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Health & Safety is of the
Utmost ConcernSUSTAINABILITY REPORT 2014
IMEXPHARM CORPORATIONNo. 4, 30/4 Street, Ward 1, Cao Lanh City,
Dong Thap ProvinceTel: (84.67) 851941 - Fax: (84.67) 853016Email:
[email protected]: www.imexpharm.com
Desi
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02 Message from the Chairman of the BOD04 Overview of
Sustainability Report 201404 Summary04 Contact Details
05 Impacts, Risks and Opportunity Analysis05 Impact of Imexpharm
for Sustainable Development06 Risks & Opportunities on
Environmental of Sustainable Development for Imexpharm07 Strategies
and Objectives of Sustainable Development 09 Imexpharm Overview12
Corporate Governance 14 Overview of Sustainable Development18
Towards a Green Environment18 Consuming Sustainable Energy19 Water
is the Heart of Sustainable Development20 Emissions20 Regular
Monitoring Emissions22 Efficient Management of Waste &
Wastewater26 Waste28 Total Cost and Investment for Environmental
Protection28 Efficient Management of Production Conditions
29 Local Human Resource and Economic Development30 Safety and
Hygiene in Production 35 Customers’ Health and Safety is of Utmost
Concern35 Strict Quality Management System36 Enhancing Safety and
Health for Consumers37 Socially Responsible Product “Pure
Antibiotics”38 Employees and Sustainable Development41 Corporate
Social Responsibility Practice in 201443 GRI G4 Reference47
Appendix 1 and Questionnaire
TABLE OF CONTENTS
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SUSTAINABILITY REPORT 2014 32
Dear Fellow Shareholders,
Our lives are being exposed to serious health risks including
work stress, nutritional imbalance, extreme weather, unhealthy
food, environmental pollution, etc. Recent evidence shows that
diseases based on seasons, occupation and non-communicable chronic
symptoms are increasing rapidly. The generation enjoying their
golden years is rapidly growing older and soon a younger population
will face the problem of an aging population in the next ten or
fifteen years. Statistics now show that the elderly now live about
ten years longer while suffering from disease. On average, elderly
Vietnamese citizens have 2.6 kinds of different disease, and only
6% of the elderly have the healthy lives (Ministry of Health,
2012). This has negative effects on the sustainable development of
the whole society.
Undertaking a mission of providing effective solutions to the
community healthcare, in addition to improving product lines
meeting treatment requirements for the stage of complex and
unpredicted development of diseases in Vietnam, Imexpharm has
worked diligently to bring free medical care to remote areas of the
country. We have served thousands of people each year, mostly the
elderly and young children, with an in-depth understanding of the
burden they are forced to bear as a result of disease.
Besides help and support in our knowledge and specialized, we
have carried out programs of educational promotion and talent
support in order to encourage learning in the community. Our
desire, which is expressed in the campaign “Change”, is aimed at
changing people’s lives, their future and making their dreams come
true.
Dear all,
We are a pharmaceutical production company and we always make
the environment, consumers’ health and safety, and socially
responsible products our top priorities. These are also of great
concern to our major providers, according to a survey in 2014. In
addition, the contribution to Imexpharm’s local development and
community service activity attracts attention from all people
concern. Besides meeting development requirements, human resources
are a priority. And as a result we are working to build a positive
working environment and creating sustainable jobs.
However, to foster the true “sustainability”, we must make every
effort in the journey ahead. Although we have great confidence in
production environment and quality, Imexpharm needs to continue
improving by raising standards belonged to manufacturing plants in
Binh Duong to meet EU-GMP standards. We are expecting to
receive
certification in the second quarter of 2016. Together with
upgrading our factories, we have also launched a host of new
products to meet the demands of healthcare and treatment. 2015 is
also the year of “Human Resource Development.” We will strive to
create changes in performance, develop the next generation, build a
professional, effective and dynamic working environment and a
result-oriented culture to attract and support talents. Imexpharm
is also considering about replacing out dated equipment and
investing in new machines to save energy.
In 2014, we placed key shareholders in the right position in
order to contribute their opinions and consult to the sustainable
development and improve our operation. I would like to extend our
heartfelt thanks to you for your interest in our Sustainable
Development Program and we hope to receive valuables from you to
continue our sustainable development.
Undertaking a mission of providing effective solutions to the
community healthcare, in addition to improving product lines
meeting treatment requirements for the stage of complex and
unpredicted development of diseases in Vietnam, Imexpharm has
worked diligently to bring free medical care to remote areas of the
country.
MESSAGE FROMTHE CHAIRMAN
Chairman of the BOD,
NGUYEN QUOC DINH
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SUSTAINABILITY REPORT 2014 5
IMPACTS, RISKS AND OPPORTUNITY ANALYSIS OVERVIEW OF
SUSTAINABILITY REPORT 2014
In 2014, Imexpharm continued to include its Sustainability
Report within its Annual Report, positioned as an integral part of
the overall picture. The Sustainable Development Report 2014 with
the title “Health and Safety is of the Utmost Concern” depicted
Imexpharm’s key activities relating to sustainable development such
as environmental protection, labor health and safety, consumers’
health and safety, socially responsible products, development of
local human resources and economics, and other social
responsibility activities.
Imexpharm’s 2014 Sustainability Report was produced according to
GRI-G4 standards. The period for the report ends on 31 December
2014 (at the same time as the Annual Report 2014) The report is
produced annually, and either integrated in the Annual Report or
presented separately.
CONTACT DETAILS
Your input is welcome regarding Imexpharm’s sustainable
development, please contact:
Mr. Tran The Hao – PR Manager – Head of Sustainable Development
Committee.Cell phone: 0909 907 989Email:
[email protected]
Ms. Nguyen Thi Kim Le – Vice Chair of Internal Auditing
Committee – Vice head of Sustainable Development Committee.Cell
phone: 0982 907 818Email: [email protected]
IMPACT OF IMEXPHARM ONSUSTAINABLE DEVELOPMENT
IMPACT OF IMEXPHARM ON SUSTAINABLE DEVELOPMENT
Vietnam’s pharmaceutical industry is still relatively young.
According to the classification of the World Health Organization
(WHO) and the United Nations Conference on Trade and Development
(UNCTAD), Vietnam is ranked 3 out of 4 on the pharmaceutical
industry development scale. This means that domestic pharmaceutical
companies can manufacture genetic drugs and export variant
pharmaceuticals products in comparison with countries with the
highest rank 4/4 on the scale that can produce ingredients and
invent new drugs. The domestic industry can produce only low-value
generic medicines at a proportion of less than 50% of the spending
on drugs in Vietnam (the figure was 46% in 2014), the rest must be
imported, especially high value treatment drugs. The Vietnamese, on
average, spend only over 30 USD per person per year in medicines
while the figures were 96 USD in other developing countries and 186
USD worldwide.
Being one of the top five pharmaceutical groups in Vietnam,
through business and community activities, Imexpharm has made great
contributions to the following fields:• Impacts on development of
community and society • Impacts on development of pharmaceutical
industry
and Vietnamese economy• Impacts on environment
Impacts on development of community and society:• Creating more
stable jobs for more than 1,000
employees and enhancing their knowledge on sustainable
development.
• Production responsibility: Increasing the availability of
effective and safe medicines, enhancing the spirit of protecting
health in community.
• Sharing the burden of disease: improving access to health care
and medicines free of charge to people in remote and isolated
areas.
• Fostering learning spirit in society through programs of
educational promotion and talent support.
Impacts on development of the Pharmaceutical Industry and
Vietnamese economy • Contributing to the development of
Vietnam’s
pharmaceutical industry: Imexpharm is a pioneer in the industry,
producing high quality products with state-of-the-art production
lines. Imexpharm contributes to enhancing the pharmaceutical
manufacturing level in Vietnam.
• Contributing to the development of local economy: through
paying taxes to the local government, creating jobs for local
labors, and community programs such as: Happy Tet holiday for the
poor, house funding for the poor, etc.
• Pioneering in implementing state policies: Imexpharm is the
first pharmaceutical company in Vietnam Pharmaceutical Corporation
to implement its equalization in 2001 and is the first
pharmaceutical company in Vietnam to have its stocks listed on the
HCM City Stock Exchange in 2006.
Environmental Impacts• Reducing damage to the environment by
investing in
high quality production equipment. • Carrying out training
programs to engage staff in
behaviors of saving water and energy, reducing the amount of
energy used by managing production suitably.
