Posted by dnks88 > 2016-08-19 11:29 | Report Abuse

By VnExpress August 14, 2016 | 11:03 am GMT+7

Police will launch a criminal investigation if the discharged waste is classified as hazardous.

Not long after the environmental disaster caused by Taiwanese Formosa Ha Tinh Steel Company along Vietnam’s central coast, a Malaysian firm in the southern region has been caught discharging unprocessed waste into the environment.

On July 28, Dong Nai Province’s environment police, in coordination with the Department of Natural Resources and Environment, discovered Chin Well Fasteners Vietnam Co., Ltd was using one of its two underground pipelines to discharge untreated wastewater directly into the environment.

The Malaysian-owned firm that manufactures bolts and screws has denied the claim, saying the water is used to irrigate trees.

Authorities also found a large amount of waste buried on the site, news site VietnamPlus reported on August 12, quoting Vo Van Chanh, vice chairman of Dong Nai People’s Committee.

The incident is under investigation and samples of the wastewater and solid waste are being analyzed. Chin Well Fasteners Vietnam will face a criminal investigation if the waste is found to be hazardous. Otherwise, administrative fines will be imposed, the Dong Nai Newspaper reported August 12.

Locals living near the Formosa Industrial Park in Nhon Trach District where the Malaysian firm is located said underground water in the area has been severely polluted recently.

“My family has five wells but none of them can be used. Although the water looks clean, it smells like herbicide,” local woman Vo Thu Hoi told VietnamPlus.

Chin Well Fasteners Vietnam was founded in 2005 and operates as a subsidiary of Malaysia’s Chin Well Holdings Berhad. The Vietnam-based unit has investment capital of $80 million and has around 600 employees.

60 percent of Chin Well Fasterners Vietnam’s products are exported to Europe, 30 percent to the U.S, 5 percent to Japan and the rest to Southeast Asian nations, according to Chin Well’s data.

Chin Well Fasteners Vietnam is one of several foreign companies in the Formosa Industrial Park in Nhon Trach District. Taiwanese conglomerate Formosa Plastics Group established the industrial park in Dong Nai in 2001, seven years before Formosa Ha Tinh (2008). Formosa Plastics Group has four plants in the industrial park in Dong Nai.

In late June, Formosa Ha Tinh Steel admitted its $10.6 billion steel plant was responsible for the mass fish deaths that plagued the central coast. The company apologized to Vietnam and pledged to pay $500 million in compensation for the environmental disaster that it caused.

http://e.vnexpress.net/news/news/malaysian-owned-firm-faces-sanctions-for-polluting-in-southern-vietnam-3452277.html

Posted by Foo Kelvin > 2016-08-19 12:56 | Report Abuse

Hold or Sell?

Posted by cpng > 2016-08-19 14:14 | Report Abuse

Future compensation for the environmental disaster is going to burnout a big hole for the company.

Posted by cpng > 2016-08-19 14:17 | Report Abuse

Good or bad news or infos we must share.Not like Pasar Malam kakies bought in low price and only spread good news hope to push up share prices.

Buy or sell by you own decision.

Posted by Lim Chun Ping > 2016-08-19 14:41 | Report Abuse

Sell until the case happen in vietnam solve

Posted by cpng > 2016-08-19 14:43 | Report Abuse

RIP

Posted by titus > 2016-08-19 14:43 | Report Abuse

I sold all. I have work in manufacturing and waste water treatment is not cheap. Sorry to say many company do take short cut as it is cheaper alternative. It depends on the country itself. If the they can fix deal with the regulator, then it is ok. But again, heavy industry generate alot of toxic waste and it is a burden for operational cost.

Posted by bunchofjokers > 2016-08-19 14:47 | Report Abuse

just sell and we will buy.. jokers the thing is going through investigation but all over-react, haha....

