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Building strategic trust for peace, cooperation and prosperity in the Asia-Pacific region

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At the outset, I would like to express my sincere thanks to Prime Minister Lee Hsien Loong our Singaporean host, Dr. John Chipman and the organisers of the 12th Shangri-La Dialogue for your kind invitation to me to attend and address this important forum. Since its inception 12 years ago, the Shangri-La Dialogue has truly become one of the most substantive and meaningful security dialogues in the region. I do believe that the full presence of government officials, military leaders, prestigious scholars and all distinguished delegates at this forum reflects the interest and the efforts to jointly preserve peace and security in the Asia-Pacific region in the context of a dynamically changing world.

Ladies and Gentlemen,
While languages and expressions might differ, I am sure we all agree that without trust, there would be no success and harder work asks for bigger trust. In Vietnam, there is a saying that ‘if trust is lost, all is lost.’ Trust is the beginning of all friendships and cooperation, the remedy that works to prevent calculations that could risk conflicts. Trust must be treasured and nurtured constantly by concrete, consistent actions in accordance with the common norms and with a sincere attitude.

In the 20th century, Southeast Asia in particular and the Asia-Pacific in general were fierce battlefields and deeply divided for decades. It might be said that the entire region always had a burning desire for peace. To have peace, development and prosperity, it is a must to build and consolidate strategic trust. In other words, we need to build strategic trust for peace, cooperation and prosperity in the Asia-Pacific. That is what I wish to share with you at this forum.

To begin with, Vietnam has a profound confidence in the bright future of development and cooperation in our region. Yet the trend of increased engagement and competition, particularly by big powers, not only offers positive elements but also involves negative risks that require us to take initiative and work together to prevent.
The Asia-Pacific region now enjoys dynamic development and is home to the world’s three biggest economies, and many emerging ones. Here, the trend of multi-layer, multi-sector cooperation and linkages is evolving vigorously and is becoming the prevailing one of the day. This is quite a promising prospect for us all.
However, looking back at the full picture of the region in the past years, we cannot fail to be concerned over the simmering risks and challenges to peace and security.

Competition and engagement are by themselves normal facts in the course of cooperation and development. Yet if such competition and engagement embrace calculations that are only in one’s own interest, without equality, respect of international law or transparency, then strategic trust could in no way be reinforced, and there could be a chance for the rise of division, suspicion and the risk of mutual containment, thus adversely affecting peace, cooperation and development.
The unpredictable developments in the Korean Peninsula; sovereignty and territorial disputes from the East China Sea to the East Sea (South China Sea) that are evolving with great complexity, threatening regional peace and security – firstly maritime security and safety as well as the freedom of navigation – have indeed caused deep concern to the international community. Somewhere in the region, there have emerged preferences for unilateral might, groundless claims, and actions that run counter to international law and stem from imposition and power politics.
I would like to draw your further attention to the fact that maritime transport and communications are growing in scale and acquiring a much greater significance. It is projected that three quarters of global trade will be made via maritime routes and two thirds of that will be shipped across the East Sea. A single irresponsible action or instigation of conflict could well lead to the interruption of these huge trade flows, with unforeseeable consequences not only to regional economies but also to the entire world.

In the meantime, the threats of religious and ethnic conflicts, egoistic nationalism, secessionism, violence, terrorism, cyber security, etc. are still very much present. Global challenges like climate change, the rise of sea levels, pandemics or water resources and the interests of upstream and downstream riparian countries with shared rivers, etc. have become ever more acute.
We should realize that such challenges and risks of conflict are not to be underestimated. We all understand that if this region falls into instability and especially, armed conflicts, there will be neither winners nor losers. Rather, all will lose. Suffice it to say, therefore, that working together to build and reinforce strategic trust for peace, cooperation and prosperity in the region is in the shared interest of us all. For Vietnam, strategic trust is perceived, above all, as honesty and sincerity.

