The changing role of the state in industrial relations since Vietnam's reform

Australian HR Institute Historical, socio-cultural, ideological and political factors have long shaped Vietnam's formal industrial relations system. This has led to the development of a state-centred structure in which the official trade union has a high level of formal status but little real influence in an economy whose primary employer was the state. Since the end of the Vietnam War in 1975, the country has experienced a gradual shift towards a market economy through its policy of economic reform (doi moi). Although there is evidence of escalating divisions between workers and managers, the communist government continues to maintain a direct and dominant influence on the industrial relations system. Such influence highlights questions about the legitimacy of institutional and governmental control over formal labour representatives. In this article, we hope to offer a theory-based explanation of this phenomenon.