Appropriate legal framework needed for labour relations in FDI firms

14-May-2019 Intellasia | The Saigon Times | 6:00 AM Print This Post

Under the Fourth Industrial Revolution, the existing regulatory framework needs to be improved to guarantee strong industrial relations and work quality at enterprises with foreign direct investment in Vietnam, said experts at a symposium in HCM City on Thursday.

The symposium was held by the University of Labour and Social Affairs, reported the Vietnam News Agency.

Pham Ngoc Thanh, director of the university’s campus in HCM City, spoke highly of FDI firms’ active contributions to the socioeconomic landscape over the past three decades.

Thanh confirmed that the government only approves FDI projects that are committed to environmental protection, technological transfer and the use of skilled workers until 2030.

He said that within the Industry 4.0 era, FDI enterprises tend to adopt low-cost strategies, leading to conflicts of interest with their employees. Others opt to raise their investment in localities with low levels of economic development, which indicates their closed labour relations.

Meanwhile, Vietnam’s human resources index remains low, ranking 70th out of 100 in the Association of Southeast Asian Nations. The country ranked 81st in terms of skilled workers and 80th for vocational training quality out of the bloc’s 100.

He suggested fine-tuning the regulatory framework; investing more in education, especially vocational training; and enhancing ties between vocational schools and businesses.

Sharing a similar view, Associate Professor Banh Quoc Tuan from the HCM City University of Technology explained that amid the effects of Industry 4.0, many regulations on industrial relations in FDI enterprises need modification, such as legal assistance treaties to which Vietnam is a party.

He added that Vietnam is expected to embrace a large contingent of foreign workers and the automation process over manual labour.

Therefore, he suggested the competent agencies speed up training and develop high-quality manpower for the sake of productivity improvement, while labourers develop their professional skills and expand their knowledge to prepare for international integration.

Associate Professor Hoang Thanh Xuan from the Trade Union University highlighted the need to refine trade unions in FDI firms, as nearly 60 percent of them have yet to organise any unions.

He said trade unions need to operate in a way that prioritises grassroots units and has a dynamic, flexible and modern nature to attract workers. Trade union officials must be masters of negotiation and dialogue to ensure the legitimate rights and interests of workers.

Other participants shared the view that Industry 4.0 has laid the foundation for the economy to be changed from relying on natural resources and a low-cost workforce to relying on the nation’s intellectual talent.

They also suggested measures to bolster the rights and duties of firms in the market economy, as well as scientific and technological applications in building conflict management systems to mediate labour disputes, among other things.


Category: Economy, Vietnam

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