Posted by titus > 2016-08-19 14:47 | Report Abuse

& i see all sort of ways industry discharge the waste. Most famous is to open the tap during the middle of the night when there is heavy downpour. Base on the above news, they are found a large amount of waste buried on the site. Whether toxic or not, it is already against the law. And cpng is right, is this is an environmental disaster, it will cause them a big compensation and damage in reputation. So it is now depends on how vietnam goverment gonna deal with it

Posted by titus > 2016-08-19 14:51 | Report Abuse

i hope my loss of 20% will be your gain, bunchofjokers. I also hope there is no environmental disaster. Unless you work in the company and hv insider information, i can tell you generally heavy industry dealing with steel or metal does churn out high volume toxic waste. It is depends on the regulator to keep one eyes close or both. But if vietnam is serious on this, very likely chinwell will be impacted.

Posted by bunchofjokers > 2016-08-19 15:07 | Report Abuse

I entered RM1.50 and we will see how it fares in one year.

Posted by titus > 2016-08-19 15:29 | Report Abuse

I hope you are right. The last thing i would like to see is another environmental disaster. Is it not norm for you to buried the waste on site but then again, i'm not familiar with Vietnam regulation and work culture. It might be allowed there. My comment is base on the general EHS practice.

Posted by god2077 > 2016-08-19 15:33 | Report Abuse

Higher operating cost for chinwel compared to its competitors in china due to a leaner rules and regulation in china. For example, monthly water treatment expenses for chinwel would cost as much as 400k. However, china is currently implementing a stricter law to protect its environment therefore, the company believes that they can keep up its competitiveness with china company in 5 years time

I still believe Chin Well has done the job on the water treatment but i still follow my trading plan to cut loss

Posted by bwulf > 2016-08-19 15:58 | Report Abuse

over react on the news. wait until next week QR

Posted by reiki6 > 2016-08-19 16:11 | Report Abuse

all worry that profits may devastated by heavy reprimand fine..its human nature. Hope the company do the right way in handling waste treatment. Chinwel pls stay srong and progress!

Posted by titus > 2016-08-19 16:31 | Report Abuse

apparently chinwell issue was found early of the month. https://m.vietnambreakingnews.com/2016/08/formosa-dong-nais-facilities-charged-with-environmental-violations/
The upcoming QR results might not be impacted. Will need to see about the following QR

Posted by titus > 2016-08-19 17:05 | Report Abuse

In another news, the landlord of the are gave a press conference and said Chinwell admitted to the violation as shown below. So meaning guilty as charge??

A Malaysian company, Chin Well Fasteners (Vietnam) Co. Ltd, has been accused of releasing untreated waste water into the environment.

Vice chairman of Dong Nai Province People’s Committee, Vo Van Chanh, said at a press conference on August 12 that the company was caught releasing wastewater into the environment and burying a big volume of waste mud in its campus.
“We found the violation in a sudden check at the company’s campus on July 28,” Chanh said. “The company has admitted to its violations. Relevant agencies are investigating the irregularities to make a precise assessment.”

The firm, which is based on a 17-ha area in the Formosa section of Nhon Trach 3 Industrial Park in Nhon Trach district, was licensed in 2004 to manufacture screws, nuts, bolts and other fastening products.

https://m.talkvietnam.com/2016/08/malaysian-company-blamed-for-polluting-environment-in-dong-nai/

Posted by wil89 > 2016-08-19 18:06 | Report Abuse

https://m.vietnambreakingnews.com/tag/chin-well-fasteners-vietnam-co/

Yesterday's news though. I think still under investigation

Posted by titus > 2016-08-19 22:12 | Report Abuse

The press conference is about the farmosa estate management trying to distance themselves by saying there is no wrongdoing on their own territory but not on the lease land which chinwel is operating

"Allaying the concern, Chanh said there should be a clear distinction between Formosa and Chin Well as the former is the owner of the industrial estate while the latter is the source of pollution."

Posted by Jeremy Loi Fuang Suu > 2016-08-20 16:21 | Report Abuse

应该计提一些罚款赔偿金。这只是一单偶发事件 问题不大。
长期公司还是不断赚钱的好公司。

Posted by titus > 2016-08-20 23:55 | Report Abuse

I believed they will do that. The more important question will b what is their client stand. As one mentioned most of their client is US and UK company. How will they react and what the impact? Also since EU rule in favour of china in the anti dumping tax, will this issue give their client a reason to switch? A similar case is ioi losing the rspo and then one of their biggest client stop purchasing from them.

