Photo credit: Ergon Associates, 2019 Associates, Ergon Photo credit: TACKLING CHILDCARE: The Business Case for Employer-Supported Childcare in Vietnam August 2020 2 TACKLING CHILDCARE: THE BUSINESS CASE FOR EMPLOYER-SUPPORTED CHILDCARE IN VIETNAM COPYRIGHT AND DISCLAIMER NOTICE ACKNOWLEDGEMENTS © International Finance Corporation 2020. All rights reserved. This publication was produced by IFC under the overall guidance 2121 Pennsylvania Avenue, N.W., Washington, D.C. 20433 of Henriette Kolb, Manager of IFC’s Gender and Economic www.ifc.org Inclusion Group. Hang Thu Vu, Gender Operations Offi cer, The material in this work is copyrighted. Copying and/or coordinated production of this report under the supervision of transmitting portions or all of this work without permission may be Amy Luinstra, Regional Lead for Gender and Economic Inclusion a violation of applicable law. IFC encourages dissemination of its Group in East Asia and the Pacifi c. Peer review was off ered by work and will normally grant permission to reproduce portions of Ellen Maynes, Rudaba Nasir, and Sherrilee Le Mottee. the work promptly, and when the reproduction is for educational and non-commercial purposes, without a fee, subject to such The report was prepared in collaboration with an external attributions and notices as we may reasonably require. consultant team from Ergon Associates, led by Kirsten Newitt. The team included Kate Jelly, Phuong Le, and Ned Lawton. IFC does not guarantee the accuracy, reliability, or completeness of the content included in this work, or for the conclusions or IFC would like to thank the companies that hosted researchers for judgments described herein, and accepts no responsibility or case-study research, and the employees of these businesses who liability for any omissions or errors (including, without limitation, generously gave their time to discuss experiences and ideas. These typographical errors and technical errors) in the content whatsoever businesses are Evervan, Feng Tay, Greenland, Now Vina, Pou or for reliance thereon. The boundaries, colors, denominations, and Chen, and Taekwang Vina. other information shown on any map in this work do not imply any judgment on the part of the World Bank Group concerning The report also benefi ted from valuable inputs made by other the legal status of any territory or the endorsement or acceptance Vietnamese and international businesses and organizations, of such boundaries. The fi ndings, interpretations, and conclusions including Adidas, Better Work Vietnam, HSBC, Maxport Ltd., expressed in this volume do not necessarily refl ect the views of the Nike, Schneider Electric, the European Chamber of Commerce Executive Directors of the World Bank Group or the governments in Vietnam, UNICEF, and Vietnam Business Coalition for they represent. The contents of this work are intended for general informational purposes only and are not intended to constitute Women’s Empowerment. legal, securities, or investment advice, an opinion regarding the We would like to acknowledge the support of the World Bank appropriateness of any investment, or a solicitation of any type. Group’s Umbrella Facility for Gender Equality. The Umbrella Facility IFC or its affi liates may have an investment in, provide other for Gender Equality (UFGE) is a multi-donor trust fund administered adviceor services to, or otherwise have a fi nancial interest in, certain of the companies and parties (including named herein). by the World Bank to advance gender equality and women’s empowerment through experimentation and knowledge creation to All other queries on rights and licenses, including subsidiary rights, help governments and the private sector focus policy and programs should be addressed to IFC Communications, 2121 Pennsylvania on scalable solutions with sustainable outcomes. 