CPTPP increases competition in international labor market

(VOVWORLD) - Vietnam has become the 7th country to ratify the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). Once it takes effect later this year, it will bring a lot of opportunities and also challenges to Vietnam, particularly its labor market and industrial relationship.

The CPTPP will create one of the world’s largest free trade areas and promises several benefits and opportunities for workers, and enterprises. But the challenges the agreement bring are also considerable.

CPTPP increases competition in international labor market - ảnh 1Deputy Minister of Labor, Invalids, and Social Affairs Le Quan (Photo: TTXVN) 

Opportunities for Vietnamese workers

The agreement promises to increase export values, expand markets, boost GDP, and create jobs. To meet the demands of tough markets around the world, Vietnam needs to improve the quality of its exports products. Deputy Minister of Labor, Invalids and Social Affairs Le Quan says a new-generation free trade agreement like CPTPP is sure to create quality jobs and increase productivity: “We will add 20,000 to 30,000 workers each year. More importantly, restructuring human resources in sectors like agriculture and high-tech will improve our productivity.”

CPTPP increases competition in international labor market - ảnh 2(Photo: vneconomy.vn) 

Measures in place to address challenges

The Vietnamese government has identified a number of challenges Vietnam will face because of the CPTPP. Vietnam will have to revise its laws concerning workers’ organizations and state management of those organizations.

Vietnam will also have to revise its laws concerning integration. Vietnam needs to ratify 8 international conventions of the International Labor Organization, 5 of which it has already signed. Vietnam will also have to revise its laws concerning workers’ rights. Deputy Minister Le Quan said: “We need to revise our laws to protect workers’ rights and ensure order and security and prevent labor abuses.”

Under new-generation free trade agreements, countries are not allowed to gain a competitive edge by weakening labor protections. In joining the CPTPP, Vietnam’s labor structure will be affected by both the 4th Industrial Revolution and the new regulations. Mr. Quan said: “The quality of human resources is constrained by the requirements of the 4th Industrial Revolution. We have to change our labor structure and ensure workers’ rights.”

The CPTPP will give Vietnam more opportunities to improve workers’ quality, generate jobs, and boost productivity and competitiveness. But it will also require higher standards for workers, work environment, and workers’ benefits. Identifying the opportunities and challenges of the new trade agreement will help Vietnam find ways to take advantage of the deal.