• Strictly adhering to the environmental protection
regulations
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6 SUSTAINABILITY REPORT 2014 7
RISKS AND OPPORTUNITIES OF SUSTAINABLE DEVELOPEMNT CONTEXTAND
TREND FOR IMEXPHARMRisks• Mass health insurance puts priority on
using cheap drugs, which has negative
impacts on the outcome of treatment, citizens’ health and the
development of the pharmaceutical industry in Vietnam, including
companies focusing on high quality like Imexpharm.
• OTC market which accounted for only 30% compared to 70% ETC in
total drug spending in 2014, was a playground for many highly –
invested pharmaceutical companies, so there is a serious
competition.
• Awareness of sustainable development in community is low,
which poses challenges for Imexpharm in implementing sustainable
development strategies.
Opportunities• There is an upward trend in using generic drugs
around the world, so many
multinational pharmaceutical corporations are focusing on this
segment. Due to the cheap price of generic drugs, treatment is
cheaper and evidence from clinical trials shows that the
effectiveness is equal to that of original drugs.
• The state’s strategies give privilege to the local
pharmaceutical industry, creating development opportunities for
domestic pharmaceutical companies.
• Vietnam has a large population and the awareness of healthcare
is increasing among citizens due to increasing living standards.
However, drug spending of Vietnamese people on average is still
low. Therefore, the potential market for pharmaceutical industry is
still very large.
• Seasonal diseases, occupational diseases and non-communicable
chronic diseases are increasing rapidly due to environmental
pollution, climate change, food insecurity and work related
stress.
• The population is aging and the diseases of the elderly are
increasing: We will face an aging population in the next 15-20
years as the number of elderly patients continues to increase.
• Enhance Imexpharm’s brand reputation, which is associated with
“trust” when implementing sustainable development strategies.
Strategies for Sustainable Development “Imexpharm develops
sustainably together with the community” is the 2014 - 2015 company
strategy. To well implement this strategy, the company has set
specific targets to organize effective implementation throughout
the company.
(Please see also Shareholders’ Commitments in the Annual
Report/Imexpharm’s Overview/ Sustainability Strategies)
Imexpharm determined that the company will be only able to
develop sustainably if the objectives of economic development are
in alignment with the objectives of the environment and society.
Specifically as follows:
STRATEGIES AND OBJECTIVESFOR SUSTAINABLE DEVELOPMENT
Sustainable economic efficiency
Building a sustainable
society
Maintaining environemnt
Imexpharm’s Sustainable Development Model
Develop new products, special treatment products to replace
high cost imported drugs, reducing the cost of treatment
Added value forshareholders,
consumers & partners
Contribution tolocal economy
Sustainable economic efficiency
To achieve social objectives, the company focuses on the
following 3 aspects:
Policies and benefits packages for employee
Social responsibility
practice
Community development
committee
Building a sustainable
society
To achieve Economic Efficiency, Imexpharm focuses on the
following 3 aspects:
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8 SUSTAINABILITY REPORT 2014 9
Sustainable Development ObjectivesImexpharm’s sustainable
development objectives moving toward 2017 are as follows:
• Environment: Implementing energy and water saving in daily
life and production practices. Meeting the requirements of the
Energy Audits with the budget allocated to reduce power
consumption. Further improving the standards of production to
minimize damage to the environment.
• Community and Society: Continuing to implement and replicate
access to free medical care and medicines for the underprivileged
in remote areas. Increasing the budget for the financial support
for educational promotion to encourage and build a learning centric
society, while contributing to the development of human resources
of the whole country.
• Products: Developing special treatment products in alignment
with disease developments in Vietnam to replace imported
high-priced drugs, developing high quality functional food and
protecting the community health. Towards 2017, all key products
must be tested via bio-equivalence or clinical trial to evaluate
the impacts and effectiveness for the safety and health of
users.
• Labor: Building up the satisfactory wages, bonuses, and
benefit packages. Developing good working environment with unique
culture, training and developing future generations, developing a
clear mechanism for promotion through building detailed
descriptions of positions in the company, with a staff retention
rate of over 90%.
IMEXPHARM OVERVIEW
Imexpharm Pharmaceutical Joint Stock Company is a proud pi-oneer
in the Vietnamese Pharmaceutical Industry with over 30 years of
history.
(For more details about Imexpharm, please see also the Annual
Report/ Overview of Imexpharm:
Introduction Fields and Locations for business Vision – Mission
– Core values Over 30 -year- experience in community healthcare
services
For Imexpharm’s business index, please see the Annual Report/
Message/ Business index in the period 2010 -2014)
2014 Targets
To achieve environmental objectives, the company focuses on the
following three activities:
Follow good practices in pro-duction to minimize negative
environmental impact
Promote action plans to protect the
environment
Enhance product innovation, using environmentally
friendly materials
Maintain a sustainable
environment
Contents Targets
Staff as of 31 December 2014
962 persons
Net revenue 897.1 billion VND
Total capital 1,029.5 billion VND
Payables 232.9 billion VND
Equity 796.6 billion VND
Products Approximately 300 products
STRATEGIES AND OBJECTIVES FOR SUSTAINABLE DEVELOPMENT
(continued)
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SUSTAINABILITY REPORT 2014 11
Antibiotic group, which were the major product, accounted for
49% of Imexpharm’s total revenue.
Imexpharm operates only in Vietnam; the main region being the
Mekong Delta, which accounts for 50% of total revenue.
2014 Imexpharm Main Product Categories and Main Operations
Revenue proportion OTC:ETC 2012 - 2014
Through December 31, 2014, Imexpharm is headquartered in Cao
Lanh City, Dong Thap province with 2 representative offices in
Hanoi and Ho Chi Minh City, 19 nationwide agencies, and more than
40 distribution partners.
In 2014, the company established one agency in Ho Chi Minh City
and bought land to build other branch offices. In the same year,
the company also issued shares to increase its charter capital from
167.06 billion VND to 263.12 billion VND.
The company has the long-term suppliers providing stable and
high quality raw materials.
The company do not issue the Consolidated Financial Statement
due to the dependent financing from branches.
Antibiotics
49%
11%
9%
18%
6%7%
Digestive system, liver and bileRespiratory
systemAni-inflammation - AcesodyneVitaminsOthers
IMEXPHARM OVERVIEW (continued)
Imexpharm’s Flagship Products
57%
43%
40%
60%
20%
80%
100
80
60
40
20
2012 2013 20140
OTC ETC
Total revenue from OTC (drug stores, agencies, etc.) and ETC
(hospitals)
REVENUE - PRODUCT GROUPS
REVENUE - GEOGRAPHIC AREAS
(IMEXPHARM PRODUCTS)
Mekong DeltaHo Chi Minh CityThe SoutheastThe Central
HighlandsThe North
50%
10.3%
12.2%
15.1%
12.3%
These brands account for over 30 main products with different
manufacturing technologies and contents, by 10% of the product line
and 65% of total revenue.
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SUSTAINABILITY REPORT 2014 13
CORPORATE GOVERNANCE
(Please see the following contents in the Annual Report/
Imexpharm’s organizational structure)
• Organizational Chart, List of Branches and their Addresses•
About the Board of Directors • About the Board of Executive • About
the Board of Supervisory• Senior Executive Replacement 2014
CORPORATE GOVENANCE FOR SUSTAINABLE DEVELOPMENTImexpharm
Sustainable Development Organizational Chart: The Board of
Directors develop sustainable development strategies and objectives
in the short, medium and long term for implementation by the Board
of General Management.
The Board of General Management is responsible to the Board of
Directors on issues of sustainable development, while ensuring the
sustainable development strategies and objectives of the Board are
implemented effectively.
The Sustainable Development Committee answers to the Board of
General Management on issues of sustainable development, applying
strategies and objectives to functional departments and ultimately,
Imexpharm’s staff.
Full Name PositionPosition in Sustainable
Development CommitteeTasks
Tran The Hao PR Manager Head of Committee • Overall
responsibility for issues of sustainable development and
sustainable development reports
• Responsible for community activities and responsible products•
Build up a mechanism for receiving comments from shareholders
Phan Hoang Minh Tri Assistant Chairman Member • Develop
management practices for the issues of sustainable development
• Responsible for the economic efficiency of sustainable
development.• Develop a mechanism for dealing with complaints about
sustainable
development
Le Minh Tri PR staff Member • Assist in Community Activities and
Responsible Products• Responsible to evaluate the sustainable
development issues of
suppliers
Nguyen Kiem Phuong President of Trade Union,Head of Culture
Committee,Member of the Board of Directors
Member • Responsible for sustainable jobs, employee rights and
occupational health and safety.
Ngo Minh Tuan Head of Strategy and Development Committee,
General Director Assistant
Member • Assist in management practices for issues of
sustainable development
• Assist in evaluating supplier on sustainable development
issues
Duong Hoang Vu Deputy Head of Department of Finance &
Accounting
Member • Assist in the economic efficiency of sustainable
development
Nguyen Quoc Hung Head of Technical Support Department
Member • Responsible for environmental sustainable development•
Assist in occupational health and safety for employees.
