Workers in informal employment in the wood industry of Viet Nam

Informality in this study refers to the activities of economic units and workers who are not recognized, protected, or regulated by the law or in practice. Individuals and units operating informally can create an environment of unfair competition for formal units which have registered officially, pay taxes, and comply with legal obligations, such as ensuring minimum wage levels and payment of social insurance for employees. At the same time, informal workers remain vulnerable, thereby affecting societal-focused aims such as achievement of the Sustainable Development Goals (SDGs) and to leave no one behind through national aspirations to improve the inclusiveness of economic growth and development. The existence of the informal economy and informal employment is a big challenge to workers' rights.

The research was carried out in three phases from 2022. First, a literature review was conducted with a particular focus on the growth of the wood industry and its labour market in Viet Nam. Second, a field survey was executed in November 2022 to gather information on workers and enterprises in the wood industry in the three provinces of Viet Nam, namely Binh Duong, Dong Nai in the south near the economic hub of Ho Chi Minh City and Bac Giang, in the north neighbouring the capital Ha Noi. Third, consultations were held with key stakeholders from: (i) the Viet Nam Timber and Forest Products Association (VIFOREST), (ii) local timber associations in Binh Duong and Dong Nai, (iii) People’s Committees of six communes hosting wood industry production units and enterprises in the three surveyed provinces, (iv) wood industry workers without labour contracts, (v) workers at three hostels in surveyed localities, (vi) trade union officials, (vii) business managers, (viii) experts and scientists in the field, and (ix) officials from State sectoral management agencies.