Essay on business administration: qualification of vietnamese human resource

It is a total of actual and potential human resources that are prepared to participate in the socio-economic development of a country or a locality.” [7, p.17] 2 / Characteristics of hum

SCHOOL OF ECONOMICS

QUALIFICATION OF VIETNAMESE HUMAN RESOURCE

GROUP REPORT

Group members:

Student name Responsibility in Assignment Participation % *

1 Dang Phan Van Anh Introduction

2 Nguyen Hai Hai Nghi Theoritical background

3 Vo Hoang Chau Anh Opportunities and challenges

4 The realities

5 Phạm Nhật Hạ Solutions

6

* Please ensure that you discuss this % as a group and that the mark is fairly allocated If your group has any problem, please discuss with the course lecturer

Signatures:

a

b

c

d

e

Date Submitted: _

I INTRODUCTION

 What is labor quality? How is it important?

In the context of globalization and international economic integration, the process of internationalizing production and the allocation of labor is definitely necessary The participation in global production and value chains is a significant factor in the economy at that time Besides that, productivity is the very word to summarize why standards of living vary around the world There are several factors that contribute to the productivity One of those, “labor quality” is identified as one of the major enticements for capital flow that leads to economic prosperity

Labor quality is defined to be good or bad based on the attitude, knowledge and skills that workers acquire through education, training, experience By defining labor quality in terms of discipline and attitudes toward work, this argument minimizes the long-term threat of outsourcing to developed economies By understanding labor quality, can we better confront anxieties about outsourcing and immigration For example, Japan is known as the country that has the fastest and most stable economic growth with growth rate per year is 2,65% (1890-2010) According to survey, the labor force in Japan

is evaluated as one of the most qualified labor forces all over the world and that is an important part for achieving success Their workers are chosen carefully and go through many training sessions that guarantee the excellence Their skills and attitude towards career contribute enormously to the economic develop of the company as well as the whole country

Hence, to enhance the productivity as well as the living of standard in Viet Nam, we had better focus

on the labor quality in our country This essay will focus on the labor quality in Viet Nam by four main parts: theoretical backgrounds, empirical evidences, the reality of labor force and essential measures to solve the problems

II THEORITICAL BACKGROUND:

Human resources are one of the most decisive factors for the development of each nation Therefore, this issue is very concerned and respected by many countries around the world

1/ Definition

In broad meaning: At any organization or enterprise, human resources is the entire human resources of that organization or business Therefore, it can be said that the Human Resources of an organization include all the employees working in that organization It is also because of its role for all industries If

we only talk about economic field, we cannot develop effectively, we cannot have profit effectively if

manpower is not synchronized with the development of machines, science and technology – which’s almost the rule of all economies

High quality human resources: who are strong in theory and good in practice, have the skills to do complex jobs, adapt quickly to technological changes, and make creative use of their knowledge learned in real work

Thus, it can be understood that manpower is known as the entire physical and mental capacity of the human being used in the production labor process It is also considered human labor - the most valuable resource in an organization's production factors In addition, the organization's human resources includes all the good qualities, life experiences, creativity and enthusiasm of all employees working in the organization

According to development theory, human resources are understood broadly as a part of resources capable of mobilizing, organizing and managing to participate in the socio-economic development process as resources material, financial resources As state by the State-level Science and Technology program KX-07 :” Human resources need to be comprehended as the population and intelligence, quality and ethical competence of workers It is a total of actual and potential human resources that are prepared to participate in the socio-economic development of a country or a locality.” [7, p.17]

2 / Characteristics of human resources

Currently Vietnam's human resources have the following basic characteristics:

- Young human resources, the ratio of male to female is quite balanced

- Human resources are large-scale, increasing rapidly every year

- The allocation of human resources is still inappropriate, between urban and rural areas, among regions and territories; economic sectors and between economic sectors

- Does Vietnam's human resource have high unemployment rate in urban areas and low working time

in rural areas?

