THE VIETNAMESE LABOUR MARKET’S
DEVELOPMENT UNTIL 2020: CHALLENGES,
CHANCES AND PERSPECTIVES
Ass. Prof. Dr. Nguyen Ba Ngoc
Institute of Labour Science and Social Affairs
Nuremberg- October 08, 2012
1
Contents
1.
ASSESSMENT OF PERFORMANCE OF
VIETNAM’S LABOUR MARKET
2. OPPORTUNITIES AND CHALLENGES OF
VIETNAM’S LABOUR MARKET UNTIL 2020
3. ORIENTATIONS, OBJECTIVES AND SOLUTIONS
DEVELOPING VIETNAM’S LABOUR MARKET
2011-2020
2
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM’S LABOUR MARKET
1.1. Legal framework
1.2. Labour demand
1.3. Labour supply
1.4. Labour demand - supply matching and
infrastructure of labour market
1.5. Ensuring social security for disadvantaged
groups
1.6. Labour market governance
3
1. ASSESSMENT OF PERFORMANCE
OF VIETNAM’S LABOUR MARKET
• 1.1. Legal framework
•
•
•
•
•
The system of legislation has constituted a legal foundation for labour
liberalization.
Legislation system on education and vocational training has been relatively
comprehensive, including the Law on Education (2005), Law on Vocational
Training (2006)
Labour market has become more flexible, meeting better the demands of
human resource of various industries in regions nationwide and workers’
demand to employment
The Government has performed better its role of macro management over
labour market with lessened direct intervention to industrial relations
The government has performed better role: The Law on Social Insurance
promulgated in 2006 with unemployment scheme carried out in 2009, the
National Targeted Program on Poverty Reduction, Poverty Reduction Plan for
62 Poor Districts, Plan on Manpower Export for Poor Districts…
4
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM’S LABOUR MARKET
• 1.1. Legal framework
However:
- It is not comprehensive and unanimous between the economic
development policies and employment - labour market policies;
- The economic policies are usual fragmented and lack of orientations
changing economic structure by sectors connecting to the labour
demand and mobility;
- They have created no a favourable legal environment for business
production activities, encourage the development of private
economic sector, push up foreign investment absorbance, etc to
stimulate economic development, create more jobs of stable and to
form the actual labour cost based on labour market;
- Coverage of labour policies is limited, mainly covered workers with
industrial relation in the formal economic sectors.
5
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM’S LABOUR MARKET
• 1.2. Labour demand
• 1.2.1. Promoting job creation through economic development
• Between 2001 and 2010, the average GDP growth rate has been
7.26% per year, in which industry sector has the highest growth rate
of 9.6% per year, economic structure has continued to shift
positively.
• Specifically, Vietnam accessed the World Trade Organization
(WTO) in 2007, expanded traditional markets and developed
potential ones.
• However, the economic growth was still widely, the growth mainly
based on capital. In the period 2001-2010, the economic growth rate
was 7%/year, contribution from capital factor was about 56.2%,
from labor factor was 25% and from TFP was approximately 19%.
6
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM’S LABOUR MARKET
• Table 1. Selected macroeconomic variables, 2001 – 2010
7
Source: General Statistics Office (GSO)
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM’S LABOUR MARKET
1.2. Labour demand
1.2.2. Changing structure of employment by sector
Graph 1. Employment structure in 2010 by aggregated sector and by area;
and gender differences
Sourse: MOLISA, Employment trends 2011
8
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM’S LABOUR MARKET
• 1.2. Labour demand
• 1.2.2. Changing structure of employment by sector
Table 2. Rates of growth of GDP and Employment;
Employment elasticity
Source: LFS 2007, 2009 and 2010
9
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM’S LABOUR MARKET
• 1.2. Labour demand
• 1.2.3. Rapid enterprise growth, but challenges of skills
• The number of enterprise has been increased remarkably during the
recent years. Until 2010, the economic system showed
approximately 550,000 registered enterprises, with almost 70,000
businesses created every year between 2006 and 2010.
