Vietnam should speed up reforms, including those in the labor union system, to benefit from the Trans-Pacific Pa rtnership (TPP) trade pact and other free trade agreements (FTAs) the country has signed, heard a seminar in Hanoi on April 19.
Speaking at the seminar on labor relations, a representative of the International Labor Organization (ILO) said the FTAs Vietnam has completed negotiations over and signed are expected to fuel economic expansion and job generation in the nation. The International Monetary Fund (IMF) has projected higher GDP growth for the country after the FTAs take effect.
The ILO forecast around 6.5 million new jobs could be created in Vietnam by 2030, especially by producers of goods for export.
However, Maurizio Bussi, director of ILO Decent Work Technical Support Team for East and Southeast Asia and the Pacific, said Vietnam would have to carry out comprehensive reforms to improve the business environment, the legal system and market institutions.
Vietnam has ratified five out of eight basic conventions of ILO. With the completion of TPP talks, Vietnam has pledged to ratify the three remaining conventions with one on freedom of association, one on collective bargaining and one on abolition of forced labor.
Therefore, Vietnam needs to amend the laws on labor and labor unions to make them compatible with the bilateral agreement between Vietnam and the U.S.
In addition, only after Vietnam proves that it observes and implements required reforms for laws it can fully enjoy tariff reductions.
For this reason, there will be regular supervision, Bussi said, adding that the ILO will carry out a large-scale technical support program to help reform the labor relation system in Vietnam.
Laborers will have freedom to form or join organizations of their choosing under the TPP, which is a big change for laborers, the Vietnam General Confederation of Labor, employers and the Government.
According to Bussi, more than 5,500 strikes have been recorded in Vietnam since the 1994 labor code was adopted. Most of the strikes are spontaneous and no strike is organized by labor unions, which indicates that labor unions have not been able to represent laborers, the ILO representative noted.
Addressing the seminar, Deputy Minister of Labor, Invalids and Social Affairs Pham Minh Huan said international integration would affect labor relations at national and corporate levels in Vietnam.
According to Huan, Vietnam will revise regulations so that they are in line with international commitments. Meanwhile, Vietnamese export enterprises will have to meet strict labor requirements to improve working conditions and strengthen labor protections.
The labor union system will be changed after 2020 without the TPP, but with the deal the process will be put on faster track. The National Assembly is expected to ratify the pact this July, so Vietnam will have one year and a half to make institutional reforms before the pact goes into force, Huan said.
Virginia Foote, chair of the American Chamber of Commerce in Vietnam, said FDI enterprises, including those from the U.S., will benefit from changes in labor relations.
If the issue of labor relations is solved, enterprises and the economy will benefit from improved labor productivity, increased buying power and improved relations between employees and employers.
Source: Thesaigontimes – Thuy Dung
Keywords: Vietnam, urged to, fasten, reforms, to benefit, from FTAs
