagram for PP boxes production Figure 4 Flow diagram for PVC pipe and accessories productions Figure 5 Life cycle process diagram for plastic products List of Tables Table 1 Environmental review Table 2 Environmental audit Table 3 Analysis and ranking of options Annex Annex 1 Questionnaires on environmental review Annex 2 Questionnaires on environmental audit

Page 4: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

4

Abbreviations and Acronyms ABS Acrylonitryle Butadiene Styrene BDS Business Development Services BOD Bio-chemical Oxygen Demand COD Chemical Oxygen Demand DO Dissolved Oxygen DOP Dioctilphtalate DOSTE Department of Science, Technology and Environment EMS Environmental Management System EPA Environmental Protection Agency EPS Expanded PolyStyrene FO Fuel Oil HCMC Ho Chi Minh City HDPE High Density Polyethylene ISO International Standard Organization LDPE Low Density Polyethylene NGO Non-Government Organization N-NH4 Nitrogen contained in Ammonia form PE Polyethylene PET Polyethylene Terephtalate PP PolyPropylene PS PolyStyrene PVC Poly Vinyl Chlorua P-total Total Phosphorous SME Small Medium Enterprises SS Suspended Solid TCVN Vietnamese Standards VNCPC Vietnam Cleaner Production Center VND Vietnam Dong (name of Vietnamese currency) UN United Nations Y/N Yes/No Chemical formulas CO Carbon Monoxide SO2 Sulfur Dioxide NOx Nitrogen Oxides (NO, NO2, etc.) HCl Chlorine hydride CxHy Hydrocarbon CaCO3 Calcium carbonate TiO2 Titanium oxide

Page 5: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

5

Executive Summary Swiss Contact collaborates with VNCPC to carry out an Environmental Review and Environmental audit in four plastic companies in HCMC. Methodologies used in this investigation are inquiry checklists, interviews, site visitations and study of secondary documents. Findings in Environmental Review include: All four plastic companies have not adopted any of the EMS nor environmental policies, environmental purposes and targets. Companies’ managers and staffs are not aware of significant environmental aspects related to their company operation and they do not know which environmental standards on emission, wastewater, noise etc. need compliance. DOSTE had carried out several environmental measurements on air, water and labor environments at Dat Hoa and Duy Tan. However, the managers of these two companies do not want to show measurement results to the workers or public. Truong Thinh and Tu Hai have never had any environmental monitoring program carried out by DOSTE. All companies’ managers are aware that good environmental management helps to ensure sustainable development and improve their competitive capacity. Findings in Environmental Audit include: The significant environmental aspects in the four plastic companies are a large solid waste quantity generation and pollution emission. Solid waste consists of waste products, residue, packages etc. Although most waste is recycled inside or outside the companies, recycling also requires energy consumption, labor and machine expenses. Pollution emissions mainly contain dust and heat. Dust is generated during blending the plastic powder with additives. Heat is transported from the heated plastic and airflow blowing for forming plastic bottles. Noise is generated during the operation of milling and blending machines. Almost all wastewater comes from the cooling process. However, it is reused nearly 100%. Based on findings from the environmental survey and environmental audit, the surveyers and auditors proposed and ranked 8 options related to application of cleaner production, to construction of environmental management systems following ISO 14000, and to treatment measures for dust and heat. Anticipated benefits are reduction of solids waste quantity, saving energy, labor, machine expenses; reduction of dust emission and improving working conditions (such as temperature, wind velocity, etc.).

Page 6: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

6

1. INTRODUCTION 1.1 Background

Swiss Contact commenced its SME promotion program in Vietnam in Ho Chi Minh City in 2001. The program looks at SMEs as part of a large system that includes input suppliers, producers using different technologies, wholesale and retail distributors, transportation and finance organizations, market intermediaries, etc. Intervention methodologies to develop the SMEs include BDS (Business Development Services) market development and the development of sustainable environmental conditions in SMEs. The ‘Environmental Concerns in SMEs’ component of Swiss Contact’s SME promotion program aims to encourage SMEs to adopt environmental management and thus realize increased competitiveness and reduced environmental impacts associated with their operations. To reach this goal, Swiss Contact collaborates with Vietnam Cleaner Production Centre to carry out environmental reviews and audits in the representative plastic companies.

1.2. Purpose of the research

The main objective of this research is to conduct a thorough assessment of the significant environmental aspects and impacts associated with the manufacturing of the plastic sector in HCMC. Another is to identify the cleaner production options that can help better managing and reduce production cost, minimize wastes generated from the production processes and increase companies’ productivity.

1.3. Scope of the research

In this study, four plastic companies in Ho Chi Minh City are chosen for carrying out the environmental review and audit, Dat Hoa Plastic Company, Duy Tan Plastic Company, Truong Thinh Plastic Company and Tu Hai Plastic Workshop. 1. Dat Hoa Plastic Company, LTD

D6/42T(174 old) Ba Hom Road , Tan Tao Townlet, Binh Chanh Dist., HCMC, Tel: (84.8) 8750620 – 7505922, Fax: (84.8) 8761311 - 7505921

Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly produces PVC pipe of various sizes and types for domestic use, such as hard PVC pipe, aluminum - plastic sanitary pipe for drinking water, soft PVC pipe for drainage systems etc. All the machines and equipment are imported from Europe and North America.

2. Duy Tan Plastic Company, LTD

105A Village Road No.5, An Lac Townlet, Binh Chanh Dist., HCMC, Vietnam Tel: (84.8) 8762222 – 8762223, Fax: (84.8) 8762225,

Page 7: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

7

Email: duytanplastice@ hcm.vnn.vn

The packaging for foodstuffs, cosmetic bottles, domestic and industrial plastic such as canisters, chairs, shelves, jars, etc. are made at this Company. All the machines and equipment of this company are new and very modern. They are imported from Germany, Europe and other industrialized countries in the world.

3. Truong Thinh Plastic Company

365A No Trang Long Street, W. 13, Binh Thanh Dist., HCMC, Vietnam Tel: (84.8) 5530085 –8888842, Fax: (84.8) 5530086 - 9902123,

Email: truong_thinhplastic @ hcm.vnn.vn, Website: www.truongthinhplastics.com The products of this company include cosmetic and medical bottles, medical tubes etc.

They are made of PP, PVC and PET. 4. Tu Hai Plastic Workshop

172A/29 Lac Long Quan Street, W. 10, Dist. 11, HCMC, Vietnam Tel: (84.8) 8588565

This company produces PP boxes for foodstuffs only. They import PP plates from other companies and refabricate them. Tu Hai is very small comparing to other plastic companies in Ho Chi Minh City and Vietnam.

