Wage workers represent one-third of Vietnam’s total employment

In Vietnam, about one-third of the employed people depend on wages for their livelihoods, compared to the global average of over 50 per cent.

Vietnam’s wage setting policies and institutions need to continue to adapt to meet the demands of its changing labour market and ensure that deeper integration into the regional and global economy benefits workers, enterprises and the Vietnamese economy broadly.  

This was a key message at the national conference on “Vietnam wage policy in the context of a market economy and economic integration” organized in Hanoi on 25-26 November.   

Co-hosted by the Ministry of Labour, Invalids and Social Affairs (MoLISA) and the International Labour Organization (ILO), the event emphasized the necessity of a good balance between promoting enterprise development and providing workers with a fair share of enterprise productivity gains.

“Vietnam has been conducting a strong reform to improve its mechanisms and policies, including those that cover wage issues, to meet the demands of the market economy and deeper integration into the regional and global economy”, said Minister of MoLISA Pham Thi Hai Chuyen.

In Vietnam, about one-third of the employed people depend on wages for their livelihoods, compared to the world’s average of over 50 per cent. However, Vietnam is expected to narrow this gap as the share of wage earners in total employment is projected to grow rapidly in the coming decades. In 2013, wage workers represented 34.8 per cent of total employment, up from only 16.8 per cent in 1996.

“Wage employment is growing rapidly in developing Asian countries, including Vietnam. So the level and purchasing power of wages have strong implications for living standards”, said ILO Deputy Director-General Sandra Polaski.

“Whether wages are sufficient to meet workers’ basic needs will decide not only if people can feed their family, but also if they can build a better future for themselves and their children”, she added.

With the establishment of the National Wage Council in 2013, Vietnam significantly strengthened its minimum wage setting mechanism. The council gives trade unions’ representatives and employers’ representatives a direct stake in minimum wage negotiations and recommendations.

While Vietnam has made an important step in minimum wage setting, collective wage bargaining remains rare in the country.

“Collective wage bargaining has not been realized in Vietnam. It is often ignored because of employment pressures,” said Vice Minister of MoLISA Pham Minh Huan.

According to Vice Minister Huan, Vietnam will consider ratifying ILO Convention 95 on Protection of Wages and Convention 131 on Minimum Wage Fixing.

VN trade, labor to get legal lookover

Changes and updates to the current Labour Code and Trade Union Law and their impact on business operations will be discussed at a conference in HCM City next week.

Ho Xuan Lam, deputy director of the Investment and Trade Promotion Centre of HCM City (ITPC), said: "FDI firms usually have a large number of employees, therefore it is very important for them to understand the Viet Nam's labour law to help build harmonious and stable labour relations, befitting all interested parties."

Huynh Minh Quan, general director of Nhan Viet Management Group, said that businesses would have opportunities to discuss problems in recruitment and management of labour and trade union activities.

Speakers at the event will include Le Manh Ha, deputy chairman of the HCM City People's Committee, Pham Minh Huan, deputy minister of Labour, Invalids and Social Affairs, and Mai Duc Chinh, vice president of the Viet Nam Confederation of Labour.

Organised by ITPC and Nhan Viet Management Group, the conference will be held at New World hotel on December 4 and is expected to attract the participation of 250 FDI firms.

Learning centres remain ineffective

A Vietnamese education official claims that despite some great achievements, only 30 per cent of the hundreds of the nation's community-based learning centres (CLCs) based on the Japanese kominkan model are working effectively.

The official, Nguyen Cong Hinh, is the director of the Ministry of Education and Training's Continuing Education Department.

Hinh told a workshop attended by delegates from Southeast Asian nations in HCM City yesterday that the rapid expansion of community-based learning centres had helped eradicate illiteracy, improved education and helped alleviate poverty.

Japanese experiences at implementing CLCs were shared at the workshop.

The CLCs, or kominkan, are credited with helping Japan rise from a defeated, war-torn country to a global power within 20 years.

Professor Dr Teuchi Akitoshi from Japan's University of Tsukuba said Japan had a widespread system of kominkan that enabled people to learn throughout their lifetime.

The centres also ran technical and cultural activities, helping consolidate community solidarity, he added.

Introduced in Viet Nam in 1997, there are now about 11,000 CLCs throughout the nation.

