ASLI Working Paper Series

Publication Title Enhancing the quality of collective bargaining - A vital requirement for improving worker's life in Vietnam in the context of a highly competitive economy and globalization
Publisher Asian Law Institute
Series WPS033
Publication Date Feb 2014
Author/Speaker Minh Thi Hoang
Collective bargaining has traditionally been regarded as the essential means of setting wages and working conditions, but it has not developed well in Vietnam. As bargaining quality remains poor, most collective agreements so far signed have been of limited value, since they have been formalistic, containing nothing more than the minimum standards provided for by state regulation. The wage market has also become worse because of high inflation and because the State's minimum wage always lags behind. In addition to low pay, poor working conditions are also widespread. This situation affects workers' lives adversely and hinders foreign trade transactions. It also creates numerous difficulties for economic development.

The newly-amended Labor Code of 2012 was expected to address many of the problems inherent in the labor legislation and to give an effective boost to the development of collective bargaining. Were the amendments sufficiently well-designed to achieve this end? This article will look at the development of collective bargaining legislation in Vietnam, its achievements and the remaining restrictions in the new Labor Code. It will also put forward recommendations on measures to improve the current collective bargaining situation in Vietnam.
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