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Vietnam Private Sector Assessment

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Vietnam Private Sector Assessment Vietnam Private Sector Assessment A Preliminary Scoping Study The primary objective of the study is to provide a broad-based overview of the private sector in Vietnam as a stakeholder in combating modern slavery in the country PB The Mekong Club Vietnam Private Sector Assessment The Mekong Club Vietnam Private Sector Assessment 1 The Mekong Club 1. Contents The Mekong Club is a catalyst 2. Objectives of the Study 6 8. The Mekong Club Target Sectors 26 for change – engaging, inspiring and supporting the private 8.1. Agriculture 27 sector to eradicate slavery from 3. Definition of Terms 7 their business. Given that the 8.2. FMCG Retail 28 majority of modern-day slavery 4. Demographic Overview & Key Social Trends 8 8.3. Manufacturing 30 exists in the private sector, these companies are ideally placed to 8.3.1. General 30 4.1 Summary 8 help turn the tide of this global 8.3.2. Electronics and Mobile Phone Industry 30 epidemic. 4.2. Population Distribution 8 8.3.3. Textile and Garment Industry 31 The only organisation of its kind, 4.3. Social Indicators 10 The Mekong Club steers away 8.4. Banking/finance 33 from the approach taken by other 4.3.1. Human Development Index (HDI) 10 8.4.1. Introduction 33 players in this space, which is to 4.3.2. GINI Coefficient 11 8.4.2. Banking System 33 ‘name and shame’ companies – 4.3.3. Poverty Rate 11 ousting bad behaviour or issues 8.5. Construction 36 related to this subject. Instead, we believe in starting and ending 5. The Labour force 12 8.6. Tourism, Food Service & Hospitality 37 with collaboration. 5.1. Employment and Income 12 8.6.1. Tourism 37 In fact, The Mekong Club 5.1.1. Employment Distribution 12 8.6.2. Food Service & Hospitality 38 originally formed as a direct response to the growing 5.1.2. Income 15 number of companies looking 5.1.3. Gender Gap 16 9. Modern Slavery in Vietnam 39 to develop strategies to address 5.1.4. Comparative Minimum Wage 16 forced labour risk through a 9.1. Overview 39 professional forum. Divided into 5.1.5. Competitiveness 18 9.2. Manufacturing 40 industry-specific working groups, these networks meet regularly 6. Political Risk Assessment 20 9.3. Sex trafficking and forced marriage 41 to learn, share best practices, and network with other like- 9.4. A view from the private sector 42 minded professionals. Member 7. The Private Sector 21 9.5. A view from the NGO sector 42 companies also work together to achieve an annual deliverable 7.1. Overview 21 which will work towards 7.2. Key Players in the Private Sector 22 producing tangible results in the fight against forced labour. 7.3. Transparency 25 2 The Mekong Club Vietnam Private Sector Assessment The Mekong Club Vietnam Private Sector Assessment 3 2. Objectives of the Study 3. Definition of Terms The primary objective of the study is to provide a broad- Throughout the report the following definitions will apply to the use of the terms based overview of the private sector in Vietnam as a human trafficking, forced labour, bonded labour and contract slavery, as specified by stakeholder in combating modern slavery in the country. The Mekong Club. More specifically the study aims to generate a knowledge base from which The Mekong Club can approach the FORCED BONDED LABOUR HUMAN TRAFFICKING private sector in order to create awareness and offer LABOUR AND CONTRACT SLAVERY cooperative solutions for the eradication of modern slavery in corporate supply chains; the core focus of the Mekong An act (1) carried out by a All work or service which is Bonded labour begins when a Club’s mission. third party, through different extracted from any person worker borrows money from means (2), for the purpose of underthe menace of any an employer and commits The following secondary objectives specify the details of exploitation (3). penalty and for which the themselves to work person has not offered for the employer in return. For children under age 18 it is the data that need to be gathered in order to fulfil the themselves voluntarily. scope of the study: sufficient to demonstrate Contract slavery involves the act of moving a child for deceiving or illegal contracts the purpose of exploitation. signed by victims who cannot understand them,and used to justify forced labour. 