• Most enterprises are small and medium scale, characterized by lowskilled workers, low technology and poor capital resources (42% of
enterprises operating with chartered capital of less than 1 billion
VND and 8.9% of enterprises having chartered capital
approximately of 5 to 10 billion VND).
• More than half of the enterprises have less than 10 employees and
less than 2 per cent enterprises employs more than 200 workers
10
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM’S LABOUR MARKET
1.2. Labour demand
1.2.4. Largest share of workers in non state sector
Graph 2. Total employment by institutional sector and area; percentage
composition; 2007 and 2010
Source: MOLISA, Employment trends 2011
11
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM’S LABOUR MARKET
• 1.2. Labour demand
• 1.2.5. Program on Credit for job creation from National Fund on
Employment
• National Fund for Employment of the National Targeted Program on
Employment was initiated in 1992 with objectives: (i) to provide loans
with preferential interest rate for workers to create employment; (ii) to
establish job service centers with the aim to support job-seekers to be
employed, provide vocational training and study labour market; and (iii)
to support education and vocational training. In the period 2000-2010,
each year the Fund contributed to creation of jobs for 350,000 workers,
of which 40% are the youth, making up 30% of newly created jobs in the
economy
• There have remained some constraints: state budget does not reach out
to communal level whereas local mobilization for the fund is not
remarkable. To date, only 30 provinces and cities have established their
employment funds which meet 35- 40% demand of people to get loans
12
from the fund
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM’S LABOUR MARKET
• 1.2. Labour demand
Overall, during the period 2001-2010, there are 15.5
million jobs were created aggregately through socioeconomic development policies as well as government
programs, projects.
Most of the jobs were created in the non-state sector
(accounting for 90 per cent) and through socioeconomic development programs (accounting for over
70 per cent).
Employment growth rate reaches 2.2 per cent per year
on average
13
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM’S LABOUR MARKET
• 1.2. Labour demand
• 1.2.6. Labour productivity increasing but still lower than
countries in the region
•
Table 3. Labour productivity of some Asia countries, constant price 1990 (USD)
Country
•
Labor productivity (USD)
Average growth rate (%)
China
2001
5,100
2005
7,710
2006
8,620
2010
12,641
2001-2005
10.9
2006-2010
10.0
Japan
40,383
43,571
44,266
44,512
1.9
0.1
Indonesia
7,780
9,140
9,491
10,474
4.1
2.5
Malaysia
19,171
22,394
23,173
25,175
4.0
2.1
Philippine
6,715
7,319
7,603
8,408
2.2
2.5
Singapore
37,739
48,279
47,473
48,952
6.4
0.8
Korea
33,881
38,324
39,787
44,251
3.1
2.7
Thailand
12,585
14,385
14,936
15,883
3.4
1.5
Vietnam
3,970
4,801
5,054
5,877
4.9
3.8
2001-2010
10.6
Source: The Conference Board Total Economy Database™(2011), http://www.conferenceboard.org/data/economydatabase
1.1
3.4
3.1
2.5
2.9
3.0
2.6
4.5
14
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM’S LABOUR MARKET
• 1.2. Labour demand
• 1.2.7. Low employment quality in rural areas
• 72% of rural labours and nearly 90% of urban labours work in
agricultural sector with low productivity, which only accounts
for two fifth of the average productivity level of the economy
and nearly one third of that of the industrial-service sector.
Challenges to rural employment have been created by the slow
transition in economic and labour structure, together with
progressive increase in demographic size, migration process,
investment absorption in agricultural sector and rural areas,
and risks exposed to the economy during crisis period.
15
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM’S LABOUR MARKET
• 1.2. Labour demand
• 1.2.8. Employment status and informal employment
• Graph 3. Employment by status; 2007 and 2010
Source: MOLISA, Employment trends 2011
16
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM’S LABOUR MARKET
• 1.2. Labour demand
• 1.2.9. Foreigners working in Vietnam
• Currently, it is estimated that approximately of 70.000 foreigners
working in Vietnam (50% of whom were granted work permit),
mainly labours with higher educational level (48.3%), skilled
labours with certificates of vocational training (34.6%) and highlevel professional artisans (17.1%), most of them are working as
managers (about 32%) and technical experts (41%).
