Section 7. Worker Rights
a. Freedom of Association and the Right to Collective Bargaining
The law provides for the right of workers to form and join unions under the Vietnam General Confederation of Labor (VGCL), a CPV-run organization. The VGCL, however, answers directly to the VFF, which does not protect trade unions from government interference in or control over union activity. The labor code adopted in November 2019 and coming into force in January 2021 allows workers to form or join an independent employee representative organization of their choosing that does not have to be affiliated with VGCL. Only citizens may form or join labor unions.
The law limits freedom of association by not allowing trade unions full autonomy in administering their affairs. All unions must follow the organizational and operational guidelines prescribed by the CPV and law. The law confers on the VGCL ownership of all trade-union property and gives it the right to represent lower-level unions. By law trade union leaders and officials are not elected by union members, but are appointed.
The law requires that if a workplace trade union does not exist, the next level “trade union” must perform the tasks of a grassroots union, even where workers have not so requested or have voluntarily elected not to organize.
For nonunionized workers to organize a strike, they must request the strike “be organized and led by the upper-level trade union.” If nonunionized workers wish to bargain collectively, the upper-level VGCL union must represent them.
The law prohibits strikes by workers in businesses the government considers essential to the national economy, defense, or public order. “Essential services” include electricity production; post and telecommunications; and maritime and air transportation, navigation, public works, and oil and gas production. The law also grants the chairmen of provincial people’s committees the right to suspend a strike considered detrimental to the national economy or public safety.
The law prohibits strikes at the sector or industry level and prohibits workers and unions from calling for strikes in support of multiemployer contracts.
The law provides for the right of trade unions to organize and lead strikes with substantive and procedural restrictions. The law limits strikes to cases that arise from a collective labor dispute and cases when collective bargaining is not undertaken within the legal timeframes or when a labor arbitration board has not been established. Workers must also provide five days’ prior notification to the employer and the provincial and district level peoples committee labor agents before a strike. Strikes that do not adhere to the process outlined by law are illegal.
The law states the executive committee of a trade union may issue a decision to go on strike only when at least 50 percent of workers support it. Workers must request and exhaust an extensive and cumbersome process of mediation and arbitration before a lawful strike may occur. Unions or workers’ representatives may either appeal decisions of provincial arbitration councils to provincial people’s courts or strike. The law stipulates strikers may not be paid wages while they are not at work. The law prohibits retribution against legal strikers. By law individuals participating in strikes declared illegal by a people’s court and found to have caused damage to their employer are liable for damages, although this has never been enforced.
The law includes provisions that prohibit antiunion discrimination and, nominally, interference in worker organization activities and impose administrative sanctions and fines for violations. The law does not distinguish between workers and managers, however, and fails to prohibit employers’ agents, such as managers, from participating or interfering in union activity.
The labor code, adopted in 2019 and set to take effect on January 1, 2021, includes provisions for collective bargaining.
The government did not effectively enforce applicable laws. There were no penalties for antiunion activities. There was no enforcement against workers for illegal strikes.
According to VGCL statistics as reported in state media, there were 121 wildcat strikes in 2019 and 91 wildcat strikes in the first half of 2020; most occurred in southern provinces. Approximately 82 percent of the strikes were in foreign direct-investment companies (mainly Korean, Taiwanese, Japanese, and Chinese). The strikers sought higher wages, better social insurance, and better meals between shifts. None of the strikes followed the authorized conciliation and arbitration process and thus authorities considered them illegal “wildcat” strikes. The government, however, took no action against the strikers and, on occasion, mediated agreements in the workers’ favor. In some cases the government imposed heavy fines on employers, especially foreign-owned companies, which engaged in illegal practices that led to strikes.
