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Employment Policy Convention, 1964 (No. 122) - Viet Nam (RATIFICATION: 2012)

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Articles 1 and 2 of the Convention. Implementation of a national employment policy. In response to the Committee’s previous comments, the Government indicates that in the three-year period from 2017 to 2019, 4,529,000 jobs were created. Thereafter, due to the impact of the COVID-19 pandemic, the labour force participation rate was estimated at 74 per cent in 2020, a decrease of 2.8 percentage points compared to 2019. Given the difficulties and challenges caused by the pandemic, the Government adopted legislation and employment measures in order to develop job generation policies for workers, especially those in the disadvantaged groups. Measures and policies to support workers affected by the pandemic contributed to ensuring a quick labour market recovery. The report also refers to the employment measures and programmes implemented during the reporting period, including the Targeted Programme on Sustainable Poverty Reduction for 2021–25, and the Targeted Programme on Socio-Economic Development in Ethnic Minority and Mountainous Areas for 2021-30. In terms of an assessment on employment in the coming years, the Government indicates that the trend of population ageing requires appropriate employment policies for older workers. The Committee notes in this regard from the OECD’s 2023 Economic Survey of Viet Nam that, for the years ahead, a rapidly ageing population will start to weigh on economic growth. With regard to employment policies for older workers, the Committee notes that the Decent Work Country Programme (DWCP) 2022–26, signed on 28 March 2023 between the Government, employers’ and workers’ organizations and the ILO, aims under Contribution 1.1.1.6 to improve social partners’ and stakeholders’ ability to develop gender-responsive active labour market policies for job creation and transition of the elderly. It also notes that the DWCP 2022–26 aims, under Outcome 1.1, to strengthen national capacities to formulate and implement evidence-based policies and strategies, and enhance enabling ecosystems for inclusive, transformative and sustainable agriculture, industry and service sectors for decent work. More specifically, Output 1.1.1., under Outcome 1.1, aims to strengthen social partners’ capacity to formulate a new generation of national employment policies addressing country-specific future of work challenges. With respect to the above information, the Committee wishes to stress that employment policies can indeed play a significant role in addressing population ageing by promoting the labour force participation of older workers. By encouraging older workers to remain in the workforce or re-enter the workforce, employment policies can help to alleviate labour shortages, address skills gaps, and promote economic growth. The Committee would therefore be grateful if the Government would share information concerning how it intends to address population ageing through employment policy, indicating in particular whether measures envisaged include any of the following good practices: (i) removing or reducing disincentives to work, including through lifting pension accrual limits or eliminating rigid retirement rules; (ii) promoting flexible work arrangements for older workers, such as part-time work, telecommuting, or flexible hours; (iii) developing lifelong learning and skills development for older workers in order to update their skills or acquire new skills to remain competitive in the labour market; (iv) providing targeted support for older workers facing specific barriers, such as age discrimination, low levels of education, or health limitations and promoting age diversity and inclusive workplaces through diversity training, awareness campaigns, and initiatives to address age-based stereotypes and biases; (v) strengthening partnerships between employers and training providers to identify the specific skills needs of older workers and develop tailored training programmes to address those needs; and (vi) promoting entrepreneurship and self-employment among older workers by providing them with the support and resources they need to start or run their own businesses. The Committee also asks the Government to provide information on how employment policy responds to the challenges and opportunities associated with the future of work in the face of the technological advancements, demographic shifts, and globalization trends transforming the labour market so as to prepare workers for the future of work, ensure their employability and well-being, and promote inclusive and sustainable economic growth. The Committee also reiterates its request that the Government provide information on the procedures for deciding on and reviewing employment measures implemented within the framework of an overall economic and social policy.

