Phát triển nguồn nhân lực ngành dệt may Việt Nam để nắm bắt cơ hội và vượt qua thách thức trong các hiệp định tự do thế hệ mới

Nội dung text: Phát triển nguồn nhân lực ngành dệt may Việt Nam để nắm bắt cơ hội và vượt qua thách thức trong các hiệp định tự do thế hệ mới

1. HUMAN RESOURCE DEVELOPMENT OF VIETNAMESE TEXTILE & GARMENT INDUSTRY TO GRASP THE OPPORTUNITIES AND OVERCOME CHALLENGES IN THE NEW GENERATION FREE TRADE AGREEMENTS PHÁT TRIỂN NGUỒN NHÂN LỰC NGÀNH DỆT MAY VIỆT NAM ĐỂ NẮM BẮT CƠ HỘI VÀ VƯỢT QUA THÁCH THỨC TRONG CÁC HIỆP ĐỊNH TỰ DO THẾ HỆ MỚI Dinh Thi Huong, PhD Nguyen Ngoc Anh, MBA Thuongmai University Abstract In the context of Vietnam integration into the world economy, signing multiple Free Trade Agreement (FTA) together with a strong inflow of investment from international enterprises into Vietnam, the competition in all market including intense competition in labour market has led to a need for the development of an overall human resources in Vietnam in general as well as the human resources in textile and garment enterprises in particular to meet the demand of new generation FTA such as The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP), EU-Vietnam Free Trade Agreement (EVFTA), etc. Based on the theoretical basis on the human resource development of enterprises, the research used a sample of 529 votes from 32 enterprises in the textile and garment industry in the context of joining the new generation FTA. The study performed the verification of Cronbach’s Alpha reliability coefficient, exploratory factor analysis (EFA), confirmatory factor analysis (CFA), analysis of SEM model to analyse the collected data. The research results show an overview of the current situation of human resource development factors in enterprises in ’s textile and garment industry to seize the opportunity and overcome challenges in the new generation FTAs. Keywords: development, human resources, textile and garment industry, Free Trade Agreement, FTA, the new generation FTAs Tóm tắt Trong bối cảnh Việt Nam hội nhập vào nền kinh tế thế giới, ký kết các hiệp định thương mại tự do (FTA), làn sóng đầu tư của các doanh nghiệp nước ngoài vào nước ta như vũ bão làm cho sự cạnh tranh trên tất cả các thị trường trong đó có thị trường lao động ngày càng gay gắt trong đó cần phát triển nguồn nhân lực nói chung, nguồn nhân lực của các doanh nghiệp ngành dệt may nói riêng sẽ đáp ứng yêu cầu của các FTA thế hệ mới (CPTTP, EVFTA ). Từ cơ sở lý luận về phát triển nguồn nhân lực của DN. Nghiên cứu đã sử dụng mẫu gồm 529 phiếu từ 32 DN ngành dệt may trong bối cảnh gia nhập các FTA thế hệ mới. Nghiên cứu đã thực hiện thực hiện kiểm định thang đo hệ số tin cậy Cronbach’s Alpha, phân tích nhân tố khám phá -EFA, phân tích nhân tố khẳng định CFA, phân tích mô hình SEM để phân tích dữ liệu thu thập được. Từ kết quả nghiên cứu thấy được bức tranh tổng quan thực trạng các yếu tố của phát triển nhân lực tại các DN ngành 652
2. dệt may Việt Nam, thảo luận kết quả thu được và những vấn đề đặt ra nhằm phát triển nhân lực tại các DN ngành dệt may Việt Nam để nắm bắt cơ hội và vượt qua thách thức trong các FTA thế hệ mới. Từ khoá: phát triển, nguồn nhân lực, ngành dệt may, hiệp định thương mại tự do, thế hệ mới 1. Introduction Currently, textile and garment is a key export industry of Vietnam and one of the key economic sectors that has many priority policies from the Government and potentially achieves rapid growth, contributing more to the State budget and the economy by joining in the Free Trade Agreements. According to the Vietnam Textile and Apparel Association, the export turnover of Vietnamese textile and garment industry in 2019 achieved about $39 billion US dollars, an increase of 7.5% compared to the previous year. America remains the largest export market with 42% increased compared to the total textile and garment export turnovers. At the markets of European Union, Japan, Korea, the turnovers are all very high. Statistics show that to date, Vietnamese textile and garment industry has about 2.5 million workers and by participating in the new generation FTAs with high labour standards will positively influence to Vietnam’s labour market such as creating more jobs, improving wages especially in industries where Vietnam has advantages in human resources and low labor costs such as textile and garment sector. In order to properly execute the increasing technical standards, as well as utilise opportunities in the new generation FTAs, enterprises in the textile and garment industry are now demanding higher qualifications, reducing untrained workers. Besides specialised skills, enterprises also require experiences, communication skills, partner search, language skills, especially with management positions such as head of planning department, head of order management, etc. In addition to opportunities, many challenges of human resource development still exist such as currently in the textile and garment enterprises, only about 15% of workers have intermediate or higher qualifications, and also there is a labour shortage in this industry in particular trained labours. As a result, the professionalism of workers have not yet been guaranteed, the labour team is still unstandardized, and there is still a lack of a set for textile and garment skill standard and especially, the productivity of workers in Vietnam’s textile and garment enterprises is still low compared to other countries in the region. In reality, the average productivity (based on the processing price) reaches $1.5 US dollar per hour in Vietnam’s textile and garment enterprises. In particular, according to the International Labour Organisation (ILO), the average productivity of Vietnam is lower than other countries in the regions, equal to only 30% of Malaysia and 40% of Thailand. Based on the above reality, the paper will conduct research to explore the factors of human resource development in the textile and garment enterprises to seize the opportunities and overcome the challenges in the new generation FTAs. The research results show an overview of the current situation of human resource development factors in enterprises in Vietnamese textile and garment industry. At the same time, the paper will discuss the research results and issues arise to develop the human resources in Vietnamese textile and garment enterprises and more importantly, meeting the demands of the new 653