However, Hinh admitted that many were handicapped by the limited capacity of centre managers, monotonous activities, the shortage of learning material, as well as the lax co-ordination between universities and CLCs.

Education experts at the workshop called for better-trained staff at the centres, adapting learning activities to local conditions, mobilising all local resources for the work, and learning from overseas expertise.

The two-day function was co-organised by the Vietnamese Ministry of Education and Training and the Southeast Asian Ministers of Education Organisation's Regional Centre for Lifelong Learning.

Uncontrolled fisheries sector destroys Tan Hai environment

A lack of comprehensive measures to solve environmental pollution has made Tan Hai Commune in the southern coastal Ba Ria-Vung Tau Province a pollution hot spot.

Untreated waste discharged from the commune's fisheries processing zone is the main cause of the pollution that has plagued residents for many years.

Established in 1998, the zone has 22 fisheries processing plants specialising in the production of dried fish, fish powder and fish sauce.

Annual inspection by local natural resources and environment inspectors revealed that the plants were still illegally discharging untreated waste into the environment, particularly at night or on weekends.

Many plants have built waste treatment facilities that are actually used to cover up their environmental violations.

The inspections further revealed that seven plants have been releasing untreated waste into Rang River while 14 others have been discharging waste into Rach Van River, polluting the environment and affecting the living conditions of aquatic animals and plants, as well as residents' aquatic farming.

Nguyen Thi Thom, a resident, told Lao Dong (Labour) newspaper that she could not accept the foul odour from plants producing dried fish all day. Residents had sent numerous complaints to authorities about the situation but no changes have taken place, she noted.

Truong Ung Hung, also a resident and a fishermen, said the pollution had killed a large number of fish in the rivers and rendered fishermen like himself unemployed.

Bui Van Thon, owner of a shrimp breeding farm, revealed that the pollution had likewise killed much of his shrimp.

Le Van Sam, director of the provincial natural resources and environment department, said his office had formulated a master plan to deal with pollution in the area, focusing on increasing inspections, supervising the plants' waste treatment activities and compelling them to abide by environmental pollution regulations.

The plan requires plants that discharge at least 100 cu.m of waste water per day to install automatic observation equipment that will check waste water quality after treatment. Operations of violators will be suspended.

Nguyen Van Phuoc, head of the Institute for Environment and Resources in HCM City, said a long-term solution required the province to speed up investment in the construction of large-scale fisheries processing zones with adequate waste collection and treatment facilities to protect the environment.

All processing plants in Tan Hai Commune could then be relocated to this new zone to create conditions for them to operate while helping supervise their waste treatment activities, he added.

However, Tran Van Mot, deputy head of the economy and budget department of the provincial people's council, explained that the master plan lacked measures to support businesses in protecting the environment.

He noted that the investment required for building waste treatment plants could range from VND3 billion to VND6 billion (US$142,000 to $285,000).

IFAD assists Vietnam 22 million USD to alleviate poverty

The International Fund for Agricultural Development (IFAD) under the UN will provide Vietnam an aid package of US$22 million to relieve poverty, according to an agreement signed in Rome, Italy, on November 25.

Under the pact, the preferential funding will go to a humanitarian aid programme in the northern mountainous province of Ha Giang, which helps local farmers improve farming skills and apply climate change adaptive production technologies thus boosting their sustainable livelihood. As many as 30,000 poor households in five local districts, including Bac Quang, Hoang Su Phi, Quang Binh, Vi Xuyen and Xin Man, are expected to benefit from the project.

Speaking at the signing ceremony, IFAD’s President Kanayo F. Nwanze said Vietnam is an outstanding instance of great efforts to fight impoverishment, adding that the IFAD and he himself will closely support the country in launching more cooperative projects in the coming time.

On his part, Vietnamese Ambassador to Italy Nguyen Hoang Long stressed Vietnam’s commitment to utilise the financial assistance effectively with gratitude. The focus on climate change response of the programme will contribute largely to help Vietnam overcome difficulties in the field, he added.

Brazilian parliamentarians support AO victims

A visiting delegation from the Brazil-Vietnam Friendship Parliamentarians’ Group visited the Vietnam Association for Victims of Agent Orange/dioxin (VAVA) on November 25 during which they expressed their sympathy and support for Vietnamese AO victims.

