The project site is in a peri-urban location comprising a modified habitat, and IFC’s screening results did not indicate the presence of sensitive biodiversity areas, habitats, and potentially endangered species at the site and its surroundings. There are no known indigenous peoples, communities and cultural heritage at or near the project area or anticipated adverse impacts on them. As such, the project does not result in the E&S impacts that must be managed according to PS6: Biodiversity Conservation and Sustainable Management of Living Resources, PS7: Indigenous Peoples and PS8: Cultural Heritage.

   This is a Category B project according to IFC’s Policy on Social and Environmental Sustainability as adverse E&S risks and impacts arising from the project are limited, generally site specific and can be addressed through implementation of Good International Industry Practice (GIIP). Key E&S risk and issues identified during appraisal include: effectiveness of E&S management system for the project’s construction and operational activities including oversight of contractor activities; land acquisition and involuntary resettlement of local communities related to the project footprint; labor and working conditions including occupational health and safety; and emergency preparedness and response including that for COVID-19 pandemic.

  Policy: NLIC has put into place the following E&S related policies in December 2013: (i) The Nam Long Corporate Policy and Requirements on Environment, Health, and Safety; (ii) The Corporation Policy – Land Acquisition, Compensation, Resettlement, and Livelihood Restoration and Grievance Mechanism; and (iii) The Corporate Policy on Occupational Health and Safety. In September 2019, the company developed an overall Environmental and Social policy statement document in which the company’s E&S policy objectives are stated, underpinned by a statement that all NLIC operations will comply with applicable national legal requirements and IFC performance standards requirements. The above policies form the foundation of the company’s identification and management of pertinent E&S risks and impacts in its day-to-day operations. The company states that staff has been trained about this policy and has been communicated to construction contractors involved in NLIC projects.

Identification of Risks and Impacts: NLIC conducts high level project risk assessments at the start of each project, including WPP2. These cover risks related to planning, cost, quality, and Health Safety and Environment (HSE) during the construction phase. An environmental impact assessment (EIA) for WPP2 has been prepared by a third-party technical institute as per environmental permitting conditions. The current scope of the WPP2 EIA covers the construction of the residential units and land-infrastructure.

The WPP2 EIA will benefit from further analyzing impacts of the following activities: (i) construction of water-infrastructure including canals, a harbor, and jetty; (ii) construction of river embankment; (iii) sand filling activities; and (iv) groundwater extraction. It will also benefit from including additional content, data, analysis of impacts, and development of appropriate mitigations and monitoring actions related to: workers accommodation, waste management of the construction site, noise and vibration during construction; site earthquake  risk assessment, use of transformers containing Poly-Chloro-Biphenyl (PCB) oils; and documenting stakeholder engagement activities.

NLIC will agree with IFC the Terms of Reference (ToR) to update the current EIA to an E&S Impact Assessment (ESIA) for WPP2, so as to include the additional analysis of activities as mentioned above. The updated ESIA will be in line with national regulations, IFC Performance Standards (PS), and relevant World Bank Group (WBG) Environmental Health and Safety (EHS) Guidelines (ESAP #1). NLIC will engage a qualified E&S consultant to support its EIA update.

E&S Management System and Programs: Based on its E&S policies, NLIC has developed a corporate EHS manual and various operating procedures with a strong focus on Occupational Health and Safety (OHS) and on waste management during construction. The manual describes: i) EHS objectives during construction; ii) E&S roles and responsibilities of various NLIC personnel and departments and training programs; iii) risk identification and mitigation steps; iv) EHS communications and consultations at the construction site; v) minimum technical requirements in relation to contractors’ equipment; vii) programs and requirements to implement and verify safe working methods; and viii) emergency response methods.

Building upon the above, the company will integrate, streamline, and consolidate its various existing E&S policies and operating procedures into its Corporate EHSS  manual as different chapters, so that there will be one manual/document that all staff members can utilize and refer to for future NLIC projects. The content of the manual will mainly comprise clearly delineated working-level instructions that staff members can follow and implement in day-to-day work.  Once finalized, the corporate EHSS Manual will be signed off formally by senior management and the Board of Directors of NLIC. The company will provide an implementation status update report to demonstrate that WPP2 has effectively followed relevant requirements of the updated EHSS Manual (ESAP #2).