3. generation FTAs to grasp the chances and overcome difficulties to grow and integrate in the world economy. 2. Research overview and research method 2.1. Research overview It can be seen that previous researches related to human resource development at domestic enterprises as well as international enterprises are valuable experiences and documents for the study of human resource development in Vietnamese textile and garment enterprises to seize the opportunities and overcome challenges in the new generation FTAs. Currently, the researches on this topic in overseas and in the country are as follows: The theory of resources based on enterprise vision was developed by Penrose (1959) and Barney (1991), this theory focuses on the maintenance and development of human resources to make them more valuable, rare and hard to imitate, enhancing the competitive advantage of organisations; Research of David McGuire and colleagues on: “Framing Human Resource Development: An Exploration Of Definitional Perspectives Utilising Discourse Analysis”, which explores the development of two perspectives of human resource development, one is the America perspective the other is the European perspective and analysed the definition of human resource development. The American perspective mostly defines human resource development in terms of learning. In particular, it emphasises on the aspect of development in the term “ human resource development”; On the contrary, the European perspective focuses more on linking human resource development with strategy. The European perspective is more inclined with a random approach, emphasising on the heterogeneity of learners and recognizing the individual differences that exist in the workforce that influence the provision of human resource development solutions for the final user; Priyanka Rani và M. S. Khan in “Impact of Human Resource Development on Organisational Performance” uses analysis tools to examine a research framework made up of a set of causal relationships between organisations and randomness, resources and human resource development, skills, attitudes, organisational behaviour and performance; Study of Mba Okechukwu Agwu and Tonye Ogiriki on “Human Resource Development and Organizational Performance in the Nigeria Liquefied Natural Gas Company Limited, Bonny”, discuss the human resource development and the effectiveness of organisation in Nigerian liquefied natural gas companies. Authors consider human resource development as an integrative use of training and development, organisation development and career development to improve individual, group and the effectiveness of the organisation; In the research of Niveen M. Al-Sayyed, Thomson và Mabey (1994) about “Critical Factors affecting Human Resource Development in the Arab World”, authors suggest that human resource development includes three factors which are organisation development, career development, training and development. Through inductive method, the results show that the most important factors including internal factors and external factors affecting the development of human resources are leadership style, employee commitments and motivations, demographic characteristics, labour union, the law and government requirements; 654
4. Some studies of this topic in Vietnam: Thesis of Nguyen Thanh Vu (2015) on “ Research of factors affecting to human resource development in garment enterprises in Tien Giang province”, suggests 9 elements that possibly influence the human resource development in garment enterprises in Tien Giang province, of which internal factors are: labour recruitment, career training and development, performance analysis and appraisal, work environment and labour relations, compensation and benefits; Thesis “Improving the qualities of human resources in Vietnam Oil and Gas Group (Petrovietnam)” of Doan Anh Tuan (2014) with the basic content about improving human resources qualities which are: intellect improvement; improvement of quality, ethics, ideology and working style of industry, organisational commitment, fitness enhancement; Nguyen Quang Hau (2012) with “Research on developing high quality human resources in Phu Tho province”, proposes a set of indicators reflecting the development of high quality human resources including: indicator reflecting quantity by region and by economic sector, indicator reflecting quality of labour proportion with doctoral degree over the total labours, indicators reflecting the development of human resources as the rate of human resource development between years, indicator reflecting the recruitment, attraction and use of human resources incentives as priority policy in the process of recruitment, attraction and use; Research of Nguyen Phan Thu Hang (2017) on “Developing high quality human resources at Petrovietnam” with contents about the human resource development such as: human resource qualities (quality, skill, intellect, physical health), the training and usage policy in the corporation, remuneration policies and working conditions; According to the Comprehensive Compliance Report of the Garment Industry in the study of ILO and IFC (2019), it displays the reality of child labour, discrimination, forced labour, freedom of association and collective bargaining, wage, labour contract, working hours, occupational health and safety. Thus, through the aforementioned studies, it can be seen that in-depth research on human resource development in Vietnamese textile and garment enterprises to seize the opportunity and overcome challenges in the new generation FTAs is urgent and meaningful to see the most general picture of the current situation of human resource development in Vietnamses textile and garment enterprises, important factors affecting the development of human resources as well as some recommendations to foster human resources in Vietnamese textile and garment enterprises meeting the demand of the current context. 2.2. Research method In this paper, the authors use a mixture of methods to research including qualitative and quantitative methods. Qualitative method Method of document research: The authors collected and studied secondary data to objectively and multidimensionally reflect the components of the quality of work of labour in enterprises in general and in Vietnames textile and garment enterprises in particular. The authors summarized and inherited research results of scholars on human resource 655
5. development in Vietnamese textile and garment enterprises together with some reports, relevant statistics such as CIEM, ILO and IFC, VITAS, etc. These are crucial evidences to evaluate the current situation of human resource development in Vietnamese textile and garment enterprises to grasp the opportunity and overcome challenges in the new generation FTAs. In-depth interview method: The authors carried out in-depth interview and group discussion to focus on building theoretical concepts, observed variables and scales. After interviewing 10 experts including professionals, managers at textile and garment enterprises, the authors discussed and designed the questionnaire with 5 variables with a total of 25 observed variables. In addition, after obtaining the results of studying the current situation of human resource development in Vietnamese textile and garment enterprises meeting the demand of the new generation FTAs, the authors conducted a discussion with the experts on the obtained results and issues posed. Method of data processing: The paper used methods such as scientific abstraction, induction and interpretation, method of analysis and synthesis, statistics and comparison; Combining with chart illustration and graphs to make research issues more intuitive. Quantitative method Based on the summarized theoretical basis, observed variables were built on a 5- point Likert scale (From 1 = completely disagree to 5 = completely agree) reflecting 5 complete research concepts. Quantitative research was conducted immediately afterwards with a sample size of 580 from managers and workers working in 32 textile and garment enterprises. The time of the research was from November 2019 to December 2019. The authors chose a non-probability random sampling. The sample size was divided equally to each enterprise. The subjects of the survey were approached through 2 ways: (i) Emailing the questionnaire designed on Google doc to the workers working in enterprises; (ii) Sending the survey questionnaire directly to workers at enterprises. After filtering the answer sheets, removing invalid sheets (due to lack of information), the remaining 529 valid answer sheets were used by the authors for data entry and processing. The collected data was put in an Excel file, then analysed by SPSS and AMOS version 21. In particular, SPSS software is used for descriptive statistical analysis, analysing the reliability of Cronbach’s alpha scale, exploratory factor analysis (EFA), confirmatory factor analysis (CFA), SEM model analysis. Therefore, through qualitative and quantitative research, the collected data was classified into categories including: theoretical basis, statistics, primary data about the current situation, data discussing the research results and issues posed. On that basis, the authors built an outline frame and integrated data to have a complete research. 