10:05 | 09/11/2016 Industry
(VEN) - A commitment of multinationals, the government of Vietnam and organizations representing employers and employees to create more and better employment in the electronics industry was made at a recent dialogue entitled “More and better jobs through socially responsible labor practices in electronics sector.”
Vietnamese businesses are bystanders
A survey by the International Labor Organization (ILO) showed that employment in the Vietnamese electronics industry has increased rapidly, with the number of workers reaching 327,000 in 2013. This figure rose seven-fold over the past eight years. The sector has successfully integrated into the global value chain.
About 80 percent of workers in the lower segment of the industry are female employees working in assembly lines which bring in modest added value to product. Mostly, women do not hold technician and manager positions. Senior managers in the sector are all foreigners.
The ILO’s survey also indicates that 99 of the 100 largest electronics enterprises in Vietnam are foreign invested. The majority among the sector’s 20 largest FDI businesses come from Japan, followed by the Republic of Korea (RoK). Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said that domestic electronics enterprises are almost bystanders in the supply chain, as they just provide cartons, packaging, and packing services.
Dao Thi Thu Huyen - Senior Manager of General Director Office of Canon Vietnam Co., Ltd said that wholly Vietnamese suppliers account for a tiny part of the 120 suppliers of Canon, and they provide very simple products.
Close links with multinationals
According to the ILO, multinationals play an important role in contribution to long-term, sustainable development of Vietnam’s export-oriented economy through the Trans Pacific Partnership Agreement (TPP) and free trade agreements (FTAs), which would open up new opportunities for the electronics industry. These opportunities can only be taken if Vietnam reforms its labor laws, institutions and practices of labor relations on a comprehensive basis and in accordance with the ILO Declaration on basic principles and labor rights. Therefore, building links is very important.
ILO Vietnam Director, Dr. Chang-Hee said that construction of more sustainable links between multinationals and Vietnamese small to medium-sized companies will contribute to ensuring a roadmap for more sustainable economic development and industrialization. When domestic enterprises become active partners of multinationals, they will have a stronger presence in the value-added chain.
Deputy Minister of Labor, Invalids and Social Affairs Pham Minh Huan said that Vietnam’s policy and law system needs to be further innovated and reformed to maximize the opportunities and overcome the challenges.
“Following the National Assembly’s resolution, the Labor Code will be amended in 2017 in greater compliance with labor standards, providing better conditions for negotiation, creating harmonious labor relations, and recognizing workers’ rights. That will provide better employment opportunities,” Huan said.
Thanh Tam & Lan Anh