Secondly, to build strategic trust, we ourselves need to abide by international law, to uphold the responsibilities of nations, especially of major powers, and work to improve the efficiency of multilateral security cooperation mechanisms.
In global history, many nations have suffered from irreparable losses when they fell victim to power politics, conflict and wars. In today’s civilised world, the UN Charter, international law and the universal principles and norms serve as the common values of all humanity and must be respected. This also represents the precondition for the building of strategic trust.
Each state should always be a responsible stakeholder in the pursuit of common peace and security. Countries, both big and small, must build their relations on the basis of equality and mutual respect and, at a higher level, on mutual strategic trust. Big states have a greater role to play and can contribute more, but they should also shoulder bigger responsibilities in the cultivation and consolidation of such strategic trust. Besides, when it comes to the right voice or beneficial initiatives, it does not matter whether they come from big or small countries. The principles of cooperation and equal, open dialogue in ASEAN and other forums advocated by ASEAN, as well as this Shangri-La Dialogue, are born from and maintained by such a mindset.

I fully share the views of H.E. President Susilo Bambang Yudhoyono of Indonesia who said last year at this forum that small and medium countries could help lock major powers into a durable regional architecture. I also agree with Prime Minister Lee Hsien Loong on what he said in a speech in Beijing last September: that a reliable and responsible cooperation between the United States and China would positively contribute to the common interest of the region. We all understand that the Asia-Pacific has sufficient room for all intra- and extra-regional countries to work together and share their interests. The future of the Asia-Pacific has been and will continue to be, shaped by the roles and interactions by all countries in the region and the world, particularly by the major powers and certainly, by the indispensable role of ASEAN.
I believe that no regional country would oppose the strategic engagement of extra-regional powers if such engagement aims to enhance cooperation for peace, stability and development. We should expect more of the roles played by major powers, particularly the United States and China – the two powers having the biggest roles in and responsibilities to the future of the region and the world. What is important is that such expectation should be reinforced by strategic trust and such strategic trust must be reflected in concrete and constructive actions of these nations.
We attach special importance to the roles played by a vigorously rising China and by the United States – a Pacific power. We would expect and support the roles of the United States and China, once their strategies and actions conform to international law and respect the independence and sovereignty of nations, to not only bring about benefits to them, but also to contribute genuinely to our common peace, cooperation and prosperity.

What I want to further underline is that the existing regional cooperation mechanisms such as the ASEAN Regional Forum (ARF), East Asia Summit (EAS), ASEAN Defence Ministers’ Meetings Plus (ADMM+) as well as the Shangri-La Dialogue offer opportunities to foster multilateral security cooperation and find solutions to the challenges that arise. Yet it could be said that what is still missing, or at least still insufficient, is the strategic trust in the implementation of those arrangements. The first and foremost thing is to build a mutual trust when confronting challenges; taking account of the impacts of interactions, and enhancing practical cooperation in various areas, and at different levels and layers – both bilateral and multilateral. Once there is sufficient strategic trust, we could advance and expand cooperation and find solutions to any problem, even the most sensitive and difficult one.
Thirdly, when talking about peace, stability, cooperation and prosperity in the Asia-Pacific, we cannot help but mention an ASEAN of unity and consensus, playing its central role in many multilateral cooperation forums.
It was hard to believe that a South East Asia once divided and embedded in conflicts during the Cold War could become a community of nations united in diversity and playing a central role in an evolving regional architecture like ASEAN today. The participation of Vietnam in ASEAN in 1995 marked a new era of development in ASEAN towards building a common house for all South East Asian nations true to its name. The success of ASEAN is the fruit of a long persevering process to build trust, nurture the culture of dialogue and cooperation, and cultivate the sense of responsibility to the shared destiny of South East Asian nations.

ASEAN is proud to be an example of the principle of consensus and mutual trust in the making of its own decisions. That principle is the foundation for equality among the member states, whether it is Indonesia with nearly a quarter of a billion people or Brunei Darussalam with less than half a million. That principle also constitutes the foundation for extra-regional countries to place their trust in ASEAN as an ‘honest broker’ in guiding the numerous regional cooperation mechanisms.
With a mindset of shared interests rather than one of win-lose, the enlargement of the East Asia Summit (EAS) to include Russia and the United States, the ADMM+ process that was put into reality in Vietnam in 2010, and the success of EAS, ARF and ADMM in the years that followed, have further consolidated the ground for a regional architecture in which ASEAN plays the central role, bringing about trust in multilateral security cooperation in the region.