- Vietnamese human resources have low labor productivity and income

- Vietnam's human resources with low educational, professional and technical qualifications, uneven distribution, and health have not yet met the requirements of the market economy

3 / The role of high quality human resources

Investing in people in order to improve the quality of each individual, creating the ability to improve the quality of life for the whole society, thereby improving labor productivity Garry Becker who was awarded the 1992 Nobel Prize in Economics, affirmed that "no investment has brought about as much profit as investing in human resources, especially investment in education"

The history of economies around the world has shown that there is no wealthy country has achieved high rates of economic growth before reaching universal education The way to promote production, in turn, is to promote competition, which must increase the efficiency of education

The most successful newly industrialized countries and territories such as South Korea, Singapore, Hong Kong and some other countries had the fastest rate of economic growth in the 70s and 80s, often reaching primary universalization before those economies took off However, the studies also show that Japan and South Korea's success in the economy is not only due to the majority of the highly educated population, but also due to their modern economic policies, management, and Mostly high quality human resources

Why is human resource have important role?

Because human resources are human resources and one of the most important resources of socio-economic development That role stems from the role of the human element:

_ Humans are the engine of growth

_ Humans are the goal of development

_ Human factors in socio-economic development

III OPPORTUNITIES AND CHANLENGES IN THE INTEGRATION TIME:

Despite the fact that Vietnam is in what called “the golden population” period with sufficient and substantial labor supply, there are still some great opportunities and challenges imposed on this

developing country as in the integration time

Opportunities

An enormous amount of labor force as well as young population structure According to the General Statistics Office (GSO), in 2018, Vietnam has about 94 million of labor in which 55, 16 million is above 15 years of age Labor rate of the 15 above employed was estimated about 54 million including 20,9 million working in the agro-forestry-fishery (38,6%), 14,4 million in the industry and construction sec tor (26,7%) and 18,7 in the service industry (34,7%)

Over time, Vietnam’s work productivity has also proved significant change as gradually increases through years and is considered to have such high growth rate comparing to the whole ASEAN As reported by GSO, labor productivity of the economic as a whole according to ruling price in 2018 is measured about 102 million VND/labor (US $4,512), a rise of 346 USD compared to 2017 At

comparative prices, on average, the 2016-2018 period increased by 5.75%/year, higher than the

increase of 4.35%/year the 2011-2015 period

In addition, labor quality of Vietnam over the past few years have amazingly been step by step uplifted For this reason, trained employment is now partly responded to the business along with the labor 

market requirements. Vietnam’s technical workforce has successfully mastered science – technology,  been able to undertake almost all the complicated positions of work in business production which  previously had the foreign experts hired. 

For ambitious learners, this could open to them multiple study opportunities for knowledge 

enhancement. Granted access to much more advanced overseas training programs plus easier career  searching, simply because the labor market is not only domestic but also on a mass level of ASEAN.  Diplomas and certificates are likely acknowledged in regional countries therefore facilitates recognition

by other countries as well

Vietnam will soon become a destination for the international investment flow, it can possibly 

contribute to the development of investment projects which are technically and large­scale pioneered to help narrowing the labor productivity gap, generating external direct investment capital together with  management level upgrading, human resources training and career building for the employee.  

Challenges

The competition of high­quality human resources will take part strongly on a worldwide, regional and  national level. Therefore, the possibility of worker transferring from country to country requires well­ trained expertise, international environment working ability with defined standards by the labor market According to the World Bank (WB) professionals, the knowledge as well skills along with attitude and  psychology needed for working in ASEAN countries of Vietnamese workers happenes to be not fully  prepared

Unfortunately, there is still a continuously spanning gap between vocational education and labor  market demand. At the same time, the shift of models and economic structure result in the change of  supply and demand. Meanwhile, training sectors have not been able to keep up with employment trend

Concerning labor management, limited foreign labor market information access should be taken in  account, the operating of system is currently known as working in progress. 