• The statistics on a significant number of foreign manual labours
working for foreign winning contractors in Vietnam which has not
been available and reported.
17
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM’S LABOUR MARKET
1.3. Labour supply
1.3.1. Demographic size
Robust population growth over the last decades continue to put pressure on the labour
market. Up to 2010, Vietnam’s population is 87.8 million; mostly living in rural
areas (approx. 72%)
Graph 4. Population growth rate in the period 2000-2010 (%)
Source: General Statistics Office (GSO)
18
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM’S LABOUR MARKET
• 1.3. Labour supply
• 1.3.2. Increasing labour force participation rates
• Table 4. Labour force participation rate and Employment to population
ratio, by sex and area; 2007, 2009 and 2010
Source: MOLISA, Employment trends 2011
19
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM’S LABOUR MARKET
• 1.3. Labour supply
• 1.3.3. Education and vocational training
• Table 5. Structure of labour force by education level, 2001- 2011
2001
2005
2006
2010
Total
100
100
100
100
2011*
Estimated
100
Illiterate
3.6
4.0
3.8
4.3
4.1
Under graduate primary
school
Graduate primary school
16.1
13.1
12.0
13.1
12.3
30.0
29.1
33.8
27.4
24.8
Graduate lower
secondary school
Graduate upper
secondary school
32.7
32.6
26.9
28.3
33.1
17.6
21.2
23.5
26.9
25.7
Source: MOLISA, Survey on labor and employment, year 2001, 2005 and 2006; GSO, Report on the
survey of labor and employment 2010; *Estimated by ILSSA.
20
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM’S LABOUR MARKET
• 1.3. Labour supply
• 1.3.3. Education and vocational training
Now, the percentage of skilled workers has reached 40%, with 30% among whom
were provided vocational training
•
Table 6. Structure of Labors by Professional Skill levels
2001
Total
No professional skill
•
2005
2010
2011*
estimated
100.0
100.0
100.0
100.0
82.9
74.7
60.0
58.0
Average
growth
rate/year
-1.01
Technical labors have not
13.3
12.3
through formal trainings
Labors have vocational
7.8
15.1
14.7
16.5
10.6
trainings
Professional secondary
4.6
4.7
4.9
5.1
3.6
school
College, University and
4.7
5.5
7.0
8.1
8.3
above
21
Source: MOLISA, Survey on Labor and employment, year 2001, 2005 and 2006; GSO, Report on
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM’S LABOUR MARKET
• 1.3. Labour supply
• 1.3.4. Labour export
• Table 7. Labor working abroad by gender and destinations, 2001-2011
Number of labor working abroad (people)
Average growth rate (%)
2001
2005
2006
2010
36,168
70,594
78,855
85,546
200620012011 20012005
2011
2011
88,298
18.2
2.3
9.3
Female
7,704
24,605
27,023
24,458
31,990
33.7
3.4
15.3
Taiwan
7,782
22,784
14,127
28,495
38,796
30.8
22.4
17.4
Japan
3,249
2,955
5,360
4,910
6,985
-2.3
5.4
8.0
Korea
3,910
12,102
10,577
8,632
15,214
32.6
7.5
14.6
Malaysia
23
24,605
37,941
11,737
9,977
471.9
-23.4
83.5
Other
countries
21,204
8,148
10,850
31,772
17,326
-21.3
9.8
-2.0
Total
Source: Administration of Oversea Labor, MOLISA
22
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM’S LABOUR MARKET
• 1.3. Labour supply
• 1.3.5. Labour mobility
• Domestic migration has experienced a significant increase in
the last ten years. During the period 1994-2009, 4.5 million
moved across provinces and more than 6 million workers
migrated within the country
• At present, residence registration procedure still causes
discrimination against workers migrated to urban areas.