Tran Thi To Nu Personnel Manager Member • Responsible for labor
relations, jobs, compensation, training and development
Do Thi Thanh Thuy Head of Internal Auditing Member • Assist in
building management practices for the issues of sustainable
development
• Auditing the sustainable development system
Nguyen Thi Kim Le Deputy Head of Internal Auditing
Vice Head of Committee • Responsible for collecting data for
annual sustainable development report.
• Editing the content for the annual sustainable development
report
In 2014, Imexpharm established the Sustainable Development
Committee consisting of the following members:
Leadership in sustainable development- Mr. Nguyen Quoc Dinh –
Chairman of Board of Directors, Deputy General Director: is
responsible for managing the implementation of sustainable
development strategies and objectives in Administrative and
Sales Departments (efficiency in operation and water and energy
consumption, job arrangement, welfare policies for employees,
training, and development etc.); he is also responsible for overall
management in sustainable development and publicizing news.
- Mr. Huynh Van Nhung – Member of the Board of Directors, Deputy
General Director: is responsible for managing the implementation of
sustainable development strategies and objectives in Production
Departments (relevant to environmental issues in manufacture:
capacity, water, emissions, waste, waste water, labor health and
safety, product liability, as well as interviewing suppliers about
sustainable development issues).
Board of Directors
Board of Executive
SustainableDevelopment Committee
FunctionalDepartments
Staff
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SUSTAINABILITY REPORT 2014 15
SCOPE AND BOUNDARIESThis report was prepared within Imexpharm’s
scope of operation and full cooperation of all its branches.
Reports on environment, safety and occupational health are
related to Imexpharm’s two main production plants named Plant and
Warehouse in Cao Lanh City and plant and warehouse at Branch 3 -
Binh Duong Province.
All other areas are reported within the framework of the
operation of the company in 2014.
STANDARDS The report is produced with reference to the
guidelines of the Global Reporting Initiative (GRI), Guidelines 4,
and the industry of pharmaceutical chemistry. The contents
presented in the Annual Report according to GRI were: General
information about the company, Organizational structure, Corporate
governance, Employee structure, Policies for employees, and
Training and career development.
CONNECTING AND CONSULTING SHAREHOLDERSIdentify
Shareholders:Imexpharm identified key shareholders by considering
the degree of influence and the degree of dependence of the parties
to Imexpharm. The matrix identifying the key stakeholders of
Imexpharm is as follows:
- Manufacturing and Distribution Partners: Via email, Imexpharm
sent the Open letter and survey questionnaire on issues of
sustainable development to partners.
- Drug stores/Hospitals: Imexpharm met and interviewed some VIP
customers through Imexpharm’s Claminat Festival and refer to
results from the annual surveys of customer satisfaction.
- Local communities: Imexpharm collected information from local
unions through social and community activities
Consultation Outcome:Responses and comments of shareholders are
synthesized and ranked in accordance with the level of interest.
Accordingly the issues receiving the most concern are:
• Contribution to local development from the values directly
generated and distributed
• Operation with the involvement of the community• Energy,
water, waste and emissions within production• Safety and health for
consumers• Socially responsible products
• Connecting and Consulting Shareholders:Imexpharm chose
important representatives from among key shareholders who were
identified to consult about issues of Imexpharm’s sustainable
development. The key contents selected for reporting are based on
aggregated results based on the level of interest of both Imexpharm
and the stakeholders.- Employees: The Company asked the Trade
Union
to send an Open letter and Survey questionnaires regarding
concerns about sustainable development to middle and senior
managers via Email. The report was also built with reference to the
results of the periodic internal satisfaction evaluation of the
company’s trade union.
- Shareholders: Sent an Open letter and Survey questionnaires to
Leaders of Vietnam Pharmaceutical Corporation and some other large
shareholders. Imexpharm also received comments and feedback from
other shareholders and investors through IR Department.
- Local Government: Had an in person interview with Mr. Doan Tan
Buu, Vice Director of Health Department in Dong Thap Province, and
sent emails including the Open letter and questionnaires to
Provincial leaders. Imexpharm also noted comments from other
governors through the Annual General Meeting of Shareholder.
- Suppliers: Sent questionnaires to suppliers on bidding
list
OVERVIEW ONSUSTAINABILITY REPORT
Employees
LocalGovernment
Shareholders
LocalCommunity
Customers(Drugstores,
hospitals)
Partners/Distributers
Providers
High
High Low
Level of dependence to
the company
Local community
Shareholders Employees Partners/
Distributers
LocalgovernmentCustomersProviders
Level of Influence to the company
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SUSTAINABILITY REPORT 2014 17
In addition, shareholders are also interested in issues such as:
labor health and safety, sustainable jobs, welfare and training and
development for employees.
Stakeholder representatives also had many other ideas to help
Imexpharm further its sustainable development initiatives. Some
typical comments are quoted as follows:
IDENTIFYING KEY AREASFOR REPORT CONTENT
The shareholders’ consultations contributedgreatly to the
report.
Thus, Imexpharm’s Sustainability Report 2014 will present
important areas where the company, society, and communities are
highly interested.
OVERVIEW ONSUSTAINABILITY REPORT (continued)
“Imexpharm needs to adopt measures to handle waste which causes
environmental pollution
from its production units. Liquid and solid waste should be
controlled to minimize pollution. The company
should produce more drugs for the elderly and young children to
facilitate help doctors prescribe
appropriate medication”- Mr. Doan Tan BuuVice Director of Health
Department in Dong Thap Province“Imexpharm will
continue to develop products sustainably
and professionally with in-depth investment in
high quality products…”- Mr. Nguyen Quy Son Chairman of Board of
Directors - Vietnam Pharmaceutical Corporation – Member of Board of
Directors of Imexpharm
“The prices of antibiotics must be reduced to compete
with other products. This will make advantages for
patients using medicines and pharmaceutical products of
the Company”- Doctor Le Phuoc Hai agency at 416 Hiep Hoa
Ward,Duc Hoa District, Long An Province
Summary of key aspects taking high rate of interest from
Imexpharm and associated parties:
Steps to identify content:Step 1: Consider the context of
sustainable development of the economy, the pharmaceutical industry
and ImexpharmStep 2: Identify key areas for ImexpharmStep 3:
Synthesize the areas on which stakeholders put greater emphasisStep
4: Compare the key areas which are important to company and to
related parties. Assess the level of importance and influence, the
ability of the company to control these areas.Step 5: Selecting the
key areas to be included in the report
High
HighLow
Importance to community
and society
Localdevelopment
Community activities
Environment Energy, water, waste
wage, emission)
Socially responsible products
Labor safety
JobsEducation and
training
Importance to the Company
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SUSTAINABILITY REPORT 2014 19
CONSUMING SUSTAINABLE ENERGY WATER IS THE HEART OF SUSTAINABLE
DEVELOPMENT
Unit 2013 2014
DO oil liters 109,700 113,915
Output million units (pill/pack)
1,013.5 1,222.2
Rate liters per million units
108 93
Electricity Consumption per Unit
(Converted figures in Report of Energy Auditing 2012)
Target Unit 2013 2014
Electricity Kwh 5,362,596 6,120,527
Output million units (pill/pack)
1,013.5 1,222.2
Rate Kwh/ million units
5,291 5,008
Energy saving is the first priority in Imexpharm’s production
and operation. Saving energy lowers production costs, operating
costs, and increases competitiveness, while contributing to
environmental protection.
DO Oil Consumption per Unit
One third of the world’s population suffers from water shortage.
This figure is expected to double by 2025. Water is the essence of
life. “Water and Sustainable Development” is the theme of World
Water Day in 2015, annually held on March 22 to call attention to
the importance of water resources and advocating for the
sustainable management of water resources, especially freshwater
resources.
In 2014, Imexpharm streamlined production, and organized mass
production lots to reduce turns of machine cleaning, reducing water
consumption by 4,334 m3 equivalent to 8.7%. The rate of water used
on million units decreased from 48.9 m3 per million units to 37.0
m3 /per million units, a reduction by 24.3%.
RECYCLED AND REUSED WATER
Recycled and reused water was wastewater mainly from RO in the
pure water treatment system. The amount of wastewater recycled for
irrigation and for cooling is about 10m3 per day out of a total
125m3 of water used per day.
M % recycled water = 10/125 = 8%.
The company measured the amount of water used based on flow
meter readings installed on the system.
