Notorious monosodium-glutamate maker Vedan in Dong Nai Province received three certificates of merit for “community safe” products two weeks ago on the occasion of Vietnam’s Entrepreneur Day (October 13).

Vedan was last year found to have discharged untreated wastewater for 14 years into the Thi Vai River in Dong Nai through pipes concealed under the ground, heavily affecting fish and rice farmers in the province as well as those in nearby Ba Ria-Vung Tau Province and Ho Chi Minh City.

It was ordered to pay millions in fines and to compensate those whose livelihoods had been destroyed, but it has thus far offered miniscule amounts that affected farmers have rejected.

Against this background, it shocked people that the firm was listed among 50 honored for producing 100 products safe for public health.

Officials and farmers in Dong Nai Province which suffered the most from Vedan’s wastewater discharge called the award “inconsiderate” and “disappointing” while Nguyen Dinh Hoe, lecturer at the University of Natural Sciences in Hanoi called it a “joke.”

At least 11,584 families affected by Vedan’s sewage discharge have submitted compensation claims, but negotiations have not made much headway.

Nguyen Thi Sinh, director of the HCMC-based quality and brand development consultant Natusi Patent Standard Agent (Natusi) that co-organized the award, first denied giving any certificates to Vedan but later blamed her employees for printing the certificates according to the list of nominated firms, not of the firms to be awarded.

Sinh said it was also a mistake that Vedan was named at the celebration as a firm receiving the honor but the organizers couldn’t intervene as the program was being broadcast live.

She said on Tuesday that the unit has sent a note apologizing to Vedan for the mistake and asked the company to return the three certificates.

Yeh Sheau Yeh, head of the general director office of Vedan, ruled out returning the certificates saying it would hurt the company’s reputation, but later recanted, saying it was bowing to public demand.

Ngo Quy Viet, head of standards and quality office under the Ministry of Science and Technology, had earlier said that Vedan did not have enough reasons not to return the certificates.

The southern office of the ministry is the other co-organizer of the award.

Minister Hoang Van Phong said he will strictly punish all officials involved in the case.

Also on Tuesday, Hoang Thuy Tien, deputy head of the Health Ministry’s Food Safety and Hygiene Department who signed the certificates to Vedan was ordered to stop working temporarily and report his action in the case.

Vedan has paid VND15 million as participation fee in the award for the three products that it sent to the organizers and all of which were chosen for the award.

Buying prestige

A sales and marketing deputy director in HCMC, who wished not to be named, said due to the economic crisis, the value of business awards had been cut to VND10-15 million each but businesses could add to it by paying the participation fee, which Tuc also referred to as “the commercialization of awards.”

The director said “almost all honors being granted to businesses these days can be bought.”

For some prestigious honors, businesses cannot pay to be ranked among the top 10 but they can “totally” buy a spot in top 100 or top 200, he said.

“Although the categories of an award can be strict, the organization would grant privileges to those firms who don’t meet the quality requirements but pay enough participation fees or donate significantly to charities under the award’s name.”

Minh of the city business association said it has cooperated with the VCCI to propose that the city government works with the competition and awards team under the Prime Minister to re establish order.

“Businesses these days have been fed to sickness with awards. The situation is having a terrible impact as consumers are confused between businesses that are really good and those that only have a good mark.”

Pham Trung, deputy general director of steel maker Hoa Sen Group in Binh Duong Province neighboring HCMC, said the company every year receives more than 20 invitations to apply for different kinds of prizes and cups.

Trung said the company doesn’t set out a fixed number of awards to participate but only sends applications to prestigious awards and those that have clear orientation.

“We’ll absolutely turn down offers that mention the participation fee.”

Trung’s counterpart Pham Ngoc Chau at milk producer Hancofood Joint Stock Co. said the company has “said goodbye to awards” after applying for the first one several years ago. It found almost all participants received an award.

Chau said the organizers at the time did no survey or inspection on the product quality, the manufacturing process or the firm’s capabilities.

He said the government should step in and ensure that businesses are not awarded just by paying participation fees and attending the award-granting ceremony.

No rules

Pham Gia Tuc, vice chairman and general secretary of Vietnam Chamber of Commerce and Industry (VCCI), on Tuesday told Thanh Nien that Vietnam is yet to have specific regulations for dealing with awards granted to businesses, although several companies and organizations are each giving out four to five different awards a year.

Tuc said around 40 kinds of business awards worth VND10-30 million (US$561-1,680) each are given each year, many of which are apparently based on no specific criteria and easily honor any firm that participates in them.

Some businesses have made little contribution to the society but still receive pompous honors like “Essence of Vietnam,” Tuc said. It is not surprising that the public take umbrage, he added.

Huynh Van Minh, chairman of HCMC Business Association, said many businesses are trying to show off as many cups and awards as possible in order to conceal their shortcomings, cheating consumers in the process and engaging in unhealthy competition.

Reported by Thanh Nien staff