Discrimination could be seen in access to credit opportunity,
health care, education for workers and their families
23
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM’S LABOUR MARKET
• 1.3. Labour supply
• 1.3.6. Vocational training by enterprises
• It is due to limitation in training policies for workers of
enterprises. Firstly, intensive policy is not attractive enough to
involve of enterprises (especially from private sector) in
providing vocation training. Secondly, vocational training in
schools and training institutions is not matched with actual
requirements of businesses.
• The system of linkage between vocational orientation- training,
vocational training- employment service- enterprise and
employers is not tight and concretized
24
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM LABOUR MARKET
• 1.4. Labour demand - supply matching and infrastructure
of labour market
• 1.4.1. Unemployment and time-related underemployment
• Labour supply and demand still show partial imbalances amongst different
areas, sectors and economic branches. Surpluses of low skilled workers are
detected together with shortages of specialized and skilled ones, and many
enterprises report increasing difficulties in the recruitment process,
especially in the industrial and export-processing zones of the South
• Graph 5. Unemployment, 2001-2011
•
Source: MOLISA, Survey on Labor and employment, year 2001, 2005 and 2006; GSO, Report on the survey of
Labor and employment 2010; 2011 is estimated by ILSSA.
25
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM LABOUR MARKET
• 1.4. Labour demand - supply matching and infrastructure
of labour market
• 1.4.2. Career consultation and orientation
• Most of students and parents are not fully aware about the
importance of career education.
• The vocational training and career orientation is not practical and
not effective, even not developed as official curricular for many
schools.
• Schools are lack of infrastructure for conducting the career
guidance; lack of support from localities and social organizations.
• 70% of secondary completed students enter into labour market
without career orientation and training
26
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM LABOUR MARKET
• 1.4. Labour demand - supply matching and infrastructure
of labour market
• 1.4.3. Employment Services
• During 2001-2005, the Centres have provided counseling
and job placement for over 1.4 million workers. Since 2007,
to enhance the labour demand and supply linkage, the
Centres have organized regular job bazaars instead of job
fairs. At the present, 41 Employment Services Centres have
organized job bazaars, in which 35 Centres have held it on a
regular basis…
• During 2007-2010, over 1,200 job sessions were held at the
job trading floor throughout the country, increasing
employment transaction productivity by 15%-20%
compared to that of job bazaars and employment open day
which were held before
27
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM LABOUR MARKET
• 1.4. Labour demand - supply matching and infrastructure
of labour market
• 1.4.4. Labour market information
• System of the labour market information have not been completed and
connected comprehensively.
• Database for the labour market is both deficient and updated
irregularly. Most of the surveys on labour-employment, unemployment
and wages are carried annually.
• Employment in the informal sector has not been surveyed, evaluated to
develop suitable supportive policies for employees.
• System of key indicators to evaluate the operation of the labour market
has been issued but not completed, poor designed, inconsistent and
difficult for measure.
• There has not been any accurate evaluation on what the trends, the
development process and level of the labour market as well as its gap in
comparison with regional and international countries.
28
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM LABOUR MARKET
• 1.5. Ensuring social security for disadvantaged groups
• 1.5.1. Social insurance
• On average, the number of new social insurance members is
400.000 people every year.
Number of compulsory social
insurance members by 2010 will be 9.6 millions, accounting for
80% of those who are subject of compulsory insurance.
• However, the coverage of social insurance is still limited; the
beneficiaries of social insurance mainly work in state sector and
foreign investment sector. Nearly 20% of workers who are subject to
participate social insurance, but not yet participated. Many
enterprises “evades” to contribute social insurance for workers.
Most of workers in the informal sector have no access or they are
not fully aware about the need of voluntary social insurance.
29
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM LABOUR MARKET
• 1.5. Ensuring social security for disadvantaged groups
• 1.5.2. Unemployment insurance
• The Fund for Unemployment Insurance is contributed by employees (1%
of wage, income), employers hiring at least 10 workers (1% of the wage,
income budget) and 1% subsidy from the State budget. In 2010, there were
more than 7.05 million participants of Unemployment Insurance .
