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### Viewing cable 04HANOI3021, UPDATE ON LABOR EXPORT IN VIETNAM

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
04HANOI3021 | 2004-11-09 09:41 | 2011-08-25 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Hanoi

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    UNCLAS SECTION 01 OF 04 HANOI 003021

    SIPDIS

    SENSITIVE

    STATE FOR G/TIP, EAP/BCLTV, EAP/RSP, INL/AAE

    E.O. 12958: N/A
    TAGS: PHUM KWMN KCRM ELAB VM OMIG LABOR
    SUBJECT:  UPDATE ON LABOR EXPORT IN VIETNAM

    Reftel: Hanoi 336

    ¶1. (SBU) Summary: According to Vietnamese Ministry of Labor,
    Invalids, and Social Affairs (MOLISA) officials and
    Vietnamese press reports, increasing labor exports from
    Vietnam have created new demands for services and
    protections for overseas workers.  While not yet complete,
    the process of turning intention into action in the area of
    labor export reform is underway.  MOLISA is pushing for a
    new, separate law exclusively on labor export to codify and
    validate existing practice, and to coalesce the current
    collection of decrees and circulars implementing the 2002
    labor code covering the issue of labor export, and the
    agency-specific directives governing interagency cooperation
    and responsibilities.  GVN efforts to punish labor export
    regulation violators and protect workers in trouble have had
    well-publicized success.  End Summary.

    Growing numbers of export laborers
    ----------------------------------

    ¶2. (SBU) Labor migration from Vietnam is rapidly increasing,
    with around 400,000 workers currently overseas.  According
    to MOLISA, approximately 75,000 workers went abroad in 2003
    compared with 21,000 in 1999.  While in the first ten months
    of 2004 only 55,600 workers were exported, indicating a
    possible drop off in numbers this year, MOLISA anticipates
    the number of overseas workers to double by 2010.  Vietnam's
    expansion of labor export, both to release unemployment
    pressure at home and to generate inflows of foreign
    exchange, has heightened concerns for protecting labor
    migrants from abuses.  The growing number of Vietnamese
    laborers going overseas, their vulnerability due to poor
    knowledge and awareness of their labor rights, and reports
    in the Vietnamese press have encouraged the protection and
    education of migrant workers prior to their departure and
    have motivated the GVN to create support mechanisms for them
    in receiving countries.

    Legal reform and oversight
    --------------------------

    ¶3. (SBU) In order to address the challenges created by the
    increase in labor exports, Vietnam included updated
    legislation on overseas workers in its 2002 amendments to
    the Labor Code. These documents attempt to rectify some of
    the weaknesses in the labor export system by clarifying the
    rights and obligations of Vietnamese workers, enterprises,
    and government agencies involved in this arena, and
    providing a mechanism for MOLISA to revoke licenses of labor
    export companies (including state-owned enterprises) that
    violate worker rights.  These amendments were followed in
    2003 by Decree 81, which provided detailed implementing
    regulations (Reftel).

    ¶4. (SBU) Since the reforms of 2002 and 2003, the GVN has
    continued to demonstrate its commitment to ensuring the
    rights and welfare of temporary overseas workers, and to
    increase its efforts to monitor and enforce those
    protections and safeguards.  In the past year there have
    been a number of instances where the GVN has worked to
    improve conditions for export workers or to protect them
    from fraud or other mistreatment.  According to the
    Department of Overseas Labor (DOLAB) of MOLISA, in 2003, a
    Middle Eastern shipping company approached four export labor
    companies in Vietnam for laborers to work on tourist ocean
    liners.  Preliminary investigation by MOLISA discovered
    signs of fraud, so the GVN delayed the sending of workers
    and intervened to stop the contract signing with shipping
    company.  Through the International Maritime Association,
    MOLISA confirmed other instances of fraud by this shipping
    company.  The GVN has also worked directly with governments
    of receiving countries to improve the rights and conditions
    of laborers overseas.  In March 2004, the GVN signed an MOU
    with the Labor Ministry of the Republic of Korea (ROK) to
    include Vietnam in ROK's Overseas Labor Licensing Law.
    Representatives from the Vietnamese Embassy in ROK said that
    after the law took effect in August 2004, laborers from
    Vietnam would then hold equivalent salaries, interests and
    obligations as Korean employees.  This status includes the
    right to minimum wage, accident insurance and the right to
    join labor unions.  In a current case involving allegations
    of Vietnamese workers being mistreated in Malaysia after
    being charged with illegal immigration, the Prime Minister
    instructed the Ministry of Foreign Affairs (MFA) in
    coordination with MOLISA to work with the Malaysian
    government to protect the legitimate rights of the workers,
    according to press reports and MOLISA sources.

