Summary of economic doctoral thesis labor market at mekong delta

HO CHI MINH NATIONAL ACADEMY OF POLITICS

NGUYEN VAN DUNG

LABOR MARKET AT MEKONG DELTA

Course : Political of Economy
Number : 62 31 01 01

SUMMARY OF ECONOMIC DOCTORAL THESIS

HA NOI - 2014


Research was completed
at Ho Chi Minh national academy of Politics

Supervisor: Vice Prof, Ph.D. Nguyen Khac Thanh

Examiner 1: ................................................................
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Examiner 2: ................................................................
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Examiner 3: ................................................................
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Thesis will be presented at Grading Thesis Council of Academy,
meeting at Ho Chi Minh National Academy of Politics
Hanoi, Date...... Month....... Year 2014

Thesis can be found at National Library
and Ho Chi Minh National Academy of Politics


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INTRODUCTION
1. The urgency of the studied issue
Labor force is an important input to all activities that produce wealth and
material for society. Along with other kinds of market, the labor market is an
organic component of the national economy. The formation and development of the
labor market in relation to an overall relationship of types of market is objectively
essential in a market economy.
In a market economy, the arrangement of labor supply for the operation of
the economy as well as its components is mainly carried out through the labor
market. The labor market is part of the supply market of elements for production.
The size, capacity and level of organization of the labor market directly affect its
ability to balance between the supply of labor force and other elements of
production, and with outputs in the process of the operation of the economy.
Therefore, the growth of economic systems is always linked to the existing
situation of the economy, its ability to change in terms of size, capacity and level
of the labor market in each period.
The existing status of the economy and its ability to transform the labor
market depend on its organization of market and its operational mechanism. It
involves operational organization of participants in the market abiding by inevitable
relations of market and objectively operational mechanisms. Accordingly, the
State’s participation and intervention through appropriate policies into the
organization and operational mechanisms of the labor market is necessary in a
market economy with orientation. Such intervention is aimed at perfecting the
organization and the operational mechanism of the labor market and thereby

promoting its role in the growth of the economic system.
The process of doi moi (renewal) and economic growth in Vietnam has steps
by steps been shaping and developing the labor market within systems of the market
which supply the elements for production. The emergence of the labor market,
which plays the role of labor supply, has made a positive impact on the contents of
socio- economic development of local economies as well as of the national
economy. However, the evolution of the labor market over the recent past time was
quite complex, spontaneous and largely beyond State’s controls. Such evolvement
has not only made a negative impacts on the contents of socio-economic
development but also affect the ability to develop the labor market on the demand
of synchronous shaping of systems of market in the process of developing a
socialist oriented market economy. Such realities pose a demand for studies,
perfection of theory on the labor market, that is, the organization of the labor market
appropriate to the content of evolution and development of socialist oriented market


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economy in general and appropriate to distinctively economic zones in particular,
including Mekong Delta region.
In reality, the labor market in the Mekong Delta region has been shaped and
steps by steps growing. The development of the labor market in the Mekong Delta
region has contributed to the allocation of labor resources among sectors and
localities in an appropriate way, to the promotion of economic restructuring,
employment structuring in a right direction, and to the growth of economy.
However, problems related to the process of developing the labor market in the
Mekong Delta region always arises, which needs to be solved, including:
- Although the existing size of population and labor force in the Mekong
Delta region is relatively large, and despite positive changes in the quality and
structure of the labor, it does not meet the needs in terms of labor for socio economic development, causing a serious imbalance between supply and demand;
- The system for supports in terms of transactions on the labor market is still

limited. The vocational training centers and job agencies in the region are high in
quantity but low in quality, due to the fact that they primarily focus on vocational
training, not on job consulting and job introduction. Activities take place at job fairs
have not met the demand of find seekers and employers;
- System of information for the labor market has been underdeveloped, does
not meet market requirements;
- The flow of labor migration with great scale and frequency occurs
frequently; especially, the migration between rural - urban areas and labor migration
to the outside of the region are spontaneous. Meanwhile, the management of free
movement of labor is inadequate, leading to security - social instability.
- The fast speed of urbanization leads many agricultural laborers to lack of
unemployment or job loss while there are no plans to train these laborers to help
them switch jobs;
- Policies that ensure employees’ benefits are not paid adequate attention, that
is, low incomes yet high costs of housing, living become barriers, which causes not
only many workers to go elsewhere to find jobs, but also frequent occurrence of
conflicts of benefit, labor disputes.
With the above-mentioned reasons, the issue here is how to organize the labor
market in the Mekong Delta region that is capable of ensuring the supply of labor
and meeting labor needs, limiting a tendency of spontaneity of labor migration,
reducing the negative impacts of the labor market to socio-economic development
in the region. At the same time, the issue of how to build a system of mechanisms
and policies which are appropriate, not only distinctive but also feasible in order to
develop the labor market in the Mekong Delta region is now necessary. This is the
very ground that I, as a the PhD candidate, would like to choose "The Labor