The Environmental Review will provide a snapshot of the environmental elements and requirements of the organization. In the context of the Environmental Review, Swiss Contact will conduct a brief, preparatory review of the major significant environmental aspects of the SME operation:

The Environmental Review will cover four components:

• Existing environmental management elements - environmental objectives and targets - environmental communication - compliance activities

ENVIRONMENTAL REVIEW

Existing Environmental Management

Elements

Awareness and

Motivation

Legislation and

Regulations

Capability

Page 8: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

8

• Awareness and motivation - awareness of environmental opportunities - awareness of environmental options - likely motivating factors for introducing environmental management

• Legislation and regulations - awareness of environmental standards - compliance with and enforcement of standards - any license requirements relating to pollution etc

• Capability - environmental knowledge, skills, training of staff - awareness of support services relating to environment - access to capital, infrastructure to support environmental improvements

The Environmental Audit is a systematic and objective examination of the interactions between a business operation and its surroundings. In the context of the Environmental Audit, Swiss Contact will measure the environmental performance of the SME operation, identify problems and risks, as well as pinpoint cost savings opportunities associated with the environmental aspects of the SME operation:

ENVIRONMENTAL AUDIT

Production

Process

Supply Chain Profile

Environmental

Effects and Impacts

WATERPRODUCT

ENERGY

WASTE

MATERIALS

Page 9: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

9

The Environmental Audit will cover three components:

• Production process - steps in the production process - material inputs and outputs - technology and resource flows

• Environmental effects and impacts - water and wastewater - energy and emissions - waste - materials - products

• Supply chain profile - major suppliers - major purchasers - major consumers 1.4 Methodology

As the definitions mentioned above, the environmental review is chiefly to conduct a brief, preparatory review of the major significant environmental aspects. The environmental audit is to generate information in relation to the environmental aspects through the measurement of environmental performance and the identification of problems and risks. The research phase of the environmental component is to carry out an Environmental Review and an Environmental Audit in four enterprises within the plastic sub-sector in Ho Chi Minh City. To collect all the useful information and data necessary to an environmental audit, the following study methods are used:

- Questionnaire - Direct interview - Direct observation during on-site visit - Documentation

The questionnaire focuses on both environmental problems and production state at the companies investigated. The goal of questionnaires is to collect the most general information about each company. The direct interview is carried out inside each company, and all questions are prepared before the interview. Persons participating in the interview, workers and technicians are responsible for various sections. The direct

Page 10: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

10

interview is one of the most important methods to achieve exact information necessary to the next step - the environmental audit. Another method used in this study is direct observation during an on-site visit. The results of this observation are very useful, and they can help auditors to better carry out their audit. The methods mentioned above are very reliable and frequently for environmental investigation and survey research.

2. ENVIRONMENTAL REVIEW

2.1. Existing environmental management elements

2.1.1. Information and communication

Results of the survey and investigation at the four representative plastic companies in HCMC show that none of them have any specific environmental objectives and targets or policy. All the investigated companies have a system for keeping track of and measuring the environmental impacts of their activities such as measuring input and output, energy consumption (watt meter), water consumption (water meter), etc. All the products of each company have a registered logo and product label, except Tu Hai Company. For marketing, all the companies have their prospectus to introduce their products to customers, but only one of them has a website, i.e Truong Thinh Ltd. Co.(www.truongthinhplastics.com). Actually, there haven’t been any complaints from external groups or individuals relating to the impacts of the companies’ activities on the environment.

2.1.2.Internal organisation

Among the four investigated companies, only Dat Hoa Ltd Co. has one staff member, who has been allocated responsibility for coordinating environmental management at the site, Mr. Nguyen Hong Phuong, Product Quality Controller. Only Dat Hoa and Truong Thinh Companies have employees responsible for a program of waste reduction relating to ISO 9002. The others have not assigned any specific formal or informal environmental responsibilities to specific employees yet. At the time when the survey and investigation were conducted, no employee of these four companies had been informed of what environmental standards the company must comply with because employees lacked the information relating to environmental standards of Vietnam (TCVN).

Page 11: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

11

2.2. Awareness and motivation 2. 2.1. Information and communication

To satisfy customer’s demand, the plastic product quality must comply with the Health Standards and must be controlled before distribution to the market. This work has been carried out at three of four companies, except Tu Hai Co. As each company manufactures its private products, different from one to other, it is not aware of competitors gaining competitive advantage or additional market share as a result of implementing environmental management. Actually, their customers have been developing specifications relating to environmental performance. Two of the four representative companies can see the opportunities for meeting potential market demands resulting from customers’ environmental concerns. This is the case of Duy Tan and Truong Thinh Co., both having the products for the export market. Almost all companies recognize that the only key motivating factor for them to implement environmental management measures is cost savings. Truong Thinh Co shows that the key motivating factors include not only cost saving, but also legislative enforcement, competitive advantage, increased market share etc.

2.3. Legislation and regulation

2.3.1 Information and communication

All four plastic companies know that they must comply with the Law on Environment Protection and Vietnamese Environmental Standards, but they do not have any of these documents and are not aware of the specific standards, legislation or regulations relating to the export standards for their products.

2.4. Capability

2.4.1 Internal

Prior to this review, no other staff member in all four companies has participated in any training relating to the environment. Most haven’t any information about Vietnamese Environmental Standards (published in 1995) or the Law on Environment Protection that has been published from 1994. All the representative plastic companies have sufficient knowledge, skill and access to equipment and practical methods to measure aspects related to environmental

Page 12: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

12

performance during production, such as input and output, energy and water consumption etc. In fact, all the equipment used in these companies is very new and modern and they have enough capacity to introduce new technology to the production process that would improve environmental performance. However, they seem too inflexible to introduce and incorporate system and procedural changes to the production process and management structure that relates to environment changes and initiatives.

2.4.2. External

As mentioned above, all the investigated plastic companies are able to manufacture different products of high quality and are very active in looking for domestic and foreign markets. They need support from the government and international sponsors, but they are not aware of any external support organizations in the area of environmental management. In general, to improve the environmental conditions of these companies, the technical and financial support of Swiss Contact is very timely and effective.

2.5. Result of the survey and investigation

The results of the survey and investigation are shown in the tables 2.1 to 2.4.

Page 13: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

13

2.1 Existing Environmental Management Elements

Dat Hoa Plastic Company

Duy Tan Plastic Company

Truong Thinh Plastic Company

Tu Hai Plastic Enteprise

2.1.1 Information and communication

environmental objectives environmental targets environmental policy

N N N

N N N

N N N

N N N

Measuring: inputs To weigh quantity Plastics (PVC, PP, PS, HDPE, PET,.., additives)

number of PVC, PS film roll

outputs Number of products; number of failed products; weight of product unit; weight of waste (only when sell to scrap-iron dealers)

number of products

material flows Meters of pipes; number of products; weight of plastics per hour number of products/h energy electrical meter (kWh), tones of oil/h electrical meter (kWh)

water usage water meter (m3) water meter (m3) product labelling company signs web site announcements published reports, etc.

Dat Hoa P. Co VINA DAT HOA

N Y(Anouncement)

ISO 9002

Duy Tan P. Co, LTD Y N

Y(Anouncement)

Truong Thinh P. Co Y

www.truongthinhplastics.com Y(Anouncement)

Tu Hai Workshop N N N

Complaints about the environmental problems of the company

N N N N

2.1.2 Internal organization

Person have environmental responsibility in the company, his position

Nguyen Hong Phuong Pro. quality Controller

N N N

environmental responsibility of the employees (tasks)

(Program: To reduce waste of ISO 9002)

N (Program: To reduce waste of ISO 9002)

N

How is information relating to the environmental aspects of the core business communicated to employees?

