Country Report No. 6 2023: Policy Implications for Labor Market Issues in Vietnam

Attending the seminar, on behalf of the University of Social Sciences and Humanities, VNU, there was the presence of Assoc. Prof. Dr. Dao Thanh Truong - Vice Rector of the school, leaders of functional departments, Faculty of International Studies, faculties/institutes of the school.
On behalf of the Hanns Seidel Foundation, Federal Republic of Germany (HSF), there was the participation of Mr. Michael Siegner, Chief Representative of the Foundation in Vietnam;
On the side of the Ministry of Labor, War Invalids and Social Affairs, there was the participation of Dr. Trinh Thu Nga - Deputy Director of the Institute of Labor Science (ILSSA) and Social Affairs, Ministry of Labor, War Invalids and Social Affairs.
The seminar welcomed experts to participate in the discussion, including Professor Javier Revilla Diez from the University of Cologne, Germany; Dr. Darjusch Tafreschi from the Vocational Education Reform Program in Vietnam (GIZ Vietnam); Associate Professor Dr. Dang Hoang Linh - Head of the Faculty of International Economics, Diplomatic Academy of Vietnam.
The seminar attracted many scientists, experts from research institutes, universities, domestic and foreign organizations, and students of the University of Social Sciences and Humanities.
The National Report draws on research results from many scientists and policy makers.
Speaking at the opening of the seminar, Associate Professor, Dr. Dao Thanh Truong - Vice Rector of the University of Social Sciences and Humanities, VNU, said that this is the sixth National Report on Vietnam, following previous reports on the environment, population aging, digitalization, consequences of war, female labor, etc. The report was conducted by a tripartite cooperation between the University of Social Sciences and Humanities, VNU, Justus Liebig Giessen University (Germany) and Hanns Seidel Organization (Germany) in Vietnam.
Following the success of previous reports, publication No. 6 of 2023 has the participation and contributions of leading scientists in this field from prestigious units at home and abroad such as the Institute of Labor Science and Social Affairs (Ministry of Labor, War Invalids and Social Affairs); University of Law (VNU); Ho Chi Minh National Academy of Politics, Cologne University (Germany), Justus Liebig Giessen University (Germany), Diplomatic Academy... and units of the University of Social Sciences and Humanities. Assoc. Prof. Dr. Dao Thanh Truong hopes to continue receiving cooperation from scientists to build the National Report into a brand of the University of Social Sciences and Humanities, clearly demonstrating the position and role of VNU-USSH as a research university and a prestigious policy consulting agency nationwide.
Mr. Michael Siegner - Chief Representative of Hanns Seidel Foundation in Vietnam said that the 2023 Country Report No. 6 once again affirms the efforts of Hanns Seidel Foundation in collaborating with partners in academia and government. For more than 15 years, HSF has collaborated with many stakeholders with the aim of providing policy recommendations to enhance social inclusion and security in Vietnam.
Overview of the outstanding issues of Vietnam's labor market
By providing annual independent information on the political, economic and social issues of a country in transition, the Country Report receives valuable research from scientists, experts and policy makers.
Along with the renovation process of Vietnam over the past 40 years, Vietnam has increasingly realized that labor resources are valuable capital, an important driving force for the impressive socio-economic development of the country. With historical legacies that are both in the general context and have their own unique characteristics, one of the fundamental issues in the transition from a centrally planned economy to a socialist-oriented market economy in Vietnam is the formation of a labor market based on supply and demand with state management and regulation. Along with the formation and development of the labor market, issues related to the quality of human resources, labor productivity and labor relations management have also been raised, requiring a comprehensive assessment, from which appropriate solutions can be found to promote this valuable resource.
According to Associate Professor, Dr. Dao Thanh Truong, the National Report on the topic "Labor Market in Vietnam" is VNU-USSH's answer to the above issues as one of the leading research units in social sciences and humanities.   The seminar received many valuable research results in prominent fields that are of interest to state agencies, organizations, research institutes, and universities, with publications being published asNational Report No. 6, 2023 “Labor Market in Vietnam”300 pages bilingual Vietnamese - English.