Posted by cpng > 2016-08-21 10:21 | Report Abuse

So easy? Case to refer.

台塑在越南投资的河静钢铁厂遭控，排出含毒废水，造成越南中部鱼群死亡。这事件在越南当地延烧，引起民众抗争。最后，台塑终于承认下包商操作疏失、排放污染，承诺将支付5亿美元的补偿金。

台塑在越南河静设立大炼钢厂，上周五由董事长代表，在越南媒体的镜头前，越钢高层一字排开鞠躬致歉。

据越南媒体报导，越钢附近300海哩鱼群暴毙，引爆当地四十年来最严重的公民抗争，在越南政府介入下，越钢终于承认下游包商排放污染，愿意补偿受影响居民5亿美元。

Posted by dnks88 > 2016-08-22 09:08 | Report Abuse

I wonder why an announcement on bursa was not made for such incident with huge potential huge impact.

Posted by Jeremy Loi Fuang Suu > 2016-08-22 10:17 | Report Abuse

may be because it is still on investigation.. no penalty at the moment. 但是下个报告应该会看到计提的赔款数目

Posted by reiki6 > 2016-08-22 12:02 | Report Abuse

ya, at this moment still pending investigation, any wild guess is not necessary as it would not help. Just be cautious and patiently waits for the finalization. Times will tell. Cheers :)

Posted by Foo Kelvin > 2016-08-22 14:23 | Report Abuse

When the result will come out?

Posted by titus > 2016-08-22 14:35 | Report Abuse

should be this week. The quarter result should be fine i guess.

Posted by dnks88 > 2016-08-22 15:24 | Report Abuse

Quote "Vice chairman of Dong Nai Province People’s Committee, Vo Van Chanh, said at a press conference on August 12 that the company was caught releasing wastewater into the environment and burying a big volume of waste mud in its campus.

“We found the violation in a sudden check at the company’s campus on July 28,” Chanh said. “The company has admitted to its violations. Relevant agencies are investigating the irregularities to make a precise assessment.”"Unquote

Which part of this is wild guess? They were CAUGHT in the act.

Posted by yongchang > 2016-08-22 16:11 | Report Abuse

lets wait for the investigation report and lab result on the sample taken at the factory,
as far as my concern, Vietnam authority did not issued "stop work order" to the factory. so please wait and see.. it maybe just administrative penalty

Posted by reiki6 > 2016-08-22 16:11 | Report Abuse

the impact on it clients' stand i mean... Not about news, its a fact! sorry if i have offended you?

Posted by dnks88 > 2016-08-22 16:26 | Report Abuse

None taken. All the best to those still holding.

Posted by iamsoonoob > 2016-08-22 21:54 | Report Abuse

same like the other company,fine 500 million dollar?

Posted by yongchang > 2016-08-22 23:25 | Report Abuse

Some illegal discharge of untreated water cases and penalty amount for your reference, you decide..

1) September, 05/2014
TAY NINH (VNS) — The People's Committee of the southern Tay Ninh Province has fined Hai Duong Co Ltd VND227.5 million (US$10,700) for illegal discharge of untreated wastewater into the Vam Co Dong River.

2) March, 02/2015
TAY NINH (VNS) — The People's Committee of the southern province of Tay Ninh has fined a local company VND290 million (US$13,800) for repeated violations of illegally discharging untreated waste water into the environment.

3) 16:52 | 11/05/2016
Taiwanese textile producer gets hefty fine for illegal discharge
The Department of Natural Resources and Environment has issued a fine of VND637 million ($28,423) on Taiwanese textile producer MeiSheng Textile Vietnam Company (MeiSheng) in the southern province of Ba Ria-Vung Tau, due to its discharging untreated wastewater into a local lake, according to local newswire.

4) August 17, 2016
The Vietnam Environment Administration under the Ministry of Natural Resources and Environment has made a decision to fine Pangrim Neotex Company nearly VND500 million (US$22,420) for discharging substandard wastewater into the environment. The textile company headquartered in Viet Tri city, the northern province of Phu Tho has three plants including a textile yarn, fibre and dying.

