The progressive provisions of the revised Labor Code will bring many benefits to Vietnam when it implements new-generation free trade agreements (FTA).
The core contents of the revised Labor Code dated November 19, 2019 are close to international labor standards, which is a living proof that Vietnam has gradually complied with the commitments in the EU-Vietnam Free Trade Agreement (EVFTA) and those to guarantee rights for workers under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
The content of labor commitment in the EVFTA aims to ensure a fair competitive environment between the parties in trade relations. Therefore, all parties must comply with this commitment. Vietnam is gradually internalizing international labor standards to comply with its labor commitment and many regulations will change.
Vietnam's EVFTA labor commitments are not subject to specific standards but only reaffirm its respect, promotion and effective implementation of four basic standards under the International Labor Organization’s (ILO) 1998 Declaration, including: Respecting, promoting freedom of association and effectively recognizing collective bargaining rights between workers and employers; eliminating all forms of forced and compulsory labor; eliminating child labor; and eliminating discrimination in employment and careers.
These universal rights are stipulated in eight ILO conventions to which Vietnam has ratified 6 out of 8 conventions. In particular, most recently, in June 2019, the National Assembly voted with the highest level of agreement to approve the Right to Organize and Collective Bargaining Convention. For the remaining two of the eight basic conventions, the Government plans to ratify Convention 105 on Forced Labor and Convention 87 on Freedom of Association in 2020 and 2023, respectively.