Imexpharm uses tap water from a water supply company. Water
consumption recorded for the plant in Cao Lanh City, Dong Thap
province and Plant of Branch 3 in Binh Duong Province is as
follows:
In addition, Imexpharm annually encourages their staff to take
part in the campaign of Earth Hour. The title for the 2015 campaign
is “Saving Energy – Dealing with Climate Change” took place on
March 28, 2015.
Power Saving Solutions for the year 2015In 2015, Imexpharm will
continue to implement measures to rationalize production and
increase productivity, reduce labor hours and peak hours, while
continuing to implement measures recommended by the energy audit
within the budget allocated, trying to save more power.
Power Unit Coefficient
for Conversion
2014Power
ConversionEquivalent
Usage Rate
Electricity Kwh 0.1543.10-3 6,120,527 944.4 90.4%
Diesel Oil 1.000 litters
0.88 113,915 100.3 9.6%
management, and more improvements proposed by the energy audit
department, which involves replacing lighting equipment for those
that use less power. The rate of energy consumption per million
products fell by 5.3%.
Conversion From diesel Oil to TOE in 2014
In 2014, Imexpharm’s production increased by 20.6%, but used
energy increased by only 14.1%. This savings is due to energy off
efficient measures applied such as turning off devices when they
are not used, turning off air conditioning in offices 20 minutes
before leaving, lean production
Targets Unit 2013 2014
Water Consumption m3 49,550 45,216
Production million units (pill/pack) 1,013.5 1,222.2
Rate m3/million units 48.9 37.0
TOWARDS A GREEN ENVIRONEMNT
Imexpharm always provides staff training course to raise
awareness of water saving, and encourage re-using water in
production and daily life.
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SUSTAINABILITY REPORT 2014 21
Items Testing Approach Unit
Vietnam Stan-dard
05:2013
2013 2014
No monitoring 18Jun8
Dec
Dust TCVN 5067:1995 mg/Nm3 0.3 - - 0.172 0.176SO2
TCVN5971:1995
mg/Nm3 0.35 - - 0.087 0.094
NO2 TCVN 6137:2009mg/Nm3 0.2 - - 0.082 0.073
CO TQKT-YHLD & mg/Nm3 30 - - 2.3 3.1Tem-pera-ture
VSMT 1993 0C - - - 33.9 34.2
Hu-mid-ity
QCVN 46 : 2012/ %RH - - - 66.9 65.2
Noise BTNMT dBA
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SUSTAINABILITY REPORT 2014 23
EFFICIENT MANAGEMENTOF WASTE & WASTE WATER WASTE WATER Waste
water is generated from overflow rainwater, waste water from
production and daily life.The company built a separate drainage for
wastewater from rainwater runoff, domestic sewage and industrial
wastewater. Domestic wastewater was collected and pre-treated in a
septic tank, then processed at wastewater treatment system before
being put into receptacles. Industrial wastewater was treated by
the wastewater treatment system before being put into
receptacles.
Plant of Dong Thap Industrial wastewater generated mainly from
the following stages:
- Wash mixing, blending utensils with excipient active
ingredients in the pill production technology, employees wash
hands: 25-30 m3 per day- Waste water from drug quality testing: 3-
5 m3 per day3- 5 m3/ day*Place of discharge: is connected to the
daily water treatment system of Cao Lanh City and licensed by The
Ministry of Natural Resources and Environment.* Methods of
treatment: physical chemistry + microbiology
OPERATION PRINCIPLES
* Dong Thap Plant Post Waste Water Treatment Quality
Items Testing Approach Unit Vietnam Standard 402013 2014
17 April 28 November 22 May 27 NovemberpH Machine - 6-9 7.59
7.35 7.68 7.69BOD5 Sensor mg/l 30 30 28 24 26COD Method 8000 mg/l
75 46 60 38 48TSS TCVN6625-2000 mg/l 50 50 16 14 48Nitrogen Total
TCVN 5987-1995 mg/l 15 4.34 3.64 3.36 3.64P Total Method 8180 mg/l
4 1.3 1.3 2.8 1.30Clorin Method 8021/DR5000 mg/l 1 0.11 0.05 0.1
0.05Amoni TCVN 5988-1995 mg/l 5 2.66 1.4 2.52 2.12Mangan Method
8034/DR5000 mg/l 0.5 KPH 0,048 KPH 0,084Colifrom TCVN6187-2:1996
MPN/ 3.000 2200 2700 240 75Amoxicillin Lower than the detection
limit passed passed
(Monitoring Agency: Monitoring Centre of Natural Resources and
Environment Department of Dong Thap province)
Standards of waste water are consistent with the standards of
the Ministry of Natural Resources and Environment.
Collection pit – T01
Detention tank – T02
Oxidation tank – T03
Clarified tank – T04
Attached growth Aerobic tank – T05
Precipitation tank – T06 Pump PS06A/B
pH adjustment
Ozone machine
Air blower
Disinfection tank – T07Disinfectant chemical
Receptacles (Vietnam standards 40/2011/
BTNMT) column A
Pump PW01A/B
Pump PW02A/B
Oxy
Pump PW03A/B
PumpPC04A/B
Sludge in circle
Residual sludge
pump PS06A/BWaste sludge
Oxy
Oxy
Pump PC03
Waste water from the Plant
22
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24 SUSTAINABILITY REPORT 2014 25
*Wastewater Quality after being treated in Branch 3- Binh Duong
Province.
Plant of Branch 3 – Binh Duong ProvinceTotal volume of
Wastewater in Branch 3 – Binh Duong Province- Domestic wastewater:
3 m3 per day- Industrial wastewater: 15 m3 per day* Place of
Discharge: is connected to the sewerage system of VSIP II – Binh
Duong province* Methods of treatment: physical chemistry +
microbiology
Standards are consistent with standards of VSIP II Industrial
Park in Binh Duong Province.
* Joint: Wastewater after being treated is connected to the
wastewater collection system of VSIP II – Binh Duong Province
* Currently no organization reuses Imexpharm’s wastewater
Items Testing Approach UnitWastewater
quality at VSIP
2013 2014
21June 9 December 18 June 8 December
pH(*) TCVN 6492:2011 - 6 – 9 7.32 7.29 7.34 7.58TSS(*) TCVN
6625:2000 mg/l 400 75 31 31 24BOD5 (20
oC) TCVN 6001-1:2008 mg/l 400 64 42 22 56COD(*) TCVN 6191:1999
mg/l 600 127 89 38 98N – NH4
+ (*) TCVN 5988:1995 mg/l 8 2.9 2.1 7.6 6.12Total Nitrogen(*)
TCVN 6638:2000 mg/l 20 11.5 10.4 18.9 13.5
Total Phos-phorus
TCVN 6202:2008 mg/l 5 2.3 2.3 2.1 1.4
Fat and Oil Ref SMEWW 5520B mg/l 10 1.89 0.9 0.58 0.18
Total Coliform TCVN 6187-2:1996 MPN/1000 ml 5,000 2.7x103
2.1x103 2.1x103 2.1x103
(Monitoring Agency: Phuong Nam Science Technology and
Environmental Analysis Co. Ltd)
PROCESS FLOWCHART -INDUSTRIAL WASTE WATER TREATMENT
TECHNOLOGY
EFFICIENT MANAGEMENT OF WASTE& WASTE WATER (continued) Waste
water
Wastewater
Sludge in circle
NaOH
Sludge treatment tank
Waste sludge
Collecting unit ofhazardous emission
Ozone
ReceptaclesWastewater treatment
system at VSIP II
Gully grating
De-betalactam
Detention tank
Air blower
Precipitation tank
Oxidation tank
24
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SUSTAINABILITY REPORT 2014 27
NON-HAZARDOUS SOLID WASTE
* Plant of Dong Thap:Sources of non-hazardous waste are mainly
from paper packaging, plastic packaging, clean nylon, carton, and
paper scraps. The volume of 2014 was 0.4 tons per month. Details
are as follows:
HAZARDOUS SOLID WASTEHazardous solid waste is managed based on
Regulations of Hazardous Waste Management (according to Circular
12/2011/TT-BTNMT dated April 14, 2011 by The Ministry of
Environment and Resources). Imexpharm has registered a Master Book
of hazardous solid waste with the Environmental Management Agency
for easy monitoring of this kind of waste. Furthermore, the company
signed contracts with other environmental companies in charge of
collecting and disposing emission in accordance with Governmental
regulations.
* Factory of Dong Thap:Hazardous waste produced during
production: powder medicine, solid waste, sludge, expired medicine,
reactant, unqualified medicine, testing chemicals, etc. In 2014, it
is estimated that the factory produced fewer than 1.5 tons of
hazardous waste per month.