3. Theoretical basis for developing human resources in enterprise to perform labour commitment in the new generation FTAs The content of labour commitment in the new generation FTAs: Labour issues in the global economy with the rise of labour commitment-related FTAs are the dominant and prominent topic in all national and international fora. Development of economy and 656
6. competition to foster economy by low labour standards such as low wages, poor working conditions, unsecured labour rights, etc, will not promote the development of society and also it will prevent the implementation of the nation's sustainable development goals. Therefore, the new generation FTAs like CPTPP or EVFTA are to guarantee an acceptable minimum under the provision of national law. Standards of working conditions as stated in the commitment in the FTAs include: wage, occupational health and safety, training, working hours, rest hours, etc. and rights to promote a healthy labour relation as regulated in 8 core conventions of ILO, in particular: (i) Conventions 100 and 111 on erasing all forms of labour discrimination Erasing all forms of labour discrimination in employment and occupation. equal remuneration for men and women workers for work of equal value Discrimination between long term and short term labour and between female and male workers is not allowed. Equal treatment in recruitment, working and rest hours, paid leave, ensuring of the right to give birth, guaranteeing the contract term, assigning jobs, evaluating capacity and opportunity for promotion, career progression opportunity, social security, occupational health and safety. (ii) Conventions 29 and 105 on abolition of forced labour Someone who must work due to threats or coercion, without giving consent or approval; Someone working overtime without prior agreement with trade union. (iii) Conventions 138 and 182 on the abolition of child labor Children under 13 years old are not allowed to participate in the labour, including doing light work; Children under 15 years old are not allowed to do adult work; Children under the age of 18 are not allowed to do hazardous work. (iv) Conventions 87 and 98 on freedom of association and collective bargaining On the rights to freedom of association: Workers have the right to freely form or join Workers Organisations such as trade unions, worker associations and worker councils for the promotion and defence of occupational interests ; Workers have the right to request the higher level trade union or the central level to directly protect and support workers in the formation local trade unions. On the rights of Collective bargaining: Collective bargaining is the negotiation between employers and unions to make a uniform decision on salary, working conditions, social or economic decisions influencing the lives of workers and their families; The outcome of collective bargaining is the signing of a collective bargaining agreement. The agreement can be signed at the local, regional, sectoral or national level. From the core ILO conventions, it can be seen that the participation in the new generation FTAs of enterprises needs to be well-equipped and trained so that enterprises as well as workers can understand child labour needs to be eliminated and regulated at each age with suitable jobs; Enterprises and workers understand about force labour to avoid being threaten, coerce to work and thereby have sufficient agreement on overtime; Implement well the abolition of discrimination especially in remuneration policy, which needs to be equal for all labour, all forms of labour contract including short and long term 657
7. or evaluation of capacities and promotion opportunity; In addition, working and rest hours, occupational health and safety, social security; The compliance to freedom of association and collective bargaining focuses on the formation of local trade unions, the freedom to join trade union, organising labor conferences, or collective bargaining agreements with better terms than the Law, etc. Thus, considering factors affecting human resource development to implement the content of labor commitment in the proposed new generation FTAs include: (1) Working conditions; (2) In-company training; (3) Remuneration policy; (4) Freedom of association and collective bargaining. 3.1. Concepts and measure scales of the research 3.1.1. Human resource development According to ILO, human resource development is a process of increasing knowledge, skills and competencies of everyone in the society. In the economic field, it is described as the accumulation of human resource capital. This view of the ILO suggests that human resource development is not only about having occupational skills in the training process in general but also about the development of competences and uses that ability to work more effectively; Kunio Yoshihara (1989) suggests that the development of human resources are investment activities aiming to produce human resources with quantity and quality meeting the development needs of socio-economy of the nation, at the same time ensuring the development of each individual; Based on the definition of Watkins & Marsick (1997), human resource development is a field of research and practice to foster long term learning ability and it is related to the work of individual, group and different levels of the organisation. Thus, human resource development includes- but is not limited to- training, career development and organisation development. The measurement scale of human resources development (PT) is inherited and developed from the researches of Kunio Yoshihara (1989), Watkins & Marsick (1997), Nguyen Phan Thu Hang (2017), etc. A 5-point Likert scale is used: where 1 completely disagree and 5 is completely agree with 4 observed variables encrypted from PT1 → PT4 (see table 1). Table 1: The measurement scale of human resources development of enterprises Encryption Contents of measurement scale PT1 The change in quantity, structure and quality of human resources consistent with the production and business plan of enterprises PT2 The degree of improvement of career qualifications after training and development programs in enterprises PT3 The degree of improvement of work performance after training and development programs in enterprises PT4 The degree of improvement of operational efficiency after training and development programs in enterprises (Source: Summaries of authors) 658
