Vietnam for the Southeast Asia countries. Therefore, Viet

Vietnam
has become one of the potential countries in Asia to attract a great variety of
investors from Japan, Korea, China, etc.thanks to the rapiddevelopment of the
industrialisation. Moreover, Viet Nam’s active business environment, young
population, growing wealth, changing consumer attitudes, greater mobility and
urbanisationare pushing Viet Nam through a period of great change (the World
Bank’s Doing Business 2017 Report). In particular, Nguyen XuanPhuc, Prime
Minister of Viet Nam,asserted that Viet Nam continued to drive the global
economic integration agenda and expected to maintain annual average GDP growth
rate of 6.5% to 7% over the period of 2016 – 2020. However, the labourmarket in
Vietnam has significantlychanged in recent years, especially in the
unemployment rate. According to VOV news, a popular online news in Vietnam,
Ministry of Labor, War Invalids and Social Welfare mentioned that in 2016, the rate
of unemployment increased rapidly in many fields and youngsters,who have bachelor’s
degree,made up the highest proportion in that group (more than 500.000 people).That
status is getting worse till now whereas many companies have needed a huge
workforce. Therefore, the labour market in Vietnam contains various
opportunities but it still faces serious challenges.

2.Discussion of findings

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2.1. Opportunities in labour market

2.1.1.The increase in foreign
investment

Viet
Nam has achieved a noticeable shift in economy in recent years. The inflation
fell quickly from a peak of 28.24 % in August of 2008 to 2.6% in December of
2017 and slightly changed in the previous month (Vietnam Inflation rate,
Trading Economics). In addition, after joining the World Trade Organisation
(WTO) in 2007, Viet Nam has boosted to become an open economy and opened a wide
door for the Southeast Asia countries. Therefore, Viet Nam is one of the most
attractive destinations for foreign investors in South East Asia, especially
Korea (29%), Japan (11%) and Singapore (10%). Comparing to the past, about a
century ago, Viet Nam attracted few foreign investors and the amount of money
invested was not huge. For instance, in 2007, Vietnam obtained the foreign
investment capital of US$11.26 billion with 99 projects. On the other hand, many
great opportunities of FDI (Foreign Direct Investment) have come to Vietnam
thesedays. Vietnam is considered “a key investment location” with such great
advantages as the rapid growth of population and potential resources which
businesses cannot ignore (FDI Opportunities in 2017 for Vietnam, Unilaw). In
2016, this country experienced a breakthrough and reached a very high level of
investment. FDI rose to nearly US $24.4 billion, pointing to a nine percent
growth, as opposed to 2015. During that period, 2,556 registered projects,
1,225 existing projects and 2,547 companies of foreign investors supported the
development of Vietnam’s economy. Moreover, there have been an increasing
number of investors coming from more than 95 countries in the world.

As
a result, the increase in foreign investment has led to a huge chance for the workforce
in Vietnam. When more and more companies will be established and expanded, more
and more employees will be recruited.

2.1.2. Job market in diversifiedoccupations

Vietnam
has known as an agricultural country which means that the agriculture has been
the main economic base in this country (Wikipedia). Thanks to it, the economy
and the livingstandardof Vietnamese could remain quite stable in the past. Additionally,
the transition of economy in Vietnam with noticeable achievements via DoiMoi – an
economic renovation and the appearance of the globalization have led to the
development of economy. In recent decades, this developing country has tended
to enlarge the industrialised process as well.

Consequently,
labour market in Vietnam not only includes many manual jobs in the agricultural
field such as farmers, workers, etc. but also contains a massive quantity of
mental jobs requiring competitive employees with different levels of wage. For
example, one of the most promising job fields nowadays is Information
Technology, which accounted for a vast number of employees in 2017. IT field
needs such a strong workforce that the IT recruitment has increased 20 times in
2017, comparing to 2016 (twquota36, Doanhnhan Viet Nam). Moreover, occupations
in economic field such as accounting, banking, business administration,
advertising and PR or restaurant management are extremely large since there is
a high demand of the recruitment (VietnamWorks). Almost those jobs require the
employee’s knowledgeand the level of salary which they are paid depend on their
own work experience and qualification. That will definitely make wonderful
opportunities for people who want to find a job.Therefore, standing in that
situation, people have many different choices to look for a job that it is
suitable for their skill and their strength.

On
the other hand, job market in Vietnam also has great chances for people who do
not have high degree of their knowledge. Being employees in big companies is
another good choice for job seekers. For instance, SamSung, one of the big
groups focusing on electronic devices, established two companies in Vietnam and
hired a giant workforce in 2015 with 84.000 Vietnamese workers (Atsushi
Tomiyama, Asian Nikkei) which just demand simple conditions such as graduating
from high school, career standard and so on. In addition, many textile
companies, thesedays, invest a huge amount of money in Vietnam including
foreign companies and Vietnamese companies such as May10,Oriental Vietnam Co.,Ltd.,
Kondo Textile, Gunze Vietnam,…etc which contains about 120 companies in
Vietnamese market (Apparel and accessories in Vietnam, Vtown). In those
companies, they do not require high experiences or high skills in employees
recruited as well.

