HANOI (ILO News) – Amid unprecedented economic growth and a parallel increase in labour demands, Vietnam, in collaboration the International Labour Office (ILO), is to launch the Project on "Improve Industrial Relations at Work Place and Promote Working Capacity" funded by the United States.

The three-year project will be hosted and implemented by the Ministry of Labor, Invalids and Social Affairs (MOLISA), in cooperation with the Viet Nam General Confederation of Labor (VGCL) and the Viet Nam Chamber of Commerce and Industry (VCCI), Viet Nam Cooperative Association (VCA). The ILO, with funding from the United States Department of Labour, will provide technical advice and training.

The recent strong growth of the Vietnamese economy with massive increases in new business start-ups (nearly 53,000 registered over the past year), has boosted the private sector’s role as the engine for continued economic growth. The importance of the private sector is highlighted by new economic data that shows non-state and foreign-invested industry are playing an increasingly important role in the economy. However, the difficulties of transitioning to a market economy as well as the challenges of globalization are evident in the rise of labour disputes, particularly in the private sector. Viet Nam's strong economic growth has put new demands on the infrastructure inherited from the days of a centrally-planned economy.

The ILO will assist the Government in its new role in industrial relations which will focus on the promotion of institutions and procedures through which the representatives of labour and management increasingly interact themselves to determine wages, working conditions and the rules governing employment.

The focus of the project will be on the private sector and foreign-invested industries in order to develop appropriate mechanisms and procedures that increase workers’ and employers’ organizations ability to dialogue on a range of work-related issues. Through the building of effective industrial relations institutions, potential labour disputes will be channeled into stability through compromise that can positively influence economic performance in the demanding global market.

The project focuses on strengthening the institutions, law and practice with respect to freedom of association and collective bargaining, labour law, labour administration, conciliation, medication, arbitration and other mechanisms at 3 levels:

• At the enterprise level: 70 enterprises will be selected for application.
• At the provincial level: 7 provinces and cities will be selected for pilot projects in cooperation and industrial relations.
• At the national level: Policies on sound industrial relations and training will be formed.

The more significant outcomes that are outlined for the 3-year project include:

• Establish a National Training Institute on Industrial Relations to train specialists who can provide services to business, unions and appropriate departments of the Government of Viet Nam.
• Establish Industrial Relations Advisory Service Centres throughout the country to offer advice and information to the three social partners on industrial relations.
• Assist 70 enterprises to improve their industrial relations through training and consultation at the local level.
• Establish seven Provincial Project Task Forces in selected provinces to lead to the development of sound industrial relations practices at the local level.

The launch of the ILO-Viet Nam industrial relations project will take place on 8 January 2003 in the Press Club in Hanoi.

Launch details

• Registration for the launch event is at 8.30 a.m. in the Press Club.
• Following a welcome by Mr. Le Duy Dong, National Project Director, Vice Minister of MoLISA, there will be opening statements by Vietnamese and US officials.
• Ms. Sally Paxton, Executive Director, Social Dialogue Sector, ILO Geneva will also make a statement and is available for interviews. A more detailed agenda is available on request.
• Reporters wishing to know further about the Project can get more information during the break at 10.00 a.m. at the Launching Ceremony.

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