N N N N

Page 14: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

14

2.2 Awareness and Motivation

Dat Hoa Plastic Company

Duy Tan Plastic Company

Truong Thinh Plastic Company

Tu Hai Plastic Enterprise

Information and communication

is the company aware of its customers making any demands regarding the environmental aspects of their product/production process?

Y (water supply pipe, food transfer pipe following Health

standard)

Y (foodstuffs and cosmetic packaging

following Health standard)

Y (European clients appoint raw material and additive

suppliers)

N

is the company aware of their competitors gaining competitive advantage or additional market share as a result of implementing environmental management?

N N N N

Do any of the company’s customers have, or are developing, specifications relating to the environmental performance?

N N N N

Does the company see opportunities for meeting potential market demands resulting from customers environmental concerns?

N Y(for export market) Y(European, American potential market)

N

What would be the key motivating factors for the company to implement environmental management measures?

cost savings legislative enforcement competitive advantage increased market share improved corporate image customer pressure, etc.

+

+

+ + + + +

+

Page 15: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

15

2.3 Legislation and regulation

Dat Hoa Plastic Company

Duy Tan Plastic Company

Truong Thinh Plastic Company

Tu Hai Plastic Enteprise

Information and communication

Is the company aware of any standards, legislation or regulations relating to the environmental impactof their operations that are set and imposed by local Vietnamese authorities that have environmental responsibilities?

Y (All 4 Plastic Co. known that they must comply with Env. Law; VN En. Standards on wastewater air, when Env inspector staff of district carries out monitoring Env. parameters in the companies but they don’t have documents of Env. Law and VN En. Standards, regulations and they don’t known their concrete content)

Is the company aware of any standards, legislation or regulations relating to the export standards for their products?

N N N (but export clients appoint raw material and additive and type of their pharmacial, cosmetic packaging)

N

How is information relating to environmental standards, legislation or regulations that affect the company’s production communicated to the company? Who communicates this information?

Health Ministry Standard for plastics products. National measure and Standard Agency communicated to the Company when they control Company’s product quality.

N

Does the company comply with, or strive to comply with environmental standards, legislation or regulations relating to their operations that are set by local Vietnamese authorities?

Y Y Y Y

Are the environmental standards, legislation or regulations that are set by local Vietnamese authorities and which affect the company’s operations, enforced?

Y Y Y Y

Page 16: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

16

Has the company ever been subjected to a fine, or other sanction, as the result of non-compliance with environmental standards, legislation or regulations? If so, how much did it cost the company?

N N N N

Does the company require any licenses relating to environment or pollution loads, which are issued by local Vietnamese authorities? If so, are the documents held by the company current and up to date?

Env. Inventory and license on satisfy Env. Standard every 3 year.

Env. Inventory and license on satisfy Env. Standard every 3 year.

N N

2.4 Capability

Dat Hoa Plastic Company

Duy Tan Plastic Company

Truong Thinh Plastic Company

Tu Hai Plastic Enterprise

2.4.1 Internal

Has management or any other staff member participated in any training in relation: to the environment? to the company’s business operations?

N Y(on equipment operation by the selling Co. and Plastic new technology by the VN

Plastic Association)

N N

Does the company have sufficient knowledge, skills and access to equipment and practical methods (such as bookkeeping) to measure aspects relating to environmental performance?

Energy flow materials flows inputs and outputs waste spills, leaks, etc.

Electrical meter(kWh), tones of Diesel Oil/h of electrical generator Number of plastic raw materials packages and additive Number of products, m of pipes Weigh of plastic waste N

Elec. meter(kWh) PVC, PS film roll Number of products Weigh of plas. Waste N

Page 17: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

17

Does the company have the capacity to introduce new technology to the production process that would improve environmental performance?

ability to train staff in usage technical capacity for operation technical capacity for maintenance, etc.

Y Y Y

N N N

Does the company have the flexibility to be able to introduce and incorporate systems and procedural changes to the production process and management structure that relate to environment changes and initiatives?

N N

2.4.2 External

Is the company aware of, or actively engages the support organization in the area of environmental management? (E.g. NGOs, UN agencies, government department, etc.). Would the company potentially engage the support of such organizations in the future in relation to environmental management?

N

N

Does the company have access to external sources of capital for investment in environmental technology and other environmental improvements? Would the company be likely to access, or attempt to access, capital for these purposes?

N

N

Page 18: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

18

Is the company aware of any business development services (BDS) providers in the field of environment (such as cleaner production, green marketing, eco-product design, etc.)? How willing is the company to engage services such as a BDS? What is the financial capacity of the company to engage the services such as a BDS? What are the obstacles to the company engaging the services such as a BDS?

N

N

Y (if need)

Don’t understand: what is BDS?

N

N

N

what is BDS?

What is the nature of the relationship between local environmental authorities and the company? (E.g. mostly positive, mostly negative, no relationship).

No relationship No relationship No relationship No relationship

Page 19: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

19

3. ENVIRONMENTAL AUDIT 3.1. Production process

In general, the production process of plastic goods includes the following steps: a/ Raw material preparation Most raw materials, in the form of powder (PVC only), granule or plastic roll and additives, are transported from the markets or other sellers to the company and put in store for use. The raw material and additives are then weighted before going into next step - granulation step. In the case of Tu Hai Co, where the raw material in form of plastic roll is directly used for PVC, PS box production, the granulation step is not needed in its production process. b/ Granulation step After weighting, raw materials and additives go into a granulation machine, where they are melted by electrical heat and form a plastic wire. The formed wire is cut into granules and stored in plastic bags for use. c/ Injection Moulding and Presser-Blower To manufacture plastic products, the granules are fed into moulds (for domestic goods such as chairs, canisters, jars etc.) or presser-blower machines (for bottle production), where they are melted and injected into moulds, forming the products. In the case of PVC pipe production, the PVC granules are melted and pressed, pushed and the pipe is formed. d/ Finishing step Products, after the pressure injection stage, are moved to cooling process and fine processing such as edge cutting and grinding and then moved to the inspection section for finding and removing substandard products. After that products are moved to the storehouse. Flow diagrams for the manufacture of various types of plastic products are shown on the following:

Page 20: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

20

PP, HDPE, PS, ABS, PET, additives

Figure 1: Flow diagram for domestic goods production

Granulation

Plastic melting

Injection Moulding

Mould Detachment

Finishing

Product Quality Control

Scrap, Broken Products

El. Heat

El. Heat

Compressed Air

Product

Regranulation

El. Heat heat

heat

Electicity

Noise particulate

Page 21: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

21

PP, additives

Figure 2: Flow diagram for cosmetic bottle production

Granulation

Plastic melting

Blower- Pusher

Mould Detachment

Finishing

Product Quality Control

Scrap, Broken Product

El. Heat

El. Heat

Compressed air

Bottles

Regranulation

El.Heat

Electricity

Heat

Heat

Noise Particulate

Page 22: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

22

PVC Roll

Figure 3: Flow diagram for PVC boxes production

Forming Presser

Mould Detachment

Finishing

Product Quality Control

Scrap,

Broken Product

Compressed Air

PVC Boxes

El.Heat

Recycled to PP plate production

Heat

Hot air

Page 23: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

23

PVC, additives

Figure 4: Flow diagram for PVC pipe and accessories production

Granulation

PVC melting

Presser- Pusher

Cooling

Finishing

Product Quality Control

Scrap, Broken Product

El. Heat

El. Heat

Water

PVC Pipe & Accessories

Regranulation (Cutter- Grinder)

El. Heat

Wastewater

Heat

Noise Particulate

Heat

Heat

Electricity

Page 24: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

24

FIGURE 5 : LIFE CYCLE PROCESS DIAGRAM FOR PLASTIC PRODUCTS

_______________________________________

Figure 5 illustrates the life cycle of the plastic products in general terms. This life cycle diagram help us to identify all relevant processes and the origin of the plastic material. We know that plastic materials like PE,PP, PS,... are generated from oil cracking process and are used to produce various types of goods. After the use phase, these products are discharged into the environment and end their life cycle.