I also wish to refer to Myanmar as a vivid example of the success of persevering with dialogue on the basis of building and reinforcing trust, respecting the legitimate interests of each other, which has helped open up a bright future not only for Myanmar but also for our whole region.
There have been profound lessons learned about the fundamental value of ASEAN’s consensus and unity in maintaining equal and mutually beneficial relations with partner countries and maximising its proactive role in handling strategic issues of the region. ASEAN could only be strong and able to build on its role when it is united as one. An ASEAN lacking unity will by itself, lose its place and will not act in the interest of any country, even ASEAN member states or partners. We need an ASEAN united and strong, cooperating effectively with all countries to nurture peace and prosperity in the region, not an ASEAN in which member states are forced to take sides with one country or the other for the benefit of their own relationships with big powers. We have a responsibility to multiply trust in the settlement of problems, enhance cooperation for mutual benefit, and to combine our national interest harmoniously with that of other nations and of the whole region.
Vietnam and other ASEAN members always desire that other countries, particularly the major powers, support the ASEAN Community’s central role, its principle of consensus and unity.

To return to the issue of the East Sea, ASEAN and China have travelled a long way with great difficulty to come to the Declaration on the Conduct of Parties in the South China Sea (DOC) adopted during the ASEAN Summit in Phnom Penh in 2002. To commemorate the 10th anniversary of the DOC, ASEAN and China have agreed to work towards a Code of Conduct in the South China Sea (COC). ASEAN and China need to uphold their responsibilities and  mutually reinforce strategic trust, first and foremost by strictly implementing the DOC, and then redoubling efforts to formulate a COC that conforms to international law and in particular, the 1982 UN Convention on the Law of the Sea (UNCLOS).

We believe that ASEAN and its partners can work together to develop a feasible mechanism that could guarantee maritime security and safety and freedom of navigation in the region. In so doing, we will not only help ensure maritime security and safety, and freedom of navigation, and create conditions for the settlement of disputes but will also assert the fundamental principles of maintaining peace, and enhancing development cooperation in the modern world.

As for non-traditional security challenges such as the security of water resources on common rivers, by building strategic trust, enhancing cooperation and harmonizing national interests with common interests, I believe that we will able to achieve successes, thus making practical contributions to peace, cooperation and development in the region.
Ladies and Gentlemen,
Dear friends,
Throughout her thousands of years of history, Vietnam has suffered numerous pains and losses due to wars. Vietnam always aspires to peace and desires to contribute to the consolidation of peace and enhancement of friendship and development cooperation in the region and the world. To have a genuine and lasting peace, the independence and sovereignty of any country, whether large or small, must be respected; and differences in interests, culture, etc. must be subject to open and constructive dialogues of mutual understanding and mutual respect.
We do not forget the past but need to put it behind us and look forward to the future. With the tradition of offering peace and friendship, Vietnam always desires to work with its partners to build and reinforce strategic trust for peace, cooperation and development on the basis of the principle of respect for independence, sovereignty, equality and mutual benefit.

Vietnam consistently persists with a foreign policy of independence, self-reliance, multilateralisation and diversification of external relations, being a friend and reliable partner to all nations, and a responsible member of the international community. Vietnam wishes, and has spared no efforts to build and deepen, strategic partnerships and mutually beneficial cooperative partnerships with other countries. It is also our desire to establish strategic partnerships with all the permanent members of the UN Security Council once the principles of independence, sovereignty, non-interference in the internal affairs of each other, mutual respect, equal and mutually beneficial cooperation are committed to and seriously implemented.
At this prestigious forum, I have the honour to announce that Vietnam has decided to participate in UN peacekeeping operations, first in such areas as military engineering, military medicine and military observation.

Vietnam’s defence policy is that of peace and self-defence. Vietnam will not be a military ally to any country and will not allow any country to set up military bases on Vietnamese territory. Vietnam will not ally itself with any country to counter another.
In past years, sustained high economic growth has enabled Vietnam to increase its national defence budget at a reasonable level but lower than that of economic growth. Vietnam’s army modernisation is only for self-defence and the safeguard of our legitimate interests. It does not, in any way target any other country.

