213
OVERVIEW OF SBT CORPORATE GOVERNANCE OPERATION THROUGHOUT THE YEAR SUSTAINABLE DEVELOPMENT REPORT FINANCIAL STATEMENTSSBT - IMPRINT OF THE YEAR
COMMITMENT TO SUSTAINABLE
DEVELOPMENT FROM BOD CHAIRWOMAN
Sustainable development is central to TTC Bien
Hoa’s growth strategy at every stage, where
business strategies serve as both a development foundation and a competitive advantage in order to
maximize the sugarcane value chain. This initiative aims to provide the market with environmentally
friendly energy solutions derived from clean production
“GREEN”
the fourth consecutive year and remaining the only Sugar
company on the VNSI20 Index Basket list – the Top 20 listed
companies with the highest Vietnam Sustainability Index.
Additionally, SBT achieved additional milestones in 2020,
including being named one of the Top 10 National Green
Brands and Top 10 Sustainable and Green Enterprises. These
accolades help SBT fulll its mission of becoming “Indochina’s
leading solution provider of traceable and sustainable
agricultural products.”
We created a concise sustainability report in accordance
with GRI standards in order to communicate TTC Bien Hoa’s
business philosophy, which strikes a balance between
protability and social and environmental stewardship.
Our mission is business, and all of our activities must adhere
to ethical principles.
Following that is the basis for long-term growth and development. TTC Bien Hoa will continue to
maintain and improve its operations and programs with the goal of incorporating sustainable values
into every aspect of the standards for stakeholders
We are committed to transforming from conventional farming
practices to organic farming techniques, while also providing
in-depth agricultural solutions that contribute to sustainable
development goals. Consistent research investment enables
us to maximize the value of sugarcane and produce Sugar
by-products such as biomass electricity, microbial fertilizer,
and molasses. Diversifying sugarcane-derived products
helps SBT not only sustain material resources but also
minimizes by-products generated during manufacturing
processes, thereby protecting the surrounding environment.
The “green” business strategy empowered SBT to maximize
prots while also contributing to the local economies’ and
communities’ growth.
FY 2020-2021 witnesses TTC Bien Hoa being listed among
the “Top 20 companies listed in HOSE’s VNSI Index Basket” for
including Shareholders/Investors, Customers, Farmer, Employees, Local Community,
Government/ State agencies.
ECONOMIC SOCIAL ENVIRONMENTAL
TTC BIEN HOA
2020-2021 ANNUAL REPORT
214
COMPREHENSIVE TECHNOLOGY - VALUE SHARING
We commit to continuously improve each business procedure on a timely and responsive basis. We will continue
to make disclosures in our subsequent Reports. We are always open to suggestions and recommendations from
other stakeholders and endeavor to turn all commitments into actions, defining ourselves as one of the leading
businesses in the Vietnam Sugar industry.
COMMITMENTS AND ACTIONS WITH OTHER STAKEHOLDERS
Dang Huynh Uc My
Vice Chairwoman of the Board of Directors
SBT AT GLANCE CORPORATE GOVERNANCE OPERATION THROUGHOUT THE YEAR SUSTAINABLE DEVELOPMENT REPORT FINANCIAL STATEMENTSSBT - IMPRINT OF THE YEAR
SHAREHOLDER/ INVESTOR
• Strictly comply with State’s policies, regulations;
• Ensure transparency in information disclosure;
• Rights and benets of Shareholders, typically minority Shareholders, are protected;
• Aim to apply international standards in Corporate Governance, typically:
» Raise awareness about gender equality;
» Pay more attention to the Leader role of women in a modern economy.
TO CUSTOMERS
• Strictly abide by Food Safety and Hygiene regulations;
• Ensure product quality and consumer’s health;
• Diversify products, in particular, natural and organic products;
• Bring added value to Customers’ choice of products.
TO EMPLOYEES
• Create a professional, friendly, and dynamic workplace;
• Organize suitable training programs to upskill sta;
• Facilitate a solid and fair career path for employees;
• Ensure work safety, competitive compensation, and welfare policy.
TO GOVERNMENT/ REGULATORS
• Comply with the laws;
• Conduct business in accordance with our responsibilities to consumers’ health, the
environment, and society;
• Support state policies and act as an advocate for them.
TO THE LOCAL COMMUNITY
• Responsibly share values, work together to assist the community, and promote social security;
• Keep up with the strategy of Green and Renewable energy;
• Strictly adhere to regulations designed to protect the environment in which the Company
conducts business.
TO FARMERS/ AGRI-BUSINESS
• Establish policies to support, accompany, ensuring a stable income for farmers;
• Assist farmers nancially, invest in modern equipment and machinery, increase productivity,
free people from arduous tasks of manual labor;
• Oer jobs, improve skills, and foster knowledge for local labor forces.
215
SUSTAINABLE DEVELOPMENT
GOALS OF UNITED NATION
Sustainable development is regarded as the foundation of the majority of
businesses seeking for global expansion opportunities. As a result, TTC Bien
Hoa prioritizes sustainable development, incorporating it into all aspects of its
development strategies. In FY 2020-2021, TTC Bien Hoa continued to integrate
the Sustainable Development Report into the Annual Report according to
GRI’s Sustainability Reporting Standards. This report is also supported by the
Corporate Sustainability and Reporting for Competitive Business (CSRCB) under
GRI to help Vietnamese businesses improve their competitiveness and reporting
quality, thereby enabling them to participate actively in the global value chain.
17
TTC BIEN HOA
2020-2021 ANNUAL REPORT
216
COMPREHENSIVE TECHNOLOGY - VALUE SHARING
SBT AT GLANCE CORPORATE GOVERNANCE OPERATION THROUGHOUT THE YEAR SUSTAINABLE DEVELOPMENT REPORT FINANCIAL STATEMENTSSBT - IMPRINT OF THE YEAR
INVEST IN HUMAN CAPITAL
End poverty in all its forms everywhere
•
2,691 jobs for employees
•
~6,200 smallholders make their livelihood from sugarcane
End hunger, achieve food security
and improved nutrition and promote
sustainable agriculture
•
1.16 million tons of Sugar for domestic and international market
•
~66,000 ha of raw materials areas in Vietnam, Laos and Cambodia
Ensure inclusive and equitable quality
education and promote lifelong learning
opportunities for all
•
517 training courses, a YoY increase of 31%, including:
» 96 SBT Transformation Project training courses
» 27 successor development training courses
• 41,360 hours of training
•
7,680 registers
•
VND12 billions of training budget
•
60 seminars for Sugarcane-growing partners
Ensure healthy lives and promote
well-being for all at all ages
•
100% non-GMO sugarcane used in production
•
73 clean Sugar product lines
•
100% employees received periodic health care and health insurance
»
Employees are allowed to work from home alternately, antiseptic hand sanitizers
and masks were prepared for employees at the oce, and health declaration was
mandatory during the spread of Covid-19
•
Every 2 weeks periodic, carry out disinfection at oces and factories was
done during the spread of Covid-19
•
VND14 billion was contributed to the State’s “Covid-19 Prevention Fund”
•
150 tons of Bien Hoa Sugar was granted in the program “Million sweet things
from SBT”
•
160 tons of rice was donated by SBT to units ghting against Covid-19
in 3 countries: Vietnam, Laos and Cambodia
•
9,000 cans of Míaha canned sugarcane juice were delivered to patients and
frontline workers against the pandemic
•
18,000 gifts were given to poor households and people in dicult circumstances
Vietnam TTC Bien HoaObjectives
217
TTC BIEN HOA
2020-2021 ANNUAL REPORT
Ensure availability and
sustainable management of water
and sanitation for all
•
~1.6 million liters of Miaqua bottled pure water is generated from the evaporation
of sugarcane juice during sugar rening
•
~4 million m
3
of water was saved, total amount of used water decreased by 13%
•
100% of post-production wastewater was treated and utilized for cooling down
machines, watering plants, and farming sh. Wastewater treatment system meets
Vietnam Standard 40:2011/BTNMT
•
100% of factories and oces implement 5S in managing a healthy working environment
Ensure access to aordable, reliable,
sustainable and modern energy for all
•
~108 million KWh of total commercial electricity
•
>1 million tons of bagasse was put into production, creating electricity for internal
consumption and the national grid
•
13 solar power stations with a total capacity of ~12 MW serving TTC Bien Hoa’s
factories and oces
Build resilient infrastructure, promote
inclusive and sustainable industrialization
and foster innovation
• Oracle Cloud ERP system successfully
went live, connecting the entire system,
spanning 22 locations in four countries
Make urgent action to combat climate
change and its impacts
•
ISO 14001:2015 Environmental Management System in Manufacturing operations
Conserve and sustainably use the oceans,
seas and marine resources for sustainable
development
• 100% of factories are located in the mainland, a distance from the coast (+10km away
from the coast)
• Only one type of marine resource (sea salt) was used in the production process
Protect and develop forests sustainably,
conserve biodiversity, develop ecosystem
services, combat desertication, prevent
degradation, restore land resources
•
525 million red-eyed bees are released on raw Sugarcane areas in Vietnam and
Laos for pest control
• Sustainable farming techniques were used, including legume intercropping,
which resulted in an equivalent of 5 tons of organic fertilizer per hectare, returning
organic matter, and applying microorganisms to the soil after harvest which improved
soil microora and maintained soil health
• 7 Organic product lines meet EU and USDA (USA) standards
•
100% of Sugar products are controlled for quality according to standard procedures,
ensuring food safety before distribution
•
SEDEX - Corporate certication of ethical practices and social responsibility in the
supply chain
Make cities and human settlements
inclusive, safe, resilient, and sustainable;
reasonably allocate population
and labor by region
Ensure sustainable consumption and
production patterns
ENSURE ADAPTATION TO CLIMATE CHANGE AND SUSTAINABLE ENVIRONMENT
17 SUSTAINABLE DEVELOPMENT GOALS OF UNITED NATION (CONTINUED)
Vietnam TTC Bien HoaObjectives
218
COMPREHENSIVE TECHNOLOGY - VALUE SHARING
SBT AT GLANCE CORPORATE GOVERNANCE OPERATION THROUGHOUT THE YEAR SUSTAINABLE DEVELOPMENT REPORT FINANCIAL STATEMENTSSBT - IMPRINT OF THE YEAR
Achieve gender equality and empower
all women and girls
•
100% female employees are guaranteed benets according to regulations
•
92% of women returned to work after maternity leave
•
43% of BOD members are female
•
25% of BOM members are female
•
24% of female employees are middle managers or higher
•
100% of employees are reviewed periodically for reward
Promote sustained, inclusive and
sustainable economic growth,
full and productive employment
and decent work for all
•
VND14,925 billion Net revenue
•
VND784 billion Prot before tax
•
VND152 billion Tax contribution to the State
•
VND137 billion Staff welfare expenses
»
VND43 billion total cost of insurance
»
VND94 billion other benets
•
VND33 billion support fund to Sugarcane-growing partners who needed capital
Strengthen the means of implementation
and revitalize the global partnership for
sustainable development
•
27,351 hectares of raw material areas in Laos and Cambodia
•
24
+
countries and territories have TTC Bien Hoa’s products in their markets
•
CORETREND - The Korean Investment Fund has been converting all VND172
billion worth of bonds into nearly 12 million common shares
•
DEG - German Development Finance Institution: continued to cooperate in sustainable
development projects
•
KPMG partnered with SBT to implement the Transformation project
•
ED&F Man Sugar - one of the world’s three largest Sugar companies
– continued to collaborate on the export of organic Sugar to Europe
PROSPERITY AND COOPERATION
Reduce income inequality within
and among countries
•
341 jobs for Lao workers
•
3 countries: Vietnam, Laos, and Cambodia, have standardized working procedures
• Standardized remuneration and bonus policy for sales team nationwide
• Supported employees working in Laos and Cambodia
•
120 social security funding programs was deployed in 3 countries Vietnam, Laos
and Cambodia
•
5 districts of Attapeu province - Laos was given nancial support by TTC Bien Hoa
to ght against Covid-19
Promote peaceful and inclusive societies
for sustainable development, provide
access to justice for all and build eective,
accountable and inclusive institutions at
all levels
•
Every 3 months, the Company holds periodic dialogue with employees
•
An annual Employee conference was organized
PROMOTE JUSTICE, PEACE AND INCLUSIVE GOVERNANCE
Vietnam TTC Bien HoaObjectives
Vietnam TTC Bien HoaObjectives
219
STAKEHOLDERS’ ENGAGEMENT
TTC BIEN HOA
2020-2021 ANNUAL REPORT
IDENTIFYING AND SELECTING STAKEHOLDERS
APPROACH TO
STAKEHOLDER ENGAGEMENT
As the leader in Vietnam Sugar industry in all aspects, ranging from market share, production
capacity, product portfolio to business network, TTC Bien Hoa has been in reciprocal relationships
with a large circle of Stakeholders, each of whom plays the role of a keystone for the Company’s
subsistence, operation, and development. In recent years, the Company has carefully assessed
the relationship and the level of interaction with each entity across the key Stakeholder groups;
and appropriate response measures, code of conduct as well as interaction are introduced therefrom.
