LABOUR LAWS IN VIETNAM
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