Harmony in interest of relevant parties sought in draft revised Labour Code

Illustrative image (Source: VNA)

It is necessary to carefully consider reducing labourers’ working hours from 48 to 44 hours per week to ensure the interests of enterprises, said Phan Thi Thanh Xuan, Vice President and Secretary General of the Vietnam Leather, Footwear and Handbag Association.

Xuan made the statement at a working session between the Ministry of Labour, Invalids and Social Affairs (MOLISA) and the Vietnam Chamber of Commerce and Industry (VCCI) in Hanoi on September 16 to discuss the draft revised Labour Code.

She said a four-hour reduction means businesses would have to recruit an extra 10 percent of their current employees, causing more pressure for them and leading to a 9 percent drop in their revenue.

Xuan added the attraction of foreign direct investment (FDI) in strong export sectors such as garment and apparel and footwear will be affected.

She proposed the design of a roadmap for the reduction, thus optimising opportunities for all relevant parties.

Meanwhile, VCCI President Vu Tien Loc said the bill should consider the operation situation of enterprises.

As Vietnam’s labour productivity is lower than many countries it competes with, cutting working hours to 44 hours per week, with a maximum of 400 extra hours for a year, and the progressive calculation of overtime hours are not suitable, he stated.

Loc stressed that with Vietnam striving to improve GDP growth, the country should not reduce working hours.

Minister of Labour, Invalids and Social AffairsDao Ngoc Dung said the bill comprises many areas including employment and social security.

It comprises many new contents to meet the requirements of integration and suit Vietnam’s international commitments, while ensuring the country’s development, he said.

The minister said if an optimal solution cannot be found, a most suitable solution will be sought, ensuring harmony in interests of labourers, enterprises and the nation.

Ideas gathered for the bill will be reported to the National Assembly Standing Committee on September 20 before being submitted to the NA in October, said Dung.