[Vnbiz] Taiwanese Businessmen Urge Vietnam to Help End Strikes

[Tran Dinh Hoanh]

Dear CACC,

Of course, every employer would love the government to use its muscle to end
employees' strikes.  But, too bad, the government can't do that (except some
emergency cases involved national security).  Strike is a normal economic
activity for the labor market to achieve its equilibrium.  No employer likes
strike.  And no employee likes strike either--when you're on strike, you
don't have money coming.  To stop a strike before it is even formed, the
employer just has to have a very good HR department that is sensitive to the
employees' needs.
Have a great day!

Hoanh
On Wed, Jul 23, 2008 at 8:36 AM, Tai Phan <k.phan007 at gmail.com> wrote:

> [ Vietnam Business Forum ]
>
>
> *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.
>
>
>     ADVERTISEMENT
> "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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-- 
Tran Dinh Hoanh, Esq., LLB, JD
Washington DC
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