Extraction of oil Refining

Plastic production

Plastic part production use

recycle

incineration

landfill

Page 25: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

25

3.2 Environmental effect and impacts 3.2.1 Water and wastewater

Water is often used for cooling machines and plastic products, and for cleaning and sanitary purposes. In all the four investigated companies, drilled wells are main source that supplies water to companies’ production activities. Water demand is various raging from 0.6 m3/day to 30 m3/day and depends on scale of each company.

Wastewater: Except cleaning and sanitary wastewater that is directly discharged into a company’s drainage system, cooling water is completely recycled in the production process.

3.2.2. Energy and emission

Energy: Electricity is the main source of energy supplied to the company’s production activities. In these plastic companies, electricity is used much more than other industries. Diesel Oil is often used in the case of power-cut. Depending on the production capacity of each company, electrical consumption is varies from 60,000 kWh/year( at Tu Hai Co.) to 3 million kWh/year (at Duy Tan Co.). Emission: The main type of emission at the plastic companies include dust, CxHy, and HCl vapour. In some cases, noise from crushing machines makes pollution in the workshop. A high temperature at the working places such as at the bottle manufacture, production of domestic goods, PVC pipe etc. is one of the causes affecting heat pollution. For example, the temperature in the workshop of Duy Tan Co., where the domestic goods are produced, reaches 37-38 oC in the summer (if ambient temperature is 35 – 36oC).

3.2.3. Solid Waste

Solid wastes are usually generated from production processes like plastic scraps removed during finishing steps, broken and substandard products, spilled raw material, iron or aluminum shavings from the process of mould production. For example, every year Dat Hoa Co. discharges 9.9 tones of organic waste, 65 tones of plastic residue, 43-216 tones of faulty products. However, most of the plastic waste is recycled into the production process. The iron and aluminum shavings are sold to waste collectors (at Dat Hoa Co). By reducing the waste generation and maximizing plastic waste reuse and recycling, each company can save 2000 – 3000 VND for reducing one kg of faulty plastic product.

Page 26: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

26

3.2.4. Materials Depending on the production capacity of each company, the quantities of raw material used vary from < 100 tons/year (at Tu Hai CO.) to 4320 tons/year (at Dat Hoa Co.). Depending on the products of each company, the types of plastics and additives are different. Dat Hoa Company uses only PVC and HDPE to produce rigid PVC pipe and plastic PVC pipe and HDPE pipe. Tu Hai workshop use PVC film and EPS film to produce boxes for food, candy sand cakes. Duy Tan and Truong Thinh Companies use more plastic types: PVC, HDPE, PET, PS, ABS and more additives and colors types

3.2.5 Products

The products of Dat Hoa company are pipe with diameter from 15 mm to 2000 mm for drinking water, wastewater, Aluminum – plastic sanitary pipe for drinking water and food liquid, join details etc. using PVC, HDPE The products of Duy Tan company are household items (basins, tools, cabinets, pails, baskets, shells), packages for foodstuff, candies (jars, boxes, canisters), bottles for cooking oil, mineral water, fruit juice, packages for cosmetics (bottle for bath cream, detergent liquid etc. using PP, PE, PS, PET, ABS… and different additives, colors. The products of Truong Thinh Company are high quality plastic tubes for cosmetic, pharmaceutics and foodstuff packaging using PP, HDPE, LDPE, LLDPE, ABS, special additives, and colors. The products of Tu Hai workshop are plastic boxes packaging for candies cakes, foodstuff using PVC film, EPS film, not using any additives. Their products are sold in the domestic market. In general, the plastic products of four companies are of good quality and beautiful in form and color. All products are made of thermo-plastic (PE, PP, PVC, PET, PS, ABS) so they easily recycle after use. Although they don’t know the exact environmental standards for their product, they satisfy the sanitary demands of packages for cosmetics, foodstuffs, and pharmaceuticals in Vietnam and export countries (Europe, Japan, Australia etc).

3.2.6. Result of the survey and investigation

The results of the survey and investigation are shown in the Tables 3.1 to 3.3.

Page 27: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

27

3.2 Environmental effects and impacts

Dat Hoa Plastic Company

Duy Tan Plastic Company

Truong Thinh Plastic Company

Tu Hai Plastic Enterprise

3.2.1. Water and wastewater

Sources of operational water supply

Well drilled Well drilled Well drilled + running water

Well drilled

Overall consumption (m3/year) 30m3/day = 10.000 m3/year

30 m3/day = 10.000 m3/year

20 m3/day = 6600 m3/year

0,6 m3/day = 198 m3/year

Total cost of water consumption, VND/year

5.000.000 VND 5.000.000 VND 3.000.000 VND + 2.300.000 VND = 5.300.000 VND

300.000 VND

Water quality measurements prior to consumption

N N N N

Overall consumption (m3 per year) Cooling water, m3/h, % (recycling) Evapo. Water + other, m3/day, % Cleaning water, m3/day, % Municipal water, m3/day, %

10-30 13,5 4 m3/day 12,5

45% 13% 42%

5 -10 9,5 3 m3/day 17,5

32% 10% 58%

2-5 6 1,5 m3/day 12,5

30% 7% 63%

0 0,1 0,5

18% 82%

Measures to reduce water consumption To have water meter in order to control water consumption Recycling cooling water To educate staffs for using water reasonably

Types of wastewater, % Processing wastewater, m3/day, Cooling wastewater, m3/h, Cleaning wastewater, m3/day, % Municipal wastewater, m3/day, % Other, m3/day, % Total wastewater, m3/day, %

0 10-30 3,6 11,25 10,8 25,65

14% 44% 42% 100%

0 5-10 2,7 15,75 7,6 26,05

10% 60% 30% 100%

0 2-5 1,35 11,25 4,8 17,4

8% 64% 28% 100%

0 0 0,09 0,45 0,54

17% 83% 100%

Page 28: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

28

Types of wastewater and pollutants: Cooling wastewater Cleaning wastewater and other Municipal wastewater

Temperature, oil oil, SS (dust, soil, …), BOD, COD, SS, N-NH4, P-total, …, Monitoring data of Dat Hoa and Duy Tan are not available; Truong Thinh and Tu Hai never monitor. [Some pollutant parameteres of general drain of plastic companies in Ha noi: pH = 6,92÷7,5; DO = 1÷4,5 mg/l; SS = 50÷78 mg/l; COD = 102÷183 mg/l; BOD5 = 65÷83 mg/l; ∑N = 0,5 ÷ 1 mg/l; ∑P = 0,1÷0,15 mg/l;

