Visit to the Vietnam Sewing Factories in February 2023

In February 2023, we visited two of our suppliers in Vietnam, the sewing factories BAC GIANG LGG GARMENT CORPORATION and Haivina Kim Lien Factory, to investigate the status of their sustainability initiatives.
During the survey, in accordance with our “Basic Policy on Sustainability in the Supply Chain”, we confirmed the status of compliance with laws applicable to the apparel manufacturing process, respect for human rights, occupational health and safety, and environmental protection, and found no serious violations.

BAC GIANG LGG GARMENT CORPORATION

General Observance of Laws

• We confirmed that the company has established a special department to identify, understand, and comply with laws and regulations relating to the factory operations. The applicable legislation is displayed in the factory to inform employees of the laws and regulations.

Human Rights (Child Labor, Forced Labor, Contact Point, Labor Conditions, etc.)

• The company concludes employment contracts with all employees, which include the terms and conditions of employment such as working hours, wages, overtime pay, and holiday entitlement.
• The minimum wage is in compliance with applicable laws and regulations, and overtime pay is paid as appropriate.
• A labor union has been formed and all employees are members.
• An employee grievance mechanism has been developed and is in operation. Employees can file a grievance with the company through the suggestion box, web chat app, or website.

Occupational Health and Safety

• The company has established a policy on occupational health and safety, which is communicated to all employees.
• The company has introduced a monitoring system to identify potential risks in its factory operations.
• In addition to medical examinations for all employees, surveillance is conducted for employees who may be exposed to occupational diseases or occupational illnesses.
• First aid kits are installed in each section of the factory, and a first aid team is assigned to every shift.
• The company has a medical room staffed by doctors and nurses. Transportation by ambulance for emergency treatment is possible in case of an emergency.
• The company manages chemical substances in accordance with local laws and regulations.
• Fire extinguishers, fire hydrants, and other fire and disaster prevention systems have been installed in the factory, and periodic inspections are conducted.
• The company has evacuation maps in place and conducts regular evacuation drills with the cooperation of the fire department.
• Drinking water dispensers for employees are located throughout the factory.

Preservation of the Environment

• The company has a written environmental policy which is disseminated to employees.
• The company regularly monitors wastewater and exhaust emissions to ensure that they are within the limits prescribed under local laws.
• The company employs qualified waste disposal contractors to properly dispose of waste.

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Haivina Kim Lien Factory

General Observance of Laws

• We confirmed that the company has established a special department to identify, understand, and comply with laws and regulations relating to the factory operations. The applicable legislation is displayed in the factory to inform employees of the laws and regulations.

Human Rights (Child Labor, Forced Labor, Contact Point, Labor Conditions, etc.)

• In order to prevent child labor, when hiring employees the company conducts age verification by means of ID cards and other identification documents.
• The company concludes employment contracts with all employees that include working hours, wages, overtime pay, holiday entitlement, and other employment conditions.
• The company appropriately manages employee working hours, including overtime hours, in accordance with laws and regulations.
• The company’s labor rules prohibit unfair treatment in relation to hiring, promotion, and compensation of any particular groups based on race, gender, religion, or other factors, as well as physical abuse and humiliating punishment.
• The company has developed and operates a grievance mechanism for employees. Employees may file a grievance using the suggestion box or the hotline provided by the company.
• The minimum wage is in compliance with the legal minimum wage requirements, and overtime is paid as appropriate.
• Employees are guaranteed paid holiday and are encouraged to use it.
• Labor unions are organized and the right to collective bargaining is recognized.

Occupational Health and Safety

• The company has formulated a policy on occupational health and safety, which is displayed in the factory to inform employees of the policy.
• Environmental, health, and safety risk assessments are conducted on a regular basis. The results of the most recent assessments indicated no particular problems.
• In addition to medical examinations for all employees, surveillance is conducted for employees who may be exposed to occupational or work-related diseases.
• Chemical substances are managed in accordance with local laws and regulations.
• The company has established protective equipment regulations to ensure the occupational safety of its employees, who are regularly provided with protective equipment.
• Fire and disaster prevention systems such as fire extinguishers and fire hydrants are installed in the factory, and periodic inspections are conducted.
• Evacuation maps are placed in designated locations, and evacuation drills are conducted regularly with the cooperation of the fire department.
• There is a medical room staffed by doctors and nurses and transportation by ambulance for emergency treatment is possible.
• Drinking water dispensers for employees are located throughout the plant.
• First aid kits are installed in each section of the plant, and a first aid team is assigned to every shift.

Preservation of the Environment

• The environmental policy is communicated to employees and published on the company’s website.
• A dedicated team including qualified specialists is responsible for the factory’s wastewater treatment system and waste disposal.
• The company conducts monitoring of wastewater on a regular basis to ensure that they are operating within the limits prescribed under local laws.
• The company is regularly audited by a third-party organization, and no specific problems have been identified.

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Supply Chain