5) August 17, 2016
Viet Nam News LÂM ĐỒNG - The People's Committee of the Central Highlands' Lâm Đồng Province has decided to fine a company more than VNĐ320 million (US$14,400) for violating environment regulations. The Bảo Lộc Silk Joint Stock Company, based in the province's Bảo Lộc City, was found to have discharged untreated wastewater into the environment at the rate of 10.56cu.m per day.

Posted by iamsoonoob > 2016-08-22 23:42 | Report Abuse

then all those fines mentioned above not denominated in USD?
"In late June, Formosa Ha Tinh Steel admitted its $10.6 billion steel plant was responsible for the mass fish deaths that plagued the central coast. The company apologized to Vietnam and pledged to pay $500 million in compensation for the environmental disaster that it caused."

that 500million not is USD?

Posted by yongchang > 2016-08-22 23:56 | Report Abuse

u can google more on ha tinh case

Posted by Albukhary > 2016-08-23 00:10 | Report Abuse

I asked my vendor in Vietnam, they say this is just small case.
We all over re-act on this news.
As yongchang mentioned above, this type of environment issue will impose penalty between USD20k - USD50k only.

The Formosa case is different, as it really cause multi-million of fish dead and it cause big economy loss to that particular area.

Posted by titus > 2016-08-23 08:47 | Report Abuse

Hi Albukhary, the fine might be small but reputation damage will be huge. If chinwell client in UK and US are public listed company, they will nd to make necessary changes as most of them have strict policy on environmental. I'm not saying china manufacturer are holier but so far there is no scandal due to china environmental law is not strong. Furthermore, after paying the fine, there will be clean up cost and capex for the waste water treatment plant. So it will impact the next Q. Unless the company con't with the current practice and cont to pay fine. Not sure how well it will go with its client.

Posted by reiki6 > 2016-08-23 12:44 | Report Abuse

Lol ... everyone took it as USD500 million, including me (*_*)

Posted by Chris Yong > 2016-08-23 13:05 | Report Abuse

Hiahz.. Bought at 1.59.. Die

Posted by cpng > 2016-08-23 15:39 | Report Abuse

Market dislike uncertainty.
So the uncertainty of Vietnam situation keep in dark by the management will killing the price slowly.
Newbirds beware!

Posted by shazali6609 > 2016-08-23 16:11 | Report Abuse

my friend asked me to sell this, he just sod last 2 days..he said pls cut first as downtrending! bad report these 2 weeks, ask me cut first..

Posted by cpng > 2016-08-23 16:28 | Report Abuse

Uncertainty is ghosted the prices.

Posted by reiki6 > 2016-08-23 17:06 | Report Abuse

wait for lower and buy again :)

Posted by Jeremy Loi Fuang Suu > 2016-08-23 17:08 | Report Abuse

好多排在1.45等榴莲掉下来。Sell on Rumour 果然是金句。关键在于这次的业绩报告 如果业绩超好 减去计提赔偿 18,000k - 180k(1%) 还是会爆升的？？ NTA1.59 - 派息DPS 4 + 0.03盈余 = RM1.62

Posted by iamsoonoob > 2016-08-23 23:10 | Report Abuse

shazali6609 my friend asked me to sell this, he just sod last 2 days..he said pls cut first as downtrending! bad report these 2 weeks, ask me cut first..
23/08/2016 16:11

mainly because of the anti dumping tax that expired in february and volatile forex exchange rate this recent months......so below expectation result is coming.

Posted by Khaw Seek Chuan > 2016-08-24 11:19 | Report Abuse

Good news coming!!

Posted by sosoven > 2016-08-24 11:24 | Report Abuse

wat is the good news?

Posted by reiki6 > 2016-08-25 12:14 | Report Abuse

chin well ...love you ^.^

Posted by Stephen Chow > 2016-08-25 18:00 | Report Abuse

Chinwel earnings remain good amidst the weakening of USD and anti dumping issue.. good

Posted by lloydlim > 2016-08-25 18:13 | Report Abuse

Good dividend + better than expected Q result! Welldone Chinwell