The first part of the publication provides basic information on the labor market in Vietnam (author Dang Hoang Linh) and introduces the domestic and international legal framework (author Ngo Minh Huong).
The second part discusses in more detail the formal (author Le Thi Thanh Ha) and informal (author Trinh Thu Nga) domestic labor markets, employment in rural areas and labor migration to cities and industrial centers (author Nguyen Thi Phuong Mai) and women and their opportunities and difficulties in the world of work (authors Vu Thi Minh Thang and Nguyen Thi Thuy Hang).
The third part focuses on the country's new challenges, including necessary reforms in vocational education and enterprise training (author Phung Le Khanh) and the need to innovate education at the country's universities (author Lai Quoc Khanh).
Two other articles examine the balance between labor migration, brain drain, business start-ups of Vietnamese returning home, and the important role of remittances from overseas workers (author Nguyen Tuan Anh) with the role and awareness of the labor force.
Foreigners in Vietnam (Detlef Briesen).
The fourth part of the publication provides more general information (authors Nguyen Thi Thuy Trang and Luu Thi Thuy Huong) about the labor market in Vietnam related to labor laws, policies and research. In addition, author Luong Thi Han has summarized in her article (concepts and terms) the most important terms with some explanations.
Many policy implications in the field of labor market in Vietnam
At the seminar, scientists discussed and proposed many policy implications for many aspects of the labor market in Vietnam.
According to Dr. Trinh Thu Nga, the Institute of Labor Science and Social Affairs is developing comprehensive recommendations to improve the situation of informal workers in Vietnam. In the report on "Informal employment and gender aspects in Vietnam", Dr. Trinh Thu Nga proposed a number of important recommendations such as strengthening propaganda, dissemination, raising awareness as well as the importance of formalizing informal employment, labor laws and promoting gender equality in labor and employment; increasing access to decent jobs for both men and women in informal employment, especially female workers; and strengthening social security for informal workers. To overcome the disadvantages and reduce the vulnerability of informal sector workers, the State needs to have specific support policies and solutions to expand protection to this group of workers, thereby promoting them in socio-economic development. According to Associate Professor Dr. Dang Hoang Linh - Head of the Faculty of International Economics, Diplomatic Academy of Vietnam, to meet market demand, vocational education focuses on technical and vocational training. Since 2018, the number of colleges, universities and vocational schools in Vietnam has increased sharply. In addition, the Government has issued new decisions related to the labor market for construction and at the same time developing the labor market factor, supporting the mobilization and efficient allocation of resources. This will allow Vietnam's workforce to share and contribute equally to the market in each socio-economic region. Last but not least, the Government's approach to achieving sustainable development is to increase the retirement age starting from 2022 to deal with the problem of population aging. In the report on “Formal sector labor in Vietnam today”, Associate Professor, Dr. Le Thi Thanh Ha - Institute of Philosophy, Ho Chi Minh National Academy of Politics, proposed solutions: (1) it is necessary to have policies to improve the quality of formal sector labor, restructure labor in accordance with the economic structure; (2) amend salary policies, incentive policies and use of talents in the formal sector according to the Party's guiding viewpoint.
The seminar also received high appreciation from scientists and policy makers for the scientific content in the research results as well as valuable policy implications, contributing to the success of the National Report on the Labor Market No. 6. Prof. Dr. Nguyen Tuan Anh - Chair of the seminar - summarized the speakers' sharing and thanked the comments and exchanges, and emphasized the selection of appropriate topics and research in the current context. On behalf of the group of authors, Dr. Detlef shared: "The goal of this report is not to provide an immediate solution to the problems of the labor market in Vietnam but to create a basis for more in-depth discussions on this topic".             Speaking about this Country Report, Mr. Michael Siegner, Chief Representative of Hanns Seidel Stiftung Foundation in Vietnam said: “The content of this report explores the unique blend of tradition and modernity that characterizes the Vietnamese labor market, while providing insights for policy makers, businesses and researchers.”
Previously, since 2021, the University of Social Sciences and Humanities, in cooperation with the Hanns Seidel Stiftung Foundation in Vietnam, has published 5 National Reports in many different fields and received high appreciation from many agencies, organizations and scientists.