8. 3.1.2. Working conditions Henrietta Lake (2008); Herzberg (1957); Nguyen Quang Thu et. al (2005); Do Phu Tran Tinh et. al (2012) all assess the improvement of working conditions, contribute to generate a productive, effective and healthy labour force. A good working environment, ensuring the benefits, health and lives of workers will help enterprises in labour attraction. It is a win-win situation for both enterprises and workers, as the labour productivity will improve when workers have no worries in the production process. The maintenance and enhancement of working conditions for workers will require the commitment of employers as well as the knowledge and collaboration of the workers. In the enterprise, there must be a full range of safety technical processes and proper implementation of safe working methods. Safety technical processes must be modified to fit with each change in technology method or improvement in equipment. Training courses to enhance working conditions in enterprises or occupational safety tests must be seriously conducted by all disciplines, and also must be able to attract all enterprises and workers in order to enhance their awareness of working conditions and working environment. The measurement scale of working conditions (DK) is inherited and developed from the researches of Henrietta Lake (2008); Do Phu Tran Tinh et. al (2012), Nguyen Phan Thu Hang (2017). A 5-point Likert scale is used: where 1 completely disagree and 5 is completely agree with 5 observed variables encrypted from DK1 → DK5 (see table 2). Table 2: The measurement scale of working conditions Encryption Contents of measurement scale DK1 Training and supervising occupational health and safety in enterprises DK2 Prepare occupational health and safety equipments DK3 Prepare equipment to reduce dust, noise, heat, etc. DK4 Regulations of occupational health and safety of enterprises must be ensure at work (Source: Summaries of authors) 3.1.3. Training in enterprises Many researches have shown that effective labour training and development enable workers to actively participate in the growth of the industry and vice versa, the potential growth of the industry promotes individuals to participate in the training. According to Campbell & Kuncel (2001), one of the most popular interventions on the challenge of human resources is training. Study of Holton & Baldwin (2000) confirms that to improve the labour productivity, skills and attitudes training must be transferred to the workplace, maintained over time and generalized through different contexts. According to Becker & Gerhard (1996), both formal and informal training opportunities are considered to provide a platform for talent development. When talent is nurtured and fostered, the competitive advantage in operation will always be developed. The measurement scale of training in enterprises (DT) is inherited and developed from the researches of Becker & Gerhard (1996), Holton & Baldwin (2000), Campbell & Kuncel (2001), ILO & IFC (2019) etc. A 5-point Likert scale is used: where 1 completely 659
9. disagree and 5 is completely agree with 6 observed variables encrypted from DT1 → DT6 (see table 3). Table 3: The measurement scale of training in enterprises Encryption Contents of measurement scale DT1 Training regulations on child labour DT2 Equipping workers with knowledge of force labour DT3 Training of knowledge related to regulations on working hours DT4 Training of knowledge related to regulations on rest DT5 Enterprises organise in depth training course about jobs DT6 Fostering understanding on freedom of association, collective bargaining for workers (Source: Summaries of authors) 3.1.4. Remuneration policy Weiss et. al (1967); Do Phu Tran Tinh et. al (2012) suggest that the remuneration policy through salaries, rewards, allowances, benefits, etc. are always considered a significant element in creating job motivation. A good remuneration will satisfy workers and create connectivity in the organisation when it is correspondence with the work results and efforts of workers. Good remuneration is an important motivation in employees' attraction and retention. Performance appraisal of workers must be accompanied with remuneration and reward measures in order to resolve the dialectical relationship between material and consciousness. The expectation theory of Vroom also emphasises on the expectation of efforts leading to results and rewards will identify the degree of motivation. Although these expectations are employee-minded, they can also be influenced by the impact of management and organizational experience. Workers tend to work harder when they believe that there is a good chance to receive meaningful rewards as the result. To this end, the remuneration system needs to be designed on the basis of performance appraisal by measuring competency and results. The measurement scale of remuneration policy (DN) is inherited and developed from the researches of Weiss et. al (1967); Do Phu Tran Tinh et. al (2012), Nguyen Phan Thu Hang (2017), ILO & IFC (2019). A 5-point Likert scale is used: where 1 completely disagree and 5 is completely agree with 5 observed variables encrypted from DN1 → DN5 (see table 4). Table 4: The measurement scale of remuneration policy for human resources Encryption Contents of measurement scale DN1 Minimum wage according to regulation DN2 Equal pay by enterprises to workers DN3 Overtime payment by enterprises accoring to the agreement DN4 Remuneration generates motivation at work DN5 Remuneration creates an attachment between workers and enterprises (Source: Summaries of authors) 660
10. 3.1.5. Freedom of association and collective bargaining To protect the rights of workers, the law allows workers at any enterprises to have the right to join a Trade union, which is reflected in Article 5 of the 2012 Labour Code. Accordingly, freedom of association means having the rights to: “Form, join, operate trade union, occupation organisation and other organisations in accordance with the law”; Collective bargaining is a process wherein two or more mutually beneficial parties discuss together to reach agreement on something. The objective of bargaining is to reach an agreement between employer and employee in order to establish general rules on labour relation. From there, creating a healthy, peaceful labour relation. For instance, enterprises should organise annual labour conferences or create terms and conditions in the collective bargaining agreement that are better than the provisions of law. The measurement scale of freedom of association and collective bargaining is inherited and developed from the researches of Anber Abrahee shlash Mohammad et al (2014), ILO & IFC (2019). A 5-point Likert scale is used: where 1 completely disagree and 5 is completely agree with 6 observed variables encrypted from TD1 → TD6 (see table 5). Table 5: The measurement scale of freedom of association and collective bargaining Encryption Contents of measurement scale TD1 Allow to form local union TD2 Labours are allowed to join a union of aspirations TD3 Organise annual labour conference TD4 Employer creates favourable conditions for the operation of local union TD5 Collective bargaining is performed accoding to regulations TD6 Colletive bargaining agreement has better terms than the Law (Source: Summaries of authors) 3.2. Research model and hypotheses 3.2.1. Research model Studies mentioned the impact of working conditions to the development of human resources’ competences such as: Henrietta Lake (2008); Herzberg (1957); Do Phu Tran Tinh et. al (2012), Nguyen Phan Thu Hang (2017). Studies mentioned the impact of training to the development of human resources includes: Henrietta Lake (2008); Rosemary Hill và Jim Stewart (2000); Knoke & Kalleberg 1994; Chen & Ho (2001); Campbell & Kuncel (2001); Holton & Baldwin (2000); Becker và Gerhard (1996), Nguyen Phan Thu Hang (2017). Studies mentioned the influence of remuneration on the development of human resources are: Smith et. al (1969); Nguyen Quang Thu et. al (2005), Nguyen Phan Thu Hang (2017). Study mentioned the influence of freedom of association and collective bargaining on the development of human resources like Abrahee shlash Mohammad et al (2014). 661