TTC Bien Hoa has thus adopted various Stakeholder engagement approaches consisting of surveys,
interviews, feedback, reports, specialized seminars, investor relations event series, etc. for six main
groups of Stakeholders, namely Shareholders/Investors, Customers, Farmers/Agribusiness owners,
Employees, Local communities, and Authorities/State agencies.
PROCESS OF IDENTIFYING STAKEHOLDERS
1 2 3 4
Identify direct
and indirect stakeholders
Identify the priority
between stakeholders
Consult, and collect
stakeholders’ feedback
for timely response
Review, assess and select
approaches harmonizing
interests of all stakeholders
GRI
102-42
GRI
102-43
220
COMPREHENSIVE TECHNOLOGY - VALUE SHARING
SBT AT GLANCE CORPORATE GOVERNANCE OPERATION THROUGHOUT THE YEAR SUSTAINABLE DEVELOPMENT REPORT FINANCIAL STATEMENTSSBT - IMPRINT OF THE YEAR
INTERACTION BETWEEN TTC BIEN HOA AND STAKEHOLDERS
Source: TTC Bien Hoa
DEPENDENCE ON TTC BIEN HOA
IMPACT ON TTC BIEN HOA
0
0
0,5
1
1,5
2
2,5
3
3,5
4
0,5 1,5 2,51 2 3
Customers
Farmers/Agribusiness owners
Employees
Local authorities
Authorities/State Agencies
Shareholders/Investors
STAKEHOLDERS’
TTC BIEN HOA
SHAREHOLDERS/INVESTORS
CUSTOMERS
FARMERS/AGRIBUSINESS OWNERS
EMPLOYEES
LOCAL COMMUNITIES
AUTHORITIES/STATE AGENCIES
221
ECONOMIC SOCIALENVIRONMENTAL
GRI 201: Economic performance
GRI 202: Market presence
GRI 203: Indirect economic impacts
GRI 301: Materials
GRI 302: Energy
GRI 303: Water
GRI 305: Emissions
GRI 306: Euents and waste
GRI 307: Environmental compliance
GRI 401: Employment
GRI 403: Occupational health and safety
GRI 404: Training and education
GRI 405: Diversify and equal opportunity
GRI 413: Local communities
GRI 416: Customers’ health and safety
GRI 419: Socio-economic compliance
TTC BIEN HOA
2020-2021 ANNUAL REPORT
MATERIALITY MATRIX
0
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
0.5 1.5 2.51 2 3 4 5 5.53.5 4.5
GRI 307
GRI 303
GRI 302
GRI 419
GRI 416
GRI 413
GRI 306
GRI 301
GRI 401
GRI 403
GRI 404
GRI 405
GRI 202
GRI 203
GRI 201
GRI 305
Source: TTC Bien Hoa
IMPACT ON SBT
IMPACT ON STAKEHOLDERS
CRITICAL AREA ASSESSMENT
STAKEHOLDERS’ ENGAGEMENT (CONTINUED)
(sales, delivery). Such eective management of the Sugar
value chain plays a major role in ensuring the stable and
sustainable development of the Company. Based on the
assessment of the key concerns raised by Stakeholders
who share the ground with the Company, the Company’s
sustainable development strategy as well as with the United
Nations’ 17 sustainable development goals, TTC Bien Hoa has
determined a matrix of 13 material topics:
TTC Bien Hoa operates in the consumer goods industry
with production areas and large raw material areas residing
in 3 countries Vietnam, Laos and Cambodia. The Company
also owns a nationwide distribution system and expands
to 24
+
export markets under a closed-loop process of Raw
materials (Sugarcane material investment, Sugarcane and
equipment procurement, raw material and equipment
inspection) - Production (production, nished products
inspection, nished products storage) - Consumption
222
COMPREHENSIVE TECHNOLOGY - VALUE SHARING
SBT AT GLANCE CORPORATE GOVERNANCE OPERATION THROUGHOUT THE YEAR SUSTAINABLE DEVELOPMENT REPORT FINANCIAL STATEMENTSSBT - IMPRINT OF THE YEAR
KEY TOPICS AND CONCERNS RAISED
GRI
102-44
In order to ensure honesty, transparency, and eciency in all activities, TTC Bien Hoa has always strived to build and
perfect its interaction with Stakeholders; thereby granting these parties easy access to voice opinions and harmonizing
Stakeholders’ interests. Ultimately, we aim at fostering a sustainable value chain with a focus on medium and long-term benets
for the Company and Stakeholders.
• Business results demonstrate sustainable, medium and long-term development over the year.
• The stock market price reects the internal resources and the potentiality of the Company.
• Internal values of the Company see consistent and sustainable growth.
• Information disclosure is carried out in compliance with international standards, facilitating the
continuity, consistency, transparency and credibility of the information.
Concerns
• Dividend payment: 8% in cash for FY 2017-2018, and
5% for FY 2018-2019. The share dividends of 5% for FY
2019-2020 is expected to be paid in 2021;
• 14 well-established ETFs and index owns over
18 million SBT shares;
• SBT continues to be listed in the VNSI20 Index Basket;
• Top 5 Best Corporate Governance of 2020 - Large Cap
Group - HOSE;
• Top 10 Best Annual Report Worldwide in 2020 - LACP;
• Top 10 Asian-Pacic Outstanding Brands in 2021;
• Top 50 Best listed companies in 2021 – Forbes Vietnam.
Achievement
• Meet and consult directly and indirectly through AGM or collection of shareholders’written opinions.
• Participate in forums, investors meetings organized by domestic and international.
• Securities companies, investment funds, nancial institutions.
• Receive feedback, provide information, and respond to requests via phone, email, annual report,
sustainability report, press release, investor bulletin, FS explanation; update information on business
activities, stocks, capital market, and etc.
Approach
SHAREHOLDERS/INVESTORS
1
4
2
6
35
1
4
2
6
35
• High-quality products at reasonable prices.
• Diverse product portfolio.
• Prestige brand name.
• Easy access to products.
• Preferential sales policy.
• Excellent customer services and after-sales services.
Concerns
• Domestic market shares remained at 46% in FY 2020-
2021, global export markets rose to 24
+
;
• Ongoing collaboration with ED&F Man Sugar, one of
the world’s top 3 largest Sugar merchants, to export
organic Sugar to Europe;
• The portfolio comprises more than 73 Sugar product
lines, 11 By-products lines, 6 beverage lines
and 1 solar power business;
• Hold many signicant domestic and international
certications, including ISO 9001:2015, ISO
14001:2015, and ISO/IEC 17025, Certication of FSSC
22000 version 05, Sedex system certication, FDA
certication, Organic certication accordance with
the standards of the US Department of Agriculture
(USDA), the EU and China, Fair Choice and Fair Trade
certication, etc.
• Top 50 Vietnam Leading Brands in 2020 - Forbes
Vietnam.
Achievement
• Meet and exchange information in person with Customers.
• Conduct Customer satisfaction surveys and product quality evaluations in 4 main distribution channels.
• Work side by side with Customers in R&D activities.
• Collect Customers’ feedback via email and phone.
• Formulate long-term partnership policies with distributors and major Customers.
• Hold seminars and training courses with the participation of leading manufacturers in quality management
• Organize “Food safety” seminars for customers.
Approach
CUSTOMERS
223
TTC BIEN HOA
2020-2021 ANNUAL REPORT
• Otake agreements;
• Stabilize procurement policies;
• Commitment to the minimum purchase price;
• Compliance with provisions of the agreement;
• Support in farming techniques, technology transfer, mechanization, and capital investment;
• Easy access to the latest information and trends in the Sugar industry, both in Vietnam and in the world.
Concerns
Purchase price policies:
• The steady purchase price under TTC Bien Hoa’s contract
farming for three successive seasons, boosting sugarcane
growers’ average income from VND28 to 40 million/ha;
• Sugarcane price guarantee policy helps stabilize Farmers’
income.
Capital support policy:
• Up to 100% of total land rents and production costs are
nanced through loans;
• The Company is willing to make advance land
lease payment in 3 years on behalf of Sugarcane-
growing partners, with the amount ranging from
VND12 to 20 million/ha;
• Non-refundable investments in agricultural infrastructure
and sugarcane care.
Policy on technical assistance in cultivation:
• Farmers were provided means to buy good quality
sugarcane varieties, fertilizers, machinery, and equipment,
etc. at a low cost;
• Farmers were provided comprehensive mechanization
from soil preparation, fertilizing to harvesting;
• The Company helped farmers update current knowledge,
develop their skills and competency to apply advanced
technology into their works;
• The Company carried out and transferred the scientic
applications on sugarcane to Farmers at Sugarcane R&D Center.
Achievement
• Adopt purchase commitment policies appropriate to each period to avoid the situation where great yield
is aected by low market prices;
• Agricultural extension sta regularly conduct surveys and ensure eective communication through
two-way feedback;
• Foster direct discussion between Farmers and the BOM/Farm Managers, R&D Department, Company’s factories;
• Organize seminars, training courses, and guidance programs for farmers;
• Hold end-of-season review meetings.
Approach
FARMERS/AGRIBUSINESS OWNERS
• Professional and dynamic working environment;
• Guaranteed occupational health and safety;
• Competitive compensation and welfare policy;
• Appropriate training programs to upgrade skills and knowledge;
• Promotion opportunities;
• Succession training.
Concerns
• Top 50 Best Workplaces in Asia;
• Remuneration and welfare policy, compensation
policy, emulation and commendation regulation
etc. were updated in a transparent manner, helping
employees enjoy a stable life;
• Employees were provided with 517 training
courses to broaden knowledge and sharpen
professional skills. The total cost of training in FY 2020-
2021 was VND12 billion;
• The Company helped employees build a clear career path.
In FY 2020-2021, 80 employees received promotions;
• Working conditions were safe. In FY 2020-20201 no
violations against occupational health and safety occurred.
Achievement
• Provide internal training, regularly engage experts in coaching teams in order to enhance Corporate
Governance knowledge and skills, expertise, working experience and soft skills;
• Oer new employees onboarding programs, from basic to intensive training;
• Issue appropriate compensation and welfare policy as well as continue to research, update, and develop
welfare policy in order to improve employees’ material and spiritual well-being;
• Conduct an employee satisfaction survey on the working environment and compensation and welfare policy;
• Collect employee feedback via phone, email, and social network;
• Hold internal contests to identify and nurture talents across working areas.
