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EU – Vietnam Free Trade Agreement (EVFTA): Opportunities and Challenges for Vietnamese Workforce

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​ManpowerGroup convenes leaders from Government and Businesses to discuss Talent Strategy and integration with European Market.

Workshop is hosted in partnership with Vietnam Chamber of Commerce and Industry to update employers on the impact of new regulations happening on workforce planning and skills development

Hanoi, 17/9/2019. ManpowerGroup Vietnam, in collaboration with Vietnam Chamber of Commerce and Industry (VCCI) hosts the Workshop "EU – Vietnam Free Trade Agreement (EVFTA): Opportunities and Challenges for Vietnamese Workforce" with the attendance of over 100 representatives from WTO Integration Center under VCCI; Department of Legal Affairs under the Ministry of Labor, Invalids and Social Affairs; European Chamber of Commerce in Vietnam (EuroCham), NHO, GIZ, NGOs, local and international associations and enterprises. The workshop is aimed at increasing the awareness among enterprises on opportunities and challenges of EVFTA's impacts on the Vietnamese workforce. The distinguished representatives will also discuss the implications of Vietnam’s revised Labor Code in the context of increased international integration and the 4th industrial revolution.

By eliminating up to 99% of export tariffs, EVFTA will provide Vietnamese companies with competitive prices when they export goods to European markets. This is expected to bring tens of thousands of new job opportunities per year and increase income for Vietnamese workforce. Notably, outstanding impact is recorded in manufacturing industries such as textiles, footwear, furniture and seafood. However, Vietnam businesses are foreseen to face harsh competition in terms of workforce, especially challenges of securing highly skilled workforce to meet the increasingly stringent quality requirements of commodities and services for the European market.

EVFTA is considered a new-generation FTA since one of its aims is to enforce labor and environmental standards. Vietnam and the EU have agreed on a procedure committed to recognize, facilitate four basic labor standards by ILO 1998 Declaration (including freedom of association and the effective recognition of the right to collective bargaining; the elimination of all forms of forced or compulsory labor; the effective abolition of child labor; and the elimination of discrimination in respect of employment and occupation).

These commitments compel the Vietnamese government to review policies and revise the Labor Code so as to make appropriate adjustments. This opens up opportunities as well as challenges to enterprises as they have to change to meet the commitments. However, by complying with these commitments, Vietnam is also given an opportunity to develop a sustainable and well-balanced labor market, which provides both local workforce and enterprises long-term benefits.

At the workshop, the experts say opportunities that EVFTA gives Vietnam companies are significant, provided, employers have the right workforce to maximize opportunities. However, to achieve such potential, companies need to adjust their current talent development strategy. Mr. Simon Matthews, Country Manager ManpowerGroup Vietnam, Thailand and Middle East, says: “To achieve business growth in the context of increased international integration, talent development must be the first priority of enterprises. To be successful, organizations must have the right talent strategy, of which the development of internal employees plays an important role.” According to Humans Wanted, Robots Need You global research by ManpowerGroup, up to 84% of companies worldwide will invest in training their employees in 2020. During the workshop Mr Matthews also shares practical guidance for employers to develop tomorrow’s talent by Build, Buy, Borrow and Bridge to ensure sufficient workforce in the current state of Vietnam’s serious skilled workforce shortage.

About ManpowerGroup

ManpowerGroup® (MAN), the leading global workforce solutions company, helps organizations transform in a fast-changing world of work by sourcing, assessing, developing and managing the talent that enables them to win. We develop innovative solutions for hundreds of thousands of organizations every year, providing them with skilled talent while finding meaningful, sustainable employment for millions of people across a wide range of industries and skills. Our expert family of brands – Manpower®, Experis®, Right Management® and ManpowerGroup® Solutions – creates substantially more value for candidates and clients across 80 countries and territories and has done so for over 70 years. In 2019, ManpowerGroup was named one of Fortune's Most Admired Companies for the seventeenth year and one of the World's Most Ethical Companies for the tenth year, confirming our position as the most trusted brand in the industry. See how ManpowerGroup is powering the future of work:

www.manpowergroup.com.

About VCCI

Vietnam Chamber of Commerce and Industry (VCCI) is a national organization which assembles and represents business community, employers and business associations of all economic sectors in Vietnam. To promote trade and business relations with enterprises abroad is one of its main functions. VCCI is an independent, non-governmental, non-profit organization having the status of a legal entity and operating with financial autonomy. The organization provides information, guidance and consultancy in matters related to the business environment. It also assists in settling disputes through negotiation and mediation, acts as a voice of business in socio-economic policy development, and facilitates dialogue among businesses and between businesses and governmental agencies.

For further information, please contact:

Ms Nguyen Dinh Hoang Yen

Marketing and PR Manager

ManpowerGroup Vietnam

Email: yen.nguyenhoang@manpower.com.vn

Phone: +84 28 3911 0950 | ext. 125