Economic Reforms, Manufacturing Employment and Wage in Vietnam

Economic Reforms, Manufacturing Employment and Wage in Vietnam
Author: Kien Trung Nguyen
Publisher:
Total Pages: 416
Release: 2014
Genre: Industrial capacity
ISBN:

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The purpose of this thesis is to examine patterns and determinants of manufacturing employment and wages in Vietnam during the process of economic transition from a centrally planned to a market- oriented economy during the period 1990-2011. The thesis begins with an interpretative survey of the theoretical and empirical literature on manufacturing employment and wages in a labour-abundant economy, in order to provide the analytical context for the Vietnam case study. The second chapter surveys the market-oriented economic reforms in Vietnam over the last quarter century, with special emphasis on policies directly relevant for examining labour market outcomes. The next four chapters form the analytical core of the thesis. Chapter 4 examines structural changes in employment patterns in the economy with emphasis on the shift in the patterns of labour deployment from agriculture to manufacturing. Chapter 5 probes the impact of manufacturing export expansion on sectoral employment patterns. Chapter 6 deals with the determinants of inter-industry patterns of manufacturing employment, paying particular attention to the role of export orientation and firm ownership. Chapter 7 focuses on the determinants of manufacturing wages and wage premium. The empirical analysis in these four chapters makes use of a new firm-level panel dataset compiled from unpublished returns to the Annual Enterprise Survey undertaken by the Vietnamese General Statistical Office. The final chapter summarizes the key findings and provides policy implications. The findings suggest that the reforms have resulted in a significant shift in the pattern of labour absorption in the economy from the agriculture to manufacturing over the past three decades. Employment expansion in the manufacturing sector has been underpinned by a significant change in the employment pattern by ownership. Private sector firms, especially foreign-invested enterprises (FIEs) have played a pivotal role in labour market transition. In particular, FIEs in export-oriented industries have accounted for the bulk of new jobs in the manufacturing sector. The expansion of manufacturing exports contributed to a notable increase in overall employment growth. Additionally, there has been a considerable spillover effect of export expansion on job creation in other sectors. There is also evidence that FIEs generally pay higher wages compared to both state-owned enterprises and domestic private firms, and the presence of export-oriented FIEs has contributed to widening the wage premium between skilled and unskilled workers. In general, the Vietnamese experience of employment generation through export-oriented strategies is comparable to that of the other East Asian economies. However, growth of manufacturing employment in Vietnam has begun to falter from about 2006, owing to macroeconomic policy slippage. The findings in this thesis make a strong case for sound macroeconomic management in order to sustain the favourable labour market outcome of liberalization reforms.

Economic Reform in Vietnam

Economic Reform in Vietnam
Author: Keith Griffin
Publisher: Springer
Total Pages: 217
Release: 2016-01-20
Genre: Business & Economics
ISBN: 033399521X

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Vietnam, along with China, stands out as a rare success story among transition economics. This authoritative study of the reform process since 1989 pays particular attention to the way the macroeconomics framework can contribute to an environment that encourages human development and helps to reduce poverty. Thus there are chapters on macroeconomics reforms, international trade policies, the role of the state, rural development, education and health, environmental issues and poverty and gender inequality. Although areas of weakness are indicated, emphasis is placed on the success Vietnam has experienced compared to other transition economies. The lessons of both the successes and failures of the reform process for policymakers elsewhere are outlined.

Light Manufacturing in Vietnam

Light Manufacturing in Vietnam
Author: Hinh T. Dinh
Publisher: World Bank Publications
Total Pages: 155
Release: 2014-01-29
Genre: Business & Economics
ISBN: 1464800359

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Based on a wide array of quantitative and qualitative techniques, Light Manufacturing in Vietnam identifies key constraints on manufacturing enterprises in Vietnam and evaluates differences in firm performance across China and Vietnam.

Economic Reform and Employment Relations in Vietnam

Economic Reform and Employment Relations in Vietnam
Author: Ngan Thuy Collins
Publisher: Routledge
Total Pages: 233
Release: 2009-09-10
Genre: Business & Economics
ISBN: 113523003X

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The transformation of the Vietnamese economy from socialist planning to a market economy has led to Vietnam having one of the fastest economic growth rates in the world; and to also to Vietnam engaging much more with the international economy, joining the World Trade Organisation in 2006. This book fills a significant gap by surveying the economic reforms in Vietnam, where most studies have concentrated on other ‘young tiger’ economies. In particular it discusses the transformation of employment relations which have been a key part of the reforms and a necessary pre-condition to WTO membership. It examines the nature of employment reforms, analyses the motivation behind new policy initiatives and examines the detail of reforms in a range of business enterprises, reporting on extensive original research. Throughout it shows how several key forces have interacted – globalisation, government political interests, national cultural norms, market, managerial ideology and the special characteristics of particular firms – to produce a particular Vietnamese brand of post-communist market economy. Overall, this book illuminates the how employment relation practices are formed in transitional economies, and more broadly the economic and political transformation of socialist economies in the context of the global market.

Vietnam

Vietnam
Author: Patrick Belser
Publisher: World Bank Publications
Total Pages: 40
Release: 2000
Genre: Exports
ISBN:

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Between 1993 and 1997, Vietnam was one of the fastest growing economies, with GDP increasing almost 9 percent a year and the industrial sector expanding roughly 13 percent a year. This paper addresses the impact of that economic growth on employment.

