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

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. Key points During doi moi many labour policies have not been closely linked to the process of enhancing competitiveness, protection of political security, or social order and safety. The Vietnamese state is facing great tension between the three theory‐based anchors of this paper: accumulation (encouraging economic performance and competitiveness), pacification (maintaining social order, and defusing conflict at the workplace to keep its leadership in place) and legitimation (pursuing social equity and fostering voice at work as responses to the reality of pluralist workplace). In attempting to maintain a balance between these three functions, the Vietnamese government, compared to a democratic government, does not negotiate with any opposing party, nor deal with different opinions. The economic pressure either from international forces or from the pluralist economic system when it operates is a permanent and ongoing challenge for the government. Vietnam industrial relations has been liberalizing since doi moi but it is still far from a democratized system. Eexternal pressures in the future may well increase the probability of trade union reform, as Vietnam seeks further links with the global economy.