$4m project to turn Viet Nam’s hopes for better labour relations into reality

A US$4 million project was launched today in Hanoi to develop industrial relations in Viet Nam, making the new Labour Code and Trade Union Law beneficial to both employers and workers.

Press release | 31 May 2013
HANOI (ILO News) – A US$4 million project was launched today in Hanoi to develop industrial relations in Viet Nam, making the new Labour Code and Trade Union Law beneficial to both employers and workers.

The four-year project “Support to development in industrial relations, wage fixing, and labour law implementation institutions and capacity in Viet Nam” will be implemented by the International Labour Organization (ILO), the Ministry of Labour, Invalids and Social Affairs (MoLISA) among other relevant agencies with financial support from the US Government.

The non-refundable official development assistance aims to help Viet Nam effectively enforce the new labour laws, make employers’ and workers’ organizations more influential, promote collective bargaining and social dialogue, and develop the minimum wage law and a good wage fixing mechanism.

“The new labour laws provide a sound legal framework for Viet Nam to improve relations between employers and workers and solve enduring issues in the world of work but how to effectively enforce the laws is a bigger challenge than drafting them,” said ILO Viet Nam Director Gyorgy Sziraczki.

The participation of central and local governments, employers’ and employees’ organizations is “key to success,” he added.

According to Vice Minister of Labour, Invalids and Social Affairs Pham Minh Huan, improved industrial relations that protect the legal rights and benefits of different parties involved will create a healthy investment environment, which results in stronger economic growth and social justice.

Not only touching labour conditions and standards, the Labour Code, which came into effect on 1 May, and the Trade Union Law, that has been effective since the start of this year, also carry significant changes in industrial relations. Workers’ rights to establishing and joining trade unions have been made stronger while the role and responsibilities of upper-level trade unions have become bigger. New regulations have been added to increase the effectiveness of dialogues and collective bargaining at workplaces.

The new laws are also expected to improve the mediation role of the Government to effectively deal with labour disputes and prevent wild-cat strikes.

“Labour mediators’ job is crucial to maintain and develop industrial relations in the world,” said Yoon Youngmo, Chief Technical Advisor of the new Viet Nam – ILO industrial relations project.

If Government mediators in Viet Nam play a more active role, keep an eye on “strike hot spots” and get involved in the early stages of collective bargaining, he said, both enterprises and workers could benefit from a significantly reduced number of wild-cat strikes.