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Viewing cable 07HOCHIMINHCITY1276, HCMC PRIVATE SECTOR JOINS FORCES TO STEM TIDE OF LABOR

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Reference ID Created Released Classification Origin
07HOCHIMINHCITY1276 2007-12-28 02:07 2011-08-26 00:00 UNCLASSIFIED Consulate Ho Chi Minh City
VZCZCXRO0655
OO RUEHDT RUEHPB
DE RUEHHM #1276 3620207
ZNR UUUUU ZZH
O P 280207Z DEC 07
FM AMCONSUL HO CHI MINH CITY
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3493
INFO RUCPDOC/USDOC WASHDC PRIORITY 0055
RUEHC/DEPT OF LABOR WASHINGTON DC
RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE
RUEHHI/AMEMBASSY HANOI PRIORITY 2384
RUEHHM/AMCONSUL HO CHI MINH CITY 3712
UNCLAS HO CHI MINH CITY 001276 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EAP/MLS, EEB/TPP/BTA/ANA 
STATE PASS TO USTR DBISBEE 
LABOR FOR ZLI 
COMMERCE FOR HHPHO 
USAID/ANE 
 
E.O. 12958: N/A 
TAGS: ECON PGOV BEXP SOCI ELAB VM
SUBJECT: HCMC PRIVATE SECTOR JOINS FORCES TO STEM TIDE OF LABOR 
ACCIDENTS 
 
 
1. (U) Summary. Vietnam's strict labor safety laws are poorly 
enforced, allowing a growing epidemic of deadly industrial 
accidents that is concentrated in the industrialized south.  As 
part of their ongoing corporate social responsibility efforts in 
Vietnam, AmCham HCMC companies including Intel, ConocoPhillips 
and other major multinationals have formed the non-profit 
Vietnam Occupational Health & Safety Environment Alliance 
(VOHSEA) to promote work safety and increase government 
oversight. It is still too early to see the results, but 
American companies are spearheading this effort to increase 
labor safety law awareness and enforcement.  End Summary. 
 
Welders in Sandals and Sunglasses 
--------------------------------- 
2. (U) Vietnam's strict Standards and Specifications on Labor 
Safety are poorly enforced.  Ministry of Labor, Invalids, and 
Social Affairs (MoLISA) industrial accident statistics for 2006 
paint a troubling picture of deteriorating work safety:  a 31 
per cent year-on-year increase in the number of labor accidents, 
a 32 percent increase in the number of victims, and a 12 percent 
increase in the number of fatalities.  The growth in the number 
of accidents is faster than the growth of Vietnam's industry and 
construction sector, roughly 17 percent in 2006.  Ho Chi Minh 
City (HCMC) and neighboring Dong Nai province account for 36 
percent of Vietnam's industrial accidents.  While the absolute 
numbers are significant -- 6,088 people killed in 5,881 
industrial accidents in 2006 -- most experts believe 
underreporting makes these a lower limit.  A stroll past 
work-sites within blocks of the Consulate provided evidence of 
the conditions underpinning these grim statistics:  welders in 
sandals and sunglasses or furniture finishers without 
respiratory or eye protection equipment are common. 
 
Work Safety Packs AmCham Lunch 
------------------------------ 
3. (U) An overflow crowd of AmCham business representatives 
turned out to hear Intel and ConocoPhillips safety officers 
contrast slipshod local work practices with the zero-tolerance 
for injury policies they apply to their own workers and 
sub-contractors world-wide.  Numerous AmCham participants then 
described local sub-contractors who ignored safety regulations, 
absconded with safety equipment or were otherwise oblivious to 
their company's "injury-free environment" message.  Non-stop 
questions from the audience on how to instill and maintain a 
safety ethic in local partners pushed the December 5th meeting 
into overtime, demonstrating that the topic hit a nerve with the 
foreign-invested manufacturers and construction industry 
representatives present. 
 
Private Sector To The Rescue? 
----------------------------- 
4. (U) The formation of the Vietnam Occupational Health & Safety 
Environment Alliance (VOHSEA), a cross-sector, multi-industry 
non-profit organization scheduled to begin operation in 2008, 
was announced at the conclusion of the AmCham meeting.  The 
fledgling organization--consisting to date of Intel, Strategic 
Marine, Conoco Phillips, Adidas, SeaTag, Cai Mep (Maersk), and 
Petro Vietnam--plans to promote occupational safety by means of 
awareness campaigns, information exchange, and training 
programs.  It will also prod local authorities to increase and 
systematize enforcement of labor safety regulations. 
 
Comment: 
-------- 
5. (U)  A blend of altruism and self-interest likely motivates 
the multinational heavy hitters that have joined VOHSEA so far. 
While firms such as Intel set the gold standard for corporate 
social responsibility worldwide, unilaterally taking the high 
road in the regulatory enforcement vacuum that is today's 
Vietnam places a firm at a competitive disadvantage.  By 
jump-starting the transition to work-safety standards found in 
more developed economies, VOHSEA hopes to both level (i.e., 
raise for all participants) the regulatory playing field and 
reduce the likelihood of a major industrial accident with its 
attendant mega fines and notoriety.  End comment. 
 
6. (U) This cable was coordinated with Embassy Hanoi. 
 
FAIRFAX