Physical, chemical, biological pollutant properties

Oil SS COD BOD N-NH4 P-Total

Oil: nearly insoluble in water and create oil film on the water area, preventing oxygen from dissolving in the water. DO: DO ≤ 4 mg/l impact on aquatic life SS: reduce water clarity and increase sediment COD: 102÷183 mg/l > 100 mg/l TCVN 5945 - wastewater is polluted by organic substances BOD5: 65÷83 mg/l > 50 mg/l TCVN 5945 - wastewater is polluted by organic substances More dis microbiology

Cooling wastewater recycled, m3/h, % 10-30 5 -10

2-5 N

Recycling nearly 100% N Monitoring and measurement (if any) of wastewater quality prior to discharge

N

Locations at which wastewater discharged

Wastewater drain canal in the area

Wastewater drain canal in the area

Wastewater drain system in the area

Wastewater drain system in the area

Primary uses of the areas that receives the wastewater

Wastewater drain

On-site wastewater treatment facilities (m3/year)

Tank : 30 m3 79.200 – 237.600 m3/year

Tank : 10 m3 39.600 – 79.200 m3/year

Tank : 5 m3 15.840 – 39.600 m3/year

N

Treatment process Wastewater (Cooling water) �Settle -� spray water -� tank -� pumping to reuse

Page 29: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

29

Measures to reduce: the amount of wastewater generated pollutants

Recycling cooling water Settling to separate SS. Spraying water in order to reduce temperature of wastewater

N

Estimation of financial outlay and potential cost savings associated with identified measures to reduce water consumption reduce wastewater discharge reuse water resources on-site

Benefit: 39.000.000 – 118.800.000 VND 79.200-237.600 m3/year

Benefit: 19.800.000 – 39.000.000 VND 39.600-79.200 m3/year

Benefit: 7.920.000 – 19.800.000 VND 15.840-39.600 m3/year

3.2.2 Energy and emissions

Source of operational energy supply Electrical energy, kWh/year Diesel oil, tones/year

2.000.000 kWh/year 50 tones/year

3.000.000 kWh/year 30 tones/year

1.200.000 kWh/year 10 tones/year

60.000 kWh/year

Total cost of energy consumption: Electrical energy, VND/year Diesel oil, VND/year

1,68. 109 VND 20.106 VND

2,55. 109 VND 12.106

1,02.109 VND 4.106VND

5,1.104

Energy volume used for heating, % cooling, % processing, % mechanic, % other (light, fans, air-conditioner,…)%

30% 20% 35% 10% 5%

30% 20% 30% 15% 5%

30% 20% 35% 8% 7%

50% 25% 20% 0 5%

Energy recovery facilities N Overall volume of atmospheric emissions generated, tones/year Cooling air and blow air, press air Stack gas of electrical generator

21,6.103 m3/year 50.106 m3/year

76,2.103 m3/year 30.106 m3/year

14,9.103 m3/year 10.106 m3/year

2.106 m3/year 0

Page 30: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

30

Types of emissions, m 3/year, %: Dust CO SO2 NOx CxHy (5ppm of material) HCl (5ppm of material) Following EPA pollutant coefficient when burn 1 kg Diesel Oil: dust-2,3 g/kg; CO-0,5 g/kg; SO2-12 g/kg; NOx-0,4 g/kg;

115 kg/year 25 kg/year 600 kg/year 502 kg/year 21,6 kg/year 3,5 kg/year

69 kg/year 15 kg/year 360 kg/year 312 kg/year 16,4 kg/year 0,5 kg/year

23 kg/year 5 kg/year 120 kg/year 104 kg/year 1,2 kg/year 0

0 0 0 0 0 0

Nature of on-site activities that generate significant emissions

Air blowing in order to form bottle, to cool products Stack gas of electrical generator

Local climatic/geographical factors: Temperature, oC Humidity, % Wind velocity, m/s Rain, mm/year Sunny hour, h/year Atmosphere Stabilization

Climatic factors in the Ho Chi Minh City (data of Tan Son Nhat meteorological Station): 22 ÷ 36oC, average temperature/year: 26,40C; ∆ T average = ± 3,7 oC 54 ÷ 89 %, average humanity/year: 77,45 % 1,1 ÷ 4,1 m/s, average winds velocity: 2,7 m/s ( at height 12 m) 1977 ÷ 2163 mm/year (rainy season begin at Mai and end at October) 2000 ÷ 2400 h/year, average thermal radiation: 154,9 kcal/cm2 A: 1,97%; B: 12,13%; C: 16,52%; D: 21,86%; E: 23,49%; F: 24,02% (usually at day: A, B; at night: E,F, rainy season: D)

Effect (real or likely) of significant emissions on employee health and local residents

Air blowing in order to form bottles and cool products make the temperature in the room about 37-38oC if ambient temperature 35-36oC and sometimes content CxHy when plastic degrades by too high processing temperature.

Stack gas of electrical generator (electrical generator run only when city electrical current cut off (1 time a month: < 8 hours).

Procedures for monitoring and measurement of emissions (if any)

N

Measures to reduce energy consumption and reduce the amount of atmospheric emissions generated

To reduce faulty products and waste recycling by operating in parameters corresponding with every product and planning in order to reduce the number of times of changing products (shape, size, color).

Page 31: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

31

Estimation of financial outlay and potential cost savings associated with identified measures to reduce energy consumption, reduce atmospheric emissions and engage in onsite energy recovery.

3.2.3 Waste

Overall volume of waste generated (tones per year)

Types of waste currently generated: Organic, tones/year, % Recyclable, tones/year, %:

Faulty pro. (1-5% raw material) Residue (30-70% raw material) Raw mat. Package: plastic, DOP, CaCO3 Fe waste Oil barrel, Faulty package

Non-recyclable, tones/year, % Hazardous/toxic, tones/year, %

30 kg/day=9,9 t/y 43 – 216 tones 65 tones 20 tones 3 tones 10 cylinder 5 tones Not available

38 kg/day=12,5 t/y 98 tones 981 tones 13 tones 3 tones 10 cylinder 5 tones Not available

30 kg/day=9,9 t/y < 12 tones 74 tones 992 kg 1 cylinder 1 tones Not available

< 60 tones 0

Nature of activities that generate significant volume of waste

To form products To change type of products Raw material and additive packages

Any external and internal recycling, and the purpose for which the substance is used/reused.

Plastic faulty product and residue are recycled internally

residue are recycled externally

Quantities and types of waste recycled, % of overall waste generation.

131/146 = 91% 1095/1113 = 98% 88/100 = 88% 60/200 = 30%

Disposal methods for waste (by type, if relevant).

Waste (not recycling) is collected and disposed in the landfill

Page 32: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

32

Treatment processes and final location of waste once disposed

Recycling internal and external Landfill

Total cost per year of waste treatment and disposal.

Cost of collection and landfill waste: 300000 VND/month (Dat Hoa Company Cost of collection and recycling: 3000 – 5000 VND/ kg plastic waste

Measures to reduce/eliminate waste generation and maximize reused/recycling opportunities

Planning and select form in order to make less residue Operation in correspond with every product

Estimation of financial outlay and potential cost savings associated with identified measures to reduce waste generation and maximize reused/recycling opportunities.

