Strikes in Foreign Direct Investment Enterprises in the Southern Key Economic Region of Vietnam

Abstract

The transition from a centrally planned economy to a market economy has created favorable conditions for many businesses, especially foreign direct invested enterprises. This process has created a completely different environment for labor relations in enterprises. Accordingly, the relations between employees and employers are no longer in similar forms or can be adjusted by state administrative interventions as before. The difference in benefits between employers and employees is becoming more and more significant, which is reflected the most in the number of strikes and labor disputes that have been continuously increasing and happening throughout the country over the recent years. Strikes have been happening continuously and increasing in terms of quantity, scale and complexity over the past few years and they have greatly affected business results of enterprises as well as have reversed employees' lives and caused other social problems. According to the Ministry of Labor - Invalids and Social Affairs, Vietnam, since 1995, when the Labor Code took effect, so far, the country has had more than 6,400 strikes, of which those of FDI enterprises account for more than 70%. Among the strikes taken place in FDI enterprises, those occurred in the Southern Key Economic Zone represented 70% of those that happened in FDI enterprises nationwide.