11. Figure 1: Research model of factors influencing the development of human resources in enterprises (Source: Summaries of authors) Therefore, from the results of the above researches, the authors offer a theoretical research model on factors affecting the development of human resources in enterprises as follows (Figure 1). 3.2.2. Research hypotheses The theoretical research model is concretized through 04 research hypotheses as follows: Hypothesis H1: Working conditions have a positive impact on the development of human resources in enterprises Hypothesis H2: The training in enterprises has a positive impact on the development of human resources in enterprises Hypothesis H3: The remuneration policy has a positive impact on the development of human resources in enterprises Hypothesis H4: Freedom of association and collective bargaining have a positive impact on the development of human resources in enterprises Thus, the research model on factors influencing the development of human resources of enterprises have a total of 25 observed variables of which there are 4 independent variables including DK, DT, DN, TD and 1 dependent variable, which is PT. 4. Research results on the development of human resources in Vietnamese textile and garment enterprises meeting the demand of the new generation FTAs 4.1. Some business results of Vietnamese textile and garment enterprises According to the Export Promotion Center (2017), the growth rate of textile and garment export between 2010-2017 of Vietnam reached the highest level in the world with nearly 32%, whereas China reached 15%, India reached 10%, Malaysia and Thailand both reached 7%. Textile and garment products of Vietnam is starting to appear around the globe; Vietnamese textile and garment enterprises had a an export turnover of over $36 billion US dollars in 2018, an increase of 16% compared to 2017, and an export turnover 662
12. of nearly $39 billion US dollars, an increase of 18% compared to the previous year (see figure 2). However, most of Vietnamese textile and garment enterprises only focus on increasing their quantity to increase export but not yet focus on increasing their quality. Figure 2: Total export turnover of Vietnamese textile and garment industry The economy is increasingly integrated into international trade with FTAs, thus textile and garment enterprises are mostly beneficial from the new generation FTAs such as ASEAN (AEC), CPTPP, EU (EVFTA), etc. Currently, in the textile and garment industry there are nearly 6000 enterprises, accounting for 25% of the labor force in the industrial and economic sector. Of which, there are 30 enterprises with a scale over 5000 workers. Workers in textile and garment enterprises accounts for more than 12% of the labour force in the industrial sector and nearly 5% of the total labour force in the country. However, the income of workers in this industry is relatively low (only about $5 million VND/person approximately $215 US dollars/person), which is lower than the average income of the electronics industry from $ 8 million VND/person, approximately $345 US dollars/person. Textile and garment enterprises should take this matter under consideration especially in their remuneration policy. Figure 3: The main export market of Vietnames textile and garment industry (Source: textiles/) Vietnamese textile and garment enterprises are possessing many advantages as the US market has been stable, the European market has prospered and the opportunity to open the market from commitments to integrate into the world economy such as the new generation 663
13. Free Trade Agreements, will create favourable conditions for textile and garment enterprises to promote export into big markets like the US, EU, Japan, Korea, China, etc (see figure 3). Moreover, Vietnemese textile and garment enterprises are increasingly making a better impression on customers in the ASEAN region. Brands like May 10, Viet Tien, Nha Be have been prefered and chosen by many customers in the region. These are important prerequisites for Vietnamese textile and garment enterprises to focus on human resource development to seize opportunities and overcome challenges in the new generation FTAs. 4.2. Quantitative research results on the development of human resources in Vietnamese textile and garment industry meeting the demand of the new generation FTAs 4.2.1. Characteristics research sample Out of 32 Vietnamese textile and garment enterprises that were surveyed based on gender: the number of female workers account for 79% of the labourforce and the male workers account for 21% of the labourforce. The high ratio of female workers in this industry is due to the job requiring meticulous craftsmanship; In terms of qualifications: workers graduated from high school account for 76%, workers graduated from secondary school and vocational training account for 18%, the rest graduated from college and university. These characteristics reflect a reality that in textile and garment enterprises, workers are mostly processing products, so they are mainly at high school level. In terms of income, workers in this industry normally earn from $4.5 million VND to $6 million VND per month (equivalent from $194 US dollars to $258 US dollars). As a result, workers are willing to work overtime to earn extra money; there are rarely any workers in the textile and garment industry staying in the enterprises for over 15 years; In addition, the sample includes mainly textile and garment enterprises with the scale of SMEs with the establishment years over 10 years. These results are quite consistent with the characteristics of the current textile and garment industry. 4.2.2. Testing for the reliability of the measurement scale The reliability of the measurement scale is evaluated by the method of intrinsic consistency through Cronbach's Alpha coefficient. Using the Cronbach’s Alpha reliability coefficient method before analysing the EFA factor to remove inappropriate variables as this garbage can create dummy variables (Nguyen Dinh Tho & Nguyen Thi Mai Trang, 2009). The Cronbach’s Alpha reliability coefficient only shows whether the measurements are correlated or not but does not indicate which observed variables need to be removed and which ones need to be kept. However, calculating Corrected Item-Total Correlation will help to sort out any observed variables that do not contribute much to the description of the concept to be measured (Hoang Trong & Chu Nguyen Mong Ngoc, 2005). The criteria used for assessing the reliability of the measurement scale are as follows: - Eliminating observed variables with small Corrected Item-Total Correlation (less than 0.3); the standard for choosing a measurement scale when the Cronbach’s Alpha reliability is greater than 0.6. The greater the Cronbach’s Alpha coefficient, the higher the consistent reliability (Nunally & Burnstein, 1994; Nguyen Dinh Tho & Nguyen Thi Mai Trang, 2009). 664