Approach
EMPLOYEES
STAKEHOLDERS’ ENGAGEMENT (CONTINUED)
1
4
2
6
35
1
4
2
6
3
5
224
COMPREHENSIVE TECHNOLOGY - VALUE SHARING
SBT AT GLANCE CORPORATE GOVERNANCE OPERATION THROUGHOUT THE YEAR SUSTAINABLE DEVELOPMENT REPORT FINANCIAL STATEMENTSSBT - IMPRINT OF THE YEAR
Concerns
• Develop the local economy;
• Create employment opportunities;
• Increase income for local labors;
• Maintain a responsible approach to production and business for the sake of customers’ health,
environment, and society;
• Ensure corporate social responsibility;
• Contribute to local development;
• Protect nature and the living environment of Community.
• Top 20 Listed Companies in VNSI 20 Index - HOSE;
• Top 10 National Green Environment Brands;
• Donated nearly VND30 billion to voluntary activities;
• Created 2,691 local jobs.
Achievement
• Collaborate with local authorities in sponsorship activities dedicated to the Communities where
accommodate the Company’s establishments;
• Boost activities orienting towards local development, community health, social security, etc;
• Participate in voluntary activities held in localities where the Company operates or invests;
• Prioritize recruiting local labors, and oer training courses - scholarships - internship programs: improving
local labors’ income and competence;
• Deploy mechanization roadmap, provide machinery and equipment to farmers: ensuring job security for
local laborers;
• Implement environmental protection programs.
Approach
LOCAL COMMUNITIES
• Strict compliance with the law;
• Support for the State’s policies and programs.
Concerns
• No violations against the law, environment protection,
or social commitment;
• The Company contributed to the making of crucial
relevant industry policy, ghting against sugarcane
smuggling and formulating development strategy for
Vietnam Sugar industry;
• Proactively following the Sustainable Development policies.
• Thousands of jobs were created for local laborers which
helped improve the local economy;
• The Company paid nearly VND152 billion in
corporate income tax.
Achievement
• Fulll all legal obligations: taxation, insurance, occupational health and safety, food safety, etc.
• Assume the role and responsibility of an industry-leading company by participating in activities launched by
the Sugarcane Association: providing insights into the making of industry policy, ghting against sugarcane
smuggling and making eorts in formulating the development strategies for Vietnam Sugar industry;
• Voice opinions on drafted legislation related to the Company’s activities, agriculture and other relevant
operations;
• Discuss with State Agencies to have a better mutual understanding and solve existing problems/
diculties of business;
• Participate in activities and programs initiated by State Agencies in order to support the community
and society.
Approach
AUTHORITIES/ STATE AGENCIES
1
4
2
6
35
1
4
2
6
3
5
225
ECONOMIC TOPIC
TTC BIEN HOA
2020-2021 ANNUAL REPORT
ECONOMIC
PERFORMANCE
The key objectives related to economic performance that TTC Bien Hoa follows in FY 2020-2021 and directions for the
following years include:
• Produce and improve core products while developing, diversifying valued-added product portfolios and energy solutions such as Rock
Sugar, Liquid Sugar, Mix Sugar/ Powdered Sugar.
• Become a solution provider that understands market trends and consumer psychology, thereby enhancing market share expansion.
• Manage centralized supply chain to optimize resources eciency, proactively implement inventory management aligned with
business strategy.
• Adopt a digital-centric approach, in which initially establishing an ERP-integrated governance system and applying cloud computing
to mitigate costs while optimizing operational performance.
• Manage nance according to international standards, allocating budget eectively to increase the protability of the Company,
Shareholders and Investors.
• Build talented, competent teams to manage business knowledge, hence ensuring eective operation.
• Ensure stable income for Employees and Farmers to help improve their livelihood.
KEY
TOPIC
TTC Bien Hoa’s sustainability strategies are xated on generating long-term benets to Shareholders/ Investors, Customers,
Farmers, Employees, Communities and Authorities.
In FY 2020-2021, TTC Bien Hoa puts its focus on managing these aspects:
• Prioritize developing organic agriculture, enhancing raw organic material areas.
• Improve Sugar by-products and provide sugarcane-based energy solutions, particularly canned sugarcane juice products, to complete
the value chain.
• Concentrate on developing customer service policy, maintaining market shares in the South, while expanding market in the North and
Southwest, and penetrating new export markets.
• Restructure the consumer distribution network to capitalize on the synergy.
• Speed up the digital transformation process.
• Ensure transparency in business, and fulll all economic obligations in accordance with State’s regulations.
• Leverage the competitive edge in capital access with good interest rates and restructure nance toward fund optimization.
• Establish a salary structure for each position with exible welfare policies, typically during the pandemic, to ensure a stable income
for Employees.
• Proactively adjust sugarcane purchase policy in line with the market circumstances to ensure the Farmers’ income.
MANAGEMENT
APPROACH
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DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED
OPERATING COSTS
TTC Bien Hoa controlled cost well, optimizing expenditure while ensuring the target
implementation. As a result, the cost of goods sold in FY hit VND12,709 billion,
up 11% YoY yet still lower than 16% revenue growth YoY. Cost of goods sold (COGS)
and General & administrative (G&A) expenses, accounting for approximately
3.6% and 3.8% of revenue structure respectively, were well maintained by the
Company, similar to the previous year.
VND BILLION
UP 18% YOY
REVENUE FROM SUGAR
14,125
VND BILLION
UP 56% YOY
REVENUE FROM FERTILIZERS
103
VND BILLION
UP 11% YOY
THE COST OF GOODS SOLD
12,709
VND BILLION
UP 13% YOY
REVENUE FROM ELECTRICITY
189
Net revenue reached VND14,925
billion, up 16% YoY. 5-year CAGR
for net revenue hit 35% and was
expected to remain stable in years
to come. These results are attributed
to the Company’s relentless eorts
to maximize revenue across various
technology improvement projects,
aiming to reduce costs and enhance
production productivity. The goal is
to turn TTC Bien Hoa into “Indochina’s
leading solution provider of traceable
and sustainable agricultural products.”
In FY 2020-2021, Sugar was still the main contributor to revenue, comprising
95%, equivalent to VND14,125 billion, up 18% YoY. Gross prot rocketed to
VND2,216 billion, up 52% YoY. Besides, Revenue from Sugar by-products increased
remarkably. For example, Revenue from fertilizers hit VND103 billion, up 56% YoY
thanks to an increase in the proportion of commercial fertilizer; Revenue from
electricity reached VND189 billion, up 13% YoY, accounting for 1.3% of revenue
structure, attributed to the resue of bagasse for electricity generation, and rooftop
solar PV system in the Company’s factories. In FY 2020-2021, regarding the core
activities, the Company has leveraged the domestic advantages, particularly the
adopted trade remedy taris, to increase the output of the B2C and Trade channels
by 14% YoY and 5% YoY respectively. In addition, TTC Bien Hoa also promoted export
activities with a 31% YoY growth, upholding the Company’s position and inuence
in the international market. Regarding non-core activities, notably electricity,
TTC Bien Hoa’s pioneering in renewable energy has greatly reduced the dependency
on fossil fuel and maintained the ecosystem balance, which contributes to a more
sustainable Vietnam Agriculture.
While Vietnam Sugar industry struggled with cyclical challenges, several changes in tax policies, and the
severe impact of the Covid-19 pandemic, TTC Bien Hoa still spent the FY 2020-2021 with achievements
beyond the set target, continued to maintain its market shares of 46%.
REVENUE
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TTC BIEN HOA
2020-2021 ANNUAL REPORT
ECONOMIC TOPIC (CONTINUED)
PAYMENTS TO PROVIDERS OF CAPITAL
PAYMENTS TO GOVERNMENT
By the end of FY 2020-2021, the positive changes in the Company’s debt-related
and nancial leverage ratios proved that TTC Bien Hoa has accomplished the
goals of restructuring and capital optimization. Notably, the ratio of total debt to
total liabilities decreased from 81% to 78%. Along with a shift in debt structure,
which increased long-term debt and reduced short-term debt, these changes
were aligned with the long-term development strategy of the Company’s Leaders.
On a closer look, the ratio of long-term debt to total liabilities increased from 13%
to 28%, equivalent to VND3,342 billion, while the ratio of short-term debt to total
liabilities decreased from 68% to 49%, reached VND6,050 billion. Furthermore,
in the last FY, TTC Bien Hoa continued to ensure its obligations to pay capital costs to
investors through the increase of interest coverage ratio from 1.75 to 2.13. Regarding
equity issuance, Stakeholders shall include Shareholders and strategic Investors.
To ensure Shareholders’ rights and benets, on September 13
th
, 2021, TTC Bien
Hoa’s BOD has approved the Resolution on implementing the share issuance plan
to pay dividends at the rate of 5% for FY 2019-2020, eective in Quarter 4 of 2021.
In the last 13 years, the Company has invariably paid dividends to Shareholders in
cash or by shares in due time, in which cash dividends dominate with 9/13 times.
As for preferred stocks, Investors receive preferred dividends in 6.5 years, with a xed
annual dividend of 5.5% for the rst 1.5 years. Then, the payment would depend
upon the agreement between the Company and Investors.
to FY 2020-2021, and aligned with the revenue growth rate during the process
of business expansion. Taxes and other payables in FY 2020-2021 totaled
VND1,022 billion.
Tax structure and other payables to the State in FY 2020-21 (increase)
FY 2020-21
(VND billion)
FY 2020-21
(% proportion)
Corporate income tax
161 15.8%
Import-export tax
- 0%
Value-added tax
781 76.4%
Personal income tax
16 1.6%
Others 63 6.2%
TTC Bien Hoa’s orientation towards the
“Community-led local development”
has always been reected in the
Company’s social responsibility since its
interception. With the commitment to
contribute to the growth of the country
as a whole and the localities where
TTC Bien Hoa runs its business, the
Company constantly fullls its tax
obligations to ensure transparent
compliance. Along with the continuous
development of the Company’s size, the
payable taxes also increase accordingly.
In FY 2020-2021, the current corporate
income tax reported VND146 billion,
consistent with compound growth of
54% in the period from FY 2015-2016
THE RATIO OF TOTAL DEBT TO
TOTAL LIABILITIES DECREASED
FROM 81% TO
78%
THE INCREASE OF INTEREST
COVERAGE RATIO FROM 1.75 TO
2.13
228
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FINANCIAL IMPLICATIONS AND OTHER RISKS
AND OPPORTUNITIES DUE TO CLIMATE CHANGE
FINANCIAL ASSISTANCE RECEIVED FROM THE GOVERNMENT
Storm
Sugarcane collapse, quality
reduction, and harvesting cost
increase, high sugarcane loss
Productivity, CCS, and sugar yield from
falling sugarcane would drop by 11-15%,
3-12%, and 15-35% respectively
• Plant sugarcane deeply enough to reduce the falling rate
• Apply by-products, root boosters to increase the root ability to anchor
the plant and nutrient intake
• Remove sugarcane leaves to aerate the elds clear
• Opt for climate-resilient varieties with strong root systems in stormy and
windy areas
Flooding
Physiological change, reduction
in weight, productivity and Sugar
recovery
In case of prolonged inundation,
productivity reduces by 20-25%, while
weight decreases by 23%
• Plan and rearrange the elds, renovate infrastructure, dredge ditches and ponds
• Plant sugarcane into ridges in lowland areas or start new crops after the
summer-autumn crop
• Choose ood-resistant varieties suitable for each area
• Monitor elds by using drones for ood detection
Drought
Productivity reduction Productivity reduces by 30-50%, especially
in the Coastal regions of Vietnam
• Increase soil moisture retention: apply moisture gel, organic fertilizer,
retain leaves, subsoil plowing, etc.