• However, only members of compulsory social insurance who contribute to
unemployment insurance fund are entitled to this benefit. Currently, some
shortcomings in legal framework: (i) regulations on vocational training and
job seeking support mechanism after being unemployed are not specified;
(ii) there are no sanctions for the violations of no contributions, insufficient
contributions; (iii) unemployment insurance policy consists of many
support regimes for workers from monthly financial support to support for
vocational training and job seeking but it is conducted by different
authorities while there is no specific regulation.
30
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM LABOUR MARKET
• 1.5. Ensuring social security for disadvantaged groups
• 1.5.3. Programs on supporting disadvantageous workers
• There are about 13 million people considered as belonging to the
disadvantageous labour force, accounting for 24 percent of the total
labour force.
• In which, 4.2 million employees are people with disabilities; 6.5
million employees are the poor; 180 thousand employees are those
living with HIV; 190 thousand employees are addicts and
prostitutes; 1 million migrant workers and repatriates; about 700
thousand disadvantageous employees getting monthly allowances
from the state budget.
• Nearly 80% of disadvantageous employees mainly concentrate on
rural areas and most of them have low education level.
31
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM LABOUR MARKET
• 1.6. Labour market governance
•
•
•
1.6.1. Wage and income policiese
The Wage Reform has been implemented: i) salaries and wages to better reflect the
value of labour, ii) to establish wage setting mechanisms aligned to income levels and
inflation
Table 8. Average wage/month by occupations, 2002-2010
Average wage/month/person (VND 000)
Occupations
Total
Managers/high level of
professional skill
Mid-level of professional
skill
Staffs
2002
2004
2006
2008
2010
Average growth rate (%)
2002 2006 - 2002 2006
2010
2010
7.1
26.8
16.5
7.2
28.1
17.2
6.4
23.4
14.6
2,788
5.7
29.1
16.8
1,532
2,633
8.8
25.5
16.8
718
1,012
1,587
7.5
21.9
14.5
2.1
2.4
2.6
791
806
1,042
1,552
2,691
1,163
1,255
1,536
2,433
4,135
1,114
1,278
1,427
2,161
3,307
804
948
1,004
1,443
Technical workers
758
820
1,061
Unskilled labors
538
639
Gap between manager and
unskilled labors (times)
2.2
2.0
32
Source: ILSSA calculated from VHLSS, GSO.
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM LABOUR MARKET
• 1.6. Labour market governance
• 1.6.2. Strikes and industrial relations
• Labour strikes tend to increase sharply by the time of economic crises
(2008-2009). In 2008, there were 720 labour strikes nationwide, 4.7 and 10
times higher than those in 2005 and 2000 respectively. The strikes took
place mainly the FDI enterprises (accounting for 54% and 81% of the total
strikes in 2005 and 2008 respectively). Labour disputes were mainly about
wages and they were not settled down with negotiations between workers
and employers but directly caused strikes, which led to an increase in
labour strikes. The strikes also happened mainly in the cities in key
economic zones in the South and in the enterprises using a large number of
workers, especially in garment and textile ones .
• However, labour strikes were spontaneous and illegal under legislations.
Therefore, industrial relations are more complicated, unstable, and
unhealthy and they negatively affect the investing environment in Vietnam.
33
1. ASSESSMENT OF PERFORMANCE OF
VIETNAM LABOUR MARKET
• 1.6. Labour market governance
• 1.6.3. Capacity of staff and monitoring and evaluation
• The role of state as the market governance is weak, fragmented, lack
of coordination (vertical and horizontal); the provincial policies on
labour market development is are not effectively implemented,
mainly rely on the budget from state.
• At present, Vietnam is lack of mechanism, tools and resource for
monitoring and evaluation of labour market.
• The trend of labour supply and demands have not monitored, the
urgent problems of market (labour dispute and strike, lack of
qualified workers, migration from rural areas..) have not been
reported.
34
2. OPPORTUNITIES AND CHALLENGES OF
VIETNAM LABOUR MARKET UNTIL 2020
• 2.1. Opportunities
•
•
•
•
•
•
The trend in FDI has paid more attention in developing countries, among which
are those in Asia-Pacific region.
