COVID-19 has spread worldwide and was declared a pandemic by the World Health Organization (WHO) on 11 March 2020. Strict measures have been in place to contain the epidemic, which caused disruption in global supply chains. The garment and footwear industries in Vietnam are labour-intensive, and directly connected to global manufacturing networks. Since mid-March 2020, many factories are facing difficulties in export orders, especially to the EU and U.S.. In combination with decreasing aggregate demand, this poses a risk of shrinking business operations and layoffs.
This Guide has been developed by Better Work Vietnam, in consultation with the Labour Inspectorate of the Ministry of Labour, Invalids and Social Affairs, to support garment and footwear enterprises who are forced to shrink production due to COVID-19.
The objective of this Guide is not to suggest or recommend employers and workers to follow any specific option or a combination of options, but to adequately inform employers and workers about:
- Labour plan options – as regulated by Vietnam law.
- Advantages and disadvantages of each option, for workers and for employers
- How to enhance social dialogue and labour compliance while implementing the labour plan.
Thereby, employers and workers can negotiate and develop the most suitable labour plan that harmonizes the interests of both sides, and to support each other to overcome this challenging period.
This guide can be updated from time to time. If you need any further information or support, kindly contact our Better Work Vietnam Enterprise Advisor who is in charge of your factory.