More and Better Jobs through Socially Responsible Labour Practices in Asia - Viet Nam

The project contributes towards encouraging multinational enterprises (MNEs) to adopt socially responsible labour practices in Viet Nam, with a special focus on the electronics sector. 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. The electronics sector in Viet Nam employs approximately 250,000 workers in 500 companies. 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 Viet Nam and there is continued need for awareness raising, implementation assistance and capacity building of all stakeholders in the area of responsible labour practices. The Project Strategy focuses on: undertaking two research studies leading a national policy dialogue on Corporate Social Responsibility in Viet Nam targeted at MNEs and their suppliers in the electronics 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. The model of engagement with MNEs and other partners for this project follows the same intervention model adopted in Japan-funded project “More and better jobs through socially responsible labour practices in Asia” (RAS/14/59/JPN), which is implemented in Myanmar and Pakistan. Outcomes and lessons learned will all serve as inputs for a high-level policy dialogue between the home and host countries of MNEs/FDIs during the third year of this project. ILO constituents from the project target countries (host countries of FDI/MNEs) of the two Japan-funded projects will engage in a dialogue with the ILO constituents in Japan (home country of FDI/MNEs), with a view to identifying effective models of collaboration between the home and host countries. As such the project is an integral part of a regional initiative in promoting socially responsible labour practices in partnership with a major investor country in the region.

Project symbol

VIE/15/01/JPN

Admin unit

CO-Hanoi

Start date

15/04/2015

End date

30/06/2018

Total allocation

441150

Total expenditure

Status

Closed

441150

Development Partners

Japan, Ministry of Health, Labour and Welfare

Country/Countries

Viet Nam

Outcomes

Formalization of the informal economy