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VCCI News

Last updated: Tuesday, November 21, 2017

 

Promoting Socially Responsible Labour in Electronic Firms

Posted: Monday, October 30, 2017


Exercising social responsibility in the electronics industry not only creates momentums for the industry to sharpen competitive edges on the market but also gives Vietnamese workers more employment opportunities, better work regime and all statutory rights and interests.

In recent years, the Vietnamese electronics industry has developed robustly thanks to the strong increase of electronic businesses. The country had 256 electronics enterprises in 2005 and 1,021 enterprises in 2014. The workforce scale of this industry also expanded rapidly by seven folds in eight years, from 46,000 workers in 2005 to more than 327,000 in 2013 and to about 500,000 at present. Thus, promoting socially responsible labour practices is essential to achieve sustainable development.

At a recent launching ceremony of the “Electronics Business Coalition in Vietnam” to promote socially responsible labour practices in Hanoi, Dr Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry (VCCI), affirmed that expanding the transnational production network of multinational electronics companies has had positive impacts on developing economies like Vietnam by better use of capital, technology and labour in the face of existing unsolved labour and employment matters.

He said the competition for being qualified for being members of global supply chains is becoming fiercer to Vietnamese enterprises, thus leading some companies to reduce expenditures which may worsen labour conditions. In the long run, such bottom-up strategies will negatively affect corporate performances and national development goals, negatively affect the reputation of leading coordinating stakeholders in the production chain and harm their overall business performances. Imperceptibly, this will have adverse effects on companies which are interested in joining this supply chain.

Therefore, promoting corporate social responsibilities in labour practices will not only better the reputation of businesses but also help them come up with good and sustainable experiences. They need to focus on strategies that enhance business competitiveness on the one hand and carry out corporate social responsibility, create more job opportunities and enhance employment quality in the industry. The businesses well in line with labour laws and international labour standards will be appreciated by international buyers, which will create favourable conditions for them to enter the buyers’ global supply chains
Sharing the same view, Ms Do Thi Thuy Huong, a representative from the Electronics Industry Association (VEIA), stressed that exercising social responsibility in the electronics industry not only creates momentums for the industry to sharpen competitive edges on the market but also gives Vietnamese workers more employment opportunities, better work regime and all statutory rights and interests.

Dr. Changhee Lee, Director of International Labour Organisation (ILO) in Vietnam, said, multinational corporations are influential wherever they invest and wherever they operate. Thus, their practices for managing human resources have a tremendous impact not only on their individual workplaces but also through the global supply chain.

For that reason, he thought that by making a tripartite commitment to improving labour practices in multinational companies and local companies, tripartite partners in Vietnam have taken a very important step to ensure that workplaces have better working conditions and productivity for workers and managers.
As for the Electronics Business Coalition in Vietnam that promotes socially responsible labour practices, Dr Vu Tien Loc said, this is one of the initiatives that VCCI has put forth to achieve a goal of providing a platform for discussion among multinational enterprises, local companies and business associations to exchange and cooperate in good practices to establish more responsible labour practices, create more jobs and more decent jobs for the electronics industry in Vietnam.

In the past time, VCCI has partnered with ILO and VEIA to develop solutions and actions to assist electronics businesses to apply labour policies, including principles defined in labour laws and related ILO conventions and recommendations to promote social progress and decent employment.

The VCCI representative also expected that electronics businesses and electronics associations will enthusiastically engage in the Electronics Business Coalition in Vietnam to foster socially responsible labour practices in the coming time to share and learn good practices, improve their competitiveness and join global supply chains.

Thu Ha








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