The head of the delegation, Jo Moraes, spoke highly of VAVA’s efforts and activities to ease the pains of the victims and called for further solidarity and friendship between Vietnam and Brazil as well as among people all over the world.

VAVA Vice President Nguyen The Luc expressed his hope that after the visit, the parliamentarians will raise the issue of AO/dioxin at the Brazilian parliament and help Brazilian people understand more about the pains the Vietnamese victims are suffering.

Between 1961 and 1971, US troops sprayed nearly 80 million litres of herbicides, including Agent Orange which had a dioxin content of up to 61 percent, on 3 million hectares of forest in southern Vietnam .

The largest chemical war in the history of humankind conducted by the US army exposed about 6.8 million Vietnamese people to Agent Orange/dioxin. Hundreds of thousands of them have died, while millions of other victims and their descendants are day and night struggling against diseases, the after-effects of the toxic chemical.

Vietnam annually spends about VND5 trillion (US$235 million) on regular allowances for over 300,000 victims.

Since it was founded in 2004, VAVA, an organisation responsible for assisting AO victims and protecting their interests, has mobilsied over VND900 billion (US$42.3 million) to build 25 nursing, functional rehabilitation and vocations training centres and 10 detoxification facilities for those affected by the toxic chemical.

Close to 7,800 Lao students pursue uni courses in Vietnam

As many as 7,790 Lao students have enrolled in 150 universities and educational institutions across Vietnam, according to the Lao Embassy in Vietnam.

In 2014, more than 900 Lao students have been granted scholarships by the Vietnamese Government, the source said.

Students who made outstanding achievements in study in the 2013-2014 academic year were praised at a ceremony held in Hanoi on November 25.

Congratulating the students, Vice President of the Vietnam-Laos Friendship Association (VLFA) Ta Minh Chau also expressed his belief that they would together with young people in Laos work to further promote the special solidarity and comprehensive cooperation between the two countries.

Vietnam has helped Laos train its personnel as part of a comprehensive cooperation deal reached by the pair.

A series of activities will be held in response to the International Day of Persons with Disabilities (December 3), the Vietnam Federation on Disability (VFOD) said on November 25.

The events will be co-organised by the VFOD, the Association for Protection of People with Disabilities and Orphans and the Ministry of Labour, Invalids and Social Affairs (MOLISA).

As part of the plan, the finals of the first national singing contest for the disabled themed “Hearts of aspiration” will take place in Hanoi on November 27 and 28.

The award ceremony is scheduled for November 29 at Au Co Theatre and will be broadcast live on Vietnam Television.

On November 29, a charity walk will be held in Hanoi to encourage individuals to join efforts to help disabled people.

Vietnam now has more than 6.7 million people with disabilities, constituting 6.3% of the population.

Vietnam to honour international travel agencies

The General Department of Tourism in coordination with Vietnam Airlines will hold a ‘thank you ceremony’ at the JW Marriot Hotel in Hanoi on November 28 in appreciation of the travel agencies bringing tourists to Vietnam.

The important event acknowledges the contributions of the international travel agencies to Vietnam’s tourism and socio-economic development.

At the event, the department will introduce the country’s new tourism products and development policies.

Within the framework of the event, representatives of 55 international travel agencies plan to conduct surveys on November 27-28 at  Hoa Lu Ancient Capital, Trang An-Bai Dinh (Ninh Binh province) and Imperial Citadel of Thang Long (Hanoi).

Vietnam: 44 percent of Internet users yet shop online

Up to 44 percent of some 35 Internet users in Vietnam have yet shopped online, said a representative from Internet giant Google at a talk on the 2014 Vietnam Online Shopping Day and online advertising strategies in Hanoi on November 25.

Trinh Quang Trung also said encouraging Internet users to try online shopping for the first time is important to the development of e-commerce in Vietnam.

He added advertisements have a great influence on online shopping behaviours, providing the fact that 75 percent of online shoppers buy goods immediately when seeing ads while 84 percent use information on ads to learn more about goods.

At the talk, Nguyen Thanh Hung, General Secretary of the Vietnam E-Commerce Association, said the event, part of activities in response to the Online Shopping Day, is looking forward to helping expand the e-commerce market in Vietnam.