Informal economy. The Government indicates that in the 2016–19 period, prior to the COVID-19 pandemic, formal employment increased on average by 5.6 per cent per year, and informal employment increased by 3.6 per cent. In 2020, the number of informal economy workers reached 20,300,000, an increase of 119,100 compared to 2019, and workers employed in the formal economy totalled 15,800,000, a decrease of 21,100 compared to 2019. In 2021, the number of workers in both formal and informal employment decreased, with the number of workers in the informal economy at 19,800,000, and the number of workers in formal employment at 15,400,000. The rate of informal economy workers in the first 6 months of 2022 was 55.9 per cent, recording a reduction of 1.3 percentage points compared to the same period in 2021. The Government indicates that, in order to limit the growth rate of informal economy workers and promote the transition of workers from the informal to the formal economy, the National Assembly, government agencies and other stakeholders have developed and implemented a number of regulations and policies. For example, the Ministry of Labour, Invalids and Social Affairs is also proposing to review the Employment Law to include additional regulations which will serve as a basis for improving the productivity and working conditions in the informal sector, and contributing to the gradual formalization of informal employment. The Law on Social Insurance is also being studied and may be amended to ensure the synchronization and close connection between the social insurance policy and other social policies, and expand social insurance policies for the informal economy. The Committee notes from the DWCP 2022-26 that one contribution under the Country Priority 3 “Governance for Decent Work” aims to reform labour market institutions to improve labour standards for all workers and formalize the informal economy. The Committee welcomes this information and the recognition that employment policies play a significant role in promoting transitions from the informal to the formal economy by addressing the factors that drive individuals and enterprises to operate informally. As such, comparative best practices suggest that when properly designed and implemented, they can play a catalytic role in accelerating the transition from the informal to the formal economy, leading to more inclusive, productive, and resilient labour markets by creating an enabling environment that encourages formalization, while also providing targeted support to facilitate the transition process. The Committee would be interested to receive further information on specific measures taken to tackle the multiple challenges proper to the work in the informal economy, indicating in particular whether the measures taken or envisaged have included some of the following: (i) reducing administrative burden and red-tape; (ii) strengthening and extending social protection as a means to enrol enterprises and their workers; (iii) promoting access to finance and business development services, including access to credit and training, as these are often lacking for informal enterprises; (iv) enhancing labour market placement and intermediation and skills development services; (v) raising awareness and promoting formalization; (vi) tailoring policies to specific sectors and occupations as the informal economy is not monolithic, and informalization patterns vary across sectors and occupations; (vii) promoting dialogue and collaboration among all relevant stakeholders for effective policy formulation and implementation; and (viii) monitoring and evaluating policy impacts as this is crucial to assess policy effectiveness in promoting transitions from informality to formality.The Committee also requests the Government to continue to provide detailed up-to-date information, including statistical data disaggregated by sex and age, on the rates of informality in the country. Referring to its comments on the Employment Service Convention, 1948 (No. 88), the Committee wishes to draw the Government’s attention to the possibility to mobilize the potential of ILO tools created to showcase approaches, tools and good country practices that can support policymakers develop and implement more effective employment policies compliant with ILO standards in this subject area and refers to the Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204). The Committee requests the Government to provide detailed information on the measures taken to facilitate the transition of workers, including ethnic minorities and other disadvantaged groups, from the informal to the formal economy.

Collection and use of labour market information. The Committee notes the detailed statistical information provided by the Government on labour market trends during the 2019–22 period, including employment, unemployment and underemployment data, in both urban and rural areas. The Government indicates that, in 2020, the number of employed workers aged 15 years and over totalled 53.4 million, a decrease of 1.3 million workers compared to 2019. Due to the COVID-19 pandemic, the number of underemployed working-age workers was approximately 1.2 million in 2020, an increase of 277,800 people compared to 2019. The underemployment rate increased from 1.50 per cent in 2019, to 2.51 per cent in 2020, and to 3.1 per cent in 2021. The Government further indicates that, in the pre-COVID-19 period, the overall unemployment rate had always remained below 3 per cent from 2012 to 2019, while unemployment reached 3.22 per cent in 2021 (4.42 per cent in urban areas). The Government indicates that Viet Nam’s labour market is recovering quickly, with the unemployment rate decreasing to 2.39 per cent in the first six months of 2022. The Committee observes that employment policy and solid labour market information systems (LMIS) have a strong and mutually reinforcing relationship – employment policy aims to promote full, productive, and freely chosen employment, while LMIS provides the data and analysis needed to develop and implement effective employment policies. Labour market information systems are essential in monitoring the impact of employment policies, providing data to evaluate the effectiveness of different interventions. They also provide insights into the current and projected labour market trends, including employment, unemployment, and wage levels, but also to identify skills gaps and mismatches, to inform policy decisions on education, training, and apprenticeships. The Committee therefore requests the Government to continue to provide updated labour market information on the situation, level and trends of employment, unemployment and visible underemployment, disaggregated by age, sex and region.

Rural employment. In response to the Committee’s previous comments, the Government indicates that, as a result of the implementation of the project Vocational Training for Rural Workers by 2020, nearly 10 million rural workers were provided with vocational training during the 2010-20 period, reaching 96 per cent of the project’s target. As a result of the vocational training, 84.1 per cent of workers found a new job or remained in their current job but with increases in labour productivity and earnings. The Committee notes that 1,540,000 people were trained in 2021 in elementary and continuing training programmes, with approximately 800,000 rural workers having received vocational training. With respect to the implementation and results of the Targeted Programme on Vocational Education–Employment and Occupational Safety for the period of 2016–20, the Government indicates that positive results have been achieved, with vocational education enrolment in the period reaching 11,077,000 students (an increase of more than 21 per cent compared to the results of the 2011–15 period). The Committee notes this information with interest and requests the Government to continue to provide updated information on the impact of vocational training projects for rural workers, including statistical data on the number of trainings and beneficiaries disaggregated by age and sex. It also requests the Government to provide information on the consultations held with the representatives of rural workers in the development and implementation of employment and vocational training measures.

