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Vietnam Today

WB: Employment shifting towards manufacturing and services

Released at: 13:48, 22/07/2015

WB: Employment shifting towards manufacturing and services

Taking Stock report notes changes in jobs by industry over the years.

by Doanh Doanh

The latest Taking Stock report from the World Bank details a dramatic shift in the employment landscape over the past 25 years. Despite such changes, only 11 per cent of Vietnamese workers have private sector wage jobs.

While jobs in Vietnam were once characterized entirely by family farming, collectives, and State-owned enterprises (SOEs), employment has now shifted towards manufacturing and services, household enterprises outside of agriculture, and private domestic and foreign-owned enterprises.

The report notes that labor regulations and institutions can be an important factor in private sector wage growth.

Taking Stock provides suggestions for further transforming Vietnam’s labor market, including more proactive measures being adopted to strengthen the industrial relations system, balance labor market flexibility with sustained productivity growth, and manage social risks in a more market-oriented economy.

In particular, Taking Stock notes that Vietnam lacks well-functioning institutions for collective bargaining and dispute resolution. The report offers suggestions on ways to address these weaknesses and promote a better functioning labor market.

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