Labor Issues, Inflation and Opening of Economy in Vietnam: A New Challenge for the Country

Abstract

Vietnam become the 150th World Trade Organization (WTO) member on 11th of January 2007 after waiting for more than decade, amid concerns about the effect it will have on the economy. World Trade Organization (WTO) is the most influential institution in the word in terms of trade and investment. This body is the main international agency for regulating international trade and investment activities throughout the world. It has certain set of rules which is observed by the member countries of this organization. Hence, it is obligatory upon the members of this organization to follow the principles laid down by this organization. Supporters of this move of Vietnam to become member of WTO say it will help boost exports in key food and textile industries and attract investment. Whereas, critics have argued that the increased competition will damage local firms and producers. However, the main challenge for the government of Vietnam is the problem of labor issues. Studies show that there is open violation of labor laws and least respect of labor rights in this new member country of World Trade Organization. After becoming the member of this international body it is a big challenge for this country to address the problem of labour issues in accordance with the international labour laws also emphasized by WTO. The article discusses the challenging issues of labour rights and inflation for the government of Vietnam after becoming member of the World Trade. An attempt is made to study the prevalent status of the rights of the labourers and the response of the Vietnamese government.