More and Better Jobs Through Socially Responsible Labour Practices in Viet Nam

The project will help to encourage multinational enterprises to contribute positively to economic and social development through socially responsible labour practices in Viet Nam, with a special focus on the electronic sector.

Partners: Viet Nam Chamber of Commerce and Industry, Viet Nam General Confederation of Labour, Ministry of Labour, Invalids and Social Affairs, and business associations
Target beneficiaries:
Direct beneficiaries of the project are employers’ organizations, trade unions, the Government, business associations and companies at national, provincial and sectoral levels.
Ultimate beneficiaries of the project are workers in the electronic sector in selected provinces with a special emphasis on vulnerable groups such as women and young people.

PROJECT CONTEXT

According to the General Statistics Office of Vietnam, the country increased its electronics export by 84% from 2009 to 2012, and electronics is the second largest source of exports from the country today. Japan, the United States and Taiwan are the major investors in the industry. In the North, major electronics manufacturing companies have established their operations, which led to the increase of additional manufacturing companies producing components/parts of electronic equipment (i.e. supporting industries). A big presence of electronics industry is also situated in the South of the country.

The electronics sector in Vietnam employs approximately 250,000 workers in 500 companies. As with the garment sector - the number one exporter - the majority of workers are female and a high proportion are estimated to be domestic, migrant workers. Decent work deficits include occupational health and safety related matters as a result of exposure to toxic chemicals, precarious employment contacts, fair wages and the lack of the right to collectively bargain and associate freely. As in the garment sector, some international buyers have encouraged their suppliers to comply with codes of conduct and have provided assistance in this regard. Nevertheless, compliance issues with national law and principles of international standards continue to be a fundamental challenge for companies operating in Vietnam and there is continued need for awareness raising, implementation assistance and capacity building of all stakeholders in the area of responsible labour practices.

The proposed project will contribute towards encouraging multinational enterprises (MNEs) to contribute positively to economic and social development through socially responsible labour practices in Viet Nam, with a special focus on the electronics sector.

PROJECT OBJECTIVES AND STRATEGIES

The project’s immediate objective is that socially responsible labour practices are strengthened in MNEs operating in the electronic sector in Viet Nam.
To achieve that objective, the strategy focuses on:
  • Undertaking a number of activities in Viet Nam targeted at MNEs and their suppliers in the electronic sector, Government institutions, employers and workers’ organizations;
  • Creating linkages with already ongoing programmes in Viet Nam to maximize impact and change in line with identified decent work country priorities;
  • Aligning private sector policies and practices with public objectives on labour law compliance and good governance;
  • Facilitating exchanges on lessons learned between home and host countries, as part of the broader Japan-funded project on “responsible labour practices in Asia.”

PROJECT OUTCOMES

  • Studies undertaken to build common knowledge base on socially responsible labour practices in the electronics sector in Viet Nam and to foster partnership approach to advance socially responsible labour practices
  • Tripartite plus dialogue platform established and National Plan of Action adopted for promoting socially responsible labour practices among MNEs and their direct suppliers
  • Workplace compliance and a culture of good governance within the enterprises strengthened, including through improved social dialogue
  • Lessons learned documented as part of identifying effective models of partnership between home and host countries of investment on FDI/MNEs.

For further information, please contact

ILO Country Office for Viet Nam
Tel : +84 4 3734 0907
Fax : +84 4 3734 0904
Email : HANOI@ilo.org