• Choose drought-resistant varieties suitable for each area
• Invest in irrigation systems, adopt appropriate policies for each area
• Implement water-saving or reuse irrigation systems in areas with water scarcity
La Nina Create abnormal weather phenomena
which leads to productivity reduction
or even complete crop loss if not
managed properly
Productivity reduces by 10-15% depending
on the impacts of La Nina in each region
• Carry out the weather and climate monitoring for La Nina’s impact evaluation
• Diversify measures in response to weather changes: proactive irrigation,
canal improvement, development of varieties resilient to extreme
weather, etc.
Flooding
and Drought
Advantages over other crops Sugarcane has better tolerance than other
short-term crops under ooding and
drought conditions. Therefore, in areas prone
to ooding and drought, sugarcane has
a competitive advantage, suitable for the
strategies of raw material area expansion
• Invest in areas of poor conditions with solutions mentioned in the risk
part, helping stabilize raw material areas
• Increase intensive farming to raise productivity and maximize farmer’s
prots in lands blessed with a favorable climate
Name
Economic implications due
to risks/ opportunities
Financial impacts before applying
management measures
Risks/opportunities management measures
RISKS
OPPORTUNITIES
Climate change is posing tremendous challenges for all countries, especially
those with nature-dependent agriculture like Vietnam. As a leading agricultural
company in Vietnam, TTC Bien Hoa actively controls and informs management
plans to minimize weather impacts on farming activities. In FY 2020-2021,
the Company carried out a variety of solutions in which technology plays
a signicant role in responding to the weather that escalates seriously and
unpredictably over time.
In line with the Government’s orientation of Agriculture development, on June 22
nd
, 2015, the Ministry of Finance issued
Circular No.96/2015/TT-BTC, allowing the companies in the Sugar industry to enjoy the preferred CIT of 10% on the revenue
earned from Sugar production and business. Subsidiaries are also obliged to pay CIT at the rate of only 10% to the common
tax rate on taxable income. These subsidiaries are entitled to the CIT’s exemption and reduction following respective business
licenses and the applicable tax laws. This is viewed as active support from the Government to the Sugar industry against the
competition coming from international markets.
GRI
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229
TTC BIEN HOA
MARKET
PRESENCE
TTC Bien Hoa always focuses on creating favorable conditions for employees’ development
by establishing remuneration, welfare policies on the premise of fairness, gender equality
and competence.
The Company ensures a competitive wage policy compared to the local minimum wage,
enables stable income and improves standards of living for the employees.
Contribute to social security improvement, hence build a strong community via local
job creation.
KEY
TOPIC
Establish salary structure for each position, based on experience, based on educational background,
and level of contribution to the Company.
Implement and ensure competitive remuneration, welfare policies compared to those in the
market, constantly update and adjust following Government’s regulations.
Carry out a periodical survey on the working regime, remuneration, and then based on their work
performance and contribution to adjusting the wage, thereby motivating employees to improve
their productivity.
MANAGEMENT
APPROACH
RATIOS OF STANDARD ENTRY-LEVEL WAGE COMPARED TO
LOCAL MINIMUM WAGE
Aiming at ensuring a healthy life and welfare enhancement for all people of all ages, the Company upholds a policy of creating
stable jobs for local laborers. The employees, from unskilled workers to specialists, all enjoy an entry-level wage higher than the
local minimum wage, which promotes stability in their income. The dierence between the income of TTC Bien Hoa’s employees
with the local minimum wage is from 41% to 233%, depending on the location and region.
Local minimum wage and entry level wage of TTC Bien Hoa’s employees
Local minimum wage Entry level wage of the Company’s unskilled worker
Entry level wage of the Company’s employees Entry level wage of the Company’s specialists
(Unit: million VND)
4.0
8.0
12.0
16.0
Gia Lai Tay NinhKhanh Hoa Dong Nai Hochiminh City
3.1
5.0
6.5
9.6
3.4
6.0
8.1
11.4
3.9
6.4
9.0
10.9
4.4
6.2
7.2
11.4
4.4
7.1
9.3
13.7
Source: TTC Bien Hoa Note: The income above does not include benets for employees
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LOCAL ECONOMIC DEVELOPMENT
GREEN AND SUSTAINABLE DEVELOPMENT OF VIETNAM’S SUGAR INDUSTRY
The Company has oered jobs to more than 6,200 local farmers, helped them stabilize
their income and gain protability with sugarcane. Geared toward accompanying
farmers, in FY 2020-2021, the Company disbursed an amount of VND33 billion in
terms of nancial support and technology investment, encouraging farmers to stay
in the business, and thus developing a sustainable Vietnam’s Sugar industry.
In addition to policies on nancial aid and purchase price, TTC Bien Hoa also
places emphasis on philanthropic activities in various localities. In the previous FY,
the Company implemented more than 120 social welfare programs in 3 countries,
including Vietnam, Laos, and Cambodia, with a total budget of nearly VND30 billion
to support the disadvantaged people aected by Covid-19 in the areas where the
Company operates.
Bearing in mind the mission to elevate Vietnam’s Sugar industry, in March 2021,
TTC Bien Hoa ocially established Thanh Thanh Cong Agricultural Research
Institute (TTC ARI, formerly known as Thanh Thanh Cong Sugarcane Research and
Development JSC founded in April 2013). The Institute carries scientic studies
and applies its results into agricultural activities and production towards green
and sustainable development goals. Lately, the Institute has analyzed soil samples
collected from raw material areas to formulate suitable fertilizer recipes and develop
sugarcane ratooning technology. This helps produce the next crops, improving
productivity with an increase of 30% compared to the traditional method. Moreover,
the Institute also focuses on the research and application of pest control measures
that have less impact on the environment and human health, especially using
natural enemies like red-eyed bees.
Not only pioneering in the research, but TTC Bien Hoa also intensies activities on
raising awareness and farming mindset of farmers, thereby enhancing productivity,
innovating techniques towards modernization, which contributes to a more
sustainable Agriculture industry. In particular, TTC Bien Hoa organized more than
60 seminars with 3,000 sugarcane partner growers at 40 Agricultural Extension
Stations, facilitating discussions, knowledge and experience exchange on farming
techniques, gaining farmers’ condence in the sugarcane business.
LOCAL FARMERS, HELPED THEM
STABILIZE THEIR INCOME AND GAIN
PROFITABILITY WITH SUGARCANE
THE COMPANY HAS OFFERED
JOBS TO MORE THAN
6,200
SOCIAL WELFARE PROGRAMS
IN 3 COUNTRIES, INCLUDING
VIETNAM, LAOS, AND CAMBODIA
THE COMPANY IMPLEMENTED
MORE THAN
120
Playing the role as a leading
company in the industry, apart
from maximizing profits,
TTC Bien Hoa also focuses on
positive social contribution.
SUGARCANE PARTNER GROWERS AT 40
AGRICULTURAL EXTENSION STATIONS
IN PARTICULAR, TTC BIEN HOA
ORGANIZED MORE THAN 60
SEMINARS WITH
3,000
INDIRECT ECONOMIC
IMPACTS
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TTC BIEN HOA
ENVIRONMENTAL TOPIC
MATERIALS
TTC Bien Hoa is characterized by its Sugar products and by-products, hence the high and
constant demand for sugarcane and raw Sugar. For that reason, an eective governance and
management system is required, to ensure productivity and quality, minimize disruptions,
and control costs.
KEY
TOPIC
TTC Bien Hoa developed the Smartlab software to manage its input materials. This provides
an eective online channel that allows users to access data from anywhere and facilitates the
supervision and management of the process. In addition, information and progress on raw
materials are also regularly updated to the leaders via:
• Daily report;
• Weekly production meetings at the factory;
• Monthly meetings to adjust the production plan in the scope of the corporation. This aims to
optimize raw material inventory, enhance the production capacity, and ensure timely supply of
input materials for production.
MANAGEMENT
APPROACH
REFINERIES
TTC BIEN HOA CURRENTLY OWNS
9
TONS OF SUGARCANE PER DAY
TOTAL CRUSHING CAPACITY OF
37,500
TONS OF SUGAR PER DAY
TOTAL PRODUCTION CAPACITY OF
4,200
Sugarcane and raw Sugar are the most important raw materials in the Sugar manufacturing
industry. As one of Vietnam’s leading Sugar producers and traders, TTC Bien Hoa, as one in a
limited number of companies, is known not only for its ability to crush sugarcane and produce
Sugar, but also for its capacity to refine raw Sugar, helping to facilitate Sugar-refining off-season,
and optimize sugarcane factories’ operation.
MATERIALS USED BY WEIGHT OR VOLUME
301-1
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COMPREHENSIVE TECHNOLOGY - VALUE SHARING
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FY 2020-2021 is the second consecutive
year that TTC Bien Hoa’s consumption
output reaches over 1 million tons of
Sugar, maintaining its domestic market
share of 46%, along with an increase
of 35% YoY in the export channel.
In order to meet the demand of the
domestic and international markets,
the Company exibly renes o-season
raw Sugar. Four out of nine reneries
are capable of producing raw Sugar,
the three large ones of which are TTCS,
Bien Hoa – Dong Nai, and Bien Hoa –
Ninh Hoa. Bien Hoa – Dong Nai stands
out as the only renery that manages to
rene Sugar year-round with a capacity
of 400 tons per day. As a result, the
Company gains better control of input
materials, increasing rening time,
and maximizing machine productivity.
Raw Sugar is largely produced from
sugarcane. Therefore, in addition
to improving production capacity,
Source: TTC Bien Hoa
Structure of raw material areas in the recent two FYs in TTC Bien Hoa
the Company also strives to work side by side with the farmers, demonstrating the
Company’s long-term social responsibility in localities where TTC Bien Hoa runs its
raw material areas.
TTC Bien Hoa currently owns nine
reneries with a total crushing capacity
of 37,500 tons of sugarcane per day and
a total production capacity of 4,200
tons of Sugar per day. These boost TTC
Bien Hoa condence in its policy of
expanding raw material area, and gain
better control of the input materials.
In FY 2020-2021, the Company has
nearly 66,000 ha in the total area of raw
materials, including owned farms and
contracted farms.
The structure of owned farms and
contracted farms has undergone
plenty of changes over the last two
crops, demonstrating TTC Bien Hoa’s
vision for future growth. Accordingly,
the Company resolves to gain more
control over the usage of raw material
areas, steadily reducing reliance on
contracted farms and increasing the
percentage of owned farms. This aims
to increase operational eciency and
independence of land use.
SUGARCANE
RAW SUGAR
Contracted farm Owned farm
47
53
51
49
2019  2020
%
2020  2021
%
233
CO
2
SYRUP CLEANING
BAGASSE
ELECTRICITY
PRESSMUD
ORGANIC FERTILIZER
WASTEWATER
VACUUM CREATION
ASH
TTC BIEN HOA
2020-2021 ANNUAL REPORT
RECYCLED INPUT MATERIALS USED
ENVIRONMENTAL TOPIC (CONTINUED)
As a multi-purpose crop, sugarcane, from stem to top, can find ways into production.
Besides the main product which is Sugar, sugarcane value goes through the roof
when by-products are used:
REFINED SUGAR
SUGARCANE-FLAVORED
BOTTLED WATER
MOLASSES
SUGARCANE
• As molasses – to produce animal feed, alcohol, ethanol, etc.,
• As bagasse – to fuel Sugar rening. Burning bagasse also generates electricity,
providing energy for operation of factories.
• Sugarcane leaves and tops, boiler’s ash, and pressmud are also reused to make
microbial fertilizers.
TTC Bien Hoa has invigoratingly exploited the entire cycle by making strong
investments in plenty of projects of utmost importance. This aims to increase the
proportion of Sugar by-products, diversify the product value chain from sugarcane,
boost prots up to 3 – 4 times compared to the option in which Sugar is the sole
product, and especially, contribute to environmental protection.
PRODUCTS
PRODUCTS
PRODUCTS
WASTES
Source: TTC Bien Hoa
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Products produced from by-products and wastes of the Sugar industry in FY 2020-2021
Miaqua bottled water is a special product, extracted during sugarcane condensation and
distillation, thereby, preserving the pleasant sweetness of sugarcane.
