The Ministry of Labour, War Invalids and Social Affairs (MOLISA) released the Vietnam Employment Trends Report 2010 in Hanoi on Jan. 24, offering the most up-to-date information available on the changing state of Vietnam’s dynamic labour market.

According to 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.

However, objectives of the Decent Work Agenda are being achieved. The proportion of vulnerable employment decreased to 4.3 percent due to an increasing share of wage and salaried employment (2.9 percent) and own-account work (8.2 percent).

The report also showed that Vietnam ’s labour force participation increased during the period. 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. However, there has been a structural shift of Vietnam’s labour market away from relatively low productivity, labour intensive agricultural jobs towards higher value-added, 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 maintain a projected level of 21.1 million by 2020.

At the meeting, MOLISA Minister Nguyen Thi Kim Ngan said as a basis for more effective labour market policies in the years to come to create stable jobs in the future, it is necessary to focus on developing job creation models and methods, restructuring, increasing productivity, improving job quality and implementing unemployment insurance policy effectively, Ngan said.

Rie Vejs-Kjeldgaard, director of the International Labour Organisation Office in Vietnam , stressed the importance of labour market information and analysis, describing them as key factors in creating more sustainable jobs and helping investors and decision makers have a clearer picture of employment trends.
Sustainable job is the most sustainable way to lift people out of poverty and is correspondingly a key target of the Millennium Development Goals (MDGs), she said.

Ambassador of the European Union to Vietnam , Sean Doyle said that as one of Vietnam ’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 continuing economic development successfully in Vietnam .

This is the second in an annual series of reports prepared by the National Centre for Labour Market Forecast and Information, part of the MOLISA’s Bureau of Employment, with technical support coming from the ILO through the Labour Market Project – a European Union funded initiative./.