Le Duc Anh from the Ministry of Industry and Trade’s E-Commerce and Information Technology Agency revealed that although the Online Shopping Day, held for the first time so far, falls on the first Friday of December (December 5 this year), its activities were officially kicked off on November 10 on the websites www.ngaymuasamtructuyen.vn and www.onlinefriday.vn .

At present, 689 companies have registered to join in the programme, he added.-

Brussels workshop discusses book on East Sea

The European Institute for Asian Studies held a workshop in Brussels, Belgium, on November 25 to introduce a book on the South China Sea (known as the East Sea in Vietnam) written by BBC reporter Bill Hayton.

The event attracted some 100 scholars from the US, Japan, the Philippines, Australia, France, and Belgium as well as European Union officials and diplomats based in Brussels.

Entitled “The South China Sea: the struggle for power in Asia”, the book explains the situation in the Sea and the tension arising from disputes between China and a number of countries, including Vietnam, Malaysia, Indonesia and the Philippines.

A majority of participants said the East Sea is of global importance as 90 percent of international trade is currently transported by sea, and 40 percent of that volume is shipped via these waters.

Improperly handled disputes and tensions in this region may lead to conflicts, impacting regional navigation freedom, cargo transport, and investment environment as well as the entire global economy, they added.

They also noted that the complicated situation in the East Sea was triggered by China’s coercive actions such as illegally positioning an oil rig in Vietnam’s exclusive economic zone near the Hoang Sa (Paracel) archipelago, extending sites it is occupying in the Truong Sa (Spratly) archipelago, blocking Philippine boats carrying supplies to their troops stationed on Bai Co May (Second Thomas Shoal), and issuing and enforcing internal laws and regulations to assert its illegitimate claims in the East Sea.

Hayton told Vietnam News Agency correspondents that he hopes military conflicts in the waters will never happen. However, it is unlikely to have peace in this region if the disputes are not solved thoroughly.

He also said all concerned parties need to enhance dialogue and devise disagreement settlement measures so as to bring peace to all coastal countries.

The book “The South China Sea: the struggle for power in Asia” was published by Yale University Press in October 2014.

Its author, Bill Hayton, worked as the BBC reporter in Vietnam in 2006-2007. His previous book “Vietnam: rising dragon” was published by Yale in 2010 to good reviews.

Activities planned for Vietnam People’s Army Day

The Defence Ministry will hold a grand meeting in Hanoi on December 20 to mark the 70 th anniversary of the Vietnam People’s Army (VPA) and the 25 th All-People’s National Defence Day (December 22).

The information was released at a press briefing on November 25 in Hanoi, which was jointly held by the ministry, the Party Central Committee’s Commission for Popularisation and Education and the Ministry of Information and Communication.

The Defence Ministry also plans to coordinate with relevant agencies and localities nationwide to organise various activities on the occasion, including seminars on the development of the VPA, exhibitions on the VPA’s 70-year history, a cross-country cycling race, meetings of war veterans and ceremonies honoring outstanding members of the armed forces.

Difficulties in expanding methadone treatment programme

Challenges still lie ahead in the expansion of the methadone treatment programme, since only 27 percent of the 80,000 drug users targeted until 2015 received access to this form of therapy.

The slow implementation of the programme, unfavourable administrative formalities, a shortage of human resources, and a reduction in funding are some of the major obstacles, Director of the HIV/AIDS Prevention and Control Department under the Ministry of Health, Nguyen Hoang Long, said.

Tran Thanh Thang, a representative of the Vietnam Network for People who Use Drugs (VNPUD), said it was difficult for drug users to access methadone treatment in fear of social discrimination and occupational loss. Additionally, many treatment facilities are predominantly located in the country’s major cities, he explained.

Deputy Minister of Health Nguyen Thanh Long said the ministry would request the National Committee for AIDS, Drugs and Prostitution Prevention and Control to identify specific targets for each locality, diversify treatment services, and encourage the private sector to join the campaign.

Besides, legal framework needs to be reviewed and finetuned, the involvement of civil society organisations should be encouraged, and the administrative procedures for drug users who register to receive treatment reduced, Long suggested.

The Vietnamese State will support local authorities in developing models to distribute medication via communal health centres in mountainous regions, he said.

Methadone maintenance treatment (MMT) has been carried out in more than 80 countries and territories for years, benefitting over 1 million drug users.