Imexpharm signed a contract with Holcim VN Co., Ltd. to treating
hazardous waste in accordance with relevant regulations.
All hazardous waste produced during the production process is
collected in tanks and handed over quarterly to Holcim Viet Nam for
disposal.
According to the contractor after disposal, documentation will
be transferred to Imexpharm in compliance with regulations.
* Branch 3 – Binh Duong Waste produced during the production
process such as: pharmaceutical defectives, soft and hard covers
containing dangerous components, testing chemicals, viscous waste,
etc. In 2014, the plant produced approximately 239kg of waste per
month.
* On-site storage: Hazardous waste tanks as designed
regulations.
* Imexpharm hires a unit in charge of waste treatment – Binh
Duong Supply Sewerage Environment Co., Ltd. to dispose waste in
compliance with regulations.
* All hazardous waste produced during the production process is
collected in hazardous waste storage and handed over quarterly to
the waste disposal factory – Binh Duong Supply Sewerage Environment
Co., Ltd. for compliant disposal.
*According to the contractor, after disposal, documentation will
be transferred to Imexpharm in compliance with regulations.
Waste Disposal Method Volume (kg)
Nylon Recycled 635
Aluminum Recycled 22,759
Cardboard Recycled 22,604
Polymer Recycled 230
Iron Recycled 1,443
Total 47,671
* Branch 3 – Binh Duong ProvinceSources of non-hazardous waste
are mainly from paper packaging, plastic packaging, clean nylon,
carton, and paper scraps. The volume of 2014 was 1.2 tons per
month. Details are as follows:
Waste Disposal Method Volume (kg)
Paper Recycled 10,730
Polymer Recycled 1,395
Nylon Recycled 484
Aluminum Recycled 1,876
Total 14,485
Name Code Amount
Viscous waste 17 02 04 5
Used active coal 12 01 04 30
Chemicals (organic solvent and heavy metal)
16 01 01 3,328
Hazardous waste of pharmaceutical products
03 05 09 13,222.86
Solid material waste (glass bottles, cov-ers contaminated with
chemicals, etc.)
18 01 04 954.25
Fluorescent bulbs 16 01 06 28
Battery 16 01 12 20
Laboratory chemicals and chemical mixtures which contain
hazardous components
19 05 02 397
Printing Ink Cartridges, ruban 08 02 04 106
Sludge from disposal area 03 05 08 210
Total 18,301.11
Waste Name Code Amount (kg/year)Pharmaceutical defectives
1877
Printing ink cartridge waste 1.4
Active coal waste 10
Sludge waste 51
Chemical waste 10
Neon tubes 5.3
Cell, lead batteries 1.2
Electronic components 1.2
Viscous waste 9.5
Soft covers containing hazard-ous waste
759
Hard covers containing hazard-ous waste
84
Toxic medicine 51
Rags containing hazardous waste
9.5
Total 2870.1
WASTE
26
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SUSTAINABILITY REPORT 2014 29
TOTAL COST ANDINVESTMENT FOR ENVIRONMENTAL PROTECTION
EFFECIENT MANAGEMENT OF PRODUCTION CONDITION
Waste disposal costs in 2014for the whole company:
Dangerous waste disposal:
215,189,244 VNDWaste water costs:
250,000,000 VNDWaste water costs: Imexpharm spends a large
amount for environmental protection and management at an advanced
standard factory. Much of these costs are fixed factory assets.
However, we haven’t yet completed the statistics to provide in this
report.
Since 2013, Imexpharm has successfully implemented ISO:14000 at
the two main factories at Cao Lanh and Binh Duong. ISO:14000 is a
group of standards related to environmental management issued by
The International Standards Organization that exists to help
organizations minimize how their operations negatively affect the
environment and continuously improve their environmental results.
ISO:14000 includes a set of standards relating to aspects of
environmental management such as environmental management systems,
product life cycle evaluation, ecological labeling, greenhouse gas
inventory and determination, etc.
In 2014, Imexpharm upgraded the Binh Duong factory in compliance
to EU-GMP standards in order to improve a production condition of
the least impact on environment, and more importantly to enhance
product quality and safety. This project is estimated to be
completed in 2015 and receive certification in Quarter II of
2016.
Imexpharm has created jobs and brought benefits to thousands of
people at Cao Lanh City for over 30 years. The company has actively
contributed to the state budget and taken part in many local social
activities. Imexpharm has made a significant contribution to the
development of Cao Lanh City in particular and Dong Thap Province
in general.
Imexpharm’s total contributions from 2013-2014:
Imexpharm has been consistently praised by the Dong Thap
Province Taxation Bureau as an exemplary company in taxation
payment for many years.
LOCAL HUMAN RESOURCEAND ECONOMIC DEVELOPMENT
Associated parties Target 2014 2013
Shareholders, investors Dividend amount
24.6
32.8
Labors Total salary 125.8
121.8
State Total tax payment 74.8
71.2
Customers/Distrib-utors Total transaction value
953.4
896.3
Partners Total transaction value 699.0
474.3
Public Contribution to public 2.4 3.4
(Unit: billion Dong)
28
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SUSTAINABILITY REPORT 2014 3130
Imexpharm produces medicine in a solid facility constructed by
ferro-concrete. The company uses industrial electricity and DO oil.
The average temperature in production is 22 to 28 degrees
Celsius.
LABOUR SAFETY AT THE WORKPLACE
Imexpharm has established a 4 – member – Committee of Labour
Protection. The Chairman is the Deputy General Director of
Production and the Vice Chairman is Trade Union President. The
Committee is responsible for Safety, Hygiene, Firefighting and
protection, and reporting to the General Director. The Safety Team
includes seven members while the Fire Fighting and Protection Team
includes a Team leader, a Vice Team Leader and four specialized
teams. In addition, another 46 members are responsible for hygiene
inside their production departments, another group comprises the
Emergency and Environment Team; all of these teams report to the
General Director and Committee of Labour Protection.
SAFETY AND HYGIENE AT WORK PERFORMANCE
The number of employees affected by work place safety and
hygiene in 2014 was 53, accounting for 5.5%.
Accident Report Regulations - The company’s Healthcare Center
record accidents
in an accident logbook according to Annex 09, Circular
12/2012/TTLT-BLĐTBXH-BYT, which provides instructions on reporting,
investigation and recording of occupational accidents.
SAFETY AND HYGIENE IN PRODUCTION
- Periodically each six months, the Safety Committee submits
occupational accident reports of to the Department of Labor, War
Invalids and Social Affairs according to Annex 10 of Circular
12/2012/TTLT-BLĐTBXH-BYT.
Statistics in 2013-2014- Occupational Death Rate (ODR): 0%-
Leave Day Rate (due to occupational accident and
disease) (LDR): 0%- Absent Rate (due to occupational accident
and diseases)
(AR): 0%- Deaths related to occupational accident and
diseases:
None
Annual working conditions are evaluated by the Preventive
Medicine Center that records results stipulated by Circular
19/TT-BYT relevant to instruct management in issues of labour
hygiene, labor healthcare and occupational disease (low rate of
infection). Imexpharm has signed an agreement with its employees
about safety and healthcare; and has issued the following working
regulations:
Performance result in executing Regulations of Safety, Hygiene
in Work 2014:-Ensure hygienic working conditions- Equip employees
with protective clothing- Provide safety training- Regular health
check program- Strictly verify equipment
No Targets Unit Result
1
Employees
1.1. Total Person 957
+ Females Person 358
1.2. Direct Employees Person 402
+ Females Person 163
+ Employees working in hard and hazardous conditions (work-ing
condition types IV, V & VI)
Person
2
Occupational Accidents
- Total cases Case 0
+ Deaths Case 0
- Total number of victims Person 0
+ Deaths Person 0
- Total cost for occupational accidents (emergency, treatment,
salary on leaving day, compensation, allowances, etc.)
Million VND -
- Asset damage (in cash) Million VND -
Leave day dues to occupational accident Day 0
3
Occupational Disease
- Number of people contracting occupational diseases up to the
time of this report
Person 0
People contracting new occupational diseases Person 0
- Leave days due to occupational disease Day 0
- People receiving early retirement due to occupational disease
Person 0
Total cost for employees with occupational diseases during the
year (Expenditures exclude safety and hygiene at work such as:
treatment, salary on leave day, compensation, allowances, etc.)