In FY 2020-2021:
In FY 2020-2021, the Company produced nearly ~1.6 million liters of Miaqua bottled water
from water extracted during sugarcane condensation and distillation.
MÍAQUA
BOTTLED
WATER
Bagasse is a by-product created from sugarcane production, after the juice extraction stage.
This can be used as a fuel source for boilers and as raw material for the production of mushroom,
paper, organic fertilizer, animal feeds, etc.
In FY 2020-2021:
In FY 2020-2021, the Company has recovered over 1 million tons of Bagasse for reproduction,
minimizing waste discharged to the environment.
BAGASSE
In order to optimize the sugarcane value chain, most of the bagasse after being discharged is
collected and brought to the boilers. In the boilers, bagasse would be burnt to create heat sources
for producing Sugar and generating electricity used in factories or sold to the national grid.
In FY 2020-2021:
In the year 2020-2021, the Company’s total commercial electricity output reaches 108
+
million MWh.
COMMERCIAL
ELECTRICITY
The raw material for Bep Xua caramel production is molasses – the by-product extracted from
Sugar concentration. Caramel helps increase the sugarcane value chain and serves the new
demand of Consumers.
In FY 2020-2021:
In FY 2020-2021, nearly 194,000 bottles of caramel, up 223% compared to the previous year,
promising better growth in upcoming years.
CARAMEL
Source: TTC Bien Hoa
Microbial organic fertilizer was produced from the waste of Sugar products (ash, sludge dregs,
raw sludge), applying microbiological technology that uses microorganisms in Trichoderma-
based preparations to convert the organic components in sugarcane mud into humus. The
product was supplemented with micronutrients (Bo, Mg, Zn...) to increase its quality, thereby,
being of service to crops.
In FY 2020-2021:
In FY 2020-2021, the Company produced nearly 15,000 tons of fertilizer with the quality better
than standard.
ORGANIC
FERTILIZER
Molasses is a by-product of the Sugar Industry. The production process will produce Sugar
crystals and molasses. Sugar crystals are separated and molasses continues to be concentrated.
After about 3 times of concentration, it is almost impossible to crystallize more Sugar by
conventional techniques, the remaining liquid is molasses.
In FY 2020-2021:
Molasses/Ton of sugarcane ratio in FY 2020-2021 remains at a good level, approximately equal
to the previous FY’s ratio, contributing to better recovery of Sugar.
MOLASSES
235
TTC BIEN HOA
2020-2021 ANNUAL REPORT
ENERGY
Energy eciency is the key focus of businesses as economic development has been resulting in
a plethora of negative environmental impacts, including natural resources depletion and climate
change. Therefore, the Company always ensures the selected fuels are sustainable, eective, and
safe, helping to reduce greenhouse gas emissions and their impact on the environment.
KEY
TOPIC
TTC Bien Hoa started implementing energy management via Oracle Cloud ERP system from FY
2019-2020 to keep track of the energy output and cost, as well as the Company’s own energy
production, consumption, and selling to the national grid. In particular, leaders regularly get
updated on periodic energy reports (daily, weekly, monthly, after each crop, etc.) and attend
face-to-face meetings (weekly, monthly, quarterly, etc.). The Production Engineering Department
periodically inspects and evaluates performance data from previous FYs, then proposes
improvement methods based on this year’s crop and production needs.
MANAGEMENT
APPROACH
ENERGY CONSUMPTION
WITHIN THE ORGANIZATION
An increase in market shares means an increase in production activities in an attempt
to satisfy market demands. Therefore, the Company is now in the quest of diversifying
the energy mix, in which renewable energy with little or no environmental impact
is the top priority, for production. FY 2020-2021 is the second consecutive year that
TTC Bien Hoa’s consumption output reached over 1 million tons of Sugar, yet the
total energy consumption decreased by 19% (YoY). This proved the collective eort
in improving energy eciency at TTC Bien Hoa. Notably, the total energy sold by the
Company increased by 7% (YoY), which showed that the Company is on the right
track in reducing energy consumption and protecting the surrounding environment.
YOY
THE TOTAL ENERGY CONSUMPTION
DECREASED BY
19%
Consumed energy sources
Dierence between
FY 2020-2021/FY 2019-2020 (%)
13
12
husks, etc.
(14)
(30)
(19)
(6) Total energy sold by the Company 7
Source: TTC Bien Hoa
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In FY 2020-2021, the total energy
sold by the Company increased by
7% (YoY), equivalent to more than 7
million KWh of electricity or VND16
billion in revenue. In the upcoming FYs,
the Company shall continue to increase
the proportion of this energy source in
an attempt to reduce production costs
and enhance competition.
In addition to rooftop solar installation,
the Company also executes other
projects to dry bagasse, save steam,
and improve the carbonization
system in order to minimize energy
consumption. At TTC Bien Hoa’s
factories, all high-pressure steam is
replaced by the jet condenser. As a
result, the steam consumption during
the Sugar crushing process reduced
from 0.7 ton of steam/ton of sugarcane
(FY 2018-2019) to 0.69 ton of steam/
ton of sugarcane (FY 2019-2020), and
0.67 ton of steam/ton of sugarcane
(FY 2020-2021); The Company plans to
continue the research and install more
equipment to the production line,
aiming to further reduce the factories’ steam consumption in the years to come. In
FY 2020-2021, the Company’s consumption output continues to reach more than
1 million tons of Sugar, leading to an increase in electricity demand for production.
In particular, electricity consumption in FY 2020-2021 increased from last FY’s 37.28
Kwh/ton of sugarcane to 59.73 Kwh/ton of sugarcane.
REDUCTION OF ENERGY CONSUMPTION
TTC Bien Hoa has invested in the installation of the solar PV systems on the roof of its factories
and offices. The Company now owns 13 solar power stations with a total installed capacity of
approximately 12 Mw for clean energy utilization and operational cost saving.
Rate of electricity and steam consumption at TTC Bien Hoa’s factories
Electricity consumption Steam consumption
Kwh/ton of Sugar Ton of steam/ton of sugarcane
20 0.00
25
0.10
30
0.20
35
0.30
40
0.40
45
0.50
50
0.60
55
0.70
60
65 0.80
2018-2019 2019-2020 2020-2021
41.13
Source: TTC Bien Hoa
37.28
59.73
0.70 0.69
0.67
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TTC BIEN HOA
2020-2021 ANNUAL REPORT
ENVIRONMENTAL TOPIC (CONTINUED)
Water is one human’s fundamental need, which means water quality is fundamental to
community health and the ambient environment. For that reason, TTC Bien Hoa always
emphasizes the importance of ensuring input water quality by sources, recycling and reusing
water, and treating wastewater prior to discharge.
KEY
TOPIC
With cost-eective water usage in mind, the Company manages water and wastewater by dividing
water by its intended use:
• Water used to create the pressure vacuum in the production process, of which the source is
the surface water of canals, rivers, streams, wells, clean water discharged from the sewage
treatment system;
• Water used for technology, of which the source is the juice extracted from sugarcane;
• Water used to clean factories and equipment, of which the source is the surface water of
canals, rivers, streams, wells, clean water discharged from the sewage treatment system;
• Domestic water from tap and wells.
MANAGEMENT
APPROACH
Water in direct contact with products complies with the regulations on potable water as prescribed in National Technical
Regulation QCVN 1-2019/BYT. Filtering equipment, containers, pipes, valves at workshops must be regularly inspected
and cleaned as well as immediately repaired if any problem occurs. Gravitating toward the reduction of natural resources
consumption and reuse of treated water, total water input is recorded at the Company drop nearly 4 million m
3
,
down 13% YoY.
WATER WITHDRAWAL BY SOURCES
TTC Bien Hoa always conforms to Vietnamese law on the usage of water resources, and adopt
numerous technological measures to reduce the amount of water used. The Company issued
the Guidelines for water sources control, aiming to bring water sources, distribution, and storage
systems under control, as well as propose control and treatment measures when water sources
are detected as non-quality.
WATER
GRI
303-1
GRI
303
238
COMPREHENSIVE TECHNOLOGY - VALUE SHARING
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Total volume of water input by sources
Description
2019-2020 2020-2021 Dierence 2020-2021/2019-2020
Water volume
(m
3
)
Percentage
Water volume
(m
3
)
Percentage
Water volume
(m
3
)
Surface water (rivers. streams. ponds. lakes. etc.)
24,793,925 82.7% 22,480,516 86.4% (2,313,409)
Ground water
3,253,298 10.8% 3,232,500 12.5% (20,798)
Urban water
293,826 1% 296,403 1.1% 2,577
Tap water
1,650,120 5.5% (1,650,120)
Total 29,991,169 100% 26,009,491 100% (3,981,750)
Source: TTC Bien HoaNote: Data was collected from the monthly volumetric ow meter at the Company’s factories.
Water discharged from production after passing the cooling
system will reach a high-temperature range which is
50
o
C - 52
o
C. This amount of water is no longer usable and
then must be discarded into the environment. The system has
to rely on water purchased from external suppliers to retain
the cooling operation. In order to save water and reuse water
from the cooling system, the Company invested in a cooling
tower system. This helps cool water temperature down to
about 35
o
C - 38
o
C and circulate used water, thereby cutting
down the amount of purchased water and saving costs.
According to the general assessment, this system saves about
73% of the costs used to buy water from external suppliers.
In a water-reliant industry, regarding consumption level
and quality, like agriculture, TTC Bien Hoa prioritizes reuse
of wastewater, treated in accordance with regulations, as
an alternative for natural water sources, aiming to resource
saving and environmental protection. In FY 2020-2021,
the Company also recorded 33% of reused water with
satisfying quality in the total amount of wastewater, which is
still progressing going forward.
WATER RECYCLED AND REUSED
Reuse water rate of TTC Bien Hoa’s factories
Total amount of wastewater (m
3
) Reuse wastewater rate(%)
Source: TTC Bien Hoa
100,000
29
200,000
30
300,000
31
400,000
32
500,000
33
600,000
700,000 34
FY 2018-2019 FY 2019-2020 FY 2020-2021
503,037
532,036
653,000
32
30
33
GRI
303-3
239
TTC BIEN HOA
2020-2021 ANNUAL REPORT
TTC Bien Hoa is a manufacturing company, and therefore it is assessed in terms of handling of
emissions, in other words, its responsibility in lessening the greenhouse eect. The Company is
now tightly controlling the emissions for an environmentally and community-friendly production
process. Most emissions generated during production are utilized through realistic projects aimed
at the use of clean fuels and the removal of hazardous pollutants as well as through internal
environmental safety regulations.
KEY
TOPIC
Currently, the Company uses online software to manage observed data of boiler ue gas
automatically and continuously. All the company’s factories have installed an emissions treatment
system complying with National Technical Regulations QCVN 19:2009/BTNMT on industrial
emissions of inorganic substances and dust as well as other provisions of Law on Environment.
Besides, in order to supervise emissions quality, the factories are also equipped with an emissions
monitoring system in accordance with the Circular 10/2021/TT-BTNMT on environmental
monitoring techniques. Observed data is sent directly to each locality’s Department of Natural
Resources and Environment. In FY 2020-2021, the Company had good management of emissions
and no violation was found.
MANAGEMENT
APPROACH
Across its factories, bagasse and biomass are used in boilers
instead of coal, remarkably reducing greenhouse gas emissions.
On the other hand, the Company’s current Sugar rening
process adopts carbonation technology, in which CO
2
and
lime are used to eliminate impurities. As a result, the majority
of CO
2
generated from boilers during the burning process
will be collected and reused in production. It is estimated that
the collection rate would be about 9-12% of the total amount
of emissions.
