How will the TPP raise Vietnamese salaries and wages?
How will the TPP raise Vietnamese salaries and wages?
Vietnam and 11 other nations reached agreement on October 5 on the final text of the Trans-Pacific Partnership (TPP), a massive trade agreement that if ratified will cover two-fifths of the world's economy.
The TPP has been much criticized by employee unions, who say it does little to protect jobs and advances the rights of investors and multinational corporations at the expense of workers and the environment.
Vietnam Worker and Trade Unions Institute Director Vu Quang Tho says the Trans-Pacific Partnership (TPP) biggest winners are the labour intensive industries and that he is cautiously optimistic the deal will ultimately go through.
Tho recently sat down with a VOV reporter to share his views about the expansive trade accord and how it will impact workers in Vietnam.
Following are key translated excerpts capturing the gist of the interview.
What in your opinion is the biggest opportunity for domestic workers should the TPP be ratified?
Mr Tho: It is my opinion that in the long-term, participation in the TPP will result in better paying jobs principally in the agriculture and marine industries for domestic workers as businesses expand production and exports.
In addition, the prospects for the clothing, textiles, footwear, and electronics appear promising.
But you have to keep in mind that all 12 member nations to the agreement want a piece of the TPP market. In the long term, it might end up being a bit of a wash with regard to what specific nation benefits the most.
The overriding goal for Vietnam in joining the TPP and integrating into the global economy is to increase the number of good paying jobs for workers and improve their productivity and competitiveness.
We know that both transnational and domestic businesses operating in Vietnam have strengths in the aforementioned labour intensive industries however, working conditions in these fields currently are poor and the average earnings are much too low.
What fate awaits employee trade unions?
Mr Tho: Basically, as I understand the TPP agreement, it calls for enforcement of the fundamental principles and rights for workers as promulgated by the International Labour Organisation (ILO) Declaration adopted in 1998.
However, I would caution that details of the entire TPP actual agreement have yet to be published so I am basing my opinion on the portions of it that have been released.
That declaration commits Member States to respect and promote principles and rights in four categories, regardless of whether or not they have ratified the relevant conventions of the ILO.
The pertinent categories are – the right to collective bargaining, elimination of forced or compulsory labour, abolition of child labour and elimination of discrimination with respect of employment and occupation.
In Vietnam, employee trade unions have a duty to protect the legal rights and interests of its members, educate workers and participate with other organizations in the country in building plans, document, and resolutions.
What is your biggest concern for domestic workers?
Mr Tho: I am very worried about the lack of worker skills and their lack of competitiveness. My major concern is that workers from other countries will swoop into Vietnam take all the best paying jobs.
Domestic worker qualification and skills quite simply have not kept pace with the rest of the world. For example, a recent survey showed that domestic workers’ skills are much lower than those from Thailand, Malaysia and Indonesia.
Moreover, their productivity is also much lower than the average of other countries around the globe.
Joining the TPP, domestic workers will confront many difficulties in qualifications, skills and knowledge of international laws.
It remains to be seen whether the TPP will actually result in raising Vietnamese worker salaries and wages or whether the better paying jobs will go to foreigners coming to the country to work.