Because it was illegal to establish or seek to establish independent labor unions prior to the new labor code, there were no registered domestic NGOs involved in labor organizing. Local, unregistered labor NGOs, however, supported efforts to raise awareness of worker rights and occupational safety and health issues and to support internal and external migrant workers. Multiple international labor NGOs collaborated with the VGCL to train VGCL-affiliated union representatives in labor organizing, collective bargaining, and other trade union issues. The International Labor Organization (ILO)-International Finance Corporation (IFC) Better Work project reported management participation in trade union activities was a significant issue in apparel and footwear factories.
b. Prohibition of Forced or Compulsory Labor
The constitution and law prohibit forced or compulsory labor. The labor code’s definition of forced labor, however, does not explicitly include debt bondage. The law criminalizes all forms of labor trafficking of adults and children younger than 16. The penalties were not commensurate with those for analogous serious crimes; in fact, the law does not provide any penalty for violating provisions prohibiting forced labor. NGOs continued to report the occurrence of forced labor of men, women, and children (see also section 7.c.).
Labor recruitment firms, most affiliated with state-owned enterprises, and unlicensed brokers reportedly charged workers seeking overseas employment higher fees than the law allows, and they did so with impunity. Those workers incurred high debts and were thus more vulnerable to forced labor, including debt bondage.
Also see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.
c. Prohibition of Child Labor and Minimum Age for Employment
The labor code set to take effect on January 1, 2021, establishes that a minor worker is a worker younger than age 18. It states a worker older than age 15 and younger than 18 shall not perform work that might damage the physical or intellectual development and dignity of the minor, such as lifting heavy objects or dealing with alcohol or dangerous chemicals or gases. A minor worker from age 13 up to 15 may perform light jobs from a list from the Minister of Labor, War Invalids and Social Affairs. Children younger than age 13 may work in art and sports in certain circumstances for no more than 20 hours per week. Minor workers must have the permission of their parents. The constitution prohibits child labor.
The government did not effectively enforce the law, and penalties were not commensurate with those for analogous serious crimes.
Illegal child labor was reported in labor-intensive sectors, such as construction, production of garments and textiles, bricks, fish, furniture, footwear, and leather goods, agriculture, and some manufacturing. Local media also reported children working as beggars in gangs whose leaders abused the children and took most of their income. Some children started work as young as 12, and nearly 55 percent of child workers did not attend school.
In the garment sector, children as young as age six reportedly produced garments in conditions of forced labor. The most recently available information from government raids, NGOs, and media reports during the year indicated this was most common in small, privately owned garment factories and informal workshops.
The Ministry of Labor is responsible for enforcing child labor laws and policies. Government officials may fine and, in cases of criminal violations, prosecute employers who violate child labor laws. As part of the government’s 2016-20 National Plan of Action for Children and National Program for Child Protection, the government continued efforts to prevent child labor and specifically targeted children in rural areas, disadvantaged children, and children at risk of exposure to hazardous work conditions.
International and domestic NGOs noted successful partnerships with provincial governments to implement national-level policies combatting child labor.
Also see the Department of Labor’s List of Goods Produced by Child Labor or Forced Labor at https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods .
d. Discrimination with Respect to Employment and Occupation
The law prohibits discrimination based on gender, race, disability, color, social class, marital status, belief, religion, HIV-status, and membership in a trade union or participation in trade union activities in employment, labor relationships, and work but not explicitly in all aspects of employment and occupation. The law does not prohibit discrimination based on political opinion, age, language, national origin, sexual orientation, or gender identity. Penalties for discrimination were not commensurate with those under laws related to civil rights.
No laws prohibit employers from asking about family or marital status during job interviews.
The labor code set to take effect on January 1, 2021, includes a definition of sexual harassment and assigns employer responsibility for its prevention. Employers must implement regulations against sexual harassment in the workplace and include it as possible grounds for dismissal.
The government did not effectively enforce employment discrimination laws but did take some action to address employment discrimination against persons with disabilities. Companies with a workforce composed of at least 51 percent employees with disabilities may qualify for special government-subsidized loans.
Discriminatory hiring practices existed, including discrimination related to gender, age, disability, and marital status. Women were expected to retire at age 60, compared with age 62 for men, affecting women’s ability to rise to managerial ranks and have higher incomes and pensions. Under the new labor code beginning in 2021, the retirement ages of employees in normal working conditions shall be 60 years and three months for men, and 55 years and four months for women, and shall increase by three months for men and four months for women each consecutive year.