Cost savings of 2000 - 2500 VND/kg by reducing electricity and labor cost of decreased faulty product and waste

Cost savings of 2000 - 3000 VND/kg by reducing electricity and labor cost of decreased faulty product and waste

Cost savings of 2000 - 3000 VND/kg by reducing electricity and labor cost of decreased faulty product and waste

Cost savings of 12,000 - 15,000 VND when reduce 1 kg faulty products or plastic waste (sell waste, instead of reprocess

3.2.4 Materials

Quantities and types of raw and operating materials currently in use (including packaging) tones/year:

PVC HDPE, LDPE, LLDPE PP PET PS ABS

Additives: Stearates Zn, Ba,

TiO2 CaCO3 DOP

Colours

3600 720 72 0,36 360 360 0,72 43

100 1000 2000 100 60 10 32,7 33

190 48 < 10 8,8 1-3

< 100 < 100

Page 33: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

33

Gasoil Ink Packaging materials:

Paper Plastic bag

130 216 kg/year

97 3270 kg/year

120 kg/year 20.000 carton box 250 kg/year

< 100 kg/year

Materials containing hazardous substances

Colour, gas, oil, Colour, gas, oil Colour, gas, oil, ink N

Total cost per year of raw and operating materials purchase PVC PP HDPE LDPE PET PS ABS DOP CaCO3 TiO2 Colour for plastic Colour for ink

670.000 VND/tones pound 9.500-12.500 VND/kg 10.000-11.500 VND/kg 13.000 VND/kg 12.500 VND/kg 12.000 VND/kg 22.000 VND/kg 2.800 VND/kg 26.000-400.000 VND/kg 25-120 USD/kg

18.000 VND/kg film 18.000 VND/kg film

Measures to reduce materials consumed: Cleaner production Alternative, substitute materials

Operation: To select optimum operation parameters corresponding with every product: plastic volume flow, processing temperature, air and water for cooling, Planning in order to reduce number of times of changing products: type (shape, size, color) To select forming model in order to reduce waste Reuse packaging several times: paper box

Page 34: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

34

Estimation of financial outlay and potential cost savings associated with identified measures to reduce, eliminate and/or materials substitution (including packaging)

Cost savings of 2000 - 2500 VND/kg by reducing electricity and labor cost of decreased faulty product and waste

Cost savings of 2000 - 3000 VND/kg by reducing electricity and labor cost of decreased faulty product and waste

Cost savings of 2000 - 3000 VND/kg by reducing electricity and labor cost of decreased faulty product and waste

Cost savings of 12,000 - 15,000 VND when reduce 1 kg faulty products or plastic waste (sell waste, instead of reprocess

3.2.5 Products

Existence and application of environmental criteria (if any) applied in the design of existing products and/or in the development of new products (e.g. potential for product to be reused, recycled, etc)

N

Quantities and types of product packaging (including toxic and hazardous substances) PE bag Carton paper

216 kg/year

3270 kg/ year

250 kg/year 20.000 carton box

< 100 kg/year

Existence and application of environmental criteria (if any) in the selection of packaging materials

N

Percentage of product packaging that is reusable or recyclable

N N 75%(15000/20000 carton boxes)

N

Significant environmental impacts of the final product during usage/consumption

Don’t affect health if pipe for water supply and food liquid, packages such as: bottle, tube for foodstuff, pharmacial and cosmetic satisfy Vietnam health Standards

Significant environmental impacts of the final product post-consumption at disposal stage (how and where it is disposed of, the environmental impacts of disposal)

Solid waste treatment mostly is landfill in Vietnam in general and in the HCMC in particular Plastic product post consumption such as bottles mostly are recycled through household industries if size permits

Page 35: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

35

Measures to re-design products and product packaging to reduce environmental impacts

N

Estimation of financial outlay and potential cost savings associated with identified measures to re-design products and product packaging to reduce environmental impacts

N

Page 36: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

36

3.3 Supply Chain Profile Dat Hoa Plastic

Company Duy Tan Plastic Company

Truong Thinh Plastic Company

Tu Hai Plastic Enterprise

Major suppliers of raw and operating materials

Singapore, Thailand, Taiwan

Malaysia, Taiwan, Korea

Japan, Germany, Swiss, Singapore, Thailand

Domestic supplier (buy in Vietnam )

Environmental criteria applied (if any) in selection of suppliers

Not interested in Environmental criteria, and only interested in the cost and properties of materials and additives, satistified quality of their products

Major purchasers of final product (domestic or export markets)

Campuchia (10-30% their products), 70-90% for domestic markets

Russia, Australia, (table, chairs, shelf, etc.) Unilever, food companies (bottle, jar)

50% exported to Japan, Germany, Danish, Australia, etc. 50% to Unilever, DeBon Companies, pharmacial Companies 1, 24, 25 etc.

Domestic food, candy, cake manufactures, food seller

Major consumer groups of final products

Construction Companies, water supply and wastewater discharge Companies, householders

households household household

Page 37: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

37

Major suppliers of raw plastic material (PE, PP, PVC, PET, ABS etc.) and additives (colorances, antioxydants etc.) for Dat Hoa and, Duy Tan, come from Singapore, Thailand, Taiwan, Korea, Malaysia; for Truong Thinh Japan, Germany, Switzerland. Only one part of PVC powder and CaCO3 are bought in Joint Viet Thai Company. PVC film and EPS film at Tu Hai Workshop are bought in the domestic free market. About 10 - 30% of the pipe products of Dat Hoa are exported to Cambodia. The rest of the pipe products are sold in the domestic market to construction projects, projects to supply drinking water and discharge wastewater and households. About 20% of the household products such as stools, shelves, pails, basins, and cabinet of Duy Tan are exported to Australia, Japan, Russia etc. The products such as packaging for cosmetics are made for Unilever Company, Dove company; packaging for foodstuff are made for candy and food companies, the rest of the household wares are sold in the domestic market. About 50% of the tubes products for pharmaceutics and cosmetic of Truong Thinh Co are exported to Australia, Japan, Europe (clients appoint raw material and additives suppliers). The rest products are made for domestic pharmaceutical companies and Unilever Company, Dove Company etc. Products of Tu Hai workshop are sold to smaller producers of candy, cakes, and fast foods. 4. OPTION FOR IMPROVEMENT

4.1 Summary of options

4.1.1 Option 1:

To construct environmental management system following ISO 14000 in the Company in order to improve the Company’s environmental performance, increase Company’s cost savings and competitive advantage: - Company’s Director is aware of benefits of the application ISO 14000 and its voluntarily

application - Invite consultants and service in the field management system certification to ISO 14000 - Construct environmental management system, appoint person with corresponding

function - Construct Environmental policy, purpose and targets of the company - Construct procedures, documents for control and operation EMS - Supply resource for operation EMS

Page 38: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

38

4.1.2 Option 2 Planning and specializing machines and equipment in order to reduce the number of changes in products (shape, size, colour, plastic type) as to reduce % of faulty products ( 1-5%): - Planning for every year, six months, three months, and every month based on agreement

with clients and machines, labours, and the capacity of the Company. - Specializing machines and equipment and labours (some products/machine/labour)

4.1.3 Option 3

To select the processing technology parametes such as processing temperature, blowing air flow, cooling water flow, raw material flow coresponding to every product (shape, size, colour, plastic type) in order to reduce % of faulty products (1-5%) and then write down technology regime into notebook in order to use next time

4.1.4 Option 4

To select the forming of products which have smallest residue % in order to reduce % residue (20-70%; more smaller products yield more residue volume). Require forms for every product on the market: price, % residue, account benefit and comparison with the form used, if have economic benefit, will buy and change the form in the nearest time.

