The Impact of Swedish Investment and Trade on Labour Conditions in Vietnam : A Case-Study of ABB, Ericsson and IKEA in Vietnam

Abstract: This thesis examines labour conditions in Vietnam, and the impact of Swedish investments and trade on these conditions. The thesis is a qualitative investigation that includes a theoretical and an empirical part. The theories we use are international trade theory, focusing on comparative advantage and the Heckscher-Ohlin theory. We also utilise Solow’s growth model and the theory about FDI. The concept of social dumping and the effect of imposing a social clause is also discussed. We are using the ILO’s eight core conventions about minimum standards on labour conditions as a measuring instrument. Three Swedish lead multinational corporations have been chosen for the investigation, namely ABB, Ericsson and IKEA. Swedish companies currently have only small investments in Vietnam, but co-operation between the two countries have existed for a long time. Sweden is known to have good labour conditions and it is interesting to see if these are transferred through the Swedish companies. To investigate the labour situation in Vietnam, we have also conducted interviews with people working on these issues at ministries, UN organisations and representatives for trade unions.