In
short, seeking a job in Vietnam, citizens will have a variety of selection to
decide. Following this, they may have a chance to find a job field which make
them sastisfied most to work and choose suitable ones with their competence.

2.2.Challenges in labour market

2.2.1.Lack of skilled and qualified
employees

According
to the stastics of the Vietnamese Ministry of Labour, Invalids and Social
Affairs, Viet Nam is considered as a country with one of the biggest
beneficiaries from the AEC’s information. A lot of jobs will be supplied in
2025, comprising 9.5% of the total new employment options in ASEAN
(Opportunities and Challenges Face Vietnamese Labourers in AC, Vietnam Pictiorial).
Nevertheless, the employee’s quality is inadequate including soft skills or
knowledge.

Employees,
especially graduates lack essential soft skills. In Viet Nam News, the author
claimed “enterprises had located in key economic areas of the South where the
industry and supporting services are developing had raised concerns over the
lack of soft skills of graduates despite the enhanced co-operation between
universities and colleges and enterprises”. The reason briefly lies in their
education at school. Only 45% of schools include soft skills in their studying
programs which makes up a tiny 3% of the total course (ChinhPhong, Vietnam
workers lack soft skills). As a result, according to the research of the Hanoi
Institute for Socio Economic Development Studies, in big cities wheremany
companies and groups are located, there are a vast number of unskilled workers such
as 41.4% of the labor force in Ha Noi, 64 % in HaiPhong, 54.5% in Ho Chi Minh
City and 62.9% in Vung Tau. They lack necessary such skills as team-building,
communication, problem-solving, computing skill and foreign languages. Rose
Chu, director of the Human Resources Department of the G Fashion Viet Nam
Company told that almost students nowadays are trained so much at school with
abundant therory but they are still weak at soft skills. Therefore, after graduating
from schools, they are usually anxious and can not show their competence well
(Graduates lack necessary soft skills for employment, Vietnam News). Moreover,
because of the effect of globalization, being good at a foreign language such
as English, Korean, Chinese or Japanese is an important advantage to find a
well-paid job, but it seems to be difficult to find employees who have adequate
language ability. For example, via a survey of Ha NoiMoi newspaper, it showed
that the number of university graduates with their confidence of English skills
comprise only 5 percent, whereas 27 percent considered their level of English
was bad(VietNamNet Bridge).

2.2.2. The unemployment in young
people (especially graduates)

Viet
Nam has been considereda country with a large volume of the young population.
This is the gold key to develop the economy but makes Viet Nam face the
unemployment rate in youngsters, especially in people who graduate from universities
or colleges.According to the research of the Institute of Labour Science and
Social Affairs (ILSSA) written in Viet Nam News, the figure of unemployed
graduates rose significantly in the second quarter of 2017, whereas that of
unemployed people in the whole country tended to decrease marginally. A big
number of students could not seek jobs when they finished all courses in the
school with valuable certificates. 183,100 people in bachelor’s or master’s
degrees is a noticeable number via the report of the ILSSA and the rate of
unemployment and during that time, the number of unemployed Vietnameses in
working-age was about 1.08 million in the second quarter, 20,000 fewer than in
the prior quarter. Moreover, many reseachers in that field reported that the
labour market in Vietnam in 2017 was added more than 200.000 bachelors who
might not have a fixed job (VietNamnet). Additionally,the unemployment is not
only caused by graduates but aslo is generated by other young people who are
not satisfied with jobs which they are able to find easily such as waiters,
shippers and so on. They prefer the career with high wages and wait for mental
jobs. Therefore, the balance between a number of white-collar employees and
blue-collar employees does not happen. The former attracts a huge quantity of
young population while the latter is in the risk of an inadequate workforce. That
boosts the rate of unemployment in VietNam into a extreme serious problem.

3. Conclusion

The
labour market in Viet Nam still deals with bad points and tries to catch more
achievements to improve the economy of this country. Unemployment is a major
problem which the government have not tackled effectively yet. Besides, out of
balance in the number of employees in different job fields also become an
outstanding point nowadays such as too many masters, too few laborers. If that
status continues in the further future, it will be a burden for Viet
Nam’s society. The government should launch reasonable measures to combat the
problem as soon as possible like they can focus more on soft skills of students
to help them choose the right job after graduating from schools. In additon,
making more opportunities for unemployed people through training them is
another good one.