The most notable aspect of the revision of the Vietnam Labor Law in 2019 is the acceptance of the formation of independent trade unions at the grassroots level. In unions under the socialist system, managers representing the interests of employer have been legally granted the status of pure workers and have been allowed to join unions. Without a demarcation line between labor and management, conflicts of interest arise in capitalist corporate organizations. Furthermore, the permanent employment and labor system of Japanese companies causes downward rigidity of wage for high-paying managers. In case that those managers take advantage of the union and try to protect their vested interests, increased labor costs will weigh on the management of Japanese companies in the medium to long term. In addition, the risk of intensified labor struggles by independent unions increases. The composition of labor-management relations is complicated by the intervention of various interest groups and stakeholders. Therefore, it is necessary for Japanese companies to provide flexibility in employment and wage structures under the line of labor and management by complying with the new legal system. Meanwhile there is also an urgent need for Japanese companies to establish a mechanism to maintain the conventional labor-management harmony and to create an integrated corporate community. This paper analyzes the related laws and presents the direction of solutions of labor-management cooperation based on hypotheses.
