To seek suitable solutions for the sustainable development of this key industry, the Vietnam Chamber of Commerce and Industry (VCCI) and the International Labour Organization (ILO) organized the sector forum on “Decent work and the future of Vietnam’s Electronics Supply Chains” in Hanoi on 15 July 2022. The event brought together Government agencies and partners of the industry. 

Vietnam has recorded continuous year-on-year increase in electronics export values, which now account for one third of the total national export values. As one of the biggest electronics exporters in the world, Viet Nam’s export values in 2021 climbed up to more than US$108 billion. The electronics sector employs more than 1 million workers.  

However, the industry mainly focuses on low-value-added and labour-intensive outsourcing and assembly activities. 

“Among the biggest challenges faced by enterprises are major upheavals in human resources, including labour shortage. How to attract workers to return to work, how to create decent work for them is now a difficult question,” VCCI Vice Chairman, Hoang Quang Phong, said, addressing the forum. 

Preliminary results of the latest enterprise survey conducted by VCCI with ILO support shows that around 60 per cent of respondents found a shortage of skilled workers as a moderate to severe challenge in the electronics sector. Half of the enterprises also named technical skills of supervisors and managers as another major issue.

In that context, ensuring resilient, inclusive and sustainable enterprises in the manufacturing sectors, including the electronics industry, is a top priority to maintain growth and remain competitive in the global market. 

“This includes attention to decent work to be able to sustain the industry’s competitiveness in the global market and contribute to the country’s socio-economic development,” said ILO Vietnam Director, Ingrid Christensen. 

This is in line with the ILO Global Call to Action for a Human-centred Recovery, which focuses on four interrelated pillars – inclusive growth and employment, protection of workers, universal social protection and social dialogue. 

“The country may sustain the growth of the industry with proper investment in decent work conditions including the facilitation of social dialogue and participation in programmes promoting workplace compliance,” the head of ILO Vietnam added. 

Electronics businesses have developed a channel of mutual support to effectively practise social dialogue at all levels to increase productivity and create better working conditions. This good practice is expected to spread to other key export sectors of the country. 

“Social dialogue will play a key role for ensuring sustainable supply chains,” said the Ambassador of the European Union to Vietnam, Giorgio Aliberti. 

“Promoting decent work is key to reach an inclusive, sustainable and resilient electronics industry in Vietnam,” he noted while emphasizing that requirements of investors, consumers and legislators around the world to promote decent work in global supply chains are on the rise. 

Through several projects funded by the European Union and other donors, the ILO, in close collaboration with VCCI, currently supports partners to address decent work deficits and build forward better the global supply chains in the industry./.