Improving Working Conditions to Facilitate Growth in Vietnam: Experts

Strong social dialogue, better working conditions and improved productivity will define economic progress in Vietnam, as it enters a new era of global integration, state media reported October 25 from a conference in Hanoi. This is the main message that came out of the conference on working conditions and higher growth that was jointly organized on October 24 by the State Secretariat for Economic Affairs of Switzerland (SECO), the International Labor Organization (ILO) and the Ministry of Labor, Invalids and Social Affairs (MoLISA). ILO Vietnam Director Chang-hee Lee noted that Vietnam has transformed from one of the most isolated economies to one of the most connected ones within a generation, thanks to various free trade agreements. He advised that Vietnam continue to build sustainable business environment and resilient labor market institutions to remain competitive and ensure stable livelihood for its working population. He noted on the challenges facing Vietnam in the reforms of labor code and industrial relations when joining the Trans-Pacific Partnership (TPP) and the EU-Vietnam FTA. Other concerns raised the event include the middle income trap, the low added value and wages from a labor-intensive manufacturing industry, and low productivity. Swiss Ambassador to Vietnam Beatrice Maser Mallor said, “Given that context, strengthening social dialogue, enhancing productivity and improving working conditions are critically important to (be able to) respond to the requirements of globalized production processes, and, ultimately, to contribute to sustainable and inclusive economic growth.” Boris Zürche, head of Swiss Labor Directorate, agreed. “Switzerland’s experience shows that strong social dialogue is essential for the prosperity of a country. Together, workers’ and employers’ organizations can find tailored solutions to improve working conditions, increase productivity and assure the competitiveness of the economy.” Doan Mau Diep, Deputy Minister of Labor, Invalids and Social Affairs, said it was “the right time” for the government, together with ILO, business communities, workers’ organizations and other partners, to review the country’s legal and institutional framework and improve productivity and working conditions, and to design and implement more effective policies in this area. (Vietnam News Oct 25; Nhan Dan – The People Oct 25; Tin Tuc - News Oct 25; Dai Bieu Nhan Dan – People’s Deputies Oct 25)