Million VND 0
Details as follows:
-
SUSTAINABILITY REPORT 2014 33
4
Employee Health Classification
+ Type I Person 212
+ Type II Person 632
+ Type III Person 90
+ Type IV Person 23
+ Type V Person -
5
Training about Safety and Hygiene at Work
- Total trained employees/total current employeesPerson/
person
32
957
- Total trained safety-hygiene officers/Total current
safety-hy-giene officers Person/ person
7
7
- Total safety & hygiene trained staff/Total current safety
& hygiene trained staff Person/ person
33
46
- Safety certificated employees/Total employees working in
conditions requiring strict safety and hygiene requirements Person/
person
402
10
- Total trained employees Person 402
- Total training cost Million VND 2
6
Machines and Equipment Requiring Strict Safetyand Hygiene
condition
- Total Piece 8
+ Registered Piece 8+ Tested Piece 8
7Working Hours, Break Hours
- Average overtime hour per day per person Hour 04
- Average overtime day per 6 months per person Day 50
8Noxious Compensation
- Total employees Person 310
- Total cost VND/ month 117,000,000
9
Working Environment Evaluation
- Samples for environmental evaluation Sample 223
- Under standard samples Sample 0
- Admissible under standard sample/total sample
Sample
0/223
+ Temperature 0/27
+ Humidity 0/27
+ Wind velocity 0/27
+ Dust 0/27
+ Noise 0/27
+ Vibration 0/12
+ Toxic gas 0/27
+ Light 0/27
+ Magnetic field 0/22
10
Safety & hygiene cost
- Safety technical methods (staircase for air-conditioner
clean-ing, improve panel, etc.)
Million VND 160
- Hygiene technical methods (HVAC filter replacement, etc.)
Million VND 50
- Individual protective clothes (clothes, shoes, masks, etc.)
Million VND 150
- Labor healthcare (regular heath check, etc.) Billion VND 1
- Communication, training Million VND 20
- Others Million VND 5
SAFETY AND HYGIENE IN PRODUCTION (continued)
32
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SUSTAINABILITY REPORT 2014 3534
CUSTOMERS’ HEALTH ANDSAFETY IS OF UTMOST CONCERN
Machine/Equipment Name Manufac-tured by
Specification Most recent test (month/ year)
Next test(month/ year)
A B C
Compressed air tank (Peni factory)
VN 8kg/cm2 1000 lít - 12/2012 12/2015
Compressed air tank (Non factory)
VN 8kg/cm2 2000 lít - 08/2012 07/2015
Boiler using DO 1 VN 8kg/cm2 200 lít 700kg/h 02/2014 02/2016
Boiler using DO 2 VN 8kg/cm2 200 lít 700kg/h 06/2013 05/2015
Winch VN 0.25T 15m 0.16m/s 02/2014 02/2016
Office elevator VN 1T 25m 1m/s 05/2013 04/2018
Autoclave 1 Taiwan 1.5kg/cm2 49 lít - 11/2014 11/2016
Autoclave 2 Taiwan 1.5kg/cm2 49 lít - 11/2014 11/2016
Current Machines, Equipment Requiring Specific Industrial safety
standards, and status testing:
Specifications:
- Pressure equipment: A: pressure (kg/cm2); B: volume (liter);
C: capacity (kg/h)- Lifting equipment: A: capacity (ton); B:
aperture (meter); C: lifting velocity (m/s)- Other equipment: basic
specifications as other mentioned equipment
STRICT QUALITYMANAGEMENT SYSTEM
Imexpharm applies more than 100 quality management processes
from input to output in order to ensure absolute safety and product
quality.
In material purchasing, we apply a tendering process which
requires at least two European suppliers, requests for sample for
testing, and safe transportation from their factory to Vietnam
without impact on product quality. We take samples from each lot,
submit the samples to authorized offices for quality evaluation.
Vehicles are also strictly kept in good condition concerning
humidity and temperature and will be tested again before being
brought into the production facilities. Especially on the injection
medicine production line, we apply an advanced robotic system
imported from Bosch & Schrauber, Germany. Furthermore, in order
to ensure maximum safety, we use SAP – ERP software in production
to manage formulas and material volume. Before bringing finished
products to the market, they go through a bilateral quality
management process, which involves both authorized laboratories and
internal evaluation, or our multinational partner’s pharmaceutical
evaluation group. As a result, products must pass all safety and
quality evaluations at each stage of the production process.
SAFETY AND HYGIENEIN PRODUCTION (continued)
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SUSTAINABILITY REPORT 2014 37
CUSTOMERS’ HEALTH AND SAFETYIS OF UTMOST CONCERN (continued)
ENHANCING SAFETY ANDHEALTH FOR CONSUMERS
Despite our strict quality management processes, Imexpharm
accepts that product quality risk is still a possibility. This risk
is especially acute during market distribution. It is always a
possibility that the drug will be applied incorrectly, seriously
affecting the user’s health, and in turn, the company’s
reputation.
Currently, more than half of Imexpharm’s main products
equivalent to 5% of total products, have been tested via
bio-equivalence or clinical trial at the most reputable hospitals
in Vietnam in order to ensure safety and effectiveness for users.
Our goal is to ensure that 100% of our products are tested and
evaluated and deemed effective and has a positive impact on the
user’s health.
In addition, we apply other processes (see below) to manage our
product quality, while the drugs are in the market:
• Pharmacy Observation System (SOP 1.0.019): Acts as a legal
requirement about tasks and responsibilities of Pharmacy
Observation: Prevents
negative impact and harmful reactions when consumers take
medicine or have occupational contact; enhances safe and efficient
use of medicine by providing timely full information about medicine
use safety to patients, officers in charge of healthcare and the
community; protects health for patients and the community.
• Customer’s Complaint Handling Process (SOP 1.0.005): Ensures
that all comments regarding quality, safety, and efficiency of a
product, material faults, production, packing, and testing process
can be improved; maintains the reputation of the company.
Recognition in 2014:
• Pharmacy Observation: None• Customer complaint: One case
(Reason: Medicine and
pharmaceutical products were stored incorrectly at the drug
stores), was solved fast and satisfactorily for the customer.
SOCIALLY RESPONSIBLE PRODUCT: “PURE ANTIBIOTICS”
Our product quality is in compliance with the strict standards
of British Pharmacy (BP), European Pharmacy (EP) and United States
of America Pharmacy (USP). We have an advanced production line,
materials imported from Europe, US, Japan, South Korea, etc.,
advanced quality management system verified by reputable
pharmaceutical groups, all conditions have met patient’s treatment
demands with reasonable pricing. Experiencing in many years in
studying changes of Vietnamese diseases, Imexpharm has launched
more than 200 products of various types such as: antibiotics, pain
and fever relief, anti-inflammation, muscle-bone-joint, vitamins,
minerals, as well as products with specific applications like:
digestion, liver and bile system, cardiac and vascular system,
respiration system, central nervous system, hormone, endocrine and
metabolism system, ocular, allergy and immunity system, and a
variety of other products.
In 2014, Imexpharm cooperated with PharmaScience (Canada) to
launch a new, high quality, functional food product line to improve
customer’s health and prevent disease.
Labeling100% our products are labeled with information such as:
ingredients, impact mechanism, effects, directions, side effects,
etc., for consumer understanding. In addition, Imexpharm works to
minimize risk by encouraging
medical prescriptions and safety warnings for patients.No case
of non-compliant product labeling and service was reported in
2014.
Preventing Counterfeit MedicationRaising awareness that fake
medicine and pharmaceutical products are more popular and seriously
affect health of the community, we always highly appreciate the
spirit of fighting preventing patients from fake medicine and
pharmaceutical products. We have labeled to confirm the true
products and to ensure that Imexpharm’s products have not been
faked and launched in the markets.
“Pure” Antibiotics: Increasing Safety and Minimizing Side
Effects
Imexpharm absolutely does not use organic solvents in
production. Therefore, there is no risk of organic solvent
remaining in product, ensuring product safety for patients, and no
negative environmental impact during production.
Particularly, materials used to produce famous antibiotics such
as: pms-Claminat, pms-Pharmox, pms-Opxi, etc., are produced using
the fermentation (Enzymatic) method developed by DSM Group (Spain)
which includes no chemical catalysts, no remaining solvents, no
health harm and contributes to environmental protection. This
improvement is highly acclaimed by experts.
36
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SUSTAINABILITY REPORT 2014 39
EMPLOYEES ANDSUSTAINABLE DEVELOPMENT
Human resources come first in our sustainable development
strategy. To help our employees get in line with our development,
especially our management team, sales and intellectual labor and in
pharmacies, Imexpharm invests heavily in training. Recruitment,
attracting talent, utilizing training budget and opportunity cost
for training and re-training and employee retention play key roles
in the company. Thus, Imexpharm created a progressive benefits and
compensation package for employees, and continuously build up a
rich culture environment for recruiting and maintaining
talents.