Low job quality is also another issue that needs mentioning. Low employment support resources,  leaving uncertainty of resolving programs and projects. Labor restructuring is still slow, agriculture  portion is considered as still high labor quality is low, trained workers takes about 51.6% in general,  however only about 21.9% of which is over 3 months trained (granted certificate)

Furthermore, aging population is yet another obstacle and probably inevitable for Vietnam, the biggest  disadvantage is that it could take over of the young labor force from time to time. As environmental  disaster is occurring, the economy as a whole could severely be affected by climate change, causing  serious downturn for some industries including competing advantage

As surveys showed, the integration ability of Vietnamese students, the adaptation for different working  environment in terms of practical thinking and realistic realization as well as working styles are being  concerned as some major step backs. 

IV REALITIES:

Currently, Vietnam has abundant labor force and young labor structure According to the General Statistics Office in the first quarter of 2019, Vietnam had about 94 million employees, of which, the labor force aged 15 and over accounted for about 55.4 million people, the proportion of labor force aged 15 and over having jobs in the first quarter of 2019, it was estimated that 54.3 million people, including 19.2 million people working in agriculture, forestry and fishery (accounting for 35.4%); 15.6 million industrial and construction sector (accounting for 28.6%); 19.5 million service sector (accounting for 36%) At the same time, Vietnam's labor productivity has improved significantly in the direction of increasing steadily over the years According to the General Statistics Office, labor productivity of the whole economy at current prices in 2018 was estimated at 102 million VND / labor (equivalent to US $ 4,512), an increase of US $ 346 compared to 2017 At constant prices, labor productivity in 2018 increased by 5.93% compared to 2017, on average, the period of 2016-2018 increased by 5.75% / year, higher than the increase of 4.35% / year of the period of 2011-2015

The quality of Vietnamese labor in the past years has also been gradually improved, the trained labor has partly met the requirements of enterprises and the labor market Vietnam's technical workforce has mastered science - technology, undertaken most of the complex positions in production and business which previously had to hire foreign experts

But besides, the quality of Vietnamese labor force is still limited According to the World Bank, the rate

of labor in the trained age is low, the shortage of skilled labor and foreign language skills have not met the needs of the labor market and integration The gap between vocational education and labor market needs is growing At the same time, the shift in the model and economic structure caused supply and demand in labor to change, while the training sector in the school could not keep up with the trend of

using labor of enterprises The survey showed that the integration ability of Vietnamese students after graduation in the new working environment, the ability to adapt to change, practical skills and awareness, working styles are also significant challenges for Vietnamese workers

According to a recent study by the Institute of Social Labor Science, currently labor productivity in Vietnam and the level of corporate governance are very low; currently two-thirds of workers are lacking in skills and technical skills; 55% of enterprises find it difficult to find high quality labor, while over 60% of FDI enterprises are planning to expand investment in Vietnam If the quality of labor resources is not improved, it is difficult to attract investment

Moreover, the country has about 17 million rural youth aged 15-30, accounting for 70% of the youth and 60% of the rural labor However, 80% of these people have not yet received professional training This feature is a major obstacle for rural workers in finding jobs Most migrant workers only register temporary residence, have no household registration, face difficulties in housing, study, and medical treatment The educational level of migrant workers is low and most of them have not received vocational training Most of the industrial and export processing zones – in which up to 30% of migrant workers do not have social infrastructure services (dormitories, kindergartens, cultural houses, vocational training and social insurance ), migrant workers have limited access to basic social services This situation has led to the consequence that the labor supply is unable to meet the economic development needs of regions, industrial parks and export processing zones

At the same time, Vietnam will face the problem of population aging, which will make the advantage

of the young workforce diminish over time Another problem is that the economy will be severely affected by climate change, causing some industries to decline sharply and to compete

The quality of human resources is one of the slowest transformations of Vietnam's economy This is reflected in Vietnam's low position in the world and regional labor productivity rankings After more than 30 years of renovation, when the size of the economy has increased dozens of times, the delay in rank of labor quality has really become a potential risk to Vietnam And in the period when Vietnam is following the integration trend, this will lead to a very high competitiveness in the labor market, while the readiness of vocational education in Vietnam is still slow Increasing competition between our country and countries around the world in the provision of high quality labor forces requires the quality of vocational education to be substantially improved towards access to standards of regions and

of the world in order to increase the ability to recognize certificates and diplomas between Vietnam and other countries