In the future, ASEAN will be an area of dynamic economic development in
addition to the investment trend of China moving towards ASEAN countries.
10 years of Socio-Economic Development Strategy 2001-2010 have positively
placed to the country to a higher position and power.
The economic restructuring, the development and expansion of external
economic relations to create more jobs with an increasing demand of skilled
workers.
The system of legal policy and documents is being accomplished towards
meeting regional and international standards.
Demographic trends pose both opportunities and threats. Vietnam is in the
phase of the demographic transition to the golden population structure where
the generational entries in to the market still offsets the total exits .
35
2. OPPORTUNITIES AND CHALLENGES OF
VIETNAM LABOUR MARKET UNTIL 2020
• 2.2. Challenges
• 2.2.1. Improving the quality of labour
• During the period 2001-2010, Vietnam’s economic growth was largely
contributed by investment, with it’s investment growth significantly higher
than GDP growth, together with low contribution of labour market and low
gross productivity.
• 2.2.2. Raising productive employment opportunities in rural areas
• As a result of lack of the education and skills, most rural workers remain
trapped in low skill rural activities. The use of family labour and the lack of
social protection measures during the economic crisis shows that most
workers in rural are reported as ‘employed’, but returns from such
employment is low
• 2.2.3. Promoting the movement from informality to formality
• Labour productivity and working conditions improve in the informal
segments, and incentives for moving into formality are well in place.
36
2. OPPORTUNITIES AND CHALLENGES OF
VIETNAM LABOUR MARKET ULTILL 2020
• 2.2. Challenges
• 2.2.4. Raising labour productivity
• Requiring appropriately balancing knowledge-intensive and labourintensive production, on the one hand, growth model in depth requires
the deployment of advanced science and technology, highly-qualified
human resources and modern management skills, and, on the other hand
• 2.2.5. WTO accession and to balance between external-domestic
demand
• Too much reliance on the export led model of growth has limitations,
and while promoting exports, Vietnam would also need to promote
measures to raise domestic demand
• 2.2.6. Special attention to employment needs of vulnerable groups, such
as women and youth, as well as disadvantaged groups
• The priority for specific groups such as youth, women, workers with
disability, ethnic groups, therefore, becomes more important.
37
2. OPPORTUNITIES AND CHALLENGES OF
VIETNAM LABOUR MARKET ULTILL 2020
• 2.2. Challenges
• 2.2.7. “Green jobs” for development and environmental sustainability
• The long-term transformations will entail transitions towards “green
jobs” and greener enterprises.
• 2.2.8.
Balanced regional development through local economic
development
• Focus on the economic potentials of the communes, districts, provinces
and region and on building up its competitive advantages; with a focus
on economic growth, employment generation and enterprise
development and a wide range of initiatives.
• 2.2.9. Promoting safe migration
• It takes into account the impact of emigration on the labour market so as
not to distort labour supply and become a bottleneck for the country’s
own development.
38
3. ORIENTATIONS, OBJECTIVES AND SOLUTIONS
DEVELOPING THE LABOUR MARKET 2011-2020
• 3.1. Orientations
• By creating and facilitating decent job creation as one of the key
objectives of socio-economic policies.
• Making the most of Vietnam’s HR increasing labour productivity
and the linkages between productivity, wages and income.
• Reducing gender disparities in the labour market.
• Promoting human capital and decent jobs for young Vietnamese
to support the development of the country.
• Limiting the possible rise in unemployment and growth of lowproductive employment which often in process to urbanization.
• Increasing the participation of the social partners, SMEs and
labour in formulating and implementing employment policies.
39
3. ORIENTATIONS, OBJECTIVES AND SOLUTIONS
DEVELOPING THE LABOUR MARKET 2011-2020
• 3.2. Objective
• 3.2.1. The main goal: is to promote decent work for all women and men,
and young people, provide better living standards, reduce poverty and
maintain social stability.
