Ha Noi, 24 January 2011 - The Vietnam Employment Trends Report 2010 was released today by the Ministry of Labour, Invalids and Social Affairs (MoLISA) offering the most up-to-date information available on the changing state of Vietnam’s dynamic labour market. It is the second in an annual series of reports that highlight recent labour market gains, and reveal the patterns of employment impacting the decisions of policy makers and investors alike. The report also sheds light on the extent to which employment objectives are being achieved in Vietnam.

The report was prepared by the National Centre for Labour Market Forecast and Information, part of the Bureau of Employment (BoE) under MoLISA. Technical support came from the International Labour Organization (ILO) through the Labour Market Project - a European Union funded initiative.

This new report highlights that several important gains have been made between 2007 and 2009. Madame Nguyen Thi Kim Ngan, Minister of Labour, Invalids and Social Affairs highly appreciated the achievements of the report regarding the analysis of labour market performance, trends of employment, unemployment and underemployment during 2007 – 2009, which serve as a basis for more effective labour market policies in the years to come.

Rie Vejs-Kjeldgaard, Director of ILO Office in Vietnam, underlined: ‘Labour market information and analysis is a key factor in creating more and better jobs, helping investors and decision makers have a clearer picture of employment trends. Decent Work* is widely seen as the most sustainable way to lift people out of poverty and is correspondingly a key target of the Millennium Development Goals (MDGs).’ She also said: ‘The Vietnam Employment Trends report brings together an important collection of relevant data and analysis on Vietnamese labour market. The labour market information system behind the report will continue to offer sustained benefit to the future of Viet Nam, by offering a timely and ongoing overview of the changes that are taking place.’

Ambassador of the European Union to Vietnam, Sean Doyle, said ‘As one of Viet Nam’s largest markets for its exports and one of its biggest sources of Foreign Direct Investment, the EU sees the efficiency of the labour market as a core element in the continued success of the economic development of Viet Nam’

Findings from the report:

During the period between 2007 and 2009 Vietnam was challenged by a troubled global economic climate, which had a significant effect on the labour market. Looking at the employed population, several important trends were detected during this period.

Importantly for the fight against poverty, objectives of the Decent Work Agenda are being achieved. The proportion of vulnerable employment decreased by 4.3 percentage points due to increasing share of wage and salaried employment (2.9 percentage points) and a decreasing share of own-account work (8.2 percentage points). However, increases in unpaid family work (4.0 percentage points) during this same period went against a declining overall trend in vulnerable employment.

Vietnam has a relatively high employment-to-population ratio, with almost 75 percent of those aged 15 and above in employment. However, facing global financial instability Vietnam’s labour force participation increased between years of 2007 and 2009. The increasing labour force participation rates for young men and women aged 15 19 years from 37.1 percent in 2007 to 43.8 percent in 2009 suggest that a significant number of teenagers are leaving the education system to seek work to support themselves and their families.

The largest sector of employment in Vietnam remains agriculture, forestry and fisheries, with employment of nearly 23 million in 2008. This shows the structural shift of Vietnam’s labour market away from relatively low productivity, labour-intensive agricultural jobs towards higher value-added, and more technology - and capital-intensive industries and service sectors. For most of the projected future, employment in agriculture, forestry and fishing is likely to decline, and will reach a projected level of 21.1 million by 2020. Better qualified, and more highly skilled workers will be needed to fuel this shift, and Vietnam’s growth as a successful middle-income country.

For further information please contact:

Ms Le Thi Huong Lien

Communication Officer

ILO Office in Viet Nam

Tel: +84-4-37340902 ext 206

Mob: +84-(0)913237328

Email

* Decent Work is productive work carried out by women and men in conditions of freedom, equity, security and human dignity.