Since 1986, Vietnam officially began its transition from a centrally-planned economy towards a market-oriented economy. In parallel to drastic economic reforms, the regulatory environment was improved and enhanced, in order to facilitate this transition. One of the most prominent challenges in a developing country such as Vietnam is the fight against poverty, which both influences and is influenced by the success of these reforms.
This paper analyses the extent to which current wage and labour regulations can help reducing poverty levels in Vietnam. Since Vietnam is planning to join the World Trade Organization (WTO) in 2005, this study timely coincides with the preparatory process. It identifies some of the remaining regulatory gaps necessary to protect the poorer segment of the population. The approach for this study is based on the belief in the human right to have decent employment, including adequate minimum wage and labour standards. For this purpose, the paper evaluates the depth of infiltration of wage and labour regulations in the labour market, using commune level data on wages released in 1998.