Building harmonious labor relations in FDI enterprises

19/01/2026 10:17 AM


In mid-January, in Hanoi, the Vietnam General Confederation of Labor (VGCL) and the Korea Chamber of Commerce in Vietnam (KOCHAM) held their first dialogue. This event opened a platform for candid discussions regarding employment, welfare, and labor market stability within South Korean-invested enterprises. Attending the program were Mr. Chu Manh Sinh, Vice Director General of Vietnam Social Security, along with representatives from relevant agencies.

Overview of the dialogue

At the event, Mr Ngo Duy Hieu, VGCL Vice President, highlighted the dual role of Vietnamese trade unions: protecting workers' legitimate interests and acting as a trusted partner to businesses. By fostering a stable workforce and boosting productivity, trade unions help enterprises maintain their competitive edge in a challenging market environment.

Mr. Ngo Duy Hieu also noted that South Korean firms' commitment to CSR is reflected in their adherence to regulations and proactive partnership with unions. By enhancing the workplace and building a harmonious environment, these companies have effectively reduced labor conflicts and boosted loyalty. Mutual trust serves as the cornerstone for sustainable growth within today's competitive market landscape.

On behalf of KOCHAM, Chairman Ko Tae Yeon stated that there are currently nearly 10,000 South Korean enterprises operating in Vietnam, spanning various sectors, including manufacturing, logistics, information technology, and services. For many of these companies, Vietnam is regarded as a long-term partner for cooperation and development. Creating jobs, transferring technology, and contributing to the community are considered integral parts of their growth strategies.

However, challenges are emerging within the labor market landscape. Labor shortages, ranging from unskilled workers to skilled technicians and middle management, are becoming increasingly apparent in many localities. The high rate of labor turnover makes it difficult for enterprises to maintain a stable workforce, while workers face the pressure of constant change. These are natural consequences of the ongoing restructuring and urbanization processes.

Leaders of participating entities attending the dialogue.

Mr. Ko Tae Yeon proposed structural solutions, including inter-regional linkages in labor supply and the development of housing systems and dormitories for workers. He argued that when employees had stable housing, a safe working environment, and clear career development opportunities, they would be more inclined to commit long-term to both the enterprises and the localities where they work.

More importantly, workforce stability cannot rely only on wages. A dialogue mechanism built on trust, opportunities for learning and advancement, and a culture of respect for employees serves as the sustainable "glue." By treating employees as valuable assets and engaging trade unions as strategic partners, businesses and labor can align their interests to navigate any market volatility.

During the session, representatives from enterprises and local trade unions shared their operational practices, ranging from business production to member welfare. Many recommendations focused on enhancing the quality of collective labor agreements, improving occupational health and safety, and expanding welfare programs linked to human resource development. These exchanges reflect the growing need for deeper coordination among three parties: trade unions, enterprises, and associations.

Granting gifts to disadvantaged workers at South Korean enterprises.

According to VGCL, union activities within South Korean enterprises are generally effective. These activities focus on representing and protecting the legal rights of workers through workplace dialogues and grassroots democratic mechanisms. The high rate of union membership and the gradual decrease in labor disputes indicate that this cooperation model is on the right track, contributing to a stable and productive working environment./.

At the session, gifts were presented to 50 trade union members and workers from South Korean enterprises who face difficult circumstances, have suffered occupational accidents, or are battling serious illnesses. These gifts were not only of material value but also a message of solidarity and care among the enterprises, the trade union, and the workforce.