Management Force by Gender
Management Force by Age
Average Training Hours by Gender
Compensations and Benefits:
Target2012 2013 2014
Quantity Rate % Quantity Rate % Quantity Rate %Total 853 100%
883 100% 962 100%
Male 516 60% 548 62% 597 62%
Female 337 40% 335 38% 365 38%
Management2012 2013 2014
Quantity Rate % Quantity Rate % Quantity Rate %
Total 101 100% 119 100% 156 100%
Male 55 54% 70 59% 94 60%
Female 46 46% 49 41% 62 40%
Target2012 2013 2014
Female Male Total Female Male Total Female Male Total
Total training hours 4,503 6,755 11,258 4,520 6,781 11,301 5,013
7,520 12,533
Total staff 337 516 853 335 548 883 365 597 962
Average training hours 13.36 13.09 13.20 13.49 12.37 12.80 13.73
12.60 13.03
Management2012 2013 2014
Quantity Rate % Quantity Rate % Quantity Rate %
Total 101 100% 119 100% 156 100%
Under 30 1 1% 6 5% 12 8%
30-50 years 73 72% 86 72% 117 75%
Over 50 27 27% 27 23% 27 17%
Compensation and Benefits Units 2012 2013 2014
Qty Amount Qty Amount Qty Amount
Healthcare (sick leave) person/VND 117
84,521,654 167 261,225,000 165 217,093,400
Social Insurance for employees terminating contract after
maternity leave
person/VND 18
307,798,800 24 560,227,200 54 719,868,200
Retirement allowances: 30 working day salary person 8
165,533,780
Share owning right: ESOP (5% circulating share, buying
price:12,000 VND/share person 167
Target2012 2013 2014
Quantity Rate % Quantity Rate % Quantity Rate %
Total 853 100% 883 100% 962 100%
Under 30 302 35% 332 38% 312 32.4%
30-50 years 513 60% 525 59% 591 61.4%
Over 50 38 4.45% 26 2.94% 59 6.1%
Male and young employees account for a majority of Imexpharm’s
labor force.
Imexpharm employs young generation of management accounting by
60% of male and 40% of female.100% of the General Management Board,
5/8 of the BOD members, and 1/3 of the Board of Supervisors are
from Dong Thap Province.
Manual labor based production requires Imexpharm to recruit a
higher percentage of male workers. However, the female labor force
always receives more training hours, as they account for majority
of the sales team and upper management.
At Imexpharm, everyone receives equal treatment, and has a labor
contract with collective labor agreements. We do not use child or
forced labor, with priority being given to candidates from Cao Lanh
City. Every employee has equal opportunity for training and
promotion.
(For more details about Labor mechanism, benefits, compensation
and training, please see Annual Report/Corporate Governance/Human
Resource for Sustainable Development)
Labor Force by Gender
Labor Force by Age
38
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SUSTAINABILITY REPORT 2014 41
EMPLOYEES AND SUSTAINABLEDEVELOPMENT (continued)
Employee’s income by age and gender (VND/person/month):
Imexpharm held 10 annual community activities in 2014:
Employee’s income by department and gender:
Age2012 2013 2014
Male Female Male Female Male Female
50 9,500,000 11,200,000 9,800,000 11,600,000 11,200,000
11,900,000
Department2012 2013 2014
Male Female Male Female Male Female
Production 8,400,000 8,700,000 8,200,000 9,500,000 9,100,000
10,300,000
Administrative 8,400,000 9,300,000 8,600,000 10,000,000
10,824,000 11,542,000
Sales 7,900,000 9,200,000 8,700,000 9,400,000 8,792,000
9,300,000
Generally, female employees have higher income as compared to
males of any age, and the average income for both females and males
increases as age increases.
Female income is always higher than that of males in every
department. Additionally, administrative department income was the
highest in 2014.
Employee’s income does not depend on working area, only an
additional allowance is added according to the employees’ living
area:
-HCM City, the East and the Central:
40,000 VND per day per person.
-Hanoi:
60,000 VND per day per person
CORPORATE SOCIALRESPONSIBILITY PRACTICE IN 2014
ACTIVITY TIMES PERYEAR EVENTPARTICIPANTS/BENEFICIARIES GOAL COST
(VND)
Provide clinical care and free medicine
12
Doctors from Hospital Dist. 2: 8 times; Doctors from University
Medical Center HCM: 4 times
Based on request from organs including local Hospital/People’s
Committee/Nation-al Battle front Committee/Youth Union
Total poor patients and policy served is 8.000 persons at 12
poor communes at provinces
Enhanced healthcare and medicine for people in remote areas and
families under preferential treatment policy
400,000,000
Educational Promotion program of Huynh Thuc Khang – Da Nang
1Fund of Educational Promotion Fund of Da Nang, Da Nang People’s
Committee, Education and Training Department
Students in Da Nang CityNational education development advancing
the next generation
100,000,000
Educational Promotion program of Nguyen Sinh Sac – Dong Thap
Province
1
People’s Committee of Dong Thap and Cao Lanh City, Fund of
Educational Promotion of Dong Thap, Education and Training
Department
Students and Teachers at Dong Thap Province
Provincial education devel-opment advancing the next
generation
550,000,000
Exemplary Students 4 Dong Thap Television Students at Dong Thap
Province
Provincial education devel-opment advancing the next
generation
48,000,000
Fund for Vietnamese Hero Mothers
12Vietnamese Hero Mothers in Dong Thap Province
Vietnamese Hero Mothers Repay for their Contribution
6,000,000
Badminton Competition for Medical Employees
1 Can Tho City Medical Department Employees working in medical
industry at Can Tho City
Health improvement and experi-ence exchange
80,000,000
Tennis Competition in the Mekong Delta
1 Local Health Department hosted 200 officials and employees
working in the medical sector in the Mekong Delta which includes 16
provinces
Health improvement and experi-ence exchange
440,000,000
Sponsored hats & shirts for examination support program
1 Trade Union of University Medical Center HCM
Contestants apply to Universi-ty Medical Center HCM
Support volunteer students in guiding students at hosting points
of the University Medical Center HCM
70,000,000
Scientific report con-ference of Medicine & International
Exhibition of Pharmaceutical Industry
1 University Medical Center HCM and Vietnam Pharmaceutical
Business Association
Medical experts Promote brands and products of Imexpharm through
the expertise at large scale conference 80,000,000
Educational Promotion Program 2014
1 Imexpharm/ Marketing Department performance
Children of our customers & pharmacies all over the
country
Encourage and praise customers children who have excel in
school.
600,000,000
TOTAL 2,374,000,000
Female employees come back to work after maternity leave:Target
Unit 2012 2013 2014
Female employees on maternity leave and baby care policy person
18 24 54
Female employees on maternity leave and baby care policy person
18 24 54
Females returning after maternity leave person 18 24 54
Coming back work after maternity leave and baby care % 100 100
100
40
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SUSTAINABILITY REPORT 2014 43
Increasing Access to Health Care and Medicinefor People in
Remote Areas
Operating in the pharmaceutical sector, Imexpharm finds health
protection paramount to ensuring social security. However, in
Vietnam, important health care quality indicators (such as health
care costs per person per year, the number of doctors and
pharmacists per capita, number of patient beds per capita) are
still very low when compared with other countries both within the
region, and around the world. In particular, people in remote areas
have difficulty accessing medical services which adds to the fear
of disease.
Understanding these difficulties, Imexpharm has, over the years,
cooperated with big hospitals in HCMC (such as the University
Medical Center HCMC, Cho Ray Hospital) to provide free medicine to
people in poor areas and by distributing to people in need around
the country. We conducted these activities annually by our
devotion, regardless of limited travel and commodity conditions.
Over hundreds of trips, thousands of people have been provided with
free medical care. Imexpharm will continue this journey to bring
health care to many more people, who might otherwise go
without.
Education FirstWith the goal of preserving and developing
traditional ways of Vietnamese learning spirit, the program of
Educational Promotion has been sponsored by Imexpharm and it has
been acknowledged by the community. Imexpharm has diligently
awarded thousands of scholarships and
CORPORATE SOCIAL RESPONSIBILITYPRACTICE 2014 (continued)
prizes to encourage pupils. These students (particularly the
gifted of Dong Thap Province, employee’s children, customer’s
children, and students specialized in medical study across the
country) benefit from and overcome challenges to get impressive
results at school. As a result, the General Director of Imexpharm
was recognized by the Prime Minister for his dedication to the
nation’s education.
Imexpharm has truly contributed to the sustainable development
of our country via their efforts in health care and education.