V SOLUTIONS:

After having an thoroughly overview of Vietnamese human resources, the advantages, blemishes, reality, and what challenges to face in globalization increasing background as well We can see that demand for labor sources changes rapidly and requires higher qualities in both academic knowledge and practice skills ever than before these days In order to improve the quality of our human resources,

to meet the incresing requirements of the labor market and international economic integration, in the oncoming period, it is necessary to build up several solutions that are synchronous, practical and feasible

1 Innovation in education and training programmes:

Above all, we have to admit the fact that Vietnam’s education system still remains many shortcomings Most lecturers in colleges and universities tightly stick with the traditional, old-fashioned, rudimentary and lacking of pratical connections teaching methods Furthermore, the facilities have not accommodated to training requirements yet All of that failures result in the post-trained human resources barely meet the increasing demands of society in the trend of rapid development and strong, profound impact on all aspects of social life of Industry 4.0 Thus, the education and training system should be considered and assessed comprehensively with many new requirements and challenges, including:

- Renovate the education requirements, promoting practical skills training sections in the direct of opening, integrating, globalizing Always keep proactive attitude to catch up with the trend and needs of labor market In other words, the nationwide trainning system cannot uphold old method which is lacking of interactivity and practicality That may lead to the risk of being draggled and eliminated our of the advanced labor forces Both theorical contents and training programmes should be renovated in order to respond to rapid changes from the reality instead Moreover, linking educational trainning with scientific research and technology application ought to be focused more For instance, promote researches on the development of automatics, invest in research groups in the fields of digital technology, information technology, software technology, satellite information, digitalization, new energy and technology, new materials, biotechnology,…

- Review training qualification of universities and colleges comprehensively Promptly renew teaching methods at advanced education levels, apply the application of new technologies into

teaching activities and improve the qualificaction and quality of lecturers, teachers as well as administrators In addition to academic abilities, lecturers must have new competences, creative capacities gaining though self-training, fostering professional knowledge, and associating research with simulation researchs, interactive research,… Besides, pay attention on salary regime, remuneration being suitable with real situation and work requirements would create motivations for the lecturers to be committed with the education career

2 Conduct the discovery, fostering, recruiting and utilizing high-quality and talented human resources, exploit their intelligence in research, manufacture, application of research results.

Also encourage them to take advantage of learning, improve professional qualifications and skills.Since then, building a team of leading officials, good experts in the fields, organizations and businesses

3 Promote the forecasting of labor market needs in the near future and beyond: Because

Industry 4.0 would have a great impact on the structure of the economy, there would be decline

or loss of many industries as well as the emergence of new industries which will lead to huge changes in employment structure

4 Conduct propaganda and consultancy: to create a profound change in the awareness of the

importance of vocational education to the whole society and career guidance for young generation, attracting students into science and technology fields, grow scientific and technological skills

5 Encouraging domestic vocational training system to cooperate with international training programmes and scientific reaserch Create an environment to attract foreign talented and

experienced teachers and scientists over the world to participate in the process of training, scientific research , technology at Vietnamese advanced education institutions

6 Promote socialization to increase capital resources for human resource development.

Government has mechanisms and policies to mobilize capital from people to invest and contribute to human resource development

7 Continue to renovate government’s management on human resource development In

particular, it is necessary to focus on perfecting and , improving the capacity, efficiency the human resource management apparatus

VI CONCLUSION:

In conclusion, it can be said that success or failure, making good use of opportunities or overcoming risks and challenges from the current industrial revolution 4.0 in Vietnam depends critically on the method of exploitation labor force, especially in the construction and development of high quality human resources We are supposed to thoroughly understand how to exploit and develop the

advantages and overcome the shortcomings as well Only by that way that we could be able to build a extremely high qualificattion human resource and always adapt to the increasing requirements of the era of globalization and international integration Having said that Vietnamese human resource considered possesses several advantages, on the other hand there still remains many weaknesses might harm the potential to the development of naional economy In order to overcome those shortcomings, many solutions have been considered in many aspects of society including: education, training, society awareness and in young generation’s mindset…