Conference on Revised Labour Code and Trade Union Law, Sep 24, 2012

A conference entitled “Introduction of the Labour Code and Trade Union Law: Opportunities and Challenges” was held in Hanoi on September 24 by the National Assembly’s Social Committee, Ministry of Labour, Invalids & Social Affairs (MOLISA), Vietnam General Confederation of Labour (VGCL) and the International Labour Organisation (ILO) in Vietnam to give social partners and the public an insight into the significant changes created by the amended laws.

According to National Assembly’s Social Affairs Committee chairwoman Truong Thi Mai, the new Labour Code and Trade Union Law, that come into effect in May and January 2013, respectively, were adapted to the new reality of the labour market and industrial relations.

Deputy MOLISA Minister Pham Minh Huan said: “The 2012 Labour Code is a leap forward in simplifying red tapes and an important tool to improve state management in labour issues.”

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“Labour Code backs wage increase,” Vice Chairman, National Assembly Social Affairs Committee

(VNS)Wages will rise under a revised Labour Code. Bui Sy Loi, vice-chairman of the National Assembly Committee on Social Affairs, told Thoi bao Kinh te Viet Nam (Vietnam Economics Times) how living standards will improve.

The revised Labour Code will take effect next May, but what are your thoughts on the existing minimum wage?

I have to say with the existing minimum wage, a worker can only afford to cover 60 per cent of their daily expenses. Despite the meagre wage, workers still have to pay part of their income to cover social insurance. If such a system continues, sooner or later our social security system will go bankrupt. That’s why it is high time for us to raise the miminum wage and to dispel the myth that anything above the “nominative” salary is a “bonus”.

Under the revised Labour Code, the minimum wage earner will be able to cover the daily living requirements of themselves and their family members.

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VBF Dialogue with MOLISA re Labour-related issues

When: Mon, Oct 29th 2012 08:30 – 17:00 or Tue, Oct 30th 2012 08:30 – 17:00
Where: to be informed

In preparation for the coming Annual VBF 2012, the VBF Secretariat is arranging a dialogue on labor-related issues for VBF members and MOLISA in the end of October, either Oct 29 or Oct 30, to be informed.

In this regard, the VBF Secretariat would like to provide the following background materials for your preparation:

Revised Labour Code, Law 10/2012/QH13, Jun 18, 2012 (English) pdf version
Revised Labour Code, Law 10/2012/QH13, Jun 18, 2012 (Vietnamese) pdf version
Consolidated Comments on the Amended Labour Code (English)
Consolidated Comments on the Amended Labour Code (Vietnamese)
Comments (Baker&McKenzie) on the Amended Labour Code (English)
Comments (Baker&McKenzie) on the Amended Labour Code (Vietnamese)
All of the above documents in one zip folder

If there are any other, additional comments, the VBF Secretariat would appreciate receiving them as soon as possible.

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Viet Nam may run out of funds for pensions

HA NOI — The International Labour Organisation (ILO) in Ha Noi has suggested that comprehensive reforms are needed to fix Viet Nam’s pension scheme, as the country will soon no longer be able to pay pensions.

According to an ILO report launched yesterday, if nothing changes, the national pension fund may be depleted in 17 years.

“The pension scheme will start running deficits from 2020 and the reserves of the fund could be totally depleted by 2029, causing big problems for Viet Nam’s economy,” said ILO Viet Nam expert Carlos Galian.

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Waging a new war against low salaries

Apr 16, 2012. The latest draft of the Labour Code’s Article 88, scrutinised by the 13th National Assembly, outlines the minimum salary on an hourly, daily, weekly and monthly basis, with calculations based on geographical areas and different jobs.

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Revised Labour Code (version Mar 18, 2012)

This is a status update, based on meetings in Hanoi Mar 15-16, 2012 with the VGCL and MOLISA by a number of Governors from AmCham Vietnam (HCM City).

After discussions at the 2nd Session of the XIIIth National Assembly in November 2011, the National Assembly Standing Committee and the Social Affairs Committee provided some SUMMARY PRELIMINARY VIEWS OF THE NATIONAL ASSEMBLY STANDING BOARD AND SOCIAL AFFAIRS COMMITTEE regarding feedbacks on the (revised) draft Labor Code.

The revised Labour Code (version Feb 6, 2012) and the Summary Preliminary Views of the National Assembly Standing Board and Social Affairs Committee hav been sent to all National Assembly provincial delegations with a request for their comment. And 40 delegations have sent comments back already. From Mar 12 until Mar 15, a working group consisting of ILO technical advisors, the revised Labour Code drafting board, and the Tri-partite Partnership members had been in consultations on the revised Labour Code. The working group completed its task with revised Labour Code (version Mar 18, 2012), except that they were still studying a few issues that had not been resolved. The WG will continue to meet on these issues and will report by the end of March to the National Assembly Standing Board on issues not agreed.

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AmCham Statement at Vietnam Business Forum, Dec 2, 2011 – Key Points

Full Statement(E) Full Statement (V)

Introduction • VBF Objective

The VBF objective is to improve the business environment, so as to attract new FDI, trade, and jobs to Vietnam.

Trade and its related foreign investment brings jobs and income, tax revenues, exports and foreign exchange, and technology transfer, and contributes to Vietnam’s economic and social development (“industrialize, modernize and globalize.”)

FDI representatives are important to the VBF dialogue, since FDI factories represent 42% of Vietnam’s gross industrial production, and 57% of Vietnam’s exports in 2010.

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Re: Overtime: VCCI Vietnam Chamber of Commerce & Industry

National Employers’ Conference 2011 • Labour Code Revision, Oct 24, 2011

100% of surveyed employers would like to offer employees increased overtime.
Phù hợp với nguyện vọng của 100% các doanh nghiệp được hỏi ý kiến.

Employers’ Position Paper: Comments and Recommendations regarding the Labour Code Revision


Article 114 Part 2 Choose Option 2: “Ensure that the total overtime worked by the employee does not exceed a maximum of 50% of the formal daily working hours nor a maximum of 36 hours per month.”

It is recommended to make it possible to work overtime even “more than 36 hours” In certain jobs such as white collar staff working in an well-equiped environment, jobs with special features in terms of delivery deadline and limited availability of equipment it is possible to work overtime more than 36 hours if agreed by the union and employees and approved by DOLISA and the higher-level trade union.

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Vietnam General Confederation of Labour (VGCL) wants higher minimum wage, same overtime

VGCL wants higher minimum wage, same overtime

Dang Ngoc Tung, VGCL ChairmanCommenting on the amendments to the Labor Code, Dang Ngoc Tung, chairman of the Vietnam General Confederation of Labor, said he wanted the minimum wage to be increased and the number of maximum annual overtime hours to remain unchanged.

In an interview with Tuoi Tre, Tung said the number of extra working hours should not be increased from the current 200 hours to 360 hours per year as proposed in an amendment.

He emphasized that such a regulation should be considered “only when workers are allowed to work 44 hours per week, instead of 48 hours at present.”

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