[Vnbiz] Taiwanese Businessmen Urge Vietnam to Help End Strikes

[Tai Phan]

*Wednesday July 23, 10:41 AM* Taiwanese Businessmen Urge Vietnam to Help End
Strikes

TAIPEI, July 23 Asia Pulse - A representative of Taiwanese investors in
Vietnam urged authorities there to help end the mounting labor strikes that
are plaguing manufacturers, saying that the local government must use its
power to control the situation.

In a workshop on doing business in Vietnam, Theodore Huang, chairman of the
Taipei-based Chinese National Association of Industry and Commerce, said the
growing number of strikes in Vietnam is an even more serious problem than
the country's anaemic economy, and urged authorities to deal with the issue.


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"The economy is not a big problem in Vietnam, as foreign capital will soon
arrive. The real difficulty lies in the tide of strikes, " Huang said.

According to local media reports, about 300 strikes have been staged in
Vietnam to date this year because of inflation and low wages. The frequency
of the labor actions has even led to bankruptcies among Taiwanese-invested
firms.

The stakes are high for Taiwan, the third largest investor in the country
after South Korea and Singapore according to Bureau of Foreign Trade
statistics.

Huang said that up to February this year, Taiwanese businesses had
registered 1,817 investment projects in Vietnam worth more than US$10
billion and is one of the country's biggest trading partners.

Huang, who himself has investments in Vietnam, said the country offers many
advantages to foreign investors, such as a large and diligent workforce, a
large land area and many harbors.

"Starting from Vietnam, we can easily make inroads into other markets in
Southeast Asia," Huang said.

To avoid the strikes that are plaguing some foreign-invested facilities,
Huang advised companies there to sign a clear contract with employees and
set up a complaint channel to deal with problems before they explode.

If workers still go on strike, however, the local government must impose its
authority to deal with the problem, he contended.

Huang Nan-huei, a former Taiwanese representative to Vietnam, also suggested
that Vietnam enhance on-the-job training to improve the quality of its
manpower.

In response, Nguyen Ba Cu, director of the Vietnam Economic and Cultural
Office in Taipei, argued that Vietnam is still a good place to invest, and
said his government has adopted eight important measures to improve the
country's investment environment.

They include a tighter monetary policy, a better market monitoring system
and more concentrated development of the manufacturing, agricultural and
service sectors.

Vietnam will also enhance its administrative efficiency and eliminate
corruption, Nguyen asserted.

Despite battling a host of economic problems this year, Vietnam is still
seen as a viable investment destination for manufacturers looking for lower
cost environments, especially as costs in China rise.

The country has recorded over 8 per cent growth for three consecutive years
and became a member of the World Trade Organization in 2007.

(CNA)
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