Leiden University Student Repository

Polosina, Nadia (2022)

The effects of FDI on labour conditions in Thailand and Vietnam

Master thesis | Asian Studies (60 EC) (MA)

This thesis examines the impact of foreign direct investment (FDI) on working conditions in Thailand and Vietnam. I hypothesise that FDI has a positive effect on working conditions, and that the effect is more pronounced in Vietnam where institutions appear to be stronger and the labour force is entitled to more rights, including the rights to organise and collective bargaining. As previous research has shown, contrary to the common notion of ‘race to the bottom’, FDI is attracted to countries with adequate labour policies. Further, governments play an important role in creating positive spill overs of FDI through the establishment of labour institutions, unions, and wage policies. The analysis has shown that the Thai government’s policies, despite some amendments to its legal framework, are less labour- friendly than Vietnam’s. In Vietnam, however, labour institutions and unions’ top members still lack neutrality and legislation doesn’t promote active employee participation. To...Show moreThis thesis examines the impact of foreign direct investment (FDI) on working conditions in Thailand and Vietnam. I hypothesise that FDI has a positive effect on working conditions, and that the effect is more pronounced in Vietnam where institutions appear to be stronger and the labour force is entitled to more rights, including the rights to organise and collective bargaining. As previous research has shown, contrary to the common notion of ‘race to the bottom’, FDI is attracted to countries with adequate labour policies. Further, governments play an important role in creating positive spill overs of FDI through the establishment of labour institutions, unions, and wage policies. The analysis has shown that the Thai government’s policies, despite some amendments to its legal framework, are less labour- friendly than Vietnam’s. In Vietnam, however, labour institutions and unions’ top members still lack neutrality and legislation doesn’t promote active employee participation. To conclude, the impact of FDI on labour conditions appears to be stronger in Vietnam, thanks to more labour-oriented policies and institutions.Show less

FDI

labour conditions

Vietnam

Thailand

Author

Polosina, Nadia

Faculty

Faculty of Humanities

Specialisation

Politics, Society and Economy of Asia

Supervisors

Shidiq, Rizal

ECTS Credits

15

Language

en