Groups vulnerable to decent work deficits. The Government indicates that the labour force participation rate of women was 68.7 per cent in 2020 (64.8 per cent in urban areas and 79.7 per cent in rural areas), 10.9 percentage points lower than that of men with 79.6 per cent. In 2021, the number of women workers was 23.5 million, accounting for 46.5 per cent of the labour force. The youth unemployment rate in 2020 was estimated at 7.1 per cent (10.63 per cent in urban areas and 5.45 per cent in rural areas), increasing to 8.48 per cent in 2021. Regarding the implementation and results of the Targeted Programme on Vocational Education–Employment and Occupational Safety for the period of 2016–20, the Government indicates that positive results were achieved, including career guidance and counselling services provided to 148,892 people, including 121,576 young people, 23,290 migrant workers, 1,665 persons from ethnic minority backgrounds; 1,352 rural women, and 1,009 persons with disabilities. The Committees notes that the job creation goals in the National Targeted Programme on Sustainable Poverty Reduction in the 2021-25 period include that 100,000 workers from poor households or near-poor obtain successful job placements. From 2017 to 2019, job creation loans from the National Employment Fund resulted in creating, maintaining and expanding jobs for 438,431 workers, including 288,198 women workers, 22,532 people with disabilities, and 27,944 people from ethnic minority backgrounds. Moreover, due to the job creation support policies, women and disadvantaged workers have been able to access preferential loans for developing their production and business, creating jobs for themselves and community members (rural workers accounting for 90 per cent, women workers accounting for 55 per cent, ethnic minority workers accounting for 10 per cent, workers with disabilities accounting for 5 per cent, young workers accounting for 60 per cent). The Government indicates that the National Strategy on Gender Equality for the 2021–30 period aims at further narrowing the gender gap, creating conditions and opportunities for women and men to participate and enjoy equal benefits in all areas of social life, contributing to the country’s sustainable development. Some targets of the Strategy include increasing the proportion of waged women workers to 50 per cent by 2025 and about 60 per cent by 2030. The Committee requests the Government to provide detailed information on the content and impact of programmes, policies and strategies, including the National Targeted Programme on Sustainable Poverty Reduction in the 2021-25 period and the National Strategy on Gender Equality for the 2021-30 period, aimed at promoting employment and the creation of decent jobs for specific groups of workers, including women, persons with disabilities, ethnic minorities and young persons.

Education and training. In response to the Committee’s previous comments, the Government refers in its report to the Law on Vocational Education which ensures equal rights to vocational education, regardless of gender. The Government adds that a number of measures have been taken to ensure women’s equal access to career guidance and training in relation to different economic sectors, including training support policies to encourage vocational training and diversify training types. Training support policies target persons eligible under preferential policies, including ethnic minorities, poor and near-poor households, persons with disabilities, and other social policy beneficiaries in order to create opportunities for them to attend vocational training. The Government also refers to the participation of the social partners in vocational training. For example, during the 2016–20 period, the Viet Nam General Confederation of Labour (VGCL) has actively participated in vocational education activities through a system of vocational education institutions and schools, showing an estimated enrolment result of 346,042 people in that five-year period (an increase of 48 per cent when compared to the 2011–15 period). Since 2019, the Viet Nam Chamber of Commerce and Industry (VCCI) has also conducted vocational education and training activities. The Government adds that many enterprises have established their own vocational training institutions to train workers for themselves or more generally. In 2016, there were 291 vocational training institutions belonging to enterprises, out of a total of 1,467 vocational institutions. The Committee takes due note of the above information and requests the Government to continue to provide detailed information on the implementation and results of education and training measures undertaken, and in particular their impact on employment of women and young people. It also requests the Government to continue to provide updated information on the involvement of the social partners in the design and delivery of education and training programmes in the manner which responds to the needs of the labour market.

Employment services. The Committee refers to its comments under Convention No. 88.

Article 3. Consultation with the social partners. In response to the Committee’s previous comments, the Government indicates that the Employment Law Drafting Committee was responsible for organizing the drafting of the Law on Employment. Following the Law on Employment’s adoption by the National Assembly in November 2013, which came into effect in January 2015, the Employment Law Drafting Committee was dissolved. The Committee notes from the report that the Government is developing a proposal to review the Employment Law, which was expected to be submitted to the National Assembly in May 2023 for inclusion in the Law and Ordinance Development Programme. A new Drafting Committee and Editorial Team, with members from relevant ministries and agencies, the Viet Nam General Confederation of Labour (VGCL) and Viet Nam Chamber of Commerce and Industry (VCCI), will therefore be established. With respect to tripartite consultations more generally, the Government indicates that the Ministry of Labour, Invalids and Social Affairs regularly consults with the social partners in the process of formulating, adopting and implementing employment policies, such as the Targeted Programme on Vocational Education, Employment and Occupational Safety for the period 2016–20, the Targeted Programme on Sustainable Poverty Reduction for 2021-25, and the Targeted Programme on Socio-Economic Development in Ethnic Minority and Mountainous Areas for 2021–30. The Committee requests the Government to continue to provide information on consultations held with the social partners with respect to the formulation, implementation and review of employment policies and programmes. It also reiterates its previous request that the Government provide information on the consultations held with the representatives of rural workers and workers in the informal economy.