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As a result of the social and economic benefits of a seven-year cross-sector partnership led by IBLF to improve working conditions in footwear factories in Vietnam, the Vietnamese government has adopted sustainable development as a key economic strategy.
Through the Vietnam Chamber of Commerce & Industry (VCCI), IBLF’s long-term local partner, the government has established an Office for Sustainable Development that will promote sustainable business practices across major business sectors in Vietnam, such as timber, tourism, finance, construction and infrastructure, telecommunications, transport and agriculture, food and fishery.
This development follows on from the success of the Vietnam Business Links Initiative, a project established by IBLF, VCCI, shoe manufacturers and multilateral agencies in 1999 that has improved the working standards in 60% of the footwear factories in Vietnam.
The footwear industry, one of the key factors behind the country’s rapid economic development over the last five years, employs some 400,000 people – a number that is expected to rise over coming years.
The World Bank has judged the partnership one of the most sustainable in SE Asia, and in 2005 it started to expand into the garment industry. The structure of the garment industry is much more fragmented than footwear and has provided the opportunity to test and refine the methodologies for use in small and medium sized enterprises.
The Vietnam Business Links Initiative has shown that higher working standards are good for business, good for workers and result in higher quality products.
Both industry leaders and factory managers have been enthusiastic converts to the footwear scheme:
"Employers have now learned through the initiative that improvements in occupational health and safety mean employees stay longer and are more motivated - it has greatly improved our quality."
Mme Tong, General Secretary of Vietnam Leather and Footwear Association
"Workers now feel more responsible for their results and care about quality. They realise that management now have a better attitude to their working conditions and as a result the productivity is now more stable."
Mr Ho Thanh Man, the General Director of Ho Chi Minh City based An Giang Shoes