Related to the above, the company will ensure all co-developers and core development partners of WPP2 formally commit to complying with NLIC’s revised EHSS Manual, and with applicable IFC Performance Standards and WBG EHS Guidelines, in relation to the co-development of WPP2 (ESAP #3).

Organizational Capacity and Competency: The company’s core EHSS team consists of an EHS manager with 2 officers reporting to him. During construction projects these staff members are assigned, on a weekly basis, to monitor compliance of HSE performance and to assist on-site HSE staff. The project and construction management division has a legal team involved in land acquisition and resettlement, a construction design team, and a quality assurance team.

Once a project has been initiated, a dedicated project team is assembled. The company has requirements and verification procedures in place to ensure the competency of site-based OHS staff appointed by contractors. It has further set minimum requirements for training and/or certifications for key roles within the construction process, such as operators of heavy equipment, scaffolders, electricians and first aid staff. All construction staff is trained in basic safety requirements, using the training material provided by NLIC. Trainees are tested at the end to ensure adequate knowledge uptake. Supplementary training for construction workers is planned and provided based on additional actual risks identified during construction. As part of the upcoming consolidation of its Corporate EHSS Manual, the company will look for opportunities to refine its EHSS related organizational structure and rearticulate roles and responsibilities as needed.

Monitoring and Review: EHS monitoring at project construction sites is conducted by a 3rd party consultant engaged by the company. Monitoring parameters and frequencies are set out in the approved EIA for the duration of the construction phase and results are reported to NLIC senior management. Monitoring by the third-party consultant as well as by an internal NLIC audit team (headed by the corporate EHSS manager and site-based HSE engineers) includes daily site inspections against an inspection checklist developed based on risk points and required mitigations arising from a project’s EIA and OHS risk point analysis report. Based on the common risks at construction sites, NLIC has developed a list of possible EHS violations with penalties and fines defined for each. This list is included in the contract between NLIC and its contractors. Further HSE compliance monitoring of contractors is included in the regular Quality Assurance (QA) audits conducted by the QA team of NLIC.  

   As of November 2020, Nam Long had 1,016 employees at the corporate level, out of whom 37 are working on the WPP2 preparation, mainly in administration, finance and accounting, and project and construction management. Based on experience from Phase 1 of the project, at the peak of construction for WPP2 1,500 contractor and sub-contractor workers are expected on site. The project and construction workforces are predominantly male which reflect the nature of work in this sector and the availability of personnel. The company is in the process of expansion; therefore, no retrenchment is envisaged in the foreseeable future. There has been no retrenchment or no-pay-leave arrangements at NLIC due to COVID-19.

Human Resources Policies and Procedures: Nam Long has a dedicated Human Resources (HR) function, and employment policies and procedures that are approved by the District Division of Labors, Invalids and Social Affairs and compliant with the Vietnamese labor regulatory requirements (2012 Labor Code). Nam Long has adopted an Internal Labor Regulation in 2010 then revised and updated this in 2014 and 2016. The Internal Regulation addresses working hours, overtime limits and payments, annual and maternity leave, salary and benefits, social insurance, health insurance, accident insurance, and labor disputes. The regulation and procedures are communicated to new staff during induction, regularly at staff meetings and are posted on the company’s intranet.

Working Conditions and Terms of Employment: Terms of employment and the rights and responsibilities of workers are formalized into employment contracts and communicated to all direct employees along with the Internal Labor Regulation which are consistent with the national labor law requirements and PS2. Working hours and overtime work are as per requirements of the 2012 Labor Code of Vietnam. Employees receive time-off or cash compensation in lieu of for any overtime work at rates regulated by the national labor authority. All employees are enrolled in social insurance, covering pension, unemployment, medical, injury, and maternity. Annual medical checkups are arranged for all employees.

Workers’ Organization: Per the Labor Code in Vietnam, all companies must permit employees to join a trade union. At present, close to 100% of Nam Long’s workforce belongs to a labor union and membership is voluntary. A Collective Bargaining Agreement (CBA) has been agreed upon in 2017 between the labor union and Nam Long and has been registered with the District Division of Labor, Invalids, and Social Affairs in November 2017. This agreement complements Nam Long’s Internal Labor Regulation and related procedures.

Non-discrimination and Equal Opportunity: The company’s HR policy specifies principles of non-discrimination and equal opportunity. No signs of any discriminatory practices or of harassment incidents were identified during IFC’s review. All hiring and promotion undertaken are merit-based and there is no difference in terms of salary for female and male employees with the same experience. The company has a Code of Conduct on ensuring a respectful workplace.

