DIGITALISATION AND LABOUR STANDARDS IN FREE TRADE AGREEMENTS: THE CURRENT LANDSCAPE AND RECOMMENDATIONS FOR VIETNAM

Abstract

Digital transformation in the labour sector encompasses the integration of digital technologies into every facet of work and employment services. By automating routine tasks, streamlining operational processes and enabling real-time, data-driven workforce management, digital transformation delivers measurable gains in efficiency, cost reduction and organizational agility. This process also gives rise to several significant risks, including the pervasive collection and processing of employee data, which can lead to privacy infringements, increased surveillance and potential data breaches, alongside the emergence of novel employment models such as platform work, gig assignments and remote arrangements, which may exacerbate job insecurity and displace traditional roles; moreover, the rapid pace of technological change creates an urgent need for continuous upskilling in digital competencies. Within the expanding digital economy, labour-related digital transformation serves primarily as an enabling mechanism for more effective implementation of the labour provisions found in modern free-trade agreements (FTAs). However, the digital transformation index cannot, in itself, constitute a labour standard. The mere deployment of technology does not guarantee respect for fundamental worker rights (fair remuneration, safe working conditions or adequate social protection). A review of selected new-generation FTAs reveals significant lacunae: the absence of binding legal frameworks for digital technical standards; a lack of detailed personal-data protection rules specifically tailored to workers; insufficient regulation of platform-based and remote work modalities; and no clear commitments to vocational reskilling or digital-skills training. To address these shortcomings and harness the full potential of digital transformation, this paper offers recommendations that the Government of Vietnam can adopt to close the regulatory gaps in existing FTAs and promote a more equitable, resilient, and future-ready labour market in the digital age.

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