Consultation workshop: “Identify measures to support low-income workers in factories supplying raw materials for processing and exporting to the EU”

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Although the Government’s attempt to apply measures to improve living standards of low-income workers, it still lacks preferential policies for whom working in factories suppplying raw materials for processing and exporting to the EU.

This is the main topic discussion of the Workshop on “Identify measures to support low-income workers in factories supplying raw material for processing and exporting to the EU” organized by the Institute of Labour Science and Social Affairs (Ministry of Labour – Invalids and Social Affairs) under the farmework of the project “Support for Investment and Trade policies of EU (EU-MUTRAP) on 19/01 in Nha Trang city (Khanh Hoa) and 21/01 in Can Tho.

Participants of the workshop were representatives from DOLISA, Agriculture and Rural Development Department, Industry and Trade Department, Confederation of Labour, enterprises, research institutes, universities located in Khanh Hoa and Can Tho province.

The main objective of the workshop are collecting consultation and comments for the report “The results of survey on identifying measures to support low-income workers in factories supplying raw materials for processing and exporting to the EU”

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Under the supports from EU-MUTRAP project, the Institute of Labour Science and Social Affairs carried out surveys in provinces such as Phu Tho, Thanh hoa, Dak Lak, Vinh Long – in which most of enterprises of processing and exporting to the EU located.

The content of the survey focuses on employment, income, insurance, living condition as well as applying and accessing policies of low-income workers. The objectives of the survey is to clarify results, limitations as well as shortcomings in indentifying measures to support theses worker groups and propose recommendations so as to be appropriate to fact situation in the forthcoming time towards strengthening trade cooperation between Vietnam and EU.

At the workshop, members of research team presented survey’s results and listened to comments from experts and representatives from some related institutions such as National Economics University, Khanh Hoa University, Ton Duc Thang university, DOLISA, Confederation of Labour in Khanh Hoa and Can Tho province.

EU is the second biggest market and among two biggest exporting markets of Vietnam. On December 2nd 2015, Vietnam and EU completed negotiation of signing Free Trade Agreement between Vietnam and EU which creates commercial development opportunities of two parties.

According to participants, export turnover to EU is mainly from intensive labour industries such as electronics products, mobile phones, shoes, garment and textile, coffee, marine products, stone and wood furniture. However, workers in exporting industries, especially workers in factories supplying raw materials, are from rural areas with low skills. Their products mostly depend on weather, natural conditions, price competition, consumption market.

Therefore, workers in this sector, even workers in factories supplying raw materials and collecting or processing raw materials for exporting and processing enterprises, have low and unstable income, are easy to get shock and risk.

Although the Government applied measures to support low income workers, it still lacks preferential policies, especially for workers in processing and exporting factories to the EU markets.

Comments and consultations from participants of the workshop are basis and evidence for research group of Institute of Labour Science and Social Affairs and EU-MULTRAP to finalize the report and further propose policy recommendations for low-income workers in factories supplying raw materials for processing and exporting to the EU.