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Ausgust 2020 2 TACKLING CHILDCARE: THE BUSINESS CASE FOR EMPLOYER-SUPPORTED CHILDCARE IN VIETNAM TACKLING CHILDCARE: THE BUSINESS CASE FOR EMPLOYER-SUPPORTED CHILDCARE IN VIETNAM 3 COPYRIGHT AND DISCLAIMER NOTICE ACKNOWLEDGEMENTS Contents © International Finance Corporation 2020. All rights reserved. This publication was produced by IFC under the overall guidance 2121 Pennsylvania Avenue, N.W., Washington, D.C. 20433 of Henriette Kolb, Manager of IFC’s Gender and Economic www.ifc.org Inclusion Group. Hang Thu Vu, Gender Operations Offi cer, The material in this work is copyrighted. Copying and/or coordinated production of this report under the supervision of Acronyms 4 4 Realizing the Gains: Priorities for Action 47 transmitting portions or all of this work without permission may be Amy Luinstra, Regional Lead for Gender and Economic Inclusion Foreword Recommendations for employers 47 a violation of applicable law. IFC encourages dissemination of its Group in East Asia and the Pacifi c. Peer review was off ered by Recommendations for government 49 work and will normally grant permission to reproduce portions of Ellen Maynes, Rudaba Nasir, and Sherrilee Le Mottee. Executive summary 6 Recommendations for international buyers 49 the work promptly, and when the reproduction is for educational and non-commercial purposes, without a fee, subject to such The report was prepared in collaboration with an external attributions and notices as we may reasonably require. consultant team from Ergon Associates, led by Kirsten Newitt. 1 Introduction 11 5 Company case studies 52 The team included Kate Jelly, Phuong Le, and Ned Lawton. Why care matters for business performance and 11 Evervan 3 IFC does not guarantee the accuracy, reliability, or completeness sustainable development in Vietnam Feng Tay 1 of the content included in this work, or for the conclusions or IFC would like to thank the companies that hosted researchers for Objectives and methodology 1 Greenland 9 judgments described herein, and accepts no responsibility or case-study research, and the employees of these businesses who liability for any omissions or errors (including, without limitation, Now Vina 7 generously gave their time to discuss experiences and ideas. These typographical errors and technical errors) in the content whatsoever 2 The Business Case for Employer-supported 19 Pou Chen 81 businesses are Evervan, Feng Tay, Greenland, Now Vina, Pou or for reliance thereon. The boundaries, colors, denominations, and Childcare in Vietnam Taekwang Vina 89 Chen, and Taekwang Vina. other information shown on any map in this work do not imply Attracting top talent 20 any judgment on the part of the World Bank Group concerning The report also benefi ted from valuable inputs made by other Improving recruitment and retention outcomes 21 Annex 96 the legal status of any territory or the endorsement or acceptance Vietnamese and international businesses and organizations, of such boundaries. The fi ndings, interpretations, and conclusions Reducing unplanned absenteeism 24 A snapshot of government regulations including Adidas, Better Work Vietnam, HSBC, Maxport Ltd., expressed in this volume do not necessarily refl ect the views of the Achieving productivity gains 2 on Employers and Childcare in Vietnam Nike, Schneider Electric, the European Chamber of Commerce Executive Directors of the World Bank Group or the governments Strengthening compliance and risk management 28 in Vietnam, UNICEF, and Vietnam Business Coalition for they represent. The contents of this work are intended for general Strengthening relationships with international 29 Sources 100 informational purposes only and are not intended to constitute Women’s Empowerment. brands and buyers legal, securities, or investment advice, an opinion regarding the We would like to acknowledge the support of the World Bank Enhancing a company’s corporate reputation 31 appropriateness of any investment, or a solicitation of any type. Group’s Umbrella Facility for Gender Equality. The Umbrella Facility IFC or its affi liates may have an investment in, provide other Investing in the future workforce 31 for Gender Equality (UFGE) is a multi-donor trust fund administered adviceor services to, or otherwise have a fi nancial interest in, certain of the companies and parties (including named herein). by the World Bank to advance gender equality and women’s 3 How Employers Can Support Employees’ Care 33 empowerment through experimentation and knowledge creation to Responsibilities in Vietnam All other queries on rights and licenses, including subsidiary rights, help governments and the private sector focus policy and programs should be addressed to IFC Communications, 2121 Pennsylvania Onsite or near-site childcare facilities 33 on scalable solutions with sustainable outcomes. The UFGE is Avenue, N.W., Washington, D.C. 20433. Partnerships with local authorities 34 supported with generous contributions from Australia,