HANOI (ILO News) – The implications of the EU-Viet Nam free trade agreement (EVFTA) for decent work, sustainable development and market-oriented reform in Viet Nam were discussed at a workshop organized in July.

Government agencies, employers and workers expect a positive long-term impact of gradually improving labour standards on workers’ livelihoods, particularly the working poor (workers who live on an income of US$3.10 or less per day at purchasing power parity) and the “near working poor”.

However, to sustain their efforts, they need to upgrade their capacity to effectively consider fundamental and technical international labour standards in the context of national legislative reform and collective bargaining development as well as their ability to effectively engage with major trading partners in pursuing progress on the ratification and application of these standards.

At the workshop, ILO Senior Adviser of the International Labour Standards Department in Geneva, Tim De Meyer, shared his thoughts on the EVFTA Trade and Sustainable Development Chapter with participants. He highlighted a number of features situating the EVFTA among a “new generation” of free trade agreements:

• The trade benefits firmly aim to support Viet Nam’s implementation of the 2030 Development Agenda, in particular the mutually supportive advancement of decent work and “sustained and sustainable economic growth” (SDG8).
• In addition to efforts to realize all fundamental principles and rights at work, the EVFTA calls for “continued and sustained” efforts to ratify the 3 fundamental Conventions which Viet Nam has not yet ratified: the Right to Organize and Collective Bargaining Convention, 1949 (No. 98); the Abolition of Forced Labour Convention, 1957 (No. 105); and the Freedom of Association and Protection of the Right to Organize Convention, 1948 (No. 87). Considering the global rise in victims of forced labour, modern slavery and trafficking in persons, the Protocol of 2014 to the Forced Labour Convention, 1930 (No. 29) also merits consideration in this category.
• ILO’s fundamental Conventions provide for rights that should enable labour market actors in Viet Nam to decide on and support the adjustments to labour market governance necessitated by trade liberalization. The EVFTA envisages that the substance of such reform efforts should be guided by up-to-date ILO technical Conventions – currently 77 in total. Viet Nam has ratified just over 10 technical Conventions at present, not comprehensively covering the Decent Work Agenda. Viet Nam could aim to substantively increase that number by 2030, prioritizing standards in the areas of social protection and social dialogue. The meeting discussed a strategic approach to the promotion of technical labour standards.
• EU member States and Viet Nam are all ILO members. So it seems logical that the EVFTA defers judgement on compliance with ratified standards to ILO supervisory bodies that have been mandated to do this work for nearly 100 years. The EU and Viet Nam could expand cooperation to further strengthen Viet Nam’s capacity to timely and substantively report on commitments undertaken; enhance the inclusion of employers and workers in the supervisory process; and give adequate effect to ILO supervisory comments.
• The EVFTA encourages the expansion and improvement in voluntary private initiatives to promote labour standards – often referred to as corporate social responsibility. Global brands are increasingly expected to undertake due diligence around issues such as modern slavery and child labour, manage reputational risk and enhance transparency. This is another important area for potential cooperation, considering the relatively recent introduction of due diligence in the area of labour standards; the swift repercussions of ill-managed risk on commercial opportunities; and therefore its critical role for sustained trade benefits.

The workshop was organized under the framework of the ILO’s EU-funded project on “Promoting ILO fundamental conventions towards ratification of Conventions 87, 98, 105 and actions to eliminate discrimination and forced labour in Viet Nam”.

_{* This story is a product of the European Union-funded project on Promoting ILO fundamental conventions towards ratification of Conventions 87, 98, 105, and actions to eliminate discrimination and forced labour in Viet Nam. Its contents do not necessarily reflect the views of the European Union.}