DIRECT GREENHOUSE GAS EMISSIONS
ENVIRONMENTAL TOPIC (CONTINUED)
EMISSIONS
GRI
305
GRI
305-1
240
COMPREHENSIVE TECHNOLOGY - VALUE SHARING
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EFFLUENTS
AND WASTE
As an environmentally conscious manufacturer, TTC Bien Hoa has implemented a collection
of practical actions to reuse waste generated in production. This not only helps limits negative
environmental impacts and reduce manufacturing costs but also adds value to products. At the
same time, the Company manages and wastes by calculating totals by quality and destination,
and total wastes by type and disposal method.
KEY
TOPIC
TTC Bien Hoa sets out KPIs for waste management and conducts internal assessments once a year.
In the last FY, no violation regarding waste and euent management was found. The company
manages euents and waste by the following regulations:
• For euents: Euent treatment system complies with the current regulatory standards
according to Vietnam regulation 40:2011/BTNMT.
• For waste: The Company handles the waste issues through Environmental Management
System ISO 14001:2015, ensuring the waste discharged to the environment satises the
committed environmental standards.
MANAGEMENT
APPROACH
TTC Bien Hoa’s wastewater treatment system is managed and operated in accordance with Vietnam regulation 40:2011/BTNMT,
therefore wastewater quality always meets the regulatory standards. After the treatment process, the treated wastewater will be
reused in production and sugarcane irrigation, saving costs for the Company and protecting the water resources.
WASTE DISCHARGE BY
QUALITY AND DESTINATION
Total volume of wastewater by quality and destination in FY 2020-2021
Place of discharge 2019-2020
Treatment
method
Water discharge quality
Wastewater reused
by other
organizations
Factory Location
FY
2019-2020
FY
2020-2021
%
TTCS
Tay Ninh 227,050 166,714 (27)
Biological method
incorporating physical
and chemical method
Column A, QCVN 40:2011/BTNMT
• Treated wastewater
is reused to create
pressure vacuum in the
factories
• Reused by the factories
Bien Hoa - Ninh Hoa
Khanh Hoa 138,072 216,933 57 Column B, QCVN 40:2011/BTNMT
Bien Hoa - Dong Nai
Dong Nai 83,995 93,077 11 Column A, QCVN 40:2011/BTNMT
TTC-Attapeu: Watering
sugarcane in farm area
around the factory
Laos 26,599 17,387 (35) Column B, QCVN 40:2011/BTNMT
TTCS Gia Lai
Gia Lai 35,976 28,876 (20) Column B, QCVN 40:2011/BTNMT
Bien Hoa - Phan Rang Ninh Thuan 7,274 9,049 24 Column A, QCVN 40:2011/BTNMT
Source: TTC Bien Hoa Note: Wastewater volume data was collected from the volumetric ow meter which measures the input and output wastewater volume of the wastewater treatment system.
GRI
306
GRI
306-1
241
TTC BIEN HOA
2020-2021 ANNUAL REPORT
ENVIRONMENTAL TOPIC (CONTINUED)
Chemical Oxygen Demand (or COD) is the amount of oxygen
needed to oxidize all organic substances in wastewater.
COD is commonly used to indirectly measure the amount of
organic compounds in water. A low value of COD emission
would help the wastewater treatment system operate with
ease and use fewer chemicals. In the last three FYs, the COD
value was remarkably lower than the set target as a result of
the constant monitoring of each factory. This not only lessens
the impact on the environment but also reduces production
costs. In FY 2020-2021, COD emissions were only 0.22kg COD
per ton of sugarcane, 44% lower than the plan.
COD emissions
Unit: kg/ton of sugarcane Target Actual
0.1
0.2
0.3
0.4
0.5
2018-2019 2019-2020 2020-2021
0.2
0.12
0.39
0.23
0.39
0.22
Source: TTC Bien Hoa
Bagasse will be utilized to the fullest as fuel
for boilers and as raw materials for steam and
electricity generation, in which the latter will be
used to power factories’ operation and sold to
the national grid, bringing prot to the Company.
Boilers using bagasse-originated biomass fuel
contribute to the reduction of the emission of CO
2
and other gases detrimental to the environment.
Besides, CO
2
collected from the boilers, after
passing the emission treatment system, is used
to remove the Sugar impurities, both saving costs
and protecting the environment. Boiler’s ash and
pressmud are used as the supply of probiotics
and as fertilizers, serving the purpose of restoring
farmland, improving soil fertility, and increasing
sugarcane productivity.
Waste during production is classied and treated
using the appropriate method. Most of the waste
is recycled and composted into fertilizers. The
Company also proactively employs functional
units to handle potentially hazardous waste in
order to ensure the quality meets regulatory
standards and the waste would not negatively
impact the environment.
WASTE BY TYPE
AND DISPOSAL METHOD
Waste classication by disposal method at TTC Bien Hoa’s factories
FY 2019-2020 FY 2020-2021
Hazardous waste
(ton)
Non-hazardous waste
(ton)
Hazardous waste
(ton)
Non-hazardous waste
(ton)
Composting 0 58,174 0 29,122
Burning (in large volume) 0 547,169 0 665,586
Employing functional units to handle 12 3,118 11 3,772
Source: TTC Bien Hoa
GRI
306-2
242
COMPREHENSIVE TECHNOLOGY - VALUE SHARING
SBT AT GLANCE CORPORATE GOVERNANCE OPERATION THROUGHOUT THE YEAR SUSTAINABLE DEVELOPMENT REPORT FINANCIAL STATEMENTSSBT - IMPRINT OF THE YEAR
Over the years, TTC Bien Hoa’s development has always been
found on the premise of “green” business strategy, with a
view to strengthening its competitive edge, thereby realizing
the global reach ambition. The Company has been actively
implementing plenty of solutions to fulll its role as a “green
and sustainable enterprise contributing to the development
of local economy and community.”
As a result, TTC Bien Hoa has received many awards related
to Sustainable Development and Social Contribution
Activities, among which is “Top 20 Listed Companies in
HOSE’s Sustainable Development Index - VNSI” for four
consecutive times. This is the concrete proof of TTC Bien Hoa’s
constant eort to comply with Environmental, Economic,
Social regulations.
ENVIRONMENTAL
COMPLIANCE,
SOCIOECONOMIC
COMPLIANCE
Understanding the importance associated with legal compliance and how legal compliance
will directly impact the company’s reputation and brand name, TTC Bien Hoa manages all of its
activities in line with the provisions of the law. In particular, the Company voluntarily follows the
environmental, economic, and social regulations on basis of its responsibility for the community.
The Company always aims at standards higher than current regulations, helping the Company
develop sustainably and contribute to the growth of the community and society.
KEY
TOPIC
Regarding environmental – economic – social issues, the Company ensures that all activities
comply with the Vietnamese Law on Environment Protection and law provisions. Periodically, the
Company will submit the supervision report to the regulators as requested by law:
• One-time assessment when implementing projects or raising capacity or changing types of
activities: Report on Environmental Impact Assessment;
• Biannual reporting: Report on Work-related Accidents
Annual reporting: Report on Environmental protection activities
• Annual reporting: Report on Occupational Safety and Health, Report on Management of
Equipment subject to the strict requirement on occupational safe, etc.
MANAGEMENT
APPROACH
LISTED COMPANIES OF
THE SUSTAINABLE DEVELOPMENT INDEX  VNSI
HOSE
Periodic assessment in January and July each year
ENTERPRISE
DEVELOPING SUSTAINABLE GREEN ECONOMY
Vietnam Economic and Trade Consultancy Association (VICETA)
July 2021
TOP 20 TOP 10
GRI
307
GRI
419
243
TTC BIEN HOA
2020-2021 ANNUAL REPORT
SOCIAL TOPIC
EMPLOYMENT
To attract and retain talents for a sustainable succession team, TTC Bien Hoa pays special
attention to HR activities issues, through plenty of actions:
• Create employment opportunities in the labor markets and in the localities where the
Company operates;
• Recruit employees, attract talents;
• Build a friendly and professional working environment;
• Develop competitive compensation and benet policies for employees;
• Building a policy of equitable and fair work, regardless of religion, nationality, gender, region;
• Ensure occupational health and safety for employees;
• Facilitating employees to be trained for skills and professional qualications improvement.
KEY
TOPIC
The policies are built by ensuring that all HR activities comply with Law on Labor and ILO.
In particular:
• All employees’ contribution to TTC Bien Hoa is recognized through performance review and
performance-based rewards;
• All changes in HR policies are updated in compliance with the law, and all internal HR policies
are changed accordingly in the form of normative documents to maximize employees’ benets;
• The compensation and training policies are in the process of improvement to ensure
employee satisfaction, thereby making employees stay longer and helping the company build
succession planning.
MANAGEMENT
APPROACH
GRI
401
244
COMPREHENSIVE TECHNOLOGY - VALUE SHARING
SBT AT GLANCE CORPORATE GOVERNANCE OPERATION THROUGHOUT THE YEAR SUSTAINABLE DEVELOPMENT REPORT FINANCIAL STATEMENTSSBT - IMPRINT OF THE YEAR
Accordingly, the Company drastically restructured the HR
organization to build a proactive team of highly skilled and
adequately competent employees, preparing for further global
expansion. In the last FY, TTC Bien Hoa had 1,138 new employee
hires, including 514 sta that are under 30 years old, accounting
for 45%, up 22% YoY. This means the Company has progressively
increased the presence of young and highly professional
employees in the Company.
New employee hires
Number of new
employee hires
(person)
Total number of new employee hires by age group
1,138
Under 30 years of age 514
30-50 years of age 593
Over 50 years of age 31
Total number of new employee hires by gender
1,138
Female 296
Male 842
Total number of new employee hires by region 1,138
HCMC 141
Tay Ninh 286
Dong Nai 221
Gia Lai 15
Khanh Hoa 94
Ninh Thuan 75
Laos 274
Cambodia 32
NEW EMPLOYEE HIRES
AND EMPLOYEE TURNOVER
Economic growth enables employees to have greater choices of employment accompanied by a good
working environment and higher benefits. In the face of uncertainty and increasing competitiveness
in the labor market, TTC Bien Hoa’s leaders directed focus to attract and retain talent, aiming to
enhance work efficiency, avoid waste of human resources, and optimize profitability.
Rate of new employee hire and employee turnover by region FY 2020-2021
Unit: % Rate of new employee hires Rate of employee turnover
10%
20%
30%
40%
50%
HCMC Tay Ninh Gia Lai Ninh ThuanDong Nai Khanh Hoa Laos Cambodia
12
14
19
16
24
17
26
43
Source: TTC Bien Hoa
1
3
3
0
8
5
7
2
Rate of new employee hire and employee turnover
by age group FY 2020-2021
Unit: % Rate of new employee hires Rate of employee turnover
20%
40%
60%
80%
Source: TTC Bien Hoa
45
28
52
61
Under 30 years old 30-50 years old Over 50 years old
3
11
Rate of new employee hire and employee turnover
by gender FY 2020-2021
Unit: % Rate of new employee hires Rate of employee turnover
20%
40%
60%
80%
Source: TTC Bien Hoa
26
27
74
73
Female Male
GRI
401-1
245
TTC BIEN HOA
2020-2021 ANNUAL REPORT
BENEFITS PROVIDED TO
FULL-TIME EMPLOYEES
SOCIAL TOPIC (CONTINUED)
Besides a competitive remuneration
policy compared to other peers, the
Company also attaches importance to
benet policy, aiming to build a friendly
and professional working environment
as well as ensure the safety and health
of employees and their relatives
during the outbreak of the Covid-19
pandemic. The total expense for
employee benets in FY 2020-2021 was
VND140 billion, making up 0.94% of net
revenue, up 12% YoY. The expense for
employee insurance was recorded at
VND43 billion in total.