The programme was initially piloted in Hai Phong and Ho Chi Minh City in 2008, and then expanded to 32 cities and provinces nationwide, with more than 17,500 patients being treated in 92 clinics.

After a 12-month treatment course, the percentage of patients at high risk of depression drops to 15 percent from 80 percent. Many gain weight and see their physical and mental health stabilise. Meanwhile, the crime rate amongst drug users sinks to 1.3 percent from 40.8 percent, according to the Ministry of Health.

Biodiversity conservation comes under spotlight

Problems in conserving biodiversity in Vietnam and measures to tackle them were discussed at a workshop in Hanoi on November 24.

The event was organised by the National Assembly’s Committee for Science, Technology and Environment in coordination with the Ministry of Natural Resources and Environment and the United Nations Development Programme.

Speaking at the workshop, Phan Xuan Dung, Chairman of the NA’s Committee for Science, Technology and Environment, said Vietnam is among countries with the highest biodiversity in the world.

The country has promulgated a number of laws and undertaken many programmes on biodiversity management and protection, he said, adding that there is a strong need for more ecologically sound actions in the context of climate change and the emerging trend of green development.

During the event, most participants agreed that solutions sustaining the biodiversity have to focus on protecting the forest, enhancing public awareness-raising campaigns as well as tightening the cooperation among relevant agencies to prevent poaching and wildlife illegal trade.

Vietnam is home to 164 special-purpose forests with 2.2 million ha of protected area, featuring 21,179 animal and 15,986 plant species, and 3,000 microorganism and fungi.

The nation has two World Natural Heritage sites, Ha Long Bay and Phong Nha-Ke Bang National Park, as well as World Biosphere reserves like Cat Ba Island, Cat Tien National Park, and Can Gio Mangrove Forest.

Dialogue on natural resources, environment policy launched

The Ministry of Natural Resources and Environment and international partners have agreed to restart the International Support Group on Natural Resources and Environment (ISGE) in a meeting in Hanoi.

Accordingly, a larger scale programme will be kicked off under the name of Natural Resources and Environment Policy Dialogue (NREPD).

The agreement was reached during the November 24 meeting to assess the outcomes of the 2014 joint action plan within the framework of the 2013 Vietnam Development Partnership Forum (VDPF).

Addressing the event, Do Nam Thang, deputy head of the ministry’s International Cooperation Department, said the ministry and development partners have carried out a number of actions to enhance the state management capacity in implementing laws on environment and to stepping up the community’s involvement in environmental protection.

The 2014-2015 joint action plan was set up with a focus on implementing the support programme to respond to climate change (SP- RCC) in Vietnam, revising documents guiding the implementation of the Law on Environment Protection, and increasing the national capacity on the evaluation of the environmental impacts as well as on building and participating in international and regional agreements related to environment.

Established in 2009 to support the national target programme to respond to the climate change, the SP-RCC has drawn the involvement of ministries, agencies and localities as well as international support such as the Japan International Cooperation Agency (JICA), French Development Agency (AFD) and Canadian International Development Agency (CIDA)

Apart from financial assistance, SP-PCC donors have coordinated with Vietnamese ministries have built up over 200 policy actions in response to climate change. A post-2015 action plan will be set up in next June.

Nam Dinh pilots Vietnam Forests and Deltas Programme

The northern province Nam Dinh is participating in the Vietnam Forests and Deltas (VFD) Programme which is tailored to help accelerate Vietnam’s transition to a climate change resilient, low carbon, and sustainable society .

The project comprises three technical components with different objectives, including sustainable landscapes and land use; climate change adaptation and resilience; and national coordination and policy development. Each component is implemented in selected provinces based on local conditions.

Nam Dinh was selected to pilot adaptation approaches, which aim to increase the resilience of residents, landscapes, and livelihoods in river deltas by providing adaptation assistance and disaster risk management. The project aims to support the National Strategy for Natural Disaster Prevention, Response and Mitigation towards 2020, according to Le Thi Hong Van, a member of the VFD management board.

A series of activities have been carried out since the project was launched in April 2014, starting with a vulnerability and capacity assessment co-organised by VFD and the provincial Red Cross to identify potential risks and develop action plans at commune levels.