Grievance Mechanism: Employees can report their grievances to HR and/or through the labor union, or through the company’s intranet, anonymously or non-anonymously. Going forward, the company will develop formal worker grievance handling procedures (including channels to file anonymous grievances) and incorporate a formal anti-harassment policy into its HR policy whose scope will be extended to contractor and sub-contractor workers (ESAP #4).

Protecting the Work Force: IFC’s review did not find any signs of child and forced labor practices at NLIC and the construction sites. For contractor/subcontractor workers, the identity and age of every worker is checked and verified each day, and ID passes are issued in accordance with NLIC’s Security Policy. Site-based HSE officers inspect worker rosters daily when workers enter a site in the morning, and also conduct random checks.

Occupational Health and Safety (OHS): On the basis of NLIC’s group-level OHS standards, each NLIC project articulates a site-specific OHS management plan. These plans include programs for training, development of risk assessment, as well as specific requirements for high risk activities such as scaffolding, working at height, working with electricity, and excavation. Construction agreements require the contractors to comply with national standards and NLIC group standards. Compliance verification is achieved through daily and weekly site-inspections by NLIC site-based EHS officers.

As per the contract requirements, the contractors are required to appoint an experienced HSE Officer to ensure OHS compliance, provide training to site-based workers, maintain OHS statistics, investigate any accidents, and ensure implementation of any corrective actions needed. A specified bonus / penalty system for OHS performance / violation is agreed in the construction contract and compliance is monitored continuously by onsite NLIC HSE officers, as well as through weekly OHS inspections by the NLIC HSE manager. At each project site, weekly and monthly reports are compiled, and incident investigation and reporting procedures are followed. Based on IFC’s observations at an active NLIC construction site, its OHS program has been well implemented: all workers had appropriate personal protective equipment on; housekeeping and signage was adequate; and no significant accidents were reported. This performance is also reflected in the current safety statistics of NLIC i.e. As of May 2020, two ongoing construction projects of NLIC had experienced 1.5 million person-hours without a lost time incident (LTI) in 24 months.

Workers accommodation and code of conduct: As per its OHS policy, Nam Long requires worker accommodation and amenities provided by its construction contractors to meet NLIC’s requirements on lighting, ventilation, sanitation, and drinking and domestic water. Going forward, as set forth in the ESAP #5, the company will update its worker accommodation standards by adding provisions on: minimum living space per person and per family; adequate sewage and garbage disposal systems; appropriate protection against heat, cold, damp, noise, fire and disease-carrying animals; adequate sanitary and washing facilities; and ensuring adequate cooking and storage facilities. Updated standards will be introduced and applied to contractors/subcontractors and implemented incrementally over time to help ensure consistency with key aspects of IFC’s Workers Accommodation standards under PS2. To reduce potential health and safety risks associated with influx of construction workforce, the company will adopt a Worker’s Code of Conduct (WCC) applicable to all workers, including those engaged through contractors and subcontractors, and will demonstrate compliance of WPP2 with the WCC (ESAP #6).

   Resource Efficiency and Greenhouse Gas (GHG) Emissions: During operations, NLIC projects obtain electricity and water supplied from the national grid and municipal water companies with legal approval from the local authority. During WP phase 1 construction, groundwater was pumped from drilled wells at site for construction activities and was treated to meet national standards on water quality for domestic purposes. WP Phase 1 has used a limited amount of groundwater (10m3 per day) during construction, and the same can be expected of WPP2, and NLIC ensures that the required permit is obtained before commencement of groundwater extraction. During operations, the project will extract groundwater and treat this in a water treatment plant, to a standard consistent with local potable and non-potable water quality requirements. The project EIA indicates that the local groundwater reserve has a supply capacity of 42,740 m3 per day and the project area does not lie within the zoning for limited and/or prohibited groundwater extraction regulated by Long An Province. Therefore, the impact of the project on groundwater is insignificant and unlikely to create any competing demand for water with other users. The project is not expected to be a major user of electricity and other fuels and as such, it is expected to have a limited GHG emission footprint below 25,000 tCO2e per annum.

