IFC aims to improve conditions in Vietnam

A project has been introduced by two international organizations to improve conditions for more than 700,000 workers in the Vietnam apparel industry.

The Better Work Vietnam programme is being operated by the International Finance Corporation (IFC), part of the World Bank, and the United Nations’ International Labour Organization (ILO). It is the largest undertaking of the joint IFC-ILO global programme.

The industry-based global programme is intended to strengthen relationships between international buyers, local enterprises, governments and worker organizations and to improve working conditions and competitiveness. The Vietnam programme is aimed at enhancing companies’ performance and market access, creating a more cost-effective process for labour standards compliance, and assisting the government in improving labour standards and economic development.

Rachel Kyte, the IFC business advisory services vice-president, said: ‘We are excited about Better Work Vietnam. IFC’s experience shows there is a clear and strong business case for companies to effectively manage their social risks. Better Work is an opportunity to demonstrate that responsible labour practices have the potential to open export markets.’

Dan Henkle, senior vice-president for social responsibility at the clothes retailer Gap, one of the programme’s international backers, said: ‘We strongly support the expansion of efforts in Vietnam to improve working conditions in the global supply chain. The Better Work platform is a model that demonstrates how improvements are possible when the right stakeholders are at the table.’

The Vietnam programme is being run in partnership with MPDF, a private sector development consultancy in Vietnam, Cambodia and Laos. MPDF is also funding the programme and the IFC is managing it.