Generating 15 million jobs in the 2001-2010 period

To fulfill the goals of Vietnam’s socio-economic development strategy in the 2001-2010 period on job generation, the Ministry of Labour, Invalids and Social Affairs (MoLisa) has set up an employment strategy to restructure labour force in conform with the restructuring of the economy in order to meet the demands of employers, improve labour productivity and people’s living conditions and increase incomes. The detailed goal is to generate 1.5-1.6 million jobs, reduce the unemployment rate in urban areas to below 6 percent in 2005 and below 5 percent by 2010. The rate of skilled workers accounted for 30 percent in 2005 but is intended to grow to 40 percent by 2010.

Vu Dai Dong, Head of the Department of Labour and Employment under the MoLisa said job creation will be conducted through socio-economic development, exporting guest works and experts and implementing a national target programme on job creation which pay a special attention to young people and workers in rural areas.

High economic growth helps generate jobs

Since 2001, Vietnam’s Gross Domestic Product (GDP) growth rate remained relatively high, ranking third among ASEAN countries, achieving 7.5 percent on average in the 2001-2005 period and 8.2 percent in 2006. The GDP growth rate is expected to reach 8.4-8.5 percent this year. The attraction of local and foreign investment has increased rapidly while small and medium-sized enterprises (SMEs) have developed strongly. By the end of 2006, the total number of enterprises registering business operations reached 234,000 including 113,000 enterprises operating in the country. Currently, the country has 150 industrial parks, which have generated stable jobs for labourers.

Socio-economic development programmes generated 5.55 million jobs in the 2001-2005 period, 1.222 million jobs in 2006 and 1.17 million jobs in 2007.

Workers generate jobs thanks to national fund

Vietnam is creating a national target programme on job creation in the 2001-2005 period and till 2010. Under the programme, a project to borrow capital from the National Fund for Employment Creation has played a key role in generating jobs for workers. Annually, the government approves supplementary capital sources for the programme based on employment plans. By 2007, the fund has provided total loans of VND2,900 billion to SMEs, villages, collectives, farms and households with preferential policies.

Thanks to the national target programme on job generation, so far, about 30 provinces and cities across the country have set up funds to create jobs for local people. The capital source from the national fund and local funds for job generation which is delivered to localities thorough social organisations, such as the Vietnam Labour Confederation, the Farmers’ Association, the Women’s Union, the War Veterans’ Association and the Blind Association, has become an important factor in creating jobs for labourers.

Several many effective job generation centres using assistance loans have been established, such as a handicraft production centre in Dong Ky, northern Bac Ninh province, brocade weaving centres in south-central Bih Thuan province and northern Hoa Binh province, a ceramics production centre in southern Dong Nai province, farming development models in the southern provinces of Binh Phuoc, Tay Ninh, Lam Dong, Ben Tre and Hau Giang, and cage fishing centres in northern Hai Phong and Quang Ninh provinces.

100,000 guest workers to be recruited in 2010

So far, Vietnam has sent workers to 40 foreign countries and territories with more than 30 craft categories. The quality of Vietnamese guest workers has improved as over 50 percent of them have attended vocational training courses.

From 2001 to 2005 nearly 100,000 small projects received loans to generate jobs for 1.67 million workers.
- In 2006, 350,000 people were employed.
- In 2007, an additional 350,000 are expected to get jobs.
 
According to the Overseas Labour Management Department, from 2001 to 2005, 295,100 labourers were recruited to work abroad. In 2006, 78,800 people worked overseas and the figure amounted to 80,000 in 2007.

At present, more than 400,000 Vietnamese guest workers have been working abroad. Labour export activities have reduced the unemployment rate in the domestic market and have helped many people stabilize their lives. However, there still remains some shortcomings, such as the high rate of untrained workers, poor awareness of the importance of following occupational disciplines, the large numbers of guest workers violating labour contracts and weak labour management capacity.

During a recent two-day seminar on employment on December 17-18, John Hendra, a United Nations coordinator in Vietnam, said sustainable job generation is a key to develop human resources, reduce poverty rate and boost social integration.

The seminar, themed “Decent work”, aimed to created stable jobs for both male and female workers in an equal and safe manner. Stable jobs mean labourers can receive decent incomes, work in a safe environment and enjoy social welfare, he added.

According to Sachiko Yamamoto, director of the International Labour Organisation (ILO) office in Asia-Pacific, job generation in Vietnam is facing many challenges. In particular, there is an urgent need to keep balance between competition, productivity and sustainable employment in the global integration process.

Source: VNEconomy.