14. - Cronbach’s Alpha values: greater than 0.8 is good scale; from 0.7 to 0.8 is an usable scale; 0.6 or higher can be used in case the research concept is new in the context of the study (Nunally, 1978; Peterson, 1994; Hoang Trong & Chu Nguyen Mong Ngoc, 2005). In terms of the reliability of PT, most of the observed variables in the PT scale have Cronbach's Alpha coefficient = 0.826> 0.6, which assures high reliability. The lowest corrected item-total correlation coefficient reaches 0.532, which is higher than 0.3, suggesting that all observed variables are used to analyse the exploratory factor analysis (EFA). (ii) The reliability of the scale of training variables in enterprise - DT In terms of the reliability of DT, most of the observed variables in the DT scale have Cronbach's Alpha coefficient = 0.782> 0.6, which guarantees high reliability. The lowest corrected item-total correlation coefficient reaches 0.479, which is higher than 0.3 suggesting that all observed variables are used to analyse the EFA. (iii) The reliability of the scale of freedom of association and collective bargaining variables - TD In terms of the reliability of TD, most of the observed variables in the TD scale have Cronbach's Alpha coefficient = 0.815> 0.6, which ensures high reliability when removing TD1. The lowest corrected item-total correlation coefficient reaches 0.526, which is higher than 0.3 suggesting that all observed variables are used to analyse the EFA. (iv) The reliability of the scale of working conditions variables - DK In terms of the reliability of DK, most of the observed variables in the DK scale have Cronbach's Alpha coefficient = 0.796> 0.6, which ensures high reliability. The lowest corrected item-total correlation coefficient reaches 0.511, which is higher than 0.3 suggesting that all observed variables are used to analyse the EFA. (v) The reliability of the measurement scale of the remuneration variables - DN In terms of the reliability of DN, most of the observed variables in the DN scale have Cronbach's Alpha coefficient = 0.768> 0.6, which ensures high reliability. The lowest corrected item-total correlation coefficient reaches 0.519, which is higher than 0.3 suggesting that all observed variables are used to analyse the EFA. 4.2.3. Results of exploratory factor analysis Analysing the exploratory factor is used to test the measurement scale of the research concepts. Thereby identifying the scope, relationship between observed variables and underlying factors, to see more specifically whether the above scales are divided into new or reduced or eliminated any observed variables or not. The criteria used when running EFA are: KMO coefficient> 0.5, sig significance level 1 is used. 665
15. In the first analysis of EFA for different factor groups, results show that KMO = 0.857 >0.5, Sig of the Bartlett’s test = 0.000 0.5. In the second run of EFA, results show that KMO = 0,860 > 0,5, Sig of the Bartlett’s test = 0.000 50%, all variables with stop points at 3.619>1, which satisfy the requirements. Table 6: Pattern Matrixa Factor 1 2 3 4 5 DT1 .739 DT6 .697 DT4 .679 DT2 .646 DT3 .605 DN2 .888 DN3 .739 DN5 .735 DN1 .573 PT2 .699 PT3 .681 PT1 .670 PT4 .618 DK5 .808 DK4 .801 DK1 .073 TD6 .660 TD4 .581 TD3 .512 (Source: Survey data analysis results from SPSS 21) Thus, through testing for the reliability of the measurement scales, analysing factors and 19 observed variables, 5 remaining factors on human resource development of textile and garment enteprises (see table 6) are obtained as follows: factor 1(DT1, DT6, DT4, DT2, DT3), factor 2 (DN2, DN3, DN5, DN1), factor 3 (PT2, PT3 PT1, PT4), factor 4 (DK5, DK4, DK1), factor 5 (TD6, TD4, TD3). 4.2.4. Results of confirmatory factor analysis (CFA) In order to measure the relevance of the scale model with the collected data (market information), the research used confirmatory factor analysis with the support of AMOS software version 21. After verifying the scale and analysing the exploratory factor (EFA), the research analysed the confirmatory factor with 5 factors and 19 observed variables. These factors generate groups of scales to measure concepts and are included in the CFA to consider fit of the model with market data. Assessment criteria include: unidimensional, convergent validity, discriminant validity, nomological validity. While unidimensional, convergent validity, discriminant validity are assessed in the saturated model, nomological validity is assessed in the theoretical model. The result of confirmatory factor analysis (CFA) of the model (see figure 4) shows 666
16. that the scale has 160 degrees of freedom. Chi-square / df = 2.243, GFI, TLI, CFI are all higher than 0.9 (Bentler & Bonett, 1980), RMSEA = 0.049 <0.08 (Steiger, 1990). Thus, it can be deducted that the model is considered to fit with the market data. The CFA results of the model (see figure 4) show that the scale has 142 degree of freedom. Chi-squared statistic = 318.539 with a p value = .000. Other indicators: Chi- square / df = 2.243, GFI, TLI, CFI are all higher than 0.9 (Bentler & Bonett, 1980), RMSEA = 0.049 <0.08 (Steiger, 1990). Thus, it can be inferred that the model is considered fit with market data. Unidimensional: The analysis of confirmatory factor provides a result of Chi- square test= 318.539 with p value=. 000. Other indicators: Chi- square / df = 2.243, GFI, TLI, CFI are all higher than 0.9 (Bentler & Bonett, 1980), RMSEA = 0.049 <0.08 (Steiger, 1990). Thus, it can be deducted that the model is considered to fit with the market data. This means that there are necessary and sufficient conditions for the set of observed variables to achieve unidimensional. Convergent validity: The results of the correlation coefficients show that the standardized weights are greater than 0.5, indicating that the scale of concepts has achieved the convergence value (if there is any observed variable with weight <0.5, it is necessary to eliminate in turn but this model does not have). Discriminant validity: The correlation coefficients between research concepts in the model are all positive and less than and different to 1 (based on the above table) with a really small P-value and less than 0.05, so the correlation coefficients of each concept pair is different from 1 at the 95% confidence level. Thus, the research concepts in this model all have gained discriminatory value. (Source: Summary of results from SPSS and Amos 21 analysis) Figure 4: Results of confirmatory factor analysis 667