Pollution Prevention and Abatement: The project’s EIA did not find concerns with potential historical contamination issues at the WP project site, and the site was not associated with known previous heavy industry activities. The sand filling of WPP2 site was completed in Q1 2020. The sand for backfilling was sourced from registered quarries at about 10km from the project site and legal requirements for use of sand have been fulfilled. No dredging activities in the Vam Co Dong River embankment near the WP project site are undertaken or required for WPP2. The project’s design and permitting conditions stipulate that certain sections of the 5,800m stretch of the Vam Co Dong riverbank will be rehabilitated if erosion is found using stone gabions and grass cover. The project is required to ensure that embankment construction strictly follows the existing bank alignment to avoid any impacts on the current conditions of soil, riverbanks, and river flows. 

Air emissions from the project during the construction stage of WPP2, as well as noise and vibration, will arise mostly from soil excavation and backfilling, material transportation by trucks, and construction activities. The project’s EIA and associated environmental protection plans include a range of control and mitigation measures to mitigate such impacts. Results from the most recent air emission and quality monitoring reports confirm that emissions have not exceeded levels stipulated in Vietnam construction industry air emission standards. IFC’s review finds that the project has to date implemented effective mitigation measures to address air emission related impacts during excavation and transportation of materials.

All projects of NLIC are required to comply with national and provincial regulations for treatment and discharge of wastewater throughout construction and operation phases. Wastewater management is stipulated in the project’s HSE plan which has been prepared by the project contractor and sub-contractors, and adequate treatment facilities have been installed. Sanitary wastewater is treated by a three-chamber septic tank installed on site, whereas construction wastewater is treated by an on-site sedimentation system and is discharged into the Vam Co Dong river after the treated wastewater has been confirmed to meet national industry discharge standards. Results from the most recent monitoring reports indicated that surface water quality met relevant national standards. An on-site wastewater treatment plant with a treatment capacity of 8000 m3 per day will be built to serve the WP project (both phases) during its operational phase.

Solid waste at the project is classified into three types: domestic solid wastes; construction solid wastes; and limited quantities of hazardous solid wastes. NLIC requires all contractors to separately handle each type of solid waste, to be collected and disposed of by licensed waste management companies at designated locations. The project is expected to use limited quantities and types of hazardous materials (HAZMAT) and their use, storage, transport, and disposal, will be carried out strictly accordingly to national regulations, access control protocols, and material safety data sheets for each type of HAZMAT.

     The company engages unarmed security guards at its project sites. A Security Management Plan has been developed for WP project detailing key locations, staff arrangement and rules of deployment. There have been no known security incidents at the WPP2 site. Main potential adverse impacts on local residential communities near the WPP2 site are related to dust, noise, vibration, road congestion and traffic safety on local roads, and potential construction-worker related influx. The company’s current corporate level HSE manual includes requirements for contractors to develop a basic code of conduct and to address traffic related impacts. As part of the ESAP action under PS1, the company will update its EHSS manual by including a chapter which addresses PS4 risks and impacts and will demonstrate that WPP2 has complied with this. Refer to PS1 and the ESAP#2 for details.

Emergency Preparedness and Response: NLIC has developed general guidelines for emergency preparedness and response during construction projects, and an Emergency Response and Crisis Handling Policy has been implemented since early 2020. The policy describes types of emergency situations and incidents and management protocols with reporting responsibilities defined.  At the start of each project, contractors develop these further into site specific emergency plans. These plans include measures for emergency scenarios such as injury, fire, release of gas and general evacuation of a site. Contractors are required to provide trained first aiders, emergency alarm systems and emergency lay-outs to facilitate and communicate these measures. NLIC reviews and approves these plans to ensure they comply with its standards. An onsite verification of the plans by NLIC is conducted prior to the start of construction. This includes assessment of communication and transportation routes to police stations and hospitals. Contractors are required to conduct emergency drills at least once a year.

Life and Fire Safety (L&FS): NLIC designs and constructs its projects in accordance with Vietnamese building code requirements. NLIC incorporates the following elements into the design of its high-rise residential buildings: fire-prevention measures and designs which take into account combustibles and ignition sources; fire-detection and alarm systems; fire-fighting systems (e.g. sprinklers in kitchen areas, extinguishers, etc); double evacuation exits and egress considerations which take into account building and floor load and occupancy factors, as well as signage; and compartmentation and smoke and fire control. The fire alarm systems of each residential building are connected to one central monitored fire control panel which covers a cluster of several nearby buildings. Design of these buildings and construction compliance verification is carried out by the local fire department as per Vietnamese regulations.