1. Act of: Threat of penalty Common features of Bonded • Give an overview of the demographic landscape • Recruitment • Physical and/or sexual Labour and economic conditions in Vietnam • Transportation violence. • Transfer • Imprisonment or physical • The employer manipulates • Harbouring confinement. interest rates or charges • Detail the characteristics of the labour force • Receipt • Withholding of wages, excessive rates. Vietnam by looking at factors such as size, unreasonable fees or financial • The employer imposes average income, distribution, key issues 2. By means of: penalties. high charges for • Threat • Withholding of identity food, accommodation, • Provide a detailed analysis of the private sector • Force or coercion documents. transportation, or tools. • Abduction • Unfair dismissal or exclusion • The employer charges in terms of size of industries, number of workers • Fraud from future employment. workers for shortfalls in and key players • Deception • Deprivation of food or shelter. business output or days • Abuse of power • Exclusion from community, missed due to worker • Provide in-depth reports on the Banking/finance, • Abuse of vulnerability social life or denunciation to sickness. Manufacturing, Construction, Agriculture and community/family. 3. For the purpose of: • Intimidation and other threats. Common features of Contract Retail and hospitality industries • Exploitation Slavery • Slavery or similar practices Lack of Valid Consent • Contracts are in a language • Identify the current state of modern slavery in • Servitude • Worker deceived about the the victim does not Vietnam • Prostitution wages they would receive. understand. • Removal of organs • Worker cannot leave • Contracts are presented to • Forced labour and service employment as they must victims who cannot read. remain for an undefined period • Victim is told fines and to repay debts to employer. penalties will follow if he • Worker made to work by breaks the contract. family. • Deception or fraud during recruitment stages. HUMAN TRAFFICKING FORCED LABOUR BONDED LABOUR emphasizes the movement of is often a consequence victims of human trafficking and CONTRACT SLAVERY emphasizes are two forms of forced labour the exploitative condition the victim suffers 4 The Mekong Club Vietnam Private Sector Assessment The Mekong Club Vietnam Private Sector Assessment 5 4. Demographic Overview & Key Social Trends Population Distribution by Province in 2015 4.1. Summary Whole Country 91,713 Red River Delta 20,926 Population 94 million Northern Central area and Central coastal area 19,658 Rural 66% Mekong River Delta 17,590 HDI 0.683 South East 16,128 Poverty Rate 7% Northern midlands and mountain areas 11,804 Ho Chi Minh city 8,146 GINI 35.6 Ha Noi 7,216 Central Highlands 5,608 4.2. Population Distribution The Vietnamese population is slowly transforming from a youthful population to a The total population of Vietnam was Population Figures by gender mid-range population, as more of its youth enter the labour force. If unemployment is 2 estimated at 94 million in 20161 and is slightly and area of residence (2015) contained, especially among labour market entrants, this will lead to lower dependence skewed to females at 51%. The majority on the economically active population. If unemployment escalates out of control, more of the population (66%) are found in areas 2014 Prel. 2015 pressure will come to bear on labour market entrants that are desperate to earn an income that are classified as rural. The population is in a fast-changing world. evenly spread across the country although Total 90,728,900 91,713,300 population density is skewed to three areas, Population Pyramid 2016 namely the Red River Delta, the Northern Male 44,758,100 45,234,100 Central area and Central coastal area and Female 45,970,800 46,479,200 the Mekong River Delta. Ho Chi Minh City is 100+ Female 0.0% 0.0% Male the biggest city, harbouring 8 million people, Urban 30,035.40 31,131.50 95-99 0.1% 0.0% while Hanoi is home to approximately 7 90-94 0.2% 0.1% million people. Rural 60,693.50 60,581.80 85-89 0.4% 0.2% 80-84 0.7% 0.3% 75-79 0.8% 0.4% Population Distribution by gender and 70-74 0.9% 0.6% 1.3% 0.9% 3 65-69 area of residence (2010 – 2015) 60-64 2.0% 1.7% 55-59 2.7% 2.4% Total Male Female Urban Rural 50-54 3.0% 2.9% 45-49 3.7% 3.2% 2010 100 49 51 31 70 40-44 3.6% 3.5% 2011 100 49 51 32 68 35-39 3.9% 3.8% 30-34 4.3% 4.3% 2012 100 49 51 32 68 25-29 4.6% 4.7% 2013 100 49 51 32 68 20-24 4.4% 4.6% 15-19 3.5% 3.7% 2014 100 49 51 33 67 10-14 3.4% 3.7% 5-9 3.7% 4.1% Prel.2015 100 49 51 34 66 0-4 3.9% 4.3% Unit Percentage (%) 10% 8% 6% 4% 2% 0% 2% 4% 6% 8% 10% 1. https://www.populationpyramid.net/viet-nam/2016/ 2. General Statistics Office of Vietnam 3. Ibid. 6 The Mekong Club Vietnam Private Sector Assessment The Mekong Club Vietnam Private Sector Assessment 7 4.3. Social Indicators Vietnam’s HDI Value and component measures compared to countries in the region 4.3.1.
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