Quat Lam, Giao Long, Giao Hai, Hai Dong, Hai Phuc and Hai Hoa are amongst the communes covered by the assessment. The project plans to have all 30 communes take part in the evaluation process by 2017.

Vice Chairman of the provincial Red Cross Pham Minh Phuong said a sub-project will be designed for each commune based on the outcomes of the assessment, with applied resilience models proposed by local authorities.

Additionally, the VFD programme has been supporting the province in designing communication campaigns and an information centre to increase the public’s awareness of climate change, learn from best practices in climate change resilience, evaluate local fresh water resources and organise workshops on relevant issues.

More interventions are underway to build capacity and mobilise local resources for responding to short-term risks, such as natural disasters, as well as preparing for long-term impacts, such as sea level rises, salt water intrusion and ecosystem degradation.

Vietnam Forests and Deltas is a 5-year programme (2013-2017) funded by USAID with a grant of more than 26 million USD. It has been implementing national policies and strategies on climate change response and sustainable development in the four provinces of Thanh Hoa, Nghe An, Long An and Nam Dinh.

Government to increase fines for overloaded trucks

The Government has issued a decree which will increase fines for overloaded trucks starting January 1 next year.

Current regulations impose a penalty of VND5-7 million (US$234-328) on vehicles breaking permissible load limits.

The new decree will comprise two fine levels. Under the first level, the fines will remain unchanged for trucks of below five tons breaking load limits by 60-100 percent.

Vehicles of from five tons and higher and tank trucks including trailers and semitrailers will receive the same fine for exceeding permitted loads by 50-100 percent.

The second level will increase to VND7-8 million for those carrying goods exceeding 100 percent permitted loads.

Vehicles violating loading capacity restrictions in bridges and roads will meet two fine levels.Those with total weight or axle load exceeding permitted restrictions from 50 to 100 percent will pay VND5-7 million in penalty and VND7-8 million for trucks with total weight or axle load beyond 100 percent of the permitted limits.

Besides the fines, violators will have to show their driving licenses and certificates related to special purpose vehicles deprived for three months.

Minister of Transport Dinh La Thang has pledged to basically tackle overloaded trucks by the end of next year.

Germany extends hand on vocational training

Vietnam and Germany are boosting bilateral training co-operation according to an agreement signed between the Ministry of Planning and Investment and Germany’s Ministry of Economic Affairs and Energy last week.

The joint statement announcing an enterprise training programme for the 2014-2016 period took place during the visit by Minister of Economic Affairs and Energy and Vice Chancellor Sigmar Gabriel to Vietnam.

Germany’s IVU Traffic Technologies AG also signed a co-operation agreement with Hanoi-based University of Transport and Communication.

“Germany’s advanced technologies and know-how will provide us with major help in developing our human resources,” said Minister of Planning and Investment Bui Quang Vinh at the signing ceremony. He described the steps as a way of attracting more German investments into Vietnam.

Germany is now Vietnam’s biggest European trade partner as two-way trade turnover reached nearly $8 billion, accounting for more than 20 per cent of the Vietnam-EU trade value. German companies also committed to bringing $1.3 billion in foreign direct investment to Vietnam. Famous German multinational companies including Siemens, Mercedes Benz and Robert Bosch have been in Vietnam for years.

However, Vinh said, trade and investment co-operation between the two countries remained below potential, given the strategic partnership between Vietnam and Germany.

Gabriel said German investment inflows into Vietnam would increase in the future, especially after Vietnam and the European Union finish negotiations of a free trade agreement. He stressed that small and medium-sized firms as well as German multinational companies were eyeing Vietnam.

“They are closely watching the development in Vietnam and Germany relations,” said Gabriel.

The Vice Chancellor of Germany underscored that Germany would support Vietnam in terms of human resources training. “We are not only training senior officers but also providing vocational training programmes,” he said.

The German support in term of training programmes is also being implemented by Germany companies in Vietnaextem. For example, Bosch Vietnam - a subsidiary of Robert Bosch - is co-operating with LILAMA 2 Technical and Technology College in setting up an apprenticeship programme to provide German-standard technical industrial apprenticeships. Through the programme, Bosch aims to contribute to the build-up of a highly skilled local technical workforce for Vietnam, especially in the southern province of Dong Nai. In addition, Bosch Vietnam also recruited and trained 500 engineers working for its two research and development centres in Vietnam.

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