Co-funded by the European Union

Norwegian and Vietnamese employers join forces to promote social dialogue and labour law reforms

  • In Vietnam, labour laws, policies and practices are going through significant changes. A new labour code entered into force in January 2021
  • New policies put greater emphasis on social dialogue at the workplace, collective bargaining and diversified types of Collective Bargaining Agreements (CBAs)

The changes in law and in practice in the Vietnamese industrial relations system, for which we will have a dedicated article in April’s newsletter, are in some measure deriving from a long-term partnership between the Vietnam Chamber of Commerce and Industry (VCCI) and the Confederation of Norwegian Enterprise (NHO). Since 2004, their cooperation aimed at supporting social dialogue at the workplace level, improving CBAs at the sectoral and enterprise levels, and increasing collaboration between VCCI and the other Vietnamese social partners.  

Interviewed on the matter, Tran Thi Lan Anh, Director General at VCCI, Magnus Ruderaas, Project Manager at NHO and Henrik Munthe, Project Specialist at NHO, replied as follows: 

How did this partnership start? Can you provide us with some background information? (Magnus Ruderaas)

VCCI and NHO have been collaborating for more than 15 years and know each other well. Over the years we have cooperated on many topics such as organisational development, technical and vocational education and social dialogue. It was therefore easy for NHO to accept VCCIs request for a partnership on implementation of the new Vietnamese labour code (No. 45/2019/QH14 adopted by the Vietnamese Parliament on 20 November 2019 and entered into force in January 2021). The partnership is sponsored by the Norwegian government through its agency for development cooperation (Norad).  

How was VCCI/NHO pilot project on developing and improving CBAs implemented? (Tran Thi Lan Anh)

Over the last years the project has assisted some 25 pilot companies, enterprises (employing some 60,000 workers) to develop or improve their CBAs by strengthening the mechanisms for social dialogue and collaboration between management and workers. At the enterprise level, collective bargaining has become increasingly important on matters of non-wage benefits and welfare provisions, such as meals between shifts, transportation to and from work, annual leave and family event allowances. The project has also facilitated the development of sectoral collective agreements. 

VCCI is the implementing partner in the project and an NHO specialist in industrial relations has participated in the collaboration since the onset. The NHO specialist has provided support to VCCI on technical issues related to collective bargaining and methodologies for bipartite collaboration with the trade unions, and has participated as a resource person in some of the trainings for the participating companies. Based on the requests from VCCI and the companies, NHO inputs have focused on the value proposition for enterprises to engage in social dialogue and collective bargaining and the areas a CBA typically regulates.  

How would you comment this partnership? (Henrik Munthe) 

The partnership between the two sister organisations is of mutual benefit. 

The cooperation between VCCI and NHO has been very stimulating for everyone involved from NHO side. By being involved in a process aimed at improving the industrial relations in another country, we were also forced to reflect upon our Norwegian system. What are the pros and cons related to how we deal with collective bargaining and social dialogue? That has proven to be a useful process, and given plenty of food for thought.   

What are your current programmes?(Henrik Munthe)

Since the Vietnamese government started the process of ratification of ILO core-conventions, during the last year the focus of VCCI and NHO partnership shifted to this matter. VCCI requested NHO assistance, especially on topics such as negotiating with multiple trade unions in the same workplace, and on the revision of the Labour Code that sets a new framework for industrial relations. 

The project partners have identified various challenges preventing a proper implementation of such international conventions in the current Vietnamese industrial relation system. For example, a substantial majority of existing local trade unions are led by a company’s human resource personnel or other managers.  

In terms of employer willingness to engage in good faith bargaining, many employers are reported to reject union demands to bargain collectively. When collective bargaining does take place, data shows that the vast majority of collectively bargained agreements provide for minimum standards or only slightly higher.  

The VCCI-NHO partnership seeks to address these challenges by raising awareness among employers, and sharing practical guidelines.