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MNEs
Japan’s Minister calls for socially responsible labour practices in electronics sector
He praises efforts by businesses in Viet Nam to conduct social dialogues and corporate social responsibilities, which can contribute to the long-term socio-economic development of the country.
HANOI (ILO News) – Minister Nagai Katsuro of the Embassy of Japan praised the efforts by companies in Viet Nam, particularly in the electronics industry, to promote socially responsible labour practices at a seminar on 15 June.
Addressing the “Strengthening home-host country policy dialogue to maximize decent work impact of the FDI/MNEs in Viet Nam”, he encouraged businesses to conduct social dialogues and corporate social responsibilities to contribute to the lower rate of job hopping and develop professional human resources.
The event was co-organized by Viet Nam Chamber of Commerce and Industry (VCCI) and the ILO with Japanese Government’s support within the framework of ILO’s More and Better Jobs in Electronics Sector project.
At the workshop, VCCI President Vu Tien Loc also said that social responsibilities in labour practices in electronic sector will enhance this key industry’s competitiveness as it is not business costs for charities, but a real investment which could bear fruits for enterprises.
“This will create an environment attractive to skilled workers and able to improve workers’ skills.[] Social responsibilities help businesses will develop their trademarks and win the hearts of consumers,” he added.
In October 2017, VCCI and the Viet Nam Electronics Industry Association with support from the ILO and the Japanese Government launched the business coalition to promote socially responsible labour practices in Viet Nam’s electronics sector to provide a platform for discussion among multinational enterprises, local companies and business associations to exchange good practices in the country’s largest export industry.
So far 127 enterprises, including MNEs and Vietnamese businesses, with more than 245,000 workers – or 40 per cent of the total industry’s workforce – have benefited from the coalition.
Often, in other countries, those strategic industries, such as electronics industries, set the pattern for the entire economy,"
ILO Viet Nam Director, Chang-Hee Lee
“Often, in other countries, those strategic industries, such as electronics industries, set the pattern for the entire economy. That’s why you want to invest in building and expanding this coalition, to set the good example in this industry, which can be followed and replicated in other sectors for entire economy,” said ILO Viet Nam Director, Chang-Hee Lee.
Electronics has been one of the fastest growing industries and a key sector of Viet Nam’s economy. According to the General Statistics Office, the industry’s export values in 2017 were at US$71 billion. The number of electronics enterprises doubled in the past five years and the number of jobs also tripled between 2011 and 2017. The sector now employs more than 611,000 workers.
The establishment and development of the coalition is in line with the ILO MNE Declaration, which provides policy guidance on how to maximize the positive contribution of multinational enterprises to economic and social development and minimize possible negative impacts. The declaration also gives specific roles and responsibilities to governments of home and host countries, MNEs, workers’ and employers’ organizations for genuine CSR in labour and business practices.
Video: Key messages from Vietnam’s first home-host country policy dialogue to maximize the decent work impact of the FDI/MNEs, Hanoi 15th June 2018
