The Ministry of Labor, War Invalids and Social Affairs (MoLISA) is tasked with finalizing new supporting policies for businesses and workers affected by the Covid-19 pandemic.

Workers at Garment 10 Company. Photo: Thanh Hai

Prime Minister Pham Minh Chinh stressed the view in his recently-released directive No.16/CT-TTg on ensuring job security and higher living standards for local workers.

According to the directive, the number of employed workers rose by 26% against the past five years with higher income and sustainability.

“However, there remains a big proportion of workers facing job insecurity and low standard of working environment,” noted the Prime Minister.

In this context, the emergence of the Covid-19 pandemic has further put more stress on businesses’ operations and the living conditions of workers.

“Enterprises and workers are in needed of favorable policies to help them overcome the current difficulties,” stated the PM’s directive.

Supporting policies are essential to stabilize the labor market and stay a key part in the country’s efforts to pursue a twin goal of both containing the pandemic and boosting economic recovery.

“The MoLISA should draft more training programs for workers to better adapt to the new working environment during and after the Covid-19 pandemic,” Chinh added.

In long term, the MoLISA is responsible for further finalizing regulations and laws on workers, the labor market, social insurance, and safe work practices.

“Such revision should be in compliance with Vietnam’s commitments in next-generation free trade agreements, including the CPTPP, EVFTA and RCEP,” he added.

The Prime Minister also requested the ministry to submit the proposal on reducing working hours for workers to better reflect Vietnam’s socio-economic development level; revising the list of occupations and jobs that are considered heavy, hazardous or dangerous.

Under the directive, the Prime Minister has instructed the State Bank of Vietnam (SBV) and credit institutions to continue adopting credit policies and programs for job creation and higher living quality of workers.

“The focus should be more favorable conditions in providing loans for enterprises so that they have the financial means to pay workers’ salaries and resume operation during the pandemic,” stressed Chinh.

Last year, the government has offered a social rescue package worth VND62 trillion (US$2.7 billion) for vulnerable people affected by the pandemic. However, to date, the disbursement rate of the program was estimated at a modest rate of 22%, with many citing the strict evaluation process for such a low rate.