    ¶5. (SBU) We have identified other concrete examples of the
    GVN's recent efforts at oversight of the export labor
    system, to protect workers abroad and to ensure workers
    rights are respected after returning home.  One case
    involving a Taiwan shipping company is currently pending.
    In the fall of 2004, Vietnamese workers on the Taiwan ship
    asked for protection at the Vietnam Embassy in Libya upon
    docking in Libya, complaining of poor working conditions on
    their ship.  The GVN, through its representatives in Taiwan,
    are currently working with the Taiwan authorities to make
    the Taiwanese ship owners terminate the workers' contracts,
    pay full salaries and pay for the safe return of the workers
    to Vietnam.  In another case in May 2004, Vietnamese workers
    who had been sent to work in the construction sector in
    Malaysia were not given jobs or paid their contracted
    salaries as a result of shocks in the Malaysian economy.
    According to the labor law, export labor companies are
    supposed to pay compensation for damages to the laborer
    caused by a breach of contract.  However, the company in
    question - Binh Phuoc Trading, Import-Export and Tourist
    Company (Bitocimex) - was experiencing financial
    difficulties.   Mr. Nguyen Van Thoa, Deputy Director of Binh
    Phuoc People's Committee stated that he instructed all
    relevant provincial agencies to find a way to deal with the
    dispute. He asked the company "to terminate the contract
    based on the law in the light of ensuring fully legitimate
    rights of the workers, bearing the risk by itself and not
    passing the risk over to the worker."  Ultimately, DOLAB
    officials worked with the Binh Phuoc People's Committee to
    loan the company money to officially terminate worker
    contracts and ensure that the workers were satisfactorily
    compensated.  This case was widely covered in the (state
    controlled) Vietnamese press.

    ¶6. (SBU) In an extension of the Bitocimex case, the Binh
    Phuoc People's Committee inspectors found that the amount of
    USD 678,350 collected in fees and deposits from 629 workers
    to Malaysia was completely spent by the Ho Chi Minh City
    Bitocimex branch.  The company is suspected of swindling
    workers sent to both Malaysia and Taiwan.  The Binh Phuoc
    police arrested and are investigating four other Bitocimex
    staff, Thoa confirmed.

    New labor export law
    --------------------

    ¶7. (SBU) To strengthen further Decree 81, the GVN has
    officially proposed to include a Law on Labor Export in the
    National Assembly's law making program for 2005.  This long-
    term proposal reflects Vietnam's determination to create a
    more organized formal legal framework for export labor.
    Currently, several provisions of the Labor Code and other
    legal documents, such as decrees and circulars, cover labor
    export regulations but there is no comprehensive coverage in
    law.  If it is incorporated into the 2005 law-making
    program, such a law could be approved by the National
    Assembly as of early 2006.  MOLISA is preparing all
    necessary information, documents and references, and is
    ready to draft the law.

    Interagency cooperation
    -----------------------

    ¶8. (SBU) According to MOLISA officials, while MOLISA defines
    the scope of activities and responsibilities for labor
    export, the Ministry actively cooperates with the MFA and
    the Ministry of Public Security (MPS) to support labor
    export regulation and enforcement.  Through the MFA, MOLISA
    has maintained close relations with Vietnam's embassies
    abroad, which are charged with intervening on behalf of
    workers on consular and legal affairs.  According to Mr. Vu
    Dinh Toan, Deputy Director General of DOLAB, recent MFA
    internal directives support these responsibilities in
    practice, requiring new Vietnamese ambassadors to meet with
    MOLISA to better understand the export labor system and
    worker protections. Because MOLISA is not a law-enforcing
    agency, the Ministry cooperates with MPS to identify
    criminal and administrative violations of the labor export
    system to "solve problems and eliminate violations of the
    labor export system that could lead to trafficking in
    persons".  This includes working with local authorities in
    provinces to combat fraud and other abuses.

    ¶9. (SBU) The GVN is further strengthening inter-agency
    coordination and cooperation in a couple of key areas.
    MOLISA, the Ministry of Justice (MOJ), the Supreme People's
    Court and the Supreme People's Procuracy are currently
    drafting an inter-agency circular providing guidance on the
    settlement of disputes between labor export enterprises and
    workers.  MOJ is the lead drafting agency in collaboration
    with the other agencies' experts.  In addition, MOLISA and
    MPS are waiting for approval of a draft inter-agency
    circular on preventive measures and punishments for labor
    export violation.

    ¶10. (SBU) In addition to cooperation across government
    ministries and agencies, both MOLISA Minister Nguyen Thi
    Hang and DOLAB have welcomed comments and feedback from the
    U.S. Embassy or other experts from the United States on how
    Vietnam's labor code can be better brought into conformity
    with international codes of practice, particularly in the
    area of export labor.