17. 4.2.5. SEM model analysis Analysis results of SEM model show that all 4 factors of the model have an influence on the development of human resources in Vietnamese textile and garment enterprises including working conditions, human resource training at enterprises, the remuneration policy, freedom of association and collective bargaining all are statistically significant at the 95% confidence level (P-value is less than 0.05). The regression weights of the above table are positive, showing that the above factors all influence in the same direction as the development of human resource of textile and garment enterprises. Table 7: Regression Weights: (Group number 1 - Default model) Estimate S.E. C.R. P Label PT < DT .376 .078 3.982 PT < DN .203 .050 2.013 PT < DK .190 .053 2.399 PT < TD .121 .066 2.325 .005 (Source: Summary of results from SPSS and Amos 21) Out of 4 factors, in-company training has the strongest impact with the standardized weight value of 0.376, following by the remuneration policy for human resources with the weight of 0.203, then working conditions with the weight of 0.190 and the factor with the least influence is freedom of association and collective bargaining with the standardized weight of 0.121 (see figure 5). Figure 5: Analysis results of SEM model (standardized) (Source: Summary of results from SPSS and Amos 21 analysis) Thus, all the four initial hypotheses were accepted, all factors have an impact on human resources development of Vietnamese textile and garment enterprises. The linear regression equation shows the relationship between variables in the factor model influencing human resources development of Vietnamese textile and garment enterprises as follows: PT = 0,376.DT + 0,203.DN + 0,190.DK + 0,121.TD 668
18. 4.3. Discussion of research results on human resource development in Vietnamese textile and garment enterprises to meet the demands of the new generation FTAs From the theoretical basis, the situation study included 529 votes from 32 Vietnamese textile and garment enterprises. The research conducted the Cronbach’s Alpha reliability scale, analysis of exploratory factor (EFA), confirmatory factor analysis (CFA), analysis of SEM model with the data collected. Results show that all 4 factors in the model have an influence on the development of human resources in Vietnamese textile and garment enterprises, of which human resource training has the strongest impact, whereas freedom of association and collective bargaining has the least impact. These results are consistent with the research results from the studies of Henrietta Lake (2008); Holton & Baldwin (2000); Nguyen Phan Thu Hang (2017). In addition, some content is reflected through: (i) Regarding training in enterprises: Currently, there is only about 15% of labours in textile and garment enterprises who have intermediate or higher qualifications and the labour shortage, especially trained workers always takes place but the ability to train labours of training facilities fail to catch up with the labour needs of enterprises. The training regarding child labour has been taken seriously, when ILO and IFC (2019) surveyed 331 garment enterprises the ratio of child labour or underage labour which perform heavy and toxic job duties in textile and garment enteprises is extremely low (accounted for less than 1% of the total number enterprises assessed) since garment and textile enterprises have been quite good in eliminating the use of child labour according to the regulations. In particular, based on the regulations in Vietnamese law, workers can join the labour force or work at the age of 15, a working age applied for all jobs in textile and garment industry. Workers between the ages of 15 and 18 are considered underage workers, and may perform jobs that "do no harm to a child's health, safety or morals". Accordingly, the law forbids the employment of minors to do certain jobs, at the same time limits the working hours of this group of workers (8 hours/day and 40 hours/week, without overtime. ) and require enterprises to keep a separate track record for these workers. In addition, there is no record of forced labour in the entry/exit process of textile and garment enterprises as welll as any sign of tricks to keep labour from leaving (such as threats, violence, withold wage, etc.) (ii) Regarding the remuneration policy: As the scale of textile and garment enterprises increase, their labour needs also rise. For instance, with newly established enterprises, the number of labour requirements will be around 500 to 2000 people. However, a problem remains for textile and garment enterprises, which is labour turnover, job hopping whenever workers find other enterprises with higher wages. For instance, according to Vinatex Chairman (2016), the wage of the textile and garment industry is relatively low, only about $5 million VND/ person, whereas the wage of the electronics industry per person is around $8 - $9 million VND. Thus, textile and garment enterprises have paid salary in accordance with the regulation, a better remuneration policy will attract and retain more workers for enterprises. (iii) Regarding working conditions: Nowadays, many enterprises have been starting to focus more on improving the activity of occupational health and safety (OHS). 669
19. Especially for textile and garment enterprises, OHS is a primary issue. In particular, in 2019 textile and garment enterprises in the South of Vietnam in the month dedicated to OHS had organised 198 coaching sessions for 138.892 workers to enhance their knowledge of OHS (VITAS 2019). Nevertheless, the working conditions, mainly in small to medium enterprises, especially small enterprises, are not ensured. Specifically, about 40% of small to medium enterprises fail to fully implement the regulations of supply and use of safety equipment such as masks, gloves, goggles, etc., which will impact the health and safety of workers, according to ILO & IFC (2017). (iv) Regarding freedom of association and collective bargaining: Large scale textile and garment enterprises are increasingly focused on this matter as well as improved labour relations. For instance, Nha Be, Viet Tien or May 10 organise collective bargaining annually to foster direct democracy in the workplace. Nevertheless, this is not the case with small enterprises as they are still unable to resolve rationaly the issue of overtime, form of payment, unsecured working conditions, etc., which leads to some strikes (see picture 7) Table 7: Some textile and garment enterprises that industrial action takes place No Enterprise name No of workers Causes Times Unstranparent monthly money Dai Nghia Garment Export 1 1500 collection from workers 02/03/2017 Company ($10,000 VND/month) Fail to comply with the commitment of meal costs 2 Van Ha Garment Company 2000 15/04/2017 during the shifts, social insurance Minh Hoang Garment 2 Wage owing, taking a rake-off 3 950 17/05/2017 Company workers’ benefits Hue Garments for Export Low wages, unpaid social 4 600 31/05/2018 Joint Stock Company insurance for workers ( Source: Summary from Vietnam Textile and Garment Trade Unions) 5. Some solutions for human resource development in Vietnamese textile and garment enterprises to seize opportunity and overcome challenges of the new generation FTAs Economic development based on hightech and worker productivity has been included in the socio-economic development strategy of Vietnam in the last 10 years. In the Vietnam Overview report 2035- Towards Prosperity, it was also confirmed that fast growth can only be maintained based on the rapid growth of productivity and created an economy based on innovation and renovation. Therefore, in order to integrate into the world economy, utilising the investment flow from international enterprises, seizing new opportunities from signing different Free trade agreements, enterprises in general as well as textile and garment enterprises need to focus on fostering and developing human resources with some recommendations as follows: (i) Focusing on training human resources in textile and garment enterprises In order to fully utilise the advantages of FTAs, in addition to the support of the State, and focusing on investment, technology improvements and enhancement of product 670
