The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is expected to create 17,000 to 20,000 jobs each year for Vietnamese workers, said Dao Quang Vinh, director of the Institute of Labor Science and Social Affairs, under the Ministry of Labor, Invalids and Social Affairs.

Workers are seen processing shrimp. The CPTTP is expected to annually create up to 20,000 jobs for Vietnam 

At a seminar on Vietnam’s labor commitments outlined in the CPTPP on November 13, Vinh said that the sectors using a large number of workers will be textiles and garments, footwear, wood and electronics. In addition, the labor quality will be gradually enhanced.

When the CPTPP comes into effect, Vietnam will have more opportunities to export its products to the remaining 10 member countries of the bloc.

Besides this, foreign direct investment (FDI) inflows to Vietnam will help improve the country’s competitiveness and labor productivity. However, FDI will leave a serious gap in wages between workers at FDI and domestic firms and between high-skilled and low-skilled laborers.

On the other hand, the trade pact will also bring challenges, particularly stricter requirements for labor quality.

In addition, after the CPTPP takes effect, workers are expected to be allowed to establish or join trade unions of their own choosing at the grassroots level, and those organizations may or may not be part of the Vietnam General Federation of Labor. The trade pact also allows these organizations to connect with each other in five to seven years after the CPTPP takes effect.

This is a major challenge for labor unions as they will find it hard to attract laborers, Vinh said.

According to Nguyen Manh Cuong, director of the International Cooperation Department, under the Ministry of Labor, Invalids and Social Affairs, Vietnam has committed to fulfilling its obligations listed in the trade pact.

If Vietnam fails to fulfill these labor commitments, other CPTPP members will not suspend preferential policies for Vietnamese products in the first three years after the CPTPP comes into effect. As for violations related to the freedom of association and the right to collective bargaining, the country will still enjoy incentives for five years.

SGT