    Targeted training
    -----------------

    ¶11. (SBU) Before departing Vietnam, workers receive training
    in a wide range of subjects geared toward their destination,
    including the language, culture, and basic legal system of
    both Vietnam and the destination country, DOLAB experts
    confirm.  Labor export companies, provincial governments,
    and employment service centers run courses to train many
    laborers in the specific skills necessary for their overseas
    jobs because "very few are qualified for the work that they
    seek," said DOLAB DDG Vu Dinh Toan.  The GVN recognizes the
    need for more and more relevant training, both on job
    specific skills, on customs, laws and regulations of
    receiving countries, and workers' rights and
    responsibilities under Vietnam and receiving country laws.
    MOLISA has recently announced plans to establish three major
    training centers - in the North, Center and South - to
    improve the quality of pre-departure training and
    orientation.  They have proposed a budget of $170 million
    from a variety of sources for training and development to
    train up to 70 percent of the Vietnamese migrant workforce
    before sending them abroad between now and 2010.

    Weaknesses
    ----------

    ¶12. (SBU) The GVN effort to address labor export problems
    has some weaknesses, according to interlocutors from the
    International Organization for Migration.  The new labor
    attaches at SRV Embassies in labor export consuming
    countries are "stretched thin" and cannot meet all the
    demands for assistance in countries which themselves have
    limited capacity to protect worker rights, IOM Chief of
    Mission Andre Bruce told Poloff September 14.  In addition,
    the GVN has not yet identified funding sources for all of
    its additional training programs, and typical human resource
    problems hamper labor export law enforcement efforts.
    Still, Bruce said, the GVN appeared "serious" about
    addressing the problems inherent in labor export as well as
    reaping its benefits.

    Comment
    -------

    ¶13. (SBU) Vietnam's labor export regulation is evolving as
    the GVN responds to growing needs and demands.  There is
    increasing definition of agency roles and responsibilities.
    A unified law has been proposed, but is still pending.  The
    increase in the number of Vietnamese laborers sent overseas,
    with the potential for an accompanying increase in the
    number of cases of fraud and abuse of would-be workers, is a
    public relations and public policy concern which the GVN
    recognizes it must address.  The result has been a
    significant increase in the attention and resources the GVN
    has devoted to the issue across a number of agencies both
    here and abroad, from GVN representatives in SRV Embassies
    in labor export receiving countries to MPS investigators
    working with local officials to prosecute corrupt executives
    at labor export companies.

    ¶14. (SBU) As Vietnam's dependence on export labor grows,
    both as a means to relieve labor market pressure at home and
    to generate foreign currency, an issue competing with that
    of protection of workers is Vietnam's interest in
    maintaining its position as an attractive supplier of export
    labor.  This requires the GVN to work with key labor
    consuming countries such as the ROK, Malaysia, and Taiwan to
    address the problem of Vietnamese workers who do not fulfill
    their contracts and disappear into the local economy,
    violating the terms of their visas.  The role of labor
    export companies in ensuring that workers respect their
    contracts, and the role of the GVN in enforcing those
    contracts, can at times create contradictions with the GVN's
    mandate to protect workers.  In balancing the responsibility
    to protect workers from abusive situations with the
    responsibility to enforce contracts (and the sensitive issue
    of maintaining Vietnam's attractiveness as a source of
    export labor), Vietnam must take care not to be seen as
    compromising on ensuring workers' rights and protections.
    On the positive side, current GVN efforts to strengthen the
    labor export system, both through increased attention to and
    oversight of labor export companies and activities, and
    cultivating cooperative relationships with receiving country
    governments, can help enforce contractual obligations while
    at the same time protecting the workers' rights to terminate
    contracts on legitimate grounds.

    ¶15. (SBU) There have been no cases of labor export-related
    trafficking reported by any source since the passage of the
    2002 labor law and the implementation of Decree 81.  There
    have, however, been numerous cases where labor export
    companies have been sanctioned and/or corrupt executives
    jailed for crimes or abuses defrauding laborers.  The GVN
    has also stepped in on several occasions to support
    Vietnamese workers who have found themselves in difficult
    circumstances in foreign countries.  This represents a
    significant shift from the situation that prevailed in 2000
    during the events that led to the Kil Soo Lee case.  The
    message the GVN has been sending is that a) it will not
    tolerate abuses of workers by labor export companies, and b)
    it will, through intervention with third country governments
    or through holding labor export companies to their
    obligations to workers, come to the assistance of workers in
    trouble abroad.

    MARINE

`