Vietnam: “Labour market assessment: identifying opportunities for vulnerable Vietnamese from selected provinces of Vietnam” (an International Organization for Migration’s (IOM) publication)

IOM Vietnam conducted a labour market assessment with employers in five key target provinces in Vietnam (Quang Ninh, Hai Phong, Nghe An, Ha Tinh and Quang Binh).
It aimed to understand the nature of labour and skills demand and supply in these areas, identify the key sectors that influence the type and quantity of employment opportunities and identify the socioeconomic impacts of COVID-19 on the local labour market in the perspectives of the employer, government and employee.

The publication is produced by Rapid Asia at the request of IOM under the Tackling Modern Slavery in Viet Nam project, funded by the United Kingdom’s Home Office. It analyses the country’s economic and social structures and their transformation over the past 30 years, focusing on the impact on employment in agricultural, manufacturing and service sectors.

The main outcomes of the assessment are the following:

while in the early 2000s agriculture was by far the biggest employer in Viet Nam, today, services and agriculture sectors are almost equal. In all three sectors, there is an increased demand for high-skilled jobs with an oversupply of low-skilled labour:

As more technology enters the workplace, there will be a growing demand for particular skills from potential employees. At the same time, the labour market needs to adapt and close the gap between high demand and low supply for information technology skills, also considering the rise of digital platforms and e-commerce and the new forms of work that can be performed remotely;
the most common method for employers to find workers is direct recruitment through formal channels such as in-house human resources or recruitment firms;
most employers stated that they provide basic job entitlements, such as minimum wage, overtime, leave and health insurance. However, the minimum wage jobs are not commensurate with standard costs of living, making it difficult to keep potential workers in Vietnam:

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there is a gender earnings gap, as women’s wages are lower and often below subsistence;
employers have to face with skills-matching, particularly in construction (engineers and site managers) and manufacturing (quality controls, machine operators, technicians and engineers);
the COVID-19 pandemic has led to job losses and underemployment and this has a major impact on employers. The problem is more pronounced in relation to so-called vulnerable workers, informal workers and migrants, who are currently without social security.

The report concludes with some recommendations. First of all, there is the need to increase access to vocational training for jobseekers from vulnerable groups and, more in general, to build on existing vocational and education programmes already in place and making them more tied to market realities, inclusive and relevant.

Moreover, it is important to encourage any existing social safety net programme to continue and evaluate how effective they are in reaching vulnerable populations.

Finally, upskilling is needed to access emerging job opportunities, as well as further research with gender perspective to understand how to assist vulnerable populations best.