Women-led enterprises had limited access to credit and international markets. Female workers earned, per year, an average of one month’s income less than male workers. Many women older than 35 found it difficult to find a job, and there were reports of women receiving termination letters at the age of 35. The VGCL’s Institute of Workers and Trade Unions noted women older than 35 accounted for approximately one-half of all unemployed workers in the country. Legal restrictions exist against women in certain occupations and tasks, including jobs deemed “hazardous” in industries such as mining, construction, and transportation.
Social barriers and the limited accessibility of many workplaces remained problems in the employment of persons with disabilities.
e. Acceptable Conditions of Work
The minimum wage varies by region. In all regions the minimum wage exceeds the World Bank official poverty income level.
The law provides for a 48-hour regular workweek, with overtime payment for additional hours worked. The labor code set to take effect on January 1, 2021, limits overtime to 40 hours per month, an increase from 30 hour per month. The new code limits overtime to 200 hours per year, but it provides for an exception in special cases, with a maximum of 300 overtime hours annually, subject to advance approval by the government after consultations with the VGCL and employer representatives.
The new labor code broadens the definition of “employment relationship” so that a legally valid employment relationship exists where two parties agree to a document that includes a description of the job, salary, management, and supervision conditions. The code creates the possibility that where a contract with an “independent contractor,” “service provider,” “freelancer,” or other informal agreement between two or more parties contains employment-like terms, it may be recognized as a formal labor contract. The new labor code also limits the repeated use of limited-term contracts. The law extends protection to part-time and domestic workers.
The law provides for occupational safety and health standards, describes procedures for persons who are victims of labor accidents and occupational diseases, and delineates the responsibilities of organizations and individuals in the occupational safety and health fields. The law provides for the right of workers to remove themselves from situations that endanger health or safety without jeopardy to their employment.
The Ministry of Labor, War Invalids, and Social Affairs is the principal labor authority, and it oversees the enforcement of labor law. The Labor Inspections Department is responsible for workplace inspections to confirm compliance with labor laws and occupational safety and health standards. Inspectors have the authority to make unannounced inspections and initiate sanctions. Inspectors may use sanctions, fines, withdrawal of operating licenses or registrations, closures of enterprises, and mandatory training in response to labor law violations. Inspectors may take immediate measures where they have reason to believe there is an imminent and serious danger to the health or safety of workers, including temporarily suspending operations, although such measures were rare. Penalties for wage and hour and occupational safety and health violations were commensurate with those for similar crimes, such as fraud.
The number of inspectors was not sufficient to enforce compliance. The government did not effectively enforce labor laws, particularly in the informal economy.
Credible reports, including from the ILO-IFC Better Work 2019 Annual Report, indicated many apparel and footwear factories exceeded legal overtime thresholds and did not meet legal requirements for rest days. The ILO-IFC report stated that, while a majority of factories in the program complied with the daily limit of four hours overtime, 77 percent still failed to enforce monthly limits (30 hours) and 69 percent exceeded annual limits (300 hours). In addition, and due to the high prevalence of Sunday work, 40 percent of factories failed to provide at least four days of rest per month to all workers.
Migrant workers, including internal economic migrants, and uncontracted laborers were among the most vulnerable workers, and employers routinely subjected them to hazardous working conditions. Members of ethnic minority groups often worked in the informal economy and, according to the ILO, informal workers typically had low and irregular incomes, endured long working hours, and lacked protection by labor market institutions. Additionally, workers in the informal sector are only eligible to pay into a voluntary social insurance fund covering only retirement and survivors’ allowances. Workers in the formal sector and their employers contributed to a system that covers sickness, maternity, labor accidents, and occupational disease as well as retirement and survivors’ allowances.
On-the-job injuries due to poor health and safety conditions and inadequate employee training remained a problem. Work-related injuries and deaths remained at approximately the same level in 2019 (most recent data) and 2018. In 2019 the government reported 8,150 occupational accidents with 8,327 victims, including 927 fatal incidents with 979 deaths. Among the deaths, 610 incidents involved contracted laborers, while 369 incidents involved uncontracted laborers.