The company not only ensures employees enjoy all their legitimate benets by covering all compulsory insurance but also pays
great attention to other benets beyond salaries. Benets comprise 70% of the total expenses. Particularly, in the face of the
COVID-19 pandemic, the Company also adopted the following welfare policies.
Benet Full-time
Temporary/
Part-time
Expense
(million VND)
Rate
(%)
Social insurance X X 29,130 21.2%
Health insurance X X 5,105 3.7%
Unemployment insurance X X 1,758 1.3%
Accident insurance X X 246 0.12%
Commercial Health Insurance X 358 0.3%
COVID-19 Insurance X X 445 0.3%
Trade Union X 6,169 4.5%
Others X 93,994 68.5%
Total 137,205 100%
• Pick-up car for employees working at the factories.
• Periodic health checkup.
• Bao Viet Healthcare insurance package – comprehensive health care for middle and senior management.
• Periodic vacation.
• Gifts for public holidays/Lunar New Year and special occasions.
• Allowances including lunch, overtime salary, telephone coverage, toxic exposure coverage.
BENEFITS FOR
FULL-TIME
EMPLOYEES
• Extra allowances, VND3-5 million per person.
• Employees can bring their spouse and children to the locality where he/she works to live together: the Company shall cover 50%
of compulsory school fees for two legitimate children of the employees, in case they are under 18 years old and attend school in
the locality where their parents work.
• Employees can go home 6-9 times a year and the company shall cover travel costs.
WORKING
REGIME FOR
EMPLOYEES
WORKING FAR
FROM HOME
• 13
th
-month salary.
• Performance-based year-end reward.
• Seniority reward.
OTHER
INCOME
• The company strictly complies with legal provisions on the recruitment and employment of female employees.
• The company takes into account the issue of gender equality when it comes to recruitment, employment, training, salary, bonus,
promotion, remuneration, working conditions, occupational safety, working time, break time, and other material and spiritual
benets.
• Maternity leave as the regulations.
• The company ensures employment for female employees after maternity leave.
BENEFIT
FOR FEMALE
EMPLOYEES
GRI
401-2
246
COMPREHENSIVE TECHNOLOGY - VALUE SHARING
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Vietnamese employees working in Laos and Cambodia:
• A 15% raise in salary but not lower than VND2,000,000/month;
• Covid-19 infected cases: Actual incurred expenses are covered, not exceeding 20,000,000 VND/person/time;
• Quarantine expenses: Up to 2 times/year:
» On departure: 100%
» On return: 70%
In case relatives of Vietnamese employees working in Laos and Cambodia (parents, husband/wife, children) are infected,
the Company will have appropriate support policies to help employees stay focus on work. Support policies will be considered specically
for each object.
Employees working in the country:
• Actual incurred expenses are covered, not exceeding 10,000,000 VND/person/time. Quarantine at isolation areas and hotels
according to regulations of the Ministry of Health;
• Policy on visiting Covid-19 infected employees and relatives:
For employees:
Tier 9 and above: VND1,500,000/person/visit;
Other tiers: VND500,000/person/visit.
For employees’ relatives: VND500,000/person/visit
Tier 11 and above: Relatives include parents, spouses, children, siblings, grandparents;
Other tiers: Relatives include parents, spouses, children.
• Compensation for employees who die due to Covid-19: VND50,000,000/person.
POLICIES
DURING THE
COVID-19
PANDEMIC
• Managers having more than ve years of employment.
LIFE
INSURANCE
PARENTAL LEAVE
TTC Bien Hoa always respects and appreciates
gender equality. Therefore, besides periodic
health checkups, TTC Bien Hoa’s female
employees also fully enjoyed maternity-related
regimes in accordance with the Law on Labor.
The company denitely will not dismiss female
employees or unilaterally terminate their labor
contracts on the pretext of their marriages,
pregnancy, maternity leave, or care for children
under 12 months of age. If female employees responsible for strenuous
work get pregnant or have children under 12 months of age to care for,
they will be transferred to other positions with less workload and not
required to work overtime.
TTC Bien Hoa is always there for female employees during pregnancy and
childcare.
• During pregnancy: Female employees are entitled to take o from work
ve times to undergo antenatal examination/pregnancy, each time is
equivalent to one day o, or two if they have irregular medical conditions
or live far away from medical facilities.
• During childbirth: Female employees can start maternity leave 6 months
before and after the birth of the children. Male employees will be entitled
to parental leave in accordance with the law when their wives give birth.
• During childcare: Female employees caring for children under 12 months
of age can take one hour o per day while still receiving full salary.
In FY 2021-2021, 49 employees were on parental leave, after which
45 of them returned to work at TTC Bien Hoa, while the other 4 requested
extended childcare leave.
GRI
401-3
247
TTC BIEN HOA
2020-2021 ANNUAL REPORT
SOCIAL TOPIC (CONTINUED)
TTC Bien Hoa always considers occupational health and safety as a matter of high priority.
Ensuring employees’ health is the Company’s obligation. At the same time, it also increases
economic benets by enhancing production eciency and employee productivity as well as
reducing medical examination and treatment costs due to work-related accidents.
KEY TOPIC
Annually, the company carries out Report on Working Environment Monitoring, Occupational
Safety and Health Monitoring, Work-related Accidents, Management of Equipment subject to
the strict requirements on occupational safety:
• Guideline to monitor personal hygiene and employees’ health;
• Procedure to handle, declare, investigate and report work-related accidents;
• Safety instruction in management and use of chemicals;
• Procedure to grant high-risk work license;
• Procedure to prepare and respond to emergency;
• Procedure to manage equipment with strict requirements on occupational safety.
MANAGEMENT
APPROACH
OCCUPATIONAL HEALTH
AND SAFETY
GRI
403
248
COMPREHENSIVE TECHNOLOGY - VALUE SHARING
SBT AT GLANCE CORPORATE GOVERNANCE OPERATION THROUGHOUT THE YEAR SUSTAINABLE DEVELOPMENT REPORT FINANCIAL STATEMENTSSBT - IMPRINT OF THE YEAR
TYPES OF INJURY AND RATES OF INJURY, OCCUPATIONAL DISEASES, LOST DAYS,
ABSENTEEISM, AND NUMBER OF WORK-RELATED FATALITIES
In FY 2020-2021, TTC Bien Hoa recorded no violation of occupational health and safety. Besides, the Company found
no occupational diseases or work-related injuries occurring in production areas or oces. Regarding work-related accidents,
TTC Bien Hoa recorded 5 cases, which were timely provided support and compensation to help enable their quick recovery
and return to work.
TRAINING:
TTC Bien Hoa always promotes communication and training activities by implementing the
occupational health and safety management system according to ISO 45001: 2018, ISO 14001:2015.
The goal is to raise employees’ awareness of occupational health and safety towards the goal of “zero
accidents and incidents”, hence gradually build a safety culture at the Company. In the last FY, the
Company organized 9 training programs on occupational safety and health for groups I, II, III, IV, V, VI
with a total cost of about VND130 million.
COMPLIANCE:
The Company, in an annual collaboration with regulators, monitors the working environment, dust
concentration, noise, vibration, etc. in order to obtain more data on the actual context. The company
shall base on these data to propose improvement measures and supplement protective equipment
to employees, helping to ease the impact of the environment on employees’ health.
ORGANIZE HEALTH CHECK-UPS:
The company also provides employees with periodic check-ups and regular monitoring of
health results. Attention is especially paid to employees working in areas with high exposure to
occupational diseases.
• An employee working in normal conditions would attend one annual checkup;
• For employees working in strenuous and hazardous conditions, or in areas where environmental
assessments show environment agents exceeding Vietnamese benchmarks, they would receive
check-ups as well as two annual occupational diseases examinations, in accordance with Law on
Occupational Safety and Health;
• If employees suer from occupational diseases, the Company shall monitor and frame a plan for
them to get regular check-ups with prescribed frequency.
GRI
403-2
249
TTC BIEN HOA
2020-2021 ANNUAL REPORT
Activities that aim to improve human resources quality, to train and foster talents, to build a
succession team shall help employees navigate changes and create competitive advantages
for the Company. A workplace that provides employees with education and training shall make
employees stay longer, work harder, make greater eorts to contribute to the organization’s
growth. Employee development correlates with saved costs, and increased revenue and prots.
KEY
TOPIC
Every year, the Company plans to provide training to its employees and managers at all levels,
as well as to have plans implemented in every department/factory. Employees have to attend
all mandatory training courses in the Company. After each course, employees shall take a
test and then receive a certicate. All departments also have their own training schedule
in order for the employees to reach their full potential. The Company always facilitates the
training participation and continued education of the employees. Education and training at
TTC Bien Hoa generate positive results since helping employees be well-equipped with
required qualications and soft skills.
MANAGEMENT
APPROACH
TRAINING AND EDUCATION
AVERAGE HOURS OF TRAINING
PER YEAR PER EMPLOYEE
In FY 2020-2021, despite the Covid-19 pandemic and prolonged social distance, the Company made great eorts to
ensure training activities remained unaected by taking advantage of advanced technology such as online training,
zoom meeting, etc. The Company held 517 training courses, totaling 41,360 hours of training, to more than 7,600 registers.
The total expense of training in the last FY was VND12 billion.
Criterion Average hours of training per employee by gender
Female 20.4
Male 19.4
Company’s employee 19.6
GRI
404-1
GRI
404
250
COMPREHENSIVE TECHNOLOGY - VALUE SHARING
SBT AT GLANCE CORPORATE GOVERNANCE OPERATION THROUGHOUT THE YEAR SUSTAINABLE DEVELOPMENT REPORT FINANCIAL STATEMENTSSBT - IMPRINT OF THE YEAR
PROGRAMS FOR UPGRADING EMPLOYEE SKILLS
In the last FY, the company carried out 517 training programs, with internal training making up 67%, and external training
accounting for 33%. Training programs were divided into 5 main groups (1) Professional training – 69%, (2) Onboarding training
– 20%, (3) Leadership training – 4.6%, (4) Soft skill training – 1.2%, and (5) Legal training – 5.2%.
PERCENTAGE OF EMPLOYEES RECEIVING REGULAR PERFORMANCE
AND CAREER DEVELOPMENT REVIEWS
100% of the company’s employees received quarterly performance reviews to have their capacity assessed, which served as the
basis for nomination and remuneration plans.
Average training hours by level
Criterion
Professional sta/
Technical worker
Specialist
Junior
Manager
Middle
Manager
Senior
Manager
Total
Total number of training hours (hour) 14,240 12,080 7,520 6,960 560
41,360
Total number of employees (person) 768 1,068 144 105 24
2,109
Average hours of training per employee (hour/person) 18.5 11.3 52.2 66.3 23.3
19.6
Programs for upgrading Employee skills
Group Number of programs
Number of programs by position
Employee Specialist Junior Manager Middle Manager Senior Manager
Professional training 261 104 82 52 23 0
Onboarding training 110 49 28 13 18 2
Leadership training 50 0 0 7 38 5
Soft skill training 18 2 5 3 8 0
Legal training 78 23 36 19 0 0
Total 517 178 151 94 87 7
AS OF JUNE 30, 2021,
TTC BIEN HOA HAS TOTALLY
STAFF
IN WHICH
STAFF
PARTICIPATE IN TRAINING, ACCOUNTING
FOR OVER 78% OF THE TOTAL NUMBER
OF EMPLOYEES.
2,691
2,109
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TTC Bien Hoa always appreciates the contributions of the employees in general and the
female employees in particular to the overall success of the Company. Over the past years, the
Company has spared no eort to develop comprehensive and fair welfare policies in order to
gain a competitive edge in the labor market. The Company attracts and retains talents with
reasonable remuneration policies, a dynamic working environment, fair treatment, and equal
opportunities when it comes to training, self-development, and promotion. The Company treats
everyone equally, regardless of gender, ethnicity, skin color, social class, belief, religion, etc.