20. quality, textile and garment enterprises need to focus on human resources training of labour regulations, equiping workers with knowledge of forced labour, knowledge related to regulations of working hours and rest. In addition, frequent training for workers to improve their understanding on freedom association, collective bargaining or organising in depth job training, etc. Continue improving and building a labour training plan for the textile and garment industry close to reality. The content includes technical, technology and soft skills training in the fields of management, product development, design and market research, and vocational training. On the other hand, during the training process, learners need basic training in professional skills and working style. Enterprises also need to be more open with the training of human resources, not only in making requirements but also participating with schools in training, accepting investment, actively training human resources, avoiding the dependence on the available human resources trained by the schools, etc. In addition, most workers in the textile and garment enterprises are transferred from other industries. As a result, these workers only have management experience, but lack specialized knowledge, thereby reducing the efficiency of human resource management in enterprises. Therefore, the plan for training for this important human resource requires more attention. (ii) Gradually implementing the remuneration policy for human resources of textile and garment enterprises Remuneration policy in enterprises should focuses on the implementation of minimum wages according to regulations, regarding not only negotiable wage that is beneficial to employees but also bonuses as well as other material and intrinsic incentives for employees. Moreover, it includes the evaluation, appreciation, and attitudes of employers with employees and fair agreements. Therefore, remuneration creates motivation at work and commitment between employees and enterprises. The method of payment for human resources in textile and garment enterprises should be based on the principle of resolving the relationship between the wage costs of enterprises and the productivity that workers create. Normally, employers place the right to exploit and use before the responsibility. However, an adequate manager knows that once the rights are guaranteed, the responsibility will be appreciated. As for workers, the more responsible they put in their work, the better their ability to achieve high benefits. When the rights of employees are satisfied, the more they see that their work efforts and talents are respected and appreciated. (iii) Ensure working conditions for workers at textile and garment enterprises Currently, matters of occupational health and safety are really appreciated in commitments in the new generation FTAs such as: leaders in enterprises need to guarantee OHS for workers, ensure a healthy working environment to prevent accidents and injuries. Enterprises need to develop and organise the implementation of measures to minimize hazards in the working environment. Additionally, enterprises need to create a favourable working environment for staff to work confidently. In particular, ensuring facilities, equipment and tools for research and work so that the workplace becomes an attractive 671
21. place to work. Facilitate housing and transportation support for workers as most of workers in this industry are poor and have housing difficulties. (iv) Well implementing freedom of association and collective bargaining in textile and garment enterprises Enhancing the freedom of association and collective bargaining in enterprises will make workers feel more appreciated and protected as their wishes and concerns are heard. This will create a solid foundation for them to work and communicate with workers through dialogue and collective bargaining instead of going straight to conflict situations. In addition, textile and garment enterprises should find a common voice in collective bargaining. Negotiate in accordance with Decree 60/2013 / ND-CP and Convention 98 in a proper way to find a common voice in collective bargaining to implement democratic regulations in textile and garment enterprises. This action is crucial in building a stable labour relation at textile and garment enterprises. Moreover, this move also helps to reduce labor disputes, strikes - affecting the stability and long-term development of textile and garment enterprises; In the current context, the implementation of international labour commitments in the new generation FTAs and ILO Conventions requires the Trade Union to innovate vigorously and comprehensively. Renovating the method of organisation to implement social responsibility to ensure the rights and benefits of workers as well as confirm the key role of trade union in enterprises in general and in textile and garment enterprises in particular in the current context. 6. In conclusion By participating in the new generation FTA, Vietnam is entering a giant playground, encountering new difficulties and challenges to compete with other big nations. However, in order to overcome these challenges of labour, it is crucial to place special attention on developing human resources at enterprises in general and textile and garment enterprises in particular; investing in working conditions, well implementing freedom of association and collective bargaining; having an appropriate remuneration policy in terms of material and spirits for workers, especially highly skilled workers. This is an investment in human resources to create competitive advantages when integrating into the world economy. In addition, enterprises should improve the conditions to develop healthy labour relations in order to grasp the chances and overcome challenges when participating in the Free Trade Agreements. REFERENCES 1. Becker, B. & Gerhard, B. 1996, ‘The impact of human resource management on organizational performance: Progress and prospects’, Academy of Management Journal. 2. Campbell, J. P. & Kuncel, N. R. 2001, “Individual and team training”. In Anderson N., Ones 3. Central Institute for Economic Management of Vietnam (2019), “The impact of new 672
22. generation trade agreements on labour and employment issues in Vietnam", research topic. 4. Cheng, E. W. L. & Ho, D. C. K. 2001, ‘The influence of job and career attitudes on learning motivation and transfer’, Career Development, 6(1), 20-27. 5. D. S., Sinangil H. K., Viswesvaran C. (Eds.), Handbook of industrial, work and organizational psychology, 1, pp. 278-312, London. 6. Henrietta, L. 2008, ‘Analysis of Human resource management practices- Indonesia’s labor intensive light manufacturing industries’, The United States agency for International development. 7. ILO & IFC (2017), The 9th Vietnam Compliance Report, ILO Publishing. 8. ILO and IFC (2019), The Comprehensive Compliance Report of the Garment Industry, ISSN: 2227-958X (web pdf) 9. Knoke, D. & Kalleberg, A. L. 1994, ‘Job training in U.S. organizations’, American Sociological Review. 10. Ministry of Industry and Trade (2014), Decision 3218/QD-BCT approving the Planning on development of Vietnamese Textile and Garment Industry until 2020 with a vision to 2030. 11. Nguyen Phan Thu Hang (2017), Development of high-quality human resources at Vietnam Oil and Gas Group, Doctoral thesis in economics - National University of Ho Chi Minh City. 673