4.1.5 Option 5

To install the dust collection system at the area where plastic powder is blended with additives such as CaCO3, TiO2, color etc. in order to reduce dust and collect dust. - To investigate, define dimension and concentration of the dust etc. - To design the dust collection system: cyclone, ventilator, bag filter, pipe and shade

4.1.6 Option 6

To separate solid wastes to types: recycling (faulty products, residue, PP bag packaging plastic material and additive etc.), selling (dirty plastic, paper, carton, iron, oil barrel etc.), disposing (dust cloth, municipal solid waste) in order to minimize disposal waste volume.

Page 39: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

39

4.1.7 Option 7 To equip ventilator in the manufacturing area in order to improve work conditions such as to reduce the room temperature. To define the working places which need ventilator (temperature > 32oC, wind velocity < 1,5 m/s). To select, buy, and install ventilators.

4.1.8 Option 8

To open the training course on additives, colors used and not used in plastic products manufactured for pharmaceutical package, cosmetic package, foodstuff package, pipe for foodstuff and water supply: - Ascertain the education needs of plastic companies in HCMC - Construct program of training course (content, schedule, lecturers, consultants, place).

Page 40: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

40

4.2 Analysis and Ranking of options Analysis of options on technical, economical and environmental feasibility.

Analysis of options on, technical, economical, environmental abilities Options Technical feasibility Economic feasibility Environmental feasibility

Ranking of options

Option 1: To construct environmental management system following ISO 14000 in the Company in order to improve the Company’s environmental performance, increase Company’s cost savings and competitive advantage.

Companies need help of advisory to educate ISO 14000 standard and establish EMS of Company, documents, procedures, following ISO 14000.

Company Dat Hoa, Duy Tan, Truong Thinh have financial resource in order to establish EMS following ISO 14000

To improve the Company’s environmental performance

5 Need training staff and worker Need financial resource about 400 – 500 millions VND

Option 2: reduce % of faulty products (1-5%) by planning and specializing machines and equipment in order to reduce times number of changes in products (shape, size, colour, plastic type)

Companies Dat Hoa specialize machines: 2 types products/ machine Duy Tan, Truong Thinh specialize machines produce bottle, jar, tube,.. Manufacture planning depend on consumer’s contacts

average 22000 – 50.000 VND/kg products If reduce 1% of faulty products, benefit of: Co. Dat Hoa: 4320 x 0,01 x 22.106 = 950.106 VND/y Co Duy Tan: 3270 x 0,01 x 22.106 = 719.106 VND/year Co Tr. Thinh: 248 x 0,01 x 50.106 = 124.106 VND/year Co Tu Hai: 100 x 0,01 x 22.106 = 22.106 VND/year

If reduce 1% of faulty products: Co. Dat Hoa: 4320 x 0,01 = 43.2 ton/year Co Duy Tan: 3270 x 0,01 = 32,7 ton/year Co Tr. Thinh: 248 x 0,01 = 2,48 ton/year Co Tu Hai: 100 x 0,01 = 1ton/year

1 No investment. Technical staff and equipment required are readily available in the company.

Page 41: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

41

Option 3: reduce % of faulty products (1-5%) by selecting the processing technology parameters such as processing temperature, blowing air flow, cooling water flow, raw material flow corresponding to every products (shape, size, color, plastic type)

Increase skill of worker and storage document about technology regime reception of every products

If reduce 1% of faulty products, benefit of: Co. Dat Hoa: 4320 x 0,01 x 22.106 = 950.106 VND/y Co Duy Tan: 3270 x 0,01 x 22.106 = 719.106 VND/year Co Tr. Thinh: 248 x 0,01 x 50.106 = 124.106 VND/year Co Tu Hai: 100 x 0,01 x 22.106 = 22.106 VND/year

If reduce 1% of faulty products: Co. Dat Hoa: 4320 x 0,01 = 43.2 ton/year Co Duy Tan: 3270 x 0,01 = 32,7 ton/year Co Tr. Thinh: 248 x 0,01 = 2,48 ton/year Co Tu Hai: 100 x 0,01 = 1ton/year

3 Need training staff and worker, money for researching

Option 4: reduce % residue (20-70%; more smaller products more residue volume) by selecting the forming of products which have smallest residue %

To buy the for forming of products which have smallest residue % (the forming products are very expensive)

Reduce electrical energy and labour, machine to recycling: average 2000 – 10.000 VND/kg recycling plastic

Reduce % of plastic waste 8 Need investment for buying the forming of products

Option 5: To establish the dust collection system at the area blending plastic powder with additives such as CaCO3, TiO2, color, … in order to reduce dust and collect dust of raw material

Establish : system of ventilator + cyclone + filter + pipes

Investment : 200 – 300 millions VND More electrical consumption + labor

Reduce dust concentration + collect raw material Improve worker conditions

7 Need investment + More electrical consumption + labor

Page 42: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

42

Option 6: To separate solid wastes to types: recycling, selling, disposing in order to minimize disposed waste volume.

Benefits: increase recycling

Reduce waste 2 No investment

Option 7: To establish ventilators in the manufacture area in order to improve working conditions such as to reduce the room temperature

Establish: ventilators Investment: 200.000 – 500.000 VND/1 ven. More electrical consumption

Reduce temperature in the workshop

6 Need investment + More electrical consumption

Option 8: To open the training course on additives, colors used and not used in plastic products manufacture

Cost for opening training course

Reduce hazardous materials use

4

Page 43: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

43

5. SAMPLE ACTION PLAN

5.1 Implementation Schedule 5.2 Cost (rank) Month

Options 1 2 3 4 5 6 7 8 9 10 11 12

Option 1 Introduce on ISO 14000 and its benefits Constructure EMS following ISO 14000 if company wants

400 – 500 millions VND (about 100 – 150 millions VND for establishing EMS, 300-350 VND for applying measures to solve environmental problems) (5)

Option 2 Create and implement manufacturing plan Assessment number of changes products type and plastic waste generated and improvement planning

No investment (1)

Option 3 Research optimum procedures and conditions for each product; Make information readily available to appropriate employees

Improve 50 millions VND/year (3)

Option 4 Select Buy and use Money for buying the forming products/year (8)

Option 5 Inquire, Design Join and install 200 – 300 millions VND (7)

Option 6 Implement separating solids waste and assessment

Improvement No investment (2)

Option 7 Define place needing ventilator, research, buy and install

Application plan 200.000 – 500.000 VND/ventilator (6)

Option 8 Determine training needs, design programme, content and schedule

Open training course about hazardous chemicals not to use in plastic production

Cost for opening training course 100 millions VND (4)

Page 44: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

44

5.3 Management Framework Managers or owners, technical staffs, workers in EMS

5.4 Expected Results:

- Faulty products of the companies will decrease - Environmental conditions will improve: dust concentration, temperature will decrease - Environmental Management System will be constructed and operated following ISO

14000 5.5 Anticipated benefits:

- Trade profit of the companies will increase if faulty product decreases - Environmental state of the companies will be continuously improved - Competitiveness of the companies will increase 6. CONCLUTIONS

6.1 Recommendations

Based on the results of the environmental audit we can define the significant environmental aspects of plastic companies as following: solid wastes, dust and heat pollution, noise.