With regard to the present threats and challenges to regional security such as the Korean Peninsula, the East China Sea and the East Sea, etc, Vietnam adheres to the principle of peaceful dispute settlement on the basis of international law, respecting the independence, sovereignty and the legitimate interests of each other. All parties concerned need to exercise self-restraint and must not resort to force or threat to use force.
Once again, Vietnam reiterates its consistent compliance with the ASEAN Six-point Statement on the South China Sea and will do its utmost to work together with ASEAN and China to observe the DOC seriously and soon arrive at the COC. As a coastal State, Vietnam reaffirms and defends its legitimate rights and interests in accordance with international law, especially the 1982 UNCLOS.
Ladies and Gentlemen,
Dear friends,
Peace, cooperation and development represent the interest, the ardent aspirations and the common future of all countries and peoples. In the open spirit of the Shangri-La Dialogue, I would call upon you all to join hands and take concrete actions to build and reinforce strategic trust for an Asia-Pacific region of peace, cooperation and prosperity.

 

Posting granted exclusively for the Modern Diplomacy

(*)Keynote Address at the 12th Shangri-La Dialogue, Singapore, May 31st, 2013

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New Leadership Takes Charge in Vietnam: Challenges and Prospects

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pham minh chinh

On 05 April Vietnam’s National Assembly officially elected Mr. Pham Minh Chinh, member of the Politburo as the Prime Minister of Vietnam replacing the erstwhile Prime Minister Mr. Nguyen Xuan Phuc. The National Assembly resolution was passed with the support of an overwhelming majority of the legislators (462 out of 466) voting for Mr. Chinh.

  In the ruling quartet of four key leadership appointments Mr. Nguyen Phu Trong was elected to a third term as General Secretary of the Vietnam Communist Party on 01 April, while previous Prime Minister Xuan Phuc was appointed as the new President and   Hanoi’s Communist Party chief Vuong Dinh Hue was elected as   the Chair of the Vietnam National Assembly i.e. Vietnam’s Parliament. The key leadership of Vietnam comprising of the aforementioned four leaders comes with a wide variety and range of experience. Mr. Trong has now considerable experience in Communist Party of Vietnam’s party work as well as in Presidential duties whereas Mr. Xuan Phuc, the new President has rich experience in governance after serving as Prime Minister for five years. Further, both Mr. Trong and Mr. Xuan Phuc would serve as a bridge between the old and new administrations thus ensuring a degree of continuity between the old and new using as also their wisdom and experience while imbibing the enthusiasm and innovative outlook of the new PM Chinh and Vuong Dinh Hue, new Chair of the National Assembly. Notwithstanding these leadership changes Vietnam is expected to continue to follow its economic policies of opening up in addition to adhering to its multi directional foreign and security policies. The installation of a new government is unlikely to result in any disruptions in Vietnam’s existing relationships with global or regional actors or for that matter with international or regional groupings/organizations.

Prime Minister Pham Minh Chinh who was earlier the chair of the party’s Central Organisation Committee and who has also served in the Ministry of Public Security is well known for his administrative acumen and organizational work. As the Secretary of the Quang Ninh Provincial Party Committee he was instrumental in improving the overall management and administrative structures in the province in addition to enhancing its competitive index to number three among all the provinces. However, lately Quang Ninh has reached the top in the competitive index which has improvement in socio-economic development as the most important element of measure. This achievement has been widely attributed to Mr. Pham Chinh’s contribution during his tenure in Quang Ninh province. Further, he takes interest in environmental issues and has been credited with turning Quang Ninh’s ‘Brown Economy’ into ‘Green Economy’. Thus he is not only a technocrat but also an effective leader.

 PM Chinh’s tasks and priorities have already been laid down in the Resolution of the XIII Congress of the Party, which focuses on six key tasks and three strategic breakthroughs which include national digital transformation, development a digital-based economy, greater stress science and technology development and creating more conducive environment for business development as well as for manufacturing concerns. Ensuring national defense, security, sovereignty, territorial integrity and social order and safety would be the top most tasks in his mind as he faces an uncertain and unstable situation in the South China Sea.

