Vinh Phuc Effectively Administering Industrial Zones

The Vinh Phuc Industrial Zones Management Board is responsible for administering all investment and business activities in industrial zones in Vinh Phuc province. It supports businesses and investors to attract investment capital and develop industrial zones. The board plays an important role in labor inspection, supervision and management, to improve the investment and business environment in industrial zones.

Delegates of the Vinh Phuc Industrial Zones Management Board participate in the Trade Union Conference

Reinforcing inspection and supervision

The Vinh Phuc Industrial Zones Management Board has paid close attention to inspection and supervision in industrial zones in the first six months of 2023. The board closely monitored all activities of tenants and took strict measures against any violation. Its important tasks in the first half of 2023 included inspecting investment activities of some tenants according to Decision 45/QD-BQLKCN dated April 24, 2023; inspecting the construction order at some industrial zone infrastructure companies; inspecting environmental protection and labor observance in some tenants; submitting to the Provincial People’s Committee and requesting competent agencies to impose administrative sanctions on violations in the environment, foreign worker employment, investment and construction.

Besides, the agency effectively coordinated with responsible bodies in inspection and supervision. It worked with the Ministry of Natural Resources and Environment to probe into waste treatment in the expanded Khai Quang Industrial Park; joined forces with the Department of Health to examine food safety in collective kitchens in industrial zones according to Decision 726/QD-SYT dated May 5, 2023 of the Department of Health; cooperated with the Inspectorate of the Department of Natural Resources and Environment in handling administrative violations in the environment at some tenants; and coordinated with the police to investigate foreign worker employment at AMO Vina Co., Ltd.

In the second half of 2023, the board will continue to conduct effective inspection and supervision in industrial zones. The board will oversee investment in industrial zones in accordance with the laws (Decree 29/2021/ND-CP of the Government dated March 26, 2021 on the order and procedures of appraising national important projects, investment monitoring and evaluation; Circular 02/2022/TT-BKHDT of the Ministry of Planning and Investment dated February 14, 2022 on supervision, monitoring and assessment of foreign investment in Vietnam; and Regulations on coordinated execution of governmental tasks in local industrial zones as per Decision 40/2022/QD-UBND dated November 25, 2022). At the same time, it will regularly review slow-moving or suspended projects to withdraw and terminate projects and create land funds to attract new investment projects.

Effective labor management

Effective labor management is crucial for business performance. Since the start of the year, some tenants’ business performance in industrial zones has been affected by the global economic recession or rotational power cuts. The board promptly requested that tenants pay attention to and take care of the livelihoods, legitimate rights and interests of workers. It directed them to implement new labor policies focused on salary, social insurance, unemployment insurance, working time, occupational safety and health.

In the first six months of 2023, the Vinh Phuc Industrial Zones Management Board granted 704 work permits and approved foreigner job positions for 150 companies. It received 21 labor regulations and 18 collective bargaining agreements. The board confirmed the eligibility of work permits for 151 cases and registration for 300 hours of overtime for 51 companies. It worked out a plan for implementation of the ‘Harmonious, stable and progressive labor relations development in enterprises in the province in 2021-2025’ project and the ‘Improving the living standards of workers in industrial zones in the province in 2022-2026’ project. The board also communicated on ‘Occupational Hygiene and Safety’ Month; inspected and surveyed the labor demand by tenants in industrial zones; and advised and proposed a number of mechanisms and policies on worker attraction and retention to the Provincial People’s Committee.

In particular, the Vinh Phuc Industrial Zones Management Board resolved a collective stoppage of work and a wage increase demand at EO Vina Co., Ltd (Khai Quang Industrial Park). It coordinated with the Department of Labor, Invalids and Social Affairs, the provincial police, the provincial labor confederation and trade unions of industrial zones to grasp the company’s situations and causes; provided guidance on solutions to avoid more complicated issues in labor relations and employees support to assist it to resume normal operations.

Thus, many companies have built harmonious, stable and progressive labor relations and ensured decent jobs for their employees. Specifically, some arranged rotational work for their employees, reducing their operating capacity. Meanwhile, some still managed to get new orders to revive the output and needed to recruit new workers. For example, Young Poong Electronics Vina Co., Ltd saw a 35% increase in new employees and Haesung Vina Co., Ltd needed 20% more employees. Companies raised their awareness of law observance and strictly applied regulations on foreign worker management and employment.

In the coming time, the Vinh Phuc Industrial Zones Management Board will continue to closely coordinate with relevant bodies to administer labor and carry out policies on high-quality human resources development. The board will survey labor recruitment demands by tenants in industrial zones to consult and propose demand-based training policies to the provincial government. It will also complete digitizing the labor database in IPs and further strengthen communications and guidance for tenants to understand and strictly comply with labor laws. The board aims to build a harmonious employer-employee relationship and stabilize labor supply resources to meet the needs of investors.

With the ‘Accompanying businesses’ motto, the board always listens to companies and investors. It enhances its administration of local industrial parks and effectively performs its tasks to become a reliable destination for all domestic and foreign investors. The board aims to promote the sustainable socioeconomic development of Vinh Phuc province.

By Thanh Loan, Vietnam Business Forum