Beside mentioned annual activities, in 2014, Imexpharm joined the
program of “the Vietnamese priority is using domestic manufactured
products” launched by Ministry of Health
“The Vietnamese priority is using domestic goods” is one of the
messages from a launch of Government and this program was used to
encourage local consumers to use domestic goods. To these ends, as
a result of the Imexpharms’s efforts, the company has been awarded
the Ministry of Health’s “Vietnam Star for the best pharmaceutical
products” for the antibiotic pms-Claminat. In addition to
Imexpharm’s participation, the company also communicates this
message to employees in particular and to the community in
general.
REFERENCE TO GRI G4 INDICATOR GENERAL STANDARD DISCLOSURES
General Standard Disclosures Page Number (or Link) External
Assurance
STRATEGY AND ANALYSIS
G4-1 Page 2-3
ORGANIZATIONAL PROFILE
G4-3 Annual Report Page 14
G4-4 Page 11
G4-5 Annual Report Page 14
G4-6 Page 10
G4-7 Annual Report Page 14
G4-8 Page 10-11
G4-9Page 9 - 2014 Targets
Financial Statements audited by Deloitte Vietnam
G4-10 Page 38All Imexpharm employees sign long - term contracts
following probation period
G4-11 Page 38 - 100% employees engage in Collective Labor
Agreement
G4-12 Page 10 - 20 sales branches and nearly 40 intermediate
distributors nationwide
G4-13 Page 10 - In 2014, we established one more sales branch in
HCM City and prepared for office construction of other branches.In
2014, we increased our charter capital from 167.06 billion VND to
263.12 billion VND.We have traditional suppliers providing us
stable and qualified raw materials
G4-14 Page 4,14 - GRI, G4
G4-15 Page 4,14 - GRI, G4
G4-16 None
IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES
G4-17 Page 10 - We do not prepare consolidated financial
statements because all branches depend on accounting
G4-18 Page 14
G4-19 Page 17
G4-20 Page 17
42
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SUSTAINABILITY REPORT 2014 45
G4-21 Page 17
G4-22 None
G4-23 None
STAKEHOLDER ENGAGEMENT
G4-24 Page 14-15
G4-25 Page 14
G4-26 Page 15
G4-27 Page 15-16
REPORT PROFILE
G4-28 Page 4
G4-29 Page 4 - Report of Sustainable Development 2013 integrated
with Annual Report 2013
G4-30 Page 4 - Report is made annually in the same financial
year with Annual Report
G4-31 Page 4 - Contact details
G4-32 Page 4 - “Reference” GRI-G4, Page 39-42
G4-33 None
GOVERNANCE
G4-34 Page 12 - 13 & Annual Report, Page 30-32
ETHICS AND INTEGRITY
G4-56 Annual Report, Page 19 & Page 94
SPECIFIC STANDARD DISCLOSURES
DMA and Indicators Page Number (or Link) Identified
Omission(s)Reason(s) for Omission(s)
Explanation for Omission(s)
External Assurance
CATEGORY: ECONOMIC
MATERIAL ASPECT: ECONOMIC PERFORMANCE
G4-DMA Page 29
G4-EC1 Page 29 & Annual Report Page 4-6
MATERIAL ASPECT: MARKET PRESENCE
G4-DMA Page 39
G4-EC6 Page 39
CATEGORY: ENVIRONMENTAL
MATERIAL ASPECT: ENERGY
G4-DMA Page 18 - Consuming sustainable energy
G4-EN3 Page 18 - Consuming sustainable energy
G4-EN5 Page 18 - Consuming sustainable energy
MATERIAL ASPECT: WATER
G4-DMA Page 19 - Water is the heart of sustainable
development
G4-EN8 Page 19 - Water is the heart of sustainable
development
G4-EN10 Page 19 - Water is the heart of sustainable
development
MATERIAL ASPECT: EMISSIONS
G4-DMA Page 20, 21- Regular monitoring emissions
G4-EN15 Page 20, 21- Regular monitoring emissions
MATERIAL ASPECT: EFFLUENTS AND WASTE
G4-DMA Page 22-27 - Efficient management of waste & waste
water
G4-EN22 Page 22-27 - Efficient management of waste & waste
water
G4-EN23 Page 26-27 - Waste
MATERIAL ASPECT: OVERALL
G4-DMA Page 24
G4-EN31 Page 28 - Total cost andinvestment for environmental
protection
Total cost for environmental protection
have not yet completed report
CATEGORY: SOCIAL
SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK
JOB
G4-DMA Page 38
G4-LA2 Page 39
G4-LA3 Page 40
REFERENCE TO GRIG4 INDICTOR (continued)
44
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SUSTAINABILITY REPORT 2014 47
APPENDIX 1
MATERIAL ASPECT: OCCUPATIONAL HEALTH AND SAFETY
G4-DMA Page 30
G4-LA5 Page 30
G4-LA6 Page 30-31
MATERIAL ASPECT: TRAINING AND EDUCATION
G4-DMA Page 38
G4-LA9 Page 39
MATERIAL ASPECT: DIVERSITY AND EQUAL OPPORTUNITY
G4-DMA Page 38
G4-LA12 Page 39
MATERIAL ASPECT: EQUAL REMUNERATION FOR WOMEN AND MEN
G4-DMA Page 39
G4-LA13 Page 40
SUB-CATEGORY: SOCIETY
MATERIAL ASPECT: LOCAL COMMUNITIES
G4-DMA Page 41-42 - Corporate social responsibility practice in
2014
G4-SO1 Page 41-42 - Corporate social responsibility practice in
2014
SUB-CATEGORY: PRODUCT RESPONSIBILITY
MATERIAL ASPECT: CUSTOMER HEALTH AND SAFETY
G4-DMA Page 36
G4-PR1 Page 36
MATERIAL ASPECT: PRODUCT AND SERVICE LABELING
G4-DMA Page 37 - Socially responsible product: “pure
antibiotics”
G4-PR3 Page 37 - Labeling
The Open Letter and Questionnaires to whom may it concern
relevant to asking for consultationon Imexpharm’s Sustainable
Development issues.
OPEN LETTERDear Sir/Madam:………………………………… (Position – Company)
Imexpharm Pharmaceutical JSC is proud to send you this letter to
ask for your valuable advice.
Dear Sir/Madam,
In order to better meet the expectations of associated parties
(customers, partners, shareholders, investors, employees, local
authority, and the community), Imexpharm has been working
diligently to improve our operations not only in production,
business and products, but also towards the environment and
society. We also understand that communicating and listening to the
associated parties will help to increase efficiency, and bring more
benefits to Imexpharm and our stakeholders.
In 2014, we established the Committee of Sustainable Development
to communicate with you on economic, social and environmental
issues. Annually, we send you our Sustainability Report (BCPTBV)
under the framework of latest international standards. This will
help to increase transparency, and help us earn your trust.(Name)
is representative for group of associated parties and, as such, is
extremely important to us. Therefore, in order to make our
activities and the Sustainable Development Report meet your
expectations, please kindly take a moment to answer a few
questions. Your input is extremely valuable, not only contributing
to the sustainable development of Imexpharm in particular, but also
for the sustainability of the entire community where we live, work
and grow.
We are highly appreciate your support!
Deputy General Director
REFERENCE TO GRIG4 INDICTOR (continued)
NGUYEN QUOC DINH
46
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I. Kindly note your interest level in the following issues (1:
Low, 2: Medium, 3: High)
1. Performance and contribution to Dong Thap Province 1 2 3
2. Initial salary by gender and rate of senior managers employed
in Dong Thap Province 1 2 3
3. Rate of purchasing from the local suppliers in materials and
packaging 1 2 3
4. Volume of used materials and packaging, and recycled
materials 1 2 3
5. Energy consumption and reduction 1 2 3
6. Water consumption, affected sources and reused 1 2 3
7. Greenhouse gas emissions 1 2 3
8. Waste water and substance waste 1 2 3
9. Total cost and investment in environmental protection 1 2
3
10. Newly hired labor and labor exchange, benefits and
compensation for fulltime employees, rate of maternity leave return
1 2 3
11. Occupational safety and health 1 2 3
12. Education and training for employees 1 2 3
13. Equal salary for females and males 1 2 3
14. Activities involving local community 1 2 3
15. Customers’ health and safety 1 2 3
16. Information and product labeling 1 2 3
17. Following regulations regarding communication and marketing
1 2 3
II. In your point of view, what we should do to improve your
most concerned
issues?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….………………………………………………………………….
III. Besides the issues above, what other areas interest you and
why?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
Please reply to:Mr. Tran The Hao - Head of
SustainableDevelopment Committee, ImexpharmPhone: 093 807
5658Email: [email protected]
Ms. Nguyen Thi Kim Le – Vice Head of SustainableDevelopment
Committee, ImexpharmPhone: 098 290 7818Email:
[email protected]
Thank you!
QUESTIONNAIRE
48