 Vietnam during the tenure of the previous government headed by Prime Minister Nguyen Xuan Phuc made great progress in strengthening the economy as well as in enhancing Vietnam’s position and stature in the international arena. This was despite the negative impact of Covid-19 not only on the Vietnamese economy but also on regional and other economies worldwide. In recent years Vietnam economy became one of the fastest growing economies in the South East Asian region with a growth of 7.08 percent in 2018; Foreign Direct Investment in 2018 was 30 billion US Dollars which was an increase of 44 percent compared to the previous year. In 2020 the year of Covid-19 pandemic, Vietnam with its efficient and effective anti-Covid-19 measures was able to mitigate the negative effects on the economy while it continued to integrate its economy with the world. According to the General Statistics Office (GSO) Vietnam’s economy expanded 2.91% in 2020 with a trade surplus of over 19 billion USD whereas many regional economies have contracted showing negative growths in their GDPs. 

Most challenging task for the new Prime Minister would be to lay down a firm foundation in the next five years based on which Vietnam can develop into a modern state with a fully developed economy in league with countries like South Korea, Japan and the western countries. Vietnam could aspire to reach such a stage in next two to three decades aided by suitable economic and social developmental policies guided by the vision of the political leadership. The current year i.e. 2021 marks the commencement of the Five Year Economic and Social Development Plan (2021-2025) and the Ten Year (2021-2030) Economic and Social Development Strategy. It would be the new political leadership’s task to successfully implement the plan and strategy with foresight and innovation.

Further, at the international level Vietnam became the Chairman of United Nations Security Council in April 2021 and this was second time that Vietnam became the rotating Chairman in its two year tenure of 2020-2021. This has enabled Vietnam to contribute its bit to promote peace, stability and security at the global level as well as in regional affairs and further integrate with the world. Vietnam in its dealings with the international community is in favour of pursuing multilateralism and diversified foreign policies. Vietnam has been also well recognised for its contribution to the ASEAN as its Chair for the year 2020 when Coronavirus pandemic the ASEAN community in a number of ways. Additionally, as part of its integration with the international community it entered into several Free Trade Agreements (FTA) such as the EU (EUFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP).

In so far as the bilateral relationship with India is concerned the new Vietnamese leadership is expected to continue with its traditional and strong relationship in multifarious fields with India. The previous Prime Minister Mr. Xuan Phuc and now the President has had a number of summits with India’s Prime Minister Modi. The bilateral relationship is underpinned by the Comprehensive Strategic Partnership Agreement signed in 2016 encompassing a number of areas ranging from political engagement, economic cooperation, and expansion of trade, defence and security cooperation, energy cooperation as also people to people exchanges besides many other areas. Now the new President Xuan Phuc in concert with Prime Minister Chinh would be able to impart further impetus to the growing bilateral cooperation. There is a need to further expand the bilateral defence and security cooperation between both sides keeping in view the changing regional and global security environment.

At the international level both India and Vietnam being the non-permanent members of the UN Security Council can further cooperate and contribute to peace, security and prosperity while dealing with regional and global issues. Further, Vietnam and India have been cooperating in regional organizations like the ASEAN to realise the goals and objectives of such organizations. India and Vietnam also share similar perceptions on what is happening in the South China Sea where militarization of islands and reefs has taken place and India will continue to support, in concert with other powers, freedom of navigation and over flights in South China Sea and adherence to international norms.

Overall, the new Vietnam leadership being a blend of the old and new is expected to consolidate the progress made in political, economic, social development and security fields as it strives to realise the aims and objectives of five and ten year plans and strategies. Considering the past record and achievements of the new leadership it can be easily said that Vietnam is well poised to meet the challenges of the new era.

