LABOUR LAWS IN VIET­NAM

Perfect Sourcing - - White Paper -

Labours are pro­vided with fa­cil­i­ties like fair min­i­mum wages, In­sur­ance ben­e­fits such as So­cial se­cu­rity, health and un­em­ploy­ment. Min­i­mum wages starts from USD 110 to USD 170 per month and on an av­er­age work­ers take home a sum of USD 240 to USD 330 per month de­pend­ing on the zones and pol­icy of the in­di­vid­ual units. They have their own spin­ning mills but they don’t pro­duce a good qual­ity yarn due to ob­so­lete ma­chin­ery. And they have lim­ited pro­cess­ing house to process the fab­rics hence they bank on ready to cut fab­ric im­ports.

2.5 mil­lion work­ers are en­gaged in this sec­tor,

Gov­ern­ment is as­sist­ing the fac­to­ries in pro­vid­ing skill train­ing, at­tri­tion level is about an av­er­age of 10%, The skills of work­ers are out­stand­ing as far as an­a­lyt­i­cal skills, work dis­ci­pline, at­ti­tude and com­mit­ment to the job they do . The Na­tional Wage Coun­cil fix the min­i­mum wages on the ba­sis of min­i­mum liv­ing stan­dard, GDP, con­sumer price in­dex, pro­duc­tiv­ity in­dex, Labour price in mar­ket.

Chal­lenges faced on the labour re­sources are the in­creas­ing num­ber of FDI in other sec­tors par­tic­u­larly Elec­tron­ics which pro­vides a much bet­ter work­ing con­di­tion and less te­dious job. As per Viet­nam’s Labour laws, nor­mal work­ing hours should not ex­ceed 10 hours in one day and 48 hours in one week. Em­ploy­ees are not al­lowed to work more than 50% of the of­fi­cial work­ing hours in a day, 30 hours in a month, or 200 hours in a year, as over­time. For­eign in­vestors are al­lowed to re­cruit only for­eign cit­i­zens to work in Viet­nam, through prior ap­proval in writ­ing from the

com­pe­tent state author­ity. The trade union law in Viet­nam also as­sures the em­ployee the right to free­dom of as­so­ci­a­tion.

Al­most all the fac­to­ries em­ploys 70% women work­ers, ex­pats are al­lowed to work only on man­age­rial cat­e­gory. In­di­ans, Sri Lankan’s, Turk­ish na­tion­als are mostly em­ployed in the man­age­rial po­si­tions

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