Eurocharm Group values the protection of the environment and society. We also choose companies with the same integrity. In addition to regular factory visits to assess the suitability of our suppliers, we also conduct annual evaluations of our existing vendors. In addition, all our suppliers abide by our honesty policy of not accepting gifts or commission and prohibiting transactions with related parties. If a supplier violates the policy, the Group will cease business relation immediately; this is to ensure reasonable quotations, the best quality, and the best service so that the Company and our suppliers can jointly strive to enhance corporate social responsibility.

The annual audit of quality system: All the suppliers providing raw materials and semi-finished products required in the production line are included in the audit; the assessment focuses on confirming the implementation status of the supplier’s quality system, and the audit results are graded accordingly.

LevelGrade range description
A (91-100 points)The quality system is well maintained.
B (76-90 points)The quality system is fairly maintained, but there are still some deficiencies that need to be addressed for improvement.
C (60-75 points)The quality system is not well maintained.
Observation and counsultance are required.
D (< 60 points)The quality system is poorly maintained.
After six months, the system must be reexamined. If the system still cannot be improved, it will be reported to the superior for further decision.
Number of Existing Suppliers Evaluated12974109
Total Number of Suppliers129131109
LevelGrade range description
A (≥ 85%)The supplier’s system is good and needs to be maintained; the supplier reaches the standard as a supplier in Vietnam.
B (70-84%)The supplier’s system is average and needs to be improved; the supplier reaches the standard as a supplier in Vietnam.
C (50-69%)Improvements are required in six months, and then supplier would be continuously audited; the supplier would be disqualified if it fails to reach the B level.
D (< 50%)The supplier’s system is poo; the supplier is removed from the Vietnam system.
Number of Existing Supplier Rating8495115
Total of Suppliers470476425
(Note) Total number of suppliers are those with transactions in the period indicated.