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Application of PLTU Batubara in the Perspective of Kalimantan people

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Photo: Wikipedia

Indonesia is one of the largest coal producers and exporters in the world. Since 2005, there have been many small pockets of coal reserved on the islands of Sumatra, Java, Kalimantan, Sulawesi and Papua. This makes Indonesia increasingly utilize all natural resources that have existed in the ancestral lands to make coal energy sources as a Steam Power Plant (PLTU) in addition of abundance basic materials, this coal-based PLTU is considered to have better efficiency in terms of price. Cheaper and faster in process compared to other energy sources.

Behind the efficiency of coal, which is used as the main fuel, there is a process that is considered ineffective for local residents and the surrounding environment, because in PLTU, coal is burned to take heat and steam, so it can release combustion residue in the air. From this combustion residue, it will spread to aquatic plants or enter the human lungs. Coal is burned to take heat and its steam releases combustion residue in the air. The remainder of this combustion will spread to aquatic plants or enter human lungs.

In the theory, all of this has been filtered so that the smoke that comes out is not dangerous, but the reality can be different from the facts in the field.

Inside the PLTU smoke, there are pollutants which contain dangerous compounds such as mercury and other compounds such as arsenic, lead, PM 10, sox and PM 2.5. These particles stay in the air for a long time and can fly hundreds of kilometers. If humans are exposed to mercury or pm 2.5 continually, there will be asthma, respiratory infections, lung cancer and even damage to the brain, kidneys and heart. It is clear that the air environment and settlements are not good for local residents due to the danger of compound content that will threaten the health of the surrounding community, especially since the PLTU distance from residents’ settlements is not a safe distance. This is evidenced by the case that occurred in November 2018, Sangah Sangah village Kutai Kartanegara, East Kalimantan, experienced 5 houses destroyed, 11 others were damaged and the main road collapsed due to mining activities that were too close to public facilities and settlements.  

Kalimantan, Borneo, some of farmers in the suburbs of Samarinda Timur have lived for 20 years as neighbors that  are very close to the coal mines in this village. Meanwhile, according to the regulations of the minister of environment and regional regulations Kutai Kartanegara the minimum distance between mining activities and settlements is 500 M but in fact, all of the regulations are not applied. While the existence of a coal-fired PLTU has made clean water is only a history. The residents stated that they only relied on rainwater and water from the emblem that brought along the silt Previously, before there was a coal mine, the rice fields were not damaged, the environment was beautiful and safe, but the situation drastically changed since the coal power plant, residents’ crops such as rice fields and so on were exposed to mud so that they produced plants that were not of the same quality as before.

This is very unfortunate because in 1991 this village was designated as a village of rice barns with a production of 2600 tons of unhulled rice in every harvest time. Disappointment and despair began to appear on the faces of the villagers who felt the problems that were increasingly choking local residents, not only polemic about the environment and plants. The existence of a coal company and a PLTU have also claimed the lives of several villagers due to the reclamation of coal mines.

The local community certainly did not remain silent, so they filed a protest by one of the residents of Nyoman Derman from Kertabuana Village, Kutai Kertanegara Regency. Nyoman intercepted heavy equipment but was instead arrested and given a 3-month prison sentence on the grounds of disrupting company operations. When the community takes an active role to defend and protect all assets owned by the government, the government does not protect. On the contrary, this is not in accordance with the constitution of our country which upholds human rights which are emphasized in the 1945 Constitution in article 27 to article 34 of the 1945 Constitution which regulates Human Rights.

The problems do not end with environmental problems but also at the same time claiming the lives of many local residents. The excavation of ex-coal mining holes resulted in many human lives being lost, among others in 2011-2018 in East Kalimantan as a result of the mining excavation hole itself. At least, it has been claimed the lives of as many as 39 people. Between 2014-2018 nationally, there were 115 people who died as a result of mining holes

This can’t be underestimated into an ordinary problem caused by the longer, it continues to claim casualties due to 3,500 former mine pits that have not been properly filled so that it continues.

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The Impacts of the Covid-19 on Vietnam’s Workforce

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By March 2021, Vietnam has experienced 3 phases of the Covid-19 pandemic (phase 1: from March to April 2020; phase 2: from July to September 2020; phase 3: from January to March 2021), with 2,575 infected cases, 302 cases undergoing treatment, 2,234 recovered cases and 35 deaths. Similar to many other countries in the world, Vietnam has suffered serious impacts of the Covid-19 pandemic in all fields: economy, politics, culture, social life, yet the most direct influences were on Vietnamese workforce.