KEY
TOPIC
• Inform employees of equal opportunities for men and women, and thereby creating
opportunities for women to reach their full potentials.
• Organize plenty of remuneration programs, creating platforms for young employees and senior
managers to network, share ideas, and diversify opinions and perspectives. This contributes to
the comprehensive development of the Company.
• Create an equal working environment to encourage female employees into management
positions.
MANAGEMENT
APPROACH
DIVERSITY
AND EQUAL OPPORTUNITY
GRI
405
252
COMPREHENSIVE TECHNOLOGY - VALUE SHARING
SBT AT GLANCE CORPORATE GOVERNANCE OPERATION THROUGHOUT THE YEAR SUSTAINABLE DEVELOPMENT REPORT FINANCIAL STATEMENTSSBT - IMPRINT OF THE YEAR
DIVERSITY OF GOVERNANCE BODIES
AND EMPLOYEES
RATIO OF BASIC SALARY
AND REMUNERATION OF WOMEN TO MEN
For detailed information, please refer to Human Resources and Training at the chapter of
Operation Throughout The Year.
At TTC Bien Hoa, human resource management is carried out towards “fairness in recruitment”,
“competitive salary, bonus and benefits based on competency”; “equal promotion opportunities
for both sexes”, “specific policies for women in health and training”, etc. Therefore, TTC Bien Hoa
ensures female employees are treated equally, in consideration of their capabilities. They are
entitled to the same welfare policies and the same opportunities for career advancement as men.
Female employee structure at TTC Bien Hoa in FY 2020 -2021
Unit: %
10%
20%
30%
40%
50%
Proportion of female
employees in the BOD
Proportion of female
employees in the BOM
Proportion of female
employees
Proportion of female
employees in middle
management and higher
Proportion of new female
employee hires
43
25
24
23
26
Source: TTC Bien Hoa
In FY 2020-2021, the Company held 12,895 training hours for female employees, or 20.4 hours on
average per person, with a total expense of nearly VND3 billion. These are high-quality courses with
exible schedules to ensure learning eciency.
In fact, the company is extremely concerned with gender equality and always ready to empower
women. In recent years, the Company has tried its best to sustain and increase the proportion of
female employees in the HR structure. This is most evident in the shift in the BOD’s structure.
In particular, in the BOD, 3 out of 7 members are female, accounting for 43%, not to mention the fact
that BOD is led by Chairwoman. This demonstrates the goal of gender diversity in the HR management
that TTC Bien Hoa is heading to.
TRAINING HOURS
FOR FEMALE EMPLOYEES
12,895
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“Community-led local development” always stays on top of the mind of TTC Bien Hoa when
organizing social responsibility activities. The company always works side by side with local
authorities in poverty reduction and community stabilization.
KEY
TOPIC
TTC Bien Hoa currently owns nine Sugar reneries in Tay Ninh, Khanh Hoa, Dong Nai, Gia Lai, Ninh
Thuan, Attapeu – Laos. The company’s raw material areas are also present across three countries
Vietnam, Laos, and Cambodia. In the localities where TTC Bien Hoa operates reneries, TTC
creates a stable source of employment for the local workforce, with more than 40,000 new jobs.
This contributes to increased income, developed local economy, and numerous positive impacts
on the local communities. In TTC Bien Hoa’s owned raw material areas, the company brings stable
jobs to farmers, helping them “gain protability from the sugarcane” with modern thinking and
manners, enjoy a higher income, and receive better welfare policies.
MANAGEMENT
APPROACH
LOCAL COMMUNITIES
SOCIAL TOPIC (CONTINUED)
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OPERATIONS WITH LOCAL COMMUNITY ENGAGEMENT,
IMPACT ASSESSMENTS, AND DEVELOPMENT PROGRAMS
In the last FY, the livelihood of people across the country was heavily aected by
the outbreak of the Covid-19 pandemic. Being touched by these miserable lives,
TTC Bien Hoa has launched “Millions of sweet things from SBT” charity campaign.
More than 120 social security funding programs have been deployed across the
country and in Laos and Cambodia, with a total budget of up to VND30 billion.
As of September 2021, TTC Bien Hoa is lled with pride when looking back on
impressive, meaningful numbers of the ongoing philanthropic journey. It was no
better way to conclude the FY 2020-2021 with a humanitarian touch.
has been funded by TTC Bien Hoa for meaningful activities
across Vietnam, Laos and Cambodia, such as: Financing the
procurement of extracorporeal membrane oxygenation
(ECMO) at Nguyen Tri Phuong Hospital in Ho Chi Minh
City; Sponsoring the program of “Building residential areas
adjacent to border militia stations in the military zone in the
period of 2019 - 2025” of the 7
th
Military Region; Financing
the construction cost of 3 houses for poor households in
AyunPa Town - Gia Lai; Awarding scholarships to students of
Nong Lam University in Ho Chi Minh City; Providing nancial
support in the combat against COVID-19 for 5 districts of
Attapeu province - Laos; Preparing Tet gifts for the Border
Guards in Cambodia and other localities, etc.
were promptly given during the “Millions of sweet things from SBT” journey,
helping to solve the urgent diculties of people during the period of social
distancing: Assisting the Vietnam Fatherland Front Committee - Ho Chi Minh
City in giving gifts to people aected by ood in the Central region; Assisting
Tay Ninh Department of Industry and Trade in supporting Ho Chi Minh
City’s COVID-19 in ghting the epidemic; Assisting the Ho Chi Minh City’s
Party Committee Oce and Business Association in ghting the epidemic;
Assisting the Ho Chi Minh City’s Student Support Center of the City Youth
Union. in the program “Support the 2020 national examination”, etc.
Providing nancial support in the combat against COVID-19
for 5 districts of Attapeu province - Laos
TTCSGL provides medical equipment to Gia Lai province
to prevent Covid-19
TTC Bien Hoa supports volunteer students in the program “Support the 2020 national examination”
During 50 years of
development, TTC Bien
Hoa is not only geared
toward economic value
creation but also shared
responsibility with
co-existing communities.
BILLION
IN CASH
TONS OF HIGHQUALITY
BIEN HOA SUGAR
13
is the amount that TTC Bien Hoa has contributed to the
“COVID-19 Prevention and Control Fund” at the request of the
State, helping people throughout the country to soon access
vaccines, as well as provide necessary medical equipment to
medical sta and doctors, thereby contributing to the whole
country’s ght against the epidemic. This is a meaningful task,
showing TTC Bien Hoa’s responsibility to the social community
and the country in the most dicult times.
BILLIONVNDVND
14
150
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SOCIAL TOPIC (CONTINUED)
Support police, soldiers, personnel at quarantine checkpoint Support the frontline medical sta, doctors, soldiers, border guards as well
as patients in the ght against the epidemic
have been given by SBT to the following units: Ho Chi Minh City’s Party Committee Oce and Business Association to
support people during the COVID-19 epidemic; Supporting COVID-19 prevention and control of the Vietnam Fatherland Front
Committee in Khanh Hoa province; Supporting people in Attapeu districts and provinces in the ght against the COVID-19
epidemic; Coordinating with the Ministry of National Defense of Vietnam to give gifts to the border management and protection
force of the Kingdom of Cambodia, etc.
TTC Bien Hoa gave 100 tons of rice to the Cambodian border management and protection force.
TONS OF RICE
160
were given to the frontline medics, doctors, soldiers, border guards as well as patients in the ght against the epidemic,
with the hope that these nutritious drinks could be an energy booster providing extra protection against Covid-19.
BOXES OF MÍAHA CANNED SUGARCANE JUICE
9,000
256
COMPREHENSIVE TECHNOLOGY - VALUE SHARING
SBT AT GLANCE CORPORATE GOVERNANCE OPERATION THROUGHOUT THE YEAR SUSTAINABLE DEVELOPMENT REPORT FINANCIAL STATEMENTSSBT - IMPRINT OF THE YEAR
The bus to support compatriots in quarantine areas due to
the Covid-19 pandemic
Giving gifts to the poor in Cheo Reo ward - Gia Lai
were given to the poor and people in dicult circumstances: Giving gifts to families in dicult circumstances at Phap Minh
Pagoda; Giving gifts to the poor and people in dicult circumstances due to the Covid-19 in 4 districts in AyunPa Town -
Gia Lai; Giving gifts to disadvantaged villages at Attapeu Province - Laos; Assisting Ho Chi Minh City’s Party Committee Oce and
Business Association in the ght against epidemic. TTC Bien Hoa also pays extra attention to the local community surrounding
its facilities. In particular, the Company actively contributes to poverty alleviation by regularly visiting, encouraging and creating
favorable conditions for the disadvantaged in the locality to have a better standard of livings. In addition to sustainable job
creation, TTC Bien Hoa always put its best eorts into providing timely support for the disadvantaged.
The caring bus to provide essentials for people in Covid-19 induced quarantine areas
GIFTS
18,000
257
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SOCIAL TOPIC (CONTINUED)
OPERATIONS WITH SIGNIFICANT ACTUAL AND POTENTIAL NEGATIVE IMPACTS ON
LOCAL COMMUNITIES
Risk identication and risk mitigation measures
Source: TTC Bien Hoa
Farming and production activities always involve potential risks that have negative impacts on the
environment and local communities. TTC Bien Hoa has a greater awareness of risks that may occur
to the surrounding community and offers solutions to prevent and minimize negative impacts.
Production activities
Risks
• Soil, water, air, and noise pollution
• Unemployment issue
2.
Actions
• Wastewater: Invest in the cutting-edge wastewater treatment
system, ensure discharged wastewater does not cause pollution
• Solid waste: Reuse almost all by-products generated in the
production for dierent purposes
• Air and noise pollution: Issue detailed machinery instructions,
ensuring no signicant dust or noise emissions
• Maximize employment opportunities for local workers
• During the merger and restructuring process, the company still
retains the senior capable employees
• Support transportation and accommodation when transferring
employees to other localities
Sugarcane farming
Risks
• Forest encroachment
• Pollution of the soil environment and
water resources
• Local ecological imbalance
• Unbalanced crop area
1.
Actions
• Ensure cultivated land does not encroach on forest land
• Strictly control the use of fertilizers and plant protection drugs
• Ensure no toxic residues in soil and water resources
• Limit the impact of farming activities on ora and fauna to
the minimum
• Encourage the development of birth and natural enemies
• Plant owers along the banks of sugarcane elds
• Expand raw material areas in compliance with local authorities’
guidelines and planning on agriculture
• Determine the ratio of farm area in the best interests of farmers
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CUSTOMER HEALTH AND SAFETY
ASSESSMENT OF THE HEALTH
AND SAFETY IMPACTS OF PRODUCTS AND SERVICE CATEGORIES
“Bring clean Sugar to every home” is TTC Bien Hoa’s business motto, therefore the company assigns a high priority to
consumers’ health and safety during the production process. In particular, the Company is the owner of countless important
international certicates on product quality such as:
• Food Safety Certicate in the Middle East certied by HCA;
• Kosher Certicate by KOF-K, FSSC 22000, ISO 9001:2015, ISO 14001:2004 by Bureau Veritas BSI;
• Especially Organic Certicate (EU) and USDA (USA) by Control Union.
Besides the diversication of products to meet all consumers’ needs, especially the need for health and safety, the company
also promotes the organic sugar business, which not only brings great added value but also contributes to the increased
health of consumers. The technologies used in organic sugar production shall generate international-recognized “clean” sugar
grains made from chemical fertilizer-free, pesticide-free, healthy, highly nutritious and highly mineralized sugarcane.
INCIDENTS OF NON-COMPLIANCE CONCERNING THE HEALTH
AND SAFETY IMPACTS OF PRODUCTS AND SERVICES
For detailed information, please refer to Quality Assurance at the Chapter of
Operation Throughout The Year
GRI
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260
COMPREHENSIVE TECHNOLOGY - VALUE SHARING