• 3.2.2. Specific objectives
• Objective to increase quality of employment for Vietnamese women and men
• The share of educated workers to be increased up to 55 per cent in 2015 (in
which, vocational trained workers account for 40 per cent) and up to 77 per
cent in 2020 (vocational trained workers account for over 55 per cent);
• Percentage of young people aged 15-24 not in employment, not in education
and not in training decreased to at least 5 per cent of total youth for both
young women and young men;
• Share of young people aged 15-24 in education and training increased to at
least 50 per cent of total youth for both for women and for men.
40
3. ORIENTATIONS, OBJECTIVES AND SOLUTIONS
DEVELOPING THE LABOUR MARKET 2011-2020
• Objective to create more jobs
• Create about 1.6 million of job annually, among which at least about
600,000 jobs for young people;
• Increase employment growth rate to approximately 2% per year ;
• Increase growth rate of empl. in non-agricultural to 4%-5% per year
• Objective to ensure improved quality of employment
• Informal workers in non-agriculture reduced to 50% of empl. 2020;
• Productivity increased by 4.0% per year between 2011 and 2020;
• The share of employment in agriculture to be reduced to 40% of total
employment in 2015 and 30% of total employment in 2020;
• Real wage growth increased by 5 per cent per year on average;
• Increased share of labour having industrial relation to 65% in 2020.
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3. ORIENTATIONS, OBJECTIVES AND SOLUTIONS
DEVELOPING THE LABOUR MARKET 2011-2020
• 3.3. Strategic Solutions
• Improve employment legislations and institutions
- Improve employment legislations
- Reform the labour market with the focus on a secured and flexible
• Pro-employment social and economic policies promote productive
employment
- Stablize macroeconomy and trade
- Aimed at modernizing the economy and promoting productive work for all
- Fiscal and monetary policies to ensure pro growth and pro employment focus
- Streamline “green jobs” during labour market and economic transformations
- Policies oriented to promote international integration
- Policies to support enterprises
- Policies promoting local socio-economic development
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3. ORIENTATIONS, OBJECTIVES AND SOLUTIONS
DEVELOPING THE LABOUR MARKET 2011-2020
• Improve human resource quality to meet labour market requirements
- Compulsory education policies for all workers
- Education and training policy for labour market adjusted to address
specific challenges of Vietnamese young people in the transition
from learning to work.
- Reform the VET policies and programmes to achieve stronger
linkages between education, training and labour market requirements
- VET programmes are designed according to sound and timely LMI.
- Training through both direct provision and contracting systems
- Establish skills boards at sectoral and provincial levels
- Increase coverage and quality of general and vocational secondary
programmes to make labour market training more effective
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3. ORIENTATIONS, OBJECTIVES AND SOLUTIONS
DEVELOPING THE LABOUR MARKET 2011-2020
- Improve quality and diversified (range of) higher education programmes
support the transition to a knowledge based society
- Policies improved to create the ground for jobs requiring high skills
• Support the linkage between labour demand and supply
-. Enhance the capacity of ESC toward modernization, responding to the
requirements
- Develop a labour market information system
- It is adapted to cater for specific vulnerabilities and needs of migrant workers
• Support and ensure labour market inclusion
- The extension of coverage of the social protection system to both enhance the
sustainability of public finance and decrease vulnerabilities
- Labour market policies are linked to recipients of social protection measures
- Basic health, education and other social protection services and income
support programmes to increase productivity and access to decent work
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3. ORIENTATIONS, OBJECTIVES AND SOLUTIONS
DEVELOPING THE LABOUR MARKET 2011-2020
- Improve the effectiveness and coverage of social insurance programs
- Promote opportunities to access to social security and training for workers in
informal
• Improve capacity of governing labour market
- Improve the wage system based on the tripatite mechanism
- Formulating “soft institutions” to be in association with capacity building of
the actors in the labour market and developing social dialogue mechanism
and healthy industrial relation.
- Enhance the capacity of government agencies and social partners in planning
and implementation of employment policies and legislations.
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Thank you very much!
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