Electronics business coalition in Vietnam launched

This coalition of electronics companies is organized to promote socially responsible labor practices.

Vietnam’s electronics industry has seen rapid growth in recent years. Vietnam was home to only 256 enterprises in 2005;however, the number has increased to 1,021 enterprises in 2014. The total number of employees in the industry has also increased seven times in eight years, from 46,000 employees in 2005 to more than 327,000 in 2013 and about 500,000 today.

The expansion of the multinational electronics firms’ trans-border production network has left a positive impact on the economies of developing countries like Vietnam via effective use of capital, labor and the adoption of new technologies, but also triggered some issues relating to labor and employment.

Vietnamese enterprises have increasing competitiveness and ability to participate in the global supply chain. As a result, a number of enterprises may consider cost-cutting approaches that will affect working conditions and have along-term negative impact on the credit and operational capacity of the enterprises.

Therefore, the implementation of social responsibility in the labor of the electronics industry will not only create momentum for Vietnam’s electronics industry to increase competitive advantage on market but also help Vietnamese workers have more employment opportunities, better working conditions and fully enjoy their interests.

“The establishment of an electronic corporate network which focuses on social responsibility is a form that VCCI will pay special attention in the upcoming time,” said Vu Tien Loc,  VCCI’s chairman.