Bộ Lao động Thương binh và Xã hội Viện Khoa học Lao động và Xã hội Việc làm xanh và Việc làm bền vững Thách thức và Triển vọng Ass Prof Dr Nguyen Ba Ngoc Institute of Labour Science and Social Affairs[.]
Trang 1Ass Prof Dr Nguyen Ba Ngoc Institute of Labour Science and Social Affairs
Nuremberg- October 08, 2012
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Trang 21 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
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Trang 4• 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…
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Trang 5- 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
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• 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%.
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• Table 1 Selected macroeconomic variables, 2001 – 2010
Source: General Statistics Office (GSO) 7
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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
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• 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
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• 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
low-skilled 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
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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
Trang 12• 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
Trang 13Most of the jobs were created in the non-state sector (accounting for 90 per cent) and through socio- economic development programs (accounting for over
70 per cent)
Employment growth rate reaches 2.2 per cent per year
on average
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Trang 141 ASSESSMENT OF PERFORMANCE OF
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• 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)
• Source: The Conference Board Total Economy Database™(2011),
Country Labor productivity (USD) Average growth rate (%)
2001 2005 2006 2010 2001-2005 2006-2010 2001-2010 China 5,100 7,710 8,620 12,641 10.9 10.0
10.6 Japan 40,383 43,571 44,266 44,512 1.9 0.1
1.1 Indonesia 7,780 9,140 9,491 10,474 4.1 2.5
3.4 Malaysia 19,171 22,394 23,173 25,175 4.0 2.1
3.1 Philippine 6,715 7,319 7,603 8,408 2.2 2.5
2.5 Singapore 37,739 48,279 47,473 48,952 6.4 0.8
2.9 Korea 33,881 38,324 39,787 44,251 3.1 2.7
3.0 Thailand 12,585 14,385 14,936 15,883 3.4 1.5
2.6 Vietnam 3,970 4,801 5,054 5,877 4.9 3.8
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• 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.
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• 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
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• 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 high-level 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
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Trang 18Graph 4 Population growth rate in the period 2000-2010 (%)
Source: General Statistics Office (GSO) 18
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• 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
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• 1.3 Labour supply
• 1.3.3 Education and vocational training
• Table 5 Structure of labour force by education level, 2001- 2011
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.
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• 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
• 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. 21
2001 2005 2010 estimated2011* Average growth
rate/year
Technical labors have not
Labors have vocational
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• 1.3 Labour supply
• 1.3.4 Labour export
• Table 7 Labor working abroad by gender and destinations, 2001-2011
Source: Administration of Oversea Labor, MOLISA22
Number of labor working abroad (people) Average growth rate (%)
2001 2005 2006 2010 2011
2001-2005 2006-2011 2001-2011 Total 36,168 70,594 78,855 85,546 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
Trang 23• 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
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Trang 241 ASSESSMENT OF PERFORMANCE OF
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• 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
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• 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
Trang 261 ASSESSMENT OF PERFORMANCE OF
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• 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
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Trang 271 ASSESSMENT OF PERFORMANCE OF
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• 1.4 Labour demand - supply matching and infrastructure
• 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
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Trang 281 ASSESSMENT OF PERFORMANCE OF
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• 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
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• 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
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• 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.
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