Major impacts that the Covid-19 epidemic has exerted on the Vietnamese workforce can be summarized as follows:

First, the impacts on the employees’ job

This was one of the basic and direct dominant impacts over others. According to the Report of the General Statistics Office of Vietnam (GSO), due to the sudden fall in the labor force in the2nd quarter, the general number of employees (aged 15 and above) in the economy in 2020 sharply decreasedin comparison to that in 2019. The number of working employees aged 15 and abovewas53.4 million people (a decrease of 1.3 million people compared to that in 2019 – arespective decrease of 2.36%). A comparison of the decrease in the number of labor force between 2019 and 2020 is shown in Figure (1). This demonstrated an obvious drop in the number of jobsfor Vietnamese workforce under the impacts of Covid-19 pandemic.

Figure 1: Labor force growth/decrease rate

Unit: %

(Source: GSO)

The Covid-19 pandemic did not only deprive many workers of opportunities for formal employment, but also left them inunemployed. To be specific: generally in 2020, the number of under-employed workers was roughly 1.2 million, an increase of 456.7 thousand people compared to that in 2019. The underemployment rate in the working age group is 2.51%. (Figure 2).

Figure 2: Number of people and underemployment rate by quarter, 2019-2020

(Source: GSO)

With animproving multilateral diplomacy and expanding international relations, Vietnam now has diplomatic relations with 189 countries and territories around the world,maintains close relations with more than 30 countries and three major countries (China, Russia, India) are comprehensive strategic partners. Economic-trade relations play a key role in the international relations of Vietnam and the country is currently considered an attractive destination for investment and international cooperation in Southeast Asia. As a result, the Covid pandemic has influenced Vietnam’s economic relations with their international partners in both ways. Approximately one third of businesses suffered shortage of input materials; the larger the enterpriseswere, the more serious the shortage was; domestic and foreign consumption markets were narrowed, export orders declined and goods circulation faced various difficulties … Due to theweak financial potentials and liquidity in the business sector, the fact thatthe COVID-19 pandemic spread with complicated progressesresulted in production delays, difficulties in production capital, with 52.8% of businesses experiencing a decline in annual business profits4 in 2020. Therefore, businesses were forced to use redundancy, unpaid job leave, shortened working hours … as temporary solutions to maintain their operation and stability.

However, thanks to proactive and creative countermeasures at all levels and decisive policies to prevent economic slowdown, Vietnam’s economy has developedits ownresilience, gradually resumed its operation under new normal conditions, becoming one of three countries in Asia with positive growth in 2020.Accordingly, the number of unemployed and underemployed workers in the fourth quarter of 2020 witnessed a sharp decrease compared to that in the previous quarters and gradually stabilized.

Secondly, the Covid-19 pandemic affected employees income

Loss of job opportunities, shortened working hours, layoffs, unemployment had direct impacts on employees’ income. According to the Report of the General Statistics Office, compared to that in 2019, the average monthly income of Vietnamese employees in 2020 decreased in all three economic sectors. Specifically: In 2020, the average income of employees was 5.5 million VND, a 2.3% decrease compared to that of 2019 (equivalent to 128 thousand VND less). Income of employees in service sector witnessed the highest decrease of215 thousand VND; followed by those in agriculture, forestry and fisheries, with 156 thousand VND. Employees in industry and construction suffered the lowest decrease, with 100 thousand VND /person/ month. This impact was clearly illustrated in Figure 3 below:

Figure 3: Average income of workers by economic sector, 2019-2020

Unit: million dong

(Source: GSO)

Third, the Covid-19 pandemic directly affected the employeesmental factors

When employment and income are affected, workers’ mental health will be direcly influenced too. To be specific, employees may experience frequent anxiety, pessimism, insecurity and mood swings. Results from a scientific survey showed that: only 8% of office employees and managers suffer from stress and pressure during a pandemic, but up to 86.9% of workers have feelings of anxiety, pessimism, insecurity and mood swings. This impact was most evitable among workers with children (including married or single parents), female workers, and especially female migrant workers with children.

