Climate Change Data

Environmental Metrics

Environmental Achievements

• IPs are always focused on building in a friendly and sustainable way, the electricity and water system are designed reasonably from the beginning; Energy-saving electrical equipment are used such as: energy-saving led light bulbs; in the future the IPs will aim to use power supply measures such as solar energy to supply street light equipment; during construction, IPs focus on using environmentally friendly materials, locally available materials; For office block, we highly take notice of limiting the use of electricity and equipment during peak hours, using low-energy equipment, turning off devices when not in use, set the air conditioner temperature at an appropriate level, limit use paper in printing when not needed, actively use electronic documents to exchange work, etc.”

Social Achievements

• Actively supports training to improve people’s qualifications to meet the requirements of labor qualifications and conditions to work in high-tech enterprises.
• In 2021, the Corporation has spent more than VND 157 billion to implement and support social activities such as gratitude fund, fund for the poor, scholarship in Bac Ninh; Covid-19 supporting and preventing fund; flood-victims supporting fund in the Central region; Tet reunion supporting fund, etc.

Governance Achievements

• KBC always complies with the regulations on Corporation governance for listed companies, the information provided on the stock market is transparent, clear and timely.

Climate Goals & Targets

Environmental Challenges

• The product is not suitable for all investors: the land plots in the IP are quite large, which is limited for projects that need to use a small land area (under 1,000 m2).
• Restrictions on industries that are attracted to IPs: in IPs, industries with potentially polluting emissions are restricted.
• The number of suitable skilled labours is not enough for the needs of enterprises.
• Tax incentives: Apart from Trang Due IP, other IPs of KBC are located in the developed economic zones so they do not follow the preferential tax policies according to the new law.
• Short-term supply is limited: Currently, there are 04 KBC’s IPs with a total area of 1,013ha which have been filled.
• Higher investment costs lead to higher rental rates, which will be difficult to attract specific investment projects.
• Difficulties in attracting investment without tax incentives.
• The procedure for approving large-scale IPs can take many years.
• Risks from changes in monetary policies
• Risks from changes in management policy of IP investment activities

Mitigation Strategies

• Being the only Southeast Asian country to achieve 5 agreements are under negotiation. The “RCEP” Agreement, in particular with a very long way to go.
• KBC is always considered the first choice of satellite companies of large corporations such as Foxconn, LG, SamSung, JA Solar, Goertek, Fuyu, etc. which have already invested in IPs of KBC.
• Catching the wave of FDI inflows from Japan, China, Hong Kong, Taiwan, EU into Vietnam.
• Benefited from the State’s policies and orientations to attract FDI, attracting FDI is confirmed to be an important part of the economy and is encouraged for long-term development.
• Choosing investors that do not pollute the environment, do not use outdated technology, etc.
• KBC’s available land bank for sale has been reduced by 1,439 ha since 04 IPs in Bac Ninh and Hai Phong have been filled 100% and 01 IP in Bac Giang has been filled with 96.78%, which is a challenge for KBC in the short term.
• The transformation in investment structure of FDI enterprises is taking place aggressively; The view of the Government is to attract FDI selectively in technology, environmental protection, investors who are willing to connect with domestic enterprises, etc. That is also a challenge for KBC.
• Facing the constantly changing monetary policy, KBC is always ready to balance capital from business activities, issue bonds, maintain good credit relations with big banks such as Viettinbank, BIDV, etc.
• Regarding to policies issues, KBC has to make reports to explain, persuade, comment with authorities, point out the benefits and damages that continuous changes in policy can cause to the state and the investors.
• Thanks to all efforts and persistence to protect the views of enterprises, KBC has overcome the types of policy risks.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Vietnam National Brand Award
• ASEAN Excellent Enterprise
• Vietnam Gold Star

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Minimized environmental pollution through providing space for building factories in green and modern industrial parks.
• Industrial parks are always focused on being built in a friendly and sustainable way, the electricity and water systems are reasonably designed from the beginning; using energy-saving electrical equipment such as energy-saving led light bulbs.
• Wastewater treatment meets QCVN 40/2011/BTNMT column A.

Social Achievements

• Created hundreds of thousands of jobs for people from high school level, contributing to the budget of provinces and cities where KBC develops.
• Actively support the training to improve people’s qualifications to meet requirements on labor qualifications, and be eligible to work in high-tech enterprises.
• Implemented the payment regime of social insurance, health insurance, unemployment insurance, means-tested benefits for all employees.
• Supported and shared responsibilities with the amount of 80.3 billion VND for social activities in the provinces of Bac Ninh, Bac Giang, Hai Phong, Quang Ninh and Cu Chi - Ho Chi Minh City.

Governance Achievements

• Improving corporate governance more methodically and professionally.
• All 100% of information disclosure and news posted on the Corporation’s website are bilingual.
• Reviewing all the tasks related to corporate governance to develop a process implementation guideline.

Climate Goals & Targets

Environmental Challenges

• Changes in management policy of IP investment activities (difficulty in establishing new projects; withdrawn projects; projects which are converted use purpose; policy changes in incentives for investors; unclear regulations which cause to misunderstand between authorities and investors, changes in tax policy; policy changes in annual land rent payment; regulation changes in land compensation price, etc).
• Changes in monetary policies (credit tightening, high loan interest rates).
• Risks from FDI attraction (reduction in FDI inflows into Vietnam).
• Ineffective cash flow management.
• Risks from operating IPs (air pollution from enterprises in IPs, natural disasters, fire and explosion, strikes, bankruptcy of operating enterprises in the IPs, diseases, wars).

Mitigation Strategies

• Making explanation report, persuading, giving suggestion to authorities, pointing out benefits, losses causing effects to Government and investors due to constant policy changes.
• Balancing capital from business activities, issuing kinds of bonds to raise capital when the market is favorable, maintaining good credit relations to large banks.
• Closely following the FDI capital flow into Vietnam to seize investment opportunities, minimize risks related to FDI attraction.
• Capital mobilization and capital use are always considered to ensure that the capital is profitable and to enhance to promote business growth and to preserve capital when facing difficulties.
• Risk prevention activities such as: fully equipped with labor protection equipment, training for labor safety-fire prevention for employees, regularly inspecting and maintaining machinery and equipment.

Supply Chain Management

Responsible Procurement

• Focusing on using environmentally friendly materials and locally available materials during construction.

Climate-Related Risks & Opportunities

Awards & Recognition

• Vietnam National Brand Award
• ASEAN Excellent Enterprise
• Vietnam Gold Star
• Forbes 50 best listed companies in Vietnam for 3 consecutive years
• Top 10 best IP developers