6.1.1 Solid wastes

Large solid waste quantity: - Solid wastes (average about 30% raw material) generated in the manufacture process: in

the extrusion blow mold process for producing bottle, jar etc. in the injection molding for producing pipe details, chairs etc, in the thermoforming process for producing boxes packages

- 1-5% faulty production: pipe, bottle, tubing etc. - Material, additives packages (PP bag, HDPE bag, HDPE box etc.) - Production packages (HDPE bag, carton box etc.) - Iron pieces - Lubrication oil, gasoline package (vessel 200 liter) - Dirty cloths - Municipal solid waste Although most solid waste is recycled inside and outside the company, it expends energy, labors, machine. Cleaner production opportunities are minimizing solid waste at the resources

Page 45: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

45

generated by application option 2, 3, 4. Beside this we can use option 6 in order to increase recycling and reduce the solid waste quantity disposed. The Dat Hoa, Duy Tan, Truong Thinh, Tu Hai Companies have applied options 2, 3 but continued improvement depends much on the contract with the clients.

6.1.2 Pollutants emissions

Dusts generated when the powder plastic materials blend with additives. These dusts can be collected by a system (consisting of vent, cyclone, bag filter, pipe, collected shape) such as option 5. Heat, transporting from the melted plastic and the blown air flow forming bottle etc. need dispersing by natural or forced venting such as option 7. The Dat Hoa, Duy Tan, Truong Thinh, Tu Hai Companies have applied natural or forced venting, but some the areas need to equip more venting, especially when the room temperature is more than 320C. Stack gas, generated when the electrical generator operates, is not significant and is free when electrical power of Ho Chi Minh City is not cut of. So we can ignore it.

6.1.3 Noise

Unacceptable noise is generated when the machines operate, especially air presser, plastic solid waste mill, and material blending machines. The measures to reduce the noise include regulating the accuracy of the machines, regularly maintain machines, isolate machines such as air press machine, use personal protection equipment. The Dat Hoa, Duy Tan, Truong Thinh have isolated the air press machine.

6.1.4 Wastewater

Wastewater in the plastic manufacture mainly is the cooling water, but it is recycled nearly 100%. The Dat Hoa, Duy Tan, Truong Thinh have used this measure, and in the Tu Hai Workshop there is not cooling water. There is a very little wastewater from washing floor. Municipal wastewater is about 50liter/person.day. Wastewater from toilet is treated using anaerobic disintegration.

6.1.5 EMS and environmental policy, purpose, targets and compliance with the

environmental law, regulations, standards, awareness In general the managers and owners of the small and medium plastic enterprises are unaware of the environmental law, regulations, standards which they must comply with, so they don’t know the necessity of constructing EMS and environmental policy, purpose, targets. They

Page 46: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

46

don’t know the benefits of adapting to environmental standards are to ensure their sustainable development and increase their competitiveness. They hesitate and avoid contact with environmental staff from DOSTE or other environmental offices. They don’t want show, especially to persons outside company, the results of environmental monitoring of their companies. They think that they must spend much money if they apply measures in order to improve the environmental circumstance of their company. They are interested in only their product quality. The Dat Hoa Company has the certificate ISO 9002 on Quality Management System. The Duy Tan and Truong Thinh companies are going to receive the certificate ISO 9002. Up to now the Dat Hoa Company received only the environmental license.

6.2 Future Reseach

1. Increase the awareness of managers and owner of plastic manufaturing companies that

application of the cleaner production measures minimizes waste and results in economic benefits. (Need open training course on cleaner production for plastic companies in order to give knowledge in this field)

2. Construct EMS following ISO14000 in order to continuously improve the environmental circumstance of the company (Need open training course on ISO 14000 for plastic companies in order to give knowledge in this field)

3. To equip a dust and heat treatment system. 4. Ranking of options following proposal above. 5. To select 2 representative Companies for the future Research: Select on base: volunteer

and have resources to carry out environmental future research. 6. To cooperate with DOSTE Ho Chi Minh City in the environmental future research:

monitoring environmental parameters before and after application measures and in organizing training courses in the future.

(The Truong Thinh Company hopes Swiss Contact to help them measures to increase their export products quantity and The Dat Hoa Company have an idea to construct their EMS following ISO14000 in the future because they received benefits when they apply the quality management system ISO 9002).

Page 47: HANOI UNIVERSITY OF TECHNOLOGY - Value Chains Vietnam Enviro... · Dat Hoa Company is one of the biggest plastic companies in Vietnam. It mainly ... They import PP plates from other

47

7. REFERENCES 1. Eric A. Grulke Polymer proces engineering. Englewood Cliffs, Prentic – Hall 1994

2. A. Brent Strong Plastic: Materials and Processing. New Jersey, Prentice – Hall 1996

3. WASTE Consultants Plastic waste. TOOL Publications, Amsterdam – 1995

4. John Scheirs. Polymer Recycling, Science technology & application, 1998

5. Plastic Handbook. The Staff of Modern Plastics Magazine. Mc Graw-Hill.Inc 1995

6. Draft Technical Guidelines for the Identification and Environmentally Sound Management: Management of Plastic Wastes and for their Disposal.

Draft Version – March 2000

7. Guidelines for Waste Recycling. UNEP, 1996

8. UNEP Industry and Environment. Promoting Waste Recycling 1996

9. Clean Japan Center. Recycling Fact book. Waste Management and Recycling in Japan, Tokyo – 1999

10. UNEP; Industry and environment; Cleaner Production. N:3 , 9/1996

11. WHO; Assessment of Sources of Air, Water, and Land Pollution

12. §¸nh gi¸ tæng thÓ t×nh h×nh chÊt th¶i Plastic, ¶nh h−ëng m«i tr−êng cña chóng vµ ®Ò xuÊt c¸c biÖn ph¸p tæng thÓ ®Ó qu¶n lý chÊt th¶i Plastic trªn ®Þa bµn Hµ néi. 2000

13. Héi th¶o vÒ ph¸t triÓn c«ng nghiÖp bÒn v÷ng. Hµ néi 10/1996

14. Bé m«n Cao ph©n tö Kü thuËt s¶n xuÊt chÊt dÎo. Tr−êng §¹i häc B¸ch khoa Hµ néi – 1997

15. Ph¹m Minh H¶i VËt liÖu chÊt dÎo: TÝnh chÊt vµ c«ng nghÖ gia c«ng. Tr−êng §¹i häc B¸ch khoa Hµ néi -

1991

16. B¸o c¸o §TM cña C«ng ty nhùa Hµ néi. CEST. 1997

17. B¸o c¸o §TM cña HTX nhùa Hµm Rång, 1998

18. Nghiªn cøu x©y dùng hÖ thèng qu¶n lý m«i tr−êng theo ISO 14000 ë C«ng ty da giµy Thuþ Khuª, Hµ néi