Vietnam’s labor market: opportunities as well as challenges
The ASEAN Economic Community (AEC) and FTAs have brought more job opportunities to workers but also challenges as Vietnamese workers will have to compete with international staff in the home market.
A study of ILO International Labor Organization) and ADB (Asian Development Bank) found that AEC would help Vietnam’s GDP grow by 14.5 percent more by 2025 and the number of jobs increase by 10.5 percent.
With EVFTA, the average job demand for skilled workers is expected to increase by 28 percent, while the figures are 23 percent for low skilled workers and 13 percent for highly skilled workers. There would be opportunities to improve millions of lives.
The Institute of Labor Science and Social Affairs predicted that with EVFTA, in 2021-2030, Vietnam would have 18,000-19,000 more jobs a year, mostly in the production and service sector.
In HCM City, according to the Center for Human Resource Forecast and Labor Market Information, in 2020-2025, the city needs 310,000-330,000 jobs each year, including 140,000 new jobs. The worker demand is expected to increase because the city continues to maintain high growth and supports small and medium enterprises, and startups.
The demand for workers in four groups of industries, including electronics - IT, mechanical engineering, chemicals – plastics – rubber, and food and foodstuff processing account for 21 percent.
|A report shows that from now to 2025, HCM City will need 12,400-13,200 workers in the healthcare sector a year, 52,700-56,100 workers in technical consultancy, and 12,400-13,200 workers in architecture and construction engineering.|
Meanwhile, the demand in nine business and service fields account for 55 percent, and the remaining 24 percent belongs to biotechnology, architecture – construction engineering, textile & garment – footwear, fashion design, communication technology, agricultural technology and seafood processing
In addition, electronics - information technology, services - warehousing, trade, tourism, finance - banking, insurance, architecture, construction and environment also continue to attract human resources.
Staff working in these fields are mostly those with high technical and professional qualifications, intensive training, high level of knowledge and good skills training, and good foreign language skills.
Experts warned that though worker demand is on the rise, it will not be easy to find good jobs.
In the context of 4.0 industry, businesses have to apply high technology and adjust the production process to adapt to the new circumstances. They will need workers with professional and technical qualifications, equipped with many skills.
AEC and EVFTA have created an ‘open labor market’ in which workers can move freely and seek job opportunities in member countries.
There are eight occupations that can freely move within ASEAN through similar recognition agreements, including accountants, architects, practitioners of medicine, nurses, dentists, technical consultants, surveyors, and jobs in the travel industry.
A report shows that from now to 2025, HCM City will need 12,400-13,200 workers in the healthcare sector a year, 52,700-56,100 workers in technical consultancy, and 12,400-13,200 workers in architecture and construction engineering.
Large companies are not recruiting workers, while small and medium enterprises (SMEs) are laying off workers as they cannot maintain a big staff during the Covid-19 crisis.
I owe a debt to Vietnam. Maybe I can give something back. Maybe I can just be better.