In addition, the Covid-19 crisis created aninconsistent impact on relations among employees’ family. In particular, forsome part of employees, family relationships were greatly improved when members stayed at home and spent more time together; on the other hand, a large part had the opposite experience(more disputes, domestic verbal or behavior abuse), especially forimmigrated workers and female immigrated workers with children. This was an evitable consequence when they worried about their health and future. TheCovid-19 pandemic also increased the risk of gender-based violence. Statistics of the Central Vietnam Women’s Union showed that, during Covid-19social distancing, the number of calls from violence-suffering women to the Association’s hotline increased by 50%; the number of victims receiving rescue assistance and acceptance to the House of Peace also increased by 80% over the same period last year.

Some solutions from the Government and businesses to contribute to overcoming the impact of the Covid 19 pandemic on Vietnamese workforce

Solutions from the Government of Vietnam

Confronting serious impacts of COVID-19 pandemic on the economyoverthree consecutive phases, the Government of Vietnam actively put their focus on administrating and providing methods as well as decisive actions with the mottos: “Fight the pandemic like fighting against enemies”, “Go to each alley, knock on each door andcheck on each person”; and “dual goals” (preventing and combating the pandemics while promoting socio-economic development), “lightning-speed tracking, zoning”, “four On-sitesguidelines”(on-site commands, on-site forces, on-site vehicles and equipments, on-site logistics), withcore focus on the active role of local governments. These directions were supported by all administrative levels, branches, localities and citizens. The Government as well as their organizations called for and mobilized all social resources for the pandemic prevention; citizens and business groups actively joined hands to fight the epidemic despite numerous difficulties. (For example, when the medical lacked espiratory machines, Vingroup immediately produced their own to provide for the country).

Also since then, the Government has quickly introduced monetary, fiscal, and social security policies in order to support businesses and people during the most difficult period of COVID-19 shock. Specifically: a financial package of 180 billion VND to support business; zero-interests loans to pay wages to workers; Social protection package of 61.580 billion VND (for employees who were distanced, delayed or lost their jobs due to post-pandemic impacts); 11.000 million VND of electricity bill discount; bank loans interest rates reduction; 285.000 billion credit package for commercial banks…..These practical guidelines and measures have assisted businesses to overcome difficulties, improved perseverence, gradually normalized or adjusted their production and business plans, enhancing digital transformation and trade promotion… These activitieshave created positive impacts on stabilization of job, incomes, daily necessity and mental health of the workforce.

Second, solutions from businesses and unions

In response to the Covid-19 pandemic, the enterprise community quickly came up with new directions and solutionsin order tocontinue their operation duringhard time. Approximately two thirds of enterprises have applied at least one of the abovementioned solutions, trying to adapt their production activities to new normal conditions.

Demonstrating the motto“love and support”, many businesses used different combined measures, such as deferred goods payment (used by 33.3% of businesses), shared orders (used 7.9 % of businesses), barter goods (used by 3.8% businesses), customers loans (used by 2.8% of businesses) …

Besides, in order to join hands with businesses in supporting employees, government organizations, especially trade unions, constantly stand out to help workers overcome their difficulties (for example: The Trade Union of Ho Chi Minh City Industrial  -Processing Zone has organized various activities such as visiting, sending gifts, supporting funding and persuading landlords to reduce house rental, especially for female pregnant workers or those nursing a child under 12 months old …)

In general, the Covid-19 pandemic has created great impacts on all aspects of life in Vietnam, especially the workforce – the most vulnerable group facing numerous difficulties so far. However, the Government and people of Vietnam are determined and strictly follow these policies: “Joining hands to protect the workers’ interests and rights, encouraging workers to overcome difficulties together”;targeting at “dual goals” to secure stable jobs and income for employees, supporting post-Covid-19 business recovery. On the spirit of “Employees First”, the government and enterprises are unanimously determined to overcome theevitable challenges of the Covid-19 pandemic, to make Vietnam a spotlight in the region and the world in preventing Covid-19 in generaland protecting the legitimate rights of employees in particular.

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