-
 MPDF
is running pilot implement-ations of CSR in the Mekong region to
ensure that producers are aware of the key standards and/or
codes in the CSR area that might impact their business. The
benefits of CSR certification are potentially many. Short-term
benefits relate mostly to getting orders from companies that
require CSR, while longer-term benefits are largely internal,
such as improved working relations and productivity, fewer
accidents, less staff turnover.
MPDF is piloting WRAP in Vietnam because the United States is a
relatively new market for Vietnam. This code is endorsed by the
American Apparel and Footwear Association, which represents
about 80% of the wholesale market in the US. MPDF has helped a
local company, Global Standards, get the training necessary to
become a certification company for WRAP, so that Vietnamese
manufacturers can easily access the support they need to
implement the code.
Mr. Len Cordiner, Senior Advisor, Export Development Program,
MPDF
-
 The
Vietnamese Government is starting to look closely at CSR and
needs to find ways to encourage good corporate citizenship among
businesses. Government should not legislate CSR, but instead
facilitate it through incentives such as tax breaks.
CSR can be applied to every industry, not just labor intensive
ones such as garments and footwear. For Vietnamese companies, it
is a big challenge, first, to understand CSR and then to
implement it on a day-to-day basis. This may require policy
changes, new management structures, reviewing wages and benefits
and/or making physical improvements to the factory or workplace.
We always encourage businesses to find out what their buyers
want, in terms of both product quality and CSR. Many Vietnamese
businesses have heard about SA 8000, but whether it makes sense
for a particular company depends on the industry, the company's
buyers and their requirements. Some buyers may require WRAP
certification, while others may require their own CoC.
I would say the main benefits of CSR are in the process of
becoming certified, not in the actual certificate itself. Proper
CSR implementation will result in management efficiency,
employee retention, reduced training costs, etc. In Vietnam,
sometimes companies place too much value on the actual
certificate…but a certificate is meaningless if there isn't
proper compliance behind it.
The biggest barrier to CSR compliance among Vietnamese
companies, especially SMEs, is not money; it's management
commitment. In Vietnam, CSR is still driven by buyers, and some
manufacturers feel that they are being pushed into engaging in
CSR without fully understanding it or being fully committed. But
I think that the companies which will benefit most from CSR will
be those that take the initiative themselves and make it part of
their corporate culture.
In the longer term, CSR can be a tool for raising Vietnam's
competitiveness. This is an important issue for Vietnam right
now. There is a lot of competition in the region, and Vietnam
will only remain competitive if it can offer a total value
proposition, including quality, price and compliance with CSR
standards. CSR is an area where China is relatively weak and an
area where Vietnam can be quite strong. So I think for small
countries like Vietnam and Cambodia, CSR is a very important
component in making the country competitive.
Mr. Carey Zesiger, Development Manager, Global Standards
-
 It
is well recognized internationally, that CSR is now a key factor
in establishing a sound reputation in the worldwide garment
market. It is not just the global companies who put their name
and reputation at risk when they place work in developing
countries; it is the developing countries themselves who risk
condemnation for poor labor practices and who can bring the
spotlight on themselves when they allow practices that do not
meet accepted international standards to exist.
Adverse publicity is the fear of all international buyers. For
example, if children are employed in an enterprise in a
particular country, everybody in the world will know. Even if
the practice is illegal in that country and may only exist in a
few factories, it will be seen as a national problem and the
stigma will take years to remove. There are many NGOs who police
CSR issues and who make statements that are sometimes
exaggerated or unfair about issues that can destroy a company
even after the issues have been corrected.
The future success of the Vietnamese garment industry will
depend on many factors. These include efficient labor
utilization, local fabric and accessory manufacture, the
introduction of new technology, training of middle and upper
management, and the ability of Vietnam to portray an efficient
and dynamic industry that is willing and able to adjust to new
markets. All these will spread the positive message that Vietnam
is in full support of safe, fair, and socially acceptable labor
practices.
Mr. Colin Scott, Senior Advisor, International Garment Training
Center-Vietnam
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