Skilling Up Vietnam

Skilling Up Vietnam
Author: Christian Bodewig
Publisher: World Bank Publications
Total Pages: 193
Release: 2014-07-02
Genre: Business & Economics
ISBN: 1464802319

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The demand for workforce skills is changing in Vietnam’s dynamic economy. In addition to job-specific skills, Vietnamese employers value cognitive skills, like problem solving, and behavioral skills, like team work. This book presents an agenda of change for Vietnam’s education system to prepare workers to succeed in Vietnam’s modernizing economy.

Economic Growth and Employment in Vietnam

Economic Growth and Employment in Vietnam
Author: David Lim
Publisher: Routledge
Total Pages: 208
Release: 2014-03-21
Genre: Social Science
ISBN: 1317818601

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Vietnam has enjoyed significant economic success since the implementation of its "doi moi" reforms, including rapid growth in GDP, exports and foreign and domestic investment, and a shedding of poorly-performing state-owned enterprises. Despite this, however, the economic situation for many ordinary people in Vietnam is fragile, with income only just above the poverty line, and high unemployment, especially among the young. In addition, inflation is high, and the state-owned sector is still large, much of it still performing badly. This book provides a comprehensive overview of the current economic situation in Vietnam. It outlines the state of the economy, paying special attention to employment, discusses government policies including on trade and integration with the global economy, and concludes by assessing the key challenges facing Vietnam’s economy going forward.

The Shaping of Women's Salaried Employment During Economic Reform in Vietnam

The Shaping of Women's Salaried Employment During Economic Reform in Vietnam
Author: Phuong Pham
Publisher:
Total Pages:
Release: 2016
Genre:
ISBN:

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Working in the labor market is a crucial transition in every person's developmental process, especially for women. Employment earnings provide financial contributions to the household, enhance women's bargaining power, and contribute to their self-esteem. In transitional economies, like Vietnam, the initial stages of economic development often involve industries targeting women, namely light manufacturing like garments and textiles. However, in rural areas, where the majority of Vietnam's population resides, paid employment is not easily accessible. Even after entering the labor market, women are disadvantaged in pay, promotion, and benefits. Examining women's employment and wages in Vietnam is particularly significant because the transition from a centrally planned socialist economy to a free-market based system may mean women are losing ground as protections afforded to them under socialism are removed. My dissertation is comprised of two studies. In "Multilevel Correlates of Women's Salaried Employment in Rural Vietnam," I use multi-level logistic regression analyses to examine commune level and individual level variables that influence women's wage labor. Using data from the 2012 Vietnam Household Living Standards Survey (n_individual = 5155, N_cummune = 1645), I find support for structural explanations for women's employment. Communes that have a higher per capita number of poor households decrease women's chances of working, especially among highly educated women. Individual factors associated with women's employment include education, being married, the number of small children, and non-earned income. While better education increases employment probabilities, being married, having young children, and increased non-earned income decrease employment probabilities. Prior studies on multilevel determinants of women's employment have mainly focused on the country as the macro level and individual as the micro level, leaving middle level community characteristics unexamined. Thus, this paper fills an important research gap by including middle level factors, and the findings are directly relevant to government economic development programs and policies. The second study, "How Did Women Fare in Vietnam's Labor Market during Economic Reform?" uses the Mincerian earnings equations and Oaxaca decomposition methods to examine female returns to education and the gender wage gap during Vietnam's intensive economic reform process. Using interaction terms between ownership type and time, the paper tests the effects of reform timing on female labor status. For this study, I use data from three waves of the Vietnam Household Living Standards Survey: 1992, 2002, and 2012. This two decade time span captures a more complete trend than previous studies in terms of returns to education and the gender wage gap during Vietnam's long reform process. Results indicate that women had higher levels of education and enjoyed higher returns to education than did men during 1992-2012. However, the gender wage gap, which decreased during 1992-2002, began to increase during 2002-2012. Additionally, more than 100 percent of the gender wage gap during the second period was attributed to differences in how males and females were treated in the labor market. These findings stress the importance of Vietnam's continual efforts in promoting reform programs that ensure gender equality and a level playing field in the labor market so that earned wages accurately reflect human capital. In particular, the increasing gender wage gap in the second economic period highlights the value of not completely abandoning socialist policies that emphasized women's equality in the newly adopted free market system. Specifically, future policies should focus on the effective banning of any kinds of discrimination against women in recruitment, pay, and promotion.

Employment Generation Through Private Entrepreneurship in Vietnam

Employment Generation Through Private Entrepreneurship in Vietnam
Author: Per Ronnås
Publisher: International Labour Organization
Total Pages: 184
Release: 1992
Genre: Business enterprises
ISBN: 9789221085591

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As a result of the economic reform programme in Vietnam the private sector has assumed a key role as engine of economic growth and source of employment and income generation. Yet, information on this sector has been woefully inadequate. The present study provides a first comprehensive investigation of the private non-farm sector in post-reform Vietnam, based on a large field survey of rural and urban non-state enterprises in both the south and the north in 1991. The economic and operational characteristics of these enterprises, their development track and growth constraints, linkages with othe.