The limitations of labor cooperation between Vietnam and Taiwan

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International Young Scholars Exchange Workshop
Kyoto, August 3, 2011
HUMAN RESOURCE DEVELOPMENT COOPERATION
BETWEEN VIETNAM AND TAIWAN IN THE CONTEXT
OF EAST ASIAN ECONOMIC INTEGRATION
Tran Thi Duyen
(duyenvass@gmail.com)
Graduate student
College of Social Sciences and
Humanity University
Vietnam National University - Hanoi
Researcher
Vietnam Institute for Northeast
Asian Studies
Outline
Introduction
Vietnam – Taiwan labor cooperation
Overview of Taiwan’s labor needs
Vietnam labor market situation
Vietnamese labor export to Taiwan
Vietnam labor export structure to Taiwan
The interest and limitations of labor
cooperation
Prospects for Vietnam – Taiwan HRD
cooperation and policy implications
Introduction
East Asia, which has shown a dynamic growth pattern,
has achieved considerable economic growth since the mid1980s.
Before the financial crisis of 1997-1998, the high
economic growth rate of East Asian countries was based
mainly on their sequential industrialization and the resultant
intra-regional spillover. This sequence of industrialization is
often called the “flying geese” pattern.
Human resource development cooperation between
Vietnam and Taiwan has developed very well and achieved
very considerable results.
Introduction
For many years Taiwan has been among the top 3
investors in Vietnam, training of skills for Vietnamese
labrorers to work for Taiwanese companies in Vietnam.
Labor exports from Vietnam to Taiwan have also
contributed considerably to solving employment
situation in Vietnam.
The number of students who come to study in Taiwan
is on an increasing trend.
Overview of Taiwan labor needs
Taiwan has achieved remarkable economic growth and is one
of four large dragons of Asia
changes in social - economic life: standards of living
and quality of life as well as labor skill of Taiwanese people
also increasingly advanced.
social problems such as aging of the population and
declining birth rates
labor shortage
labor import.
In October 1989, Taiwan Council of Labor Affairs (CLA)
accepted legislation allowing the importation of foreign labor
in order to meet the demands of planned construction projects.
Vietnam labor market situation

Vietnam is a populous country: over 86 million
(2009), density is 260 people/km2.
 The average rate of population increase yearly by
about 1.07 million, or 1.4 percent from 2000 to 2009.
 Vietnam’s workforce is estimated at 48.1 million
people, consisted of 25.7 million men and 22.4 million
women.
 Every year, from 1.3 to 1.5 million new workers enter
the market and the labor force will continue to expand
significantly from 2010 to 2015.
 Viet Nam’s labor force remains very young
 The number of youth aged 15-24 in the workforce increased by
15 percent.
 Currently, Vietnam has sent around 500 thousand workers to a
total of nearly 40 countries/territories.
Vietnamese labor export to Taiwan
HRD cooperation between Vietnam and Taiwan began in 1999
with the signing of agreement on the sending and receiving
Vietnam laborers to Taiwan.
Taiwan has become one of the major destinations for Vietnamese
labor migrants.
From 1999 – 2005: 167,800 workers in Taiwan
In 2000, the number of labor export to Taiwan accounted for 47%
of the labor market to Northeast Asia, and accounted for 25.71%
total of Vietnam labor export. The corresponding figure in 2002
was 79.55% and 28.60%, and in 2004 was 83.14% and 55.07%.
From 2005, Vietnamese workers export to Taiwan has
significantly decreased.
Vietnamese labors has fled outside so that Taiwan
decided to stop receiving Vietnamese labor in term
Reason
of housework, the old and children caring.
Vietnam workers are the second largest one in Taiwan, but it is
one of the countries which of the highest employee escape rate.
For example, in 2004, with 8,647 people who fled in total of
80,890 Vietnam laborers were working in Taiwan.
Table 1: Number of Vietnam laborers left job under the contract
and working outside
The cause of Vietnam laborers left job:
Vietnam laborers’ awareness is still limited. They
come from Vietnam’ countryside, they were not aware of
the nature of labor export and Taiwan law.
The high cost of brokerage: USD 5-6 thousand
they fled outside with higher wages and have not to pay
too much cost.
The objective reasons from Taiwan side
Vietnam labor export structure to Taiwan
The interests of labor cooperation
The importance of promoting labor cooperation is to meet the
needs and interests of the parties
For Taiwan:
Vietnamese laborers are really important contributors to
offset to Taiwan’s labor shortage.
For Vietnam:
To create more jobs and increasing incomes for workers’
family and themselves and contributing to reduce
unemployment rate in society.
To help laborer approach advanced machinery and
technology, modern way of management, industrial working
style and turning them into a good team of workers.
Enhancing mutual understanding and develop friendly
cooperative relations between Vietnam and Taiwan
It was helping mutual understanding about culture,
manners and customs, contributing to strengthening
Vietnam - Taiwan friendship cooperation not only in the
past and present but also in the future.
The limitations of labor cooperation
between Vietnam and Taiwan
The lack of uniformity of laws and implementation of labor
export to abroad in general and Taiwan in particular.
Vietnam’s labor export companies have not focused on
improving the quality of labor export. Although the number of
labor export to Taiwan market increasing, but, generally, the
rate remaining low compare to Vietnam ability and Taiwan
needs. The labor quality is not high, and a badly awareness and
discipline of employees.
The rate of quit off Vietnamese workers and infringe the
Taiwan is quite high. This is not only damage the reputation
and economy of businesses supply Vietnamese labor but also it
causes many adverse impacts on security and order in Taiwan.
Prospects for Vietnam - Taiwan HRD
Cooperation and Policy Implications
Assessments
Taiwan has become an important partner of Vietnam's labor
export sector.
The benefits of labor cooperation between two sides have
been clearly confirmed. However, it is not really
commensurate with each sides ability.
For Vietnam, strengthen state management in the labor
export; Improve cultural knowledge and qualifications for
labor force to export to Taiwan. Enhance its cooperation
with Taiwan’s enterprise leaders to protect Vietnamese
workers legitimate interests in Taiwan.
Prospects (cont)
Prospects for the cooperation between two sides is very
bright in the coming years.
Taiwan's economy has been spectacularly
recovered after the global economic crisis late in
2008.
HR demands in Taiwan are very positive.
Vietnamese labor import demand in the coming
Reasons
years in Taiwan will continue increasing, especially,
in electronics sector that were previously hired
Philippine by Taiwanese employers.
According to Vietnam Labor Management
Committee in Taiwan, they reopen in term of
housework and the old and children caring for
Vietnamese labors.
Overcoming situation that laborer leave contract
Thank you for your attention
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