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Market in the Mekong Delta region" as my PhD dissertation in the field of
Political Economy

2. Objectives and tasks of the dissertation
2.1. The objective of the dissertation
On the basis of the systematization of theoretical and empirical issues on
labor markets, the dissertation focuses on analyses and assessments of changes in
the labor market of the Mekong Delta region. From then, the dissertation proposes a
number of solutions to the development of the labor market of the Mekong Delta
region in the upcoming time.
2.2. The tasks of the dissertation
To achieve the above-mentioned objectives, the dissertation shall:
First, systematize and analyze the theories as well and the practicality of labor
markets;
Second, study and sum up experiences of the development of labor markets
in some economic regions nationwide, then draw lessons of experiences for the
growth of the labor market in the Mekong Delta region;
Third, analyse and assess the existing status of the labor market in Mekong
Delta region with special characteristics. Basing on that, the dissertation states its
points of view and proposes some solutions for the development of the labor market
in the Mekong Delta region towards 2020.
3. Objectsts and scope of the research
3.1. Objectts of the research
The dissertation studies the labor market from the perspective of political
economy, mainly studies about the supply - demand relationship on labor markets
and the operational mechanisms of labor markets.
3.2. Scope of the research
- Period: the studies on the labor market of the Mekong Delta region with an
emphasis on data limited to the period from 2000 to 2011, the suggestion of
solutions proposed for the period towards 2020.
- Space: the studies on the labor markets of provinces and cities in the
Mekong Delta region.
4. Approach and methodology of the research

4.1. The approach of the research
The dissertation studies the labor market in the Mekong Delta, which is based
on the following approaches:
- The labor market of Vietnam in general, including the labor market of the
Mekong Delta region in particular, is a kind of markets in the market economy.
Therefore, it is studied, analysed, which is based on the objective rules of economy.


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- The objective of developing labor markets is to liberate the productive
forces of labor, rationalization of labor allocation; therefore, the object of the
research has to be put under the development of productive forces and international
economic integration.
4.2. The methodology of the research
* Theoretical studies:
The dissertation used basic methods of Marxist - Leninist political economy,
with reference to a number of theories on economics, developmental economics; it
was also based on the doi moi points of view and directions reflected in documents
of Communist Party of Vietnam Congress, and of provincial and city-level Party
congresses in the Mekong Delta region, the findings of previous several research
projects related to the dissertation. Basing on these, the author built a theoretical
basis for the research topic of the dissertation.
* Practical studies:
The existing status of the labor market of the provinces and cities in the
Mekong Delta region is the main object of the practical research of the dissertation.
The dissertation used analytical - synthetic methods, methods for collecting
and processing information. At the same time, the dissertation also summarized
practical experiences, which is based on the inheritance of findings related to the
dissertation.
For analytical - synthetic methods, the dissertation used questionnaires to

collect employees’ view on relevant issues. Due to the limitations of time and
funding, the dissertation only surveyed 600 employees of 6 provinces and cities
in the Mekong Delta region, including Can Tho, Hau Giang, Dong Thap, Long
An, Tien Giang, and Ben Tre. At the same time, the dissertation also used
expert methods in which 90 leaders, managers of agencies and businesses based
in the Mekong Delta region were interviewed to serve as a source of materials
for the studies.
5. New contributions of the dissertation
- Systemizing theories on the labor market which is based on the inheritance
and acquisition of Karl Marx's theory of value - labor, systemizing theories on labor
and the labor market by economists, and previous studies in order to introduce the
concept of labor market.
- Formatting a theoretical framework, including key concepts related to the
operation and development of the labor market. Analyze and evaluate factors that
objectively impact the labor market and build systems of institutions and tools to
regulate the labor market.
- Basing on the experience of developing the labor market in some Asian
countries and the results of developing the labor market in some economic regions


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in Vietnam, the dissertation generalizes some experiences that can be applied to
develop the labor market in the Mekong Delta region.
- The dissertation analyzes the advantages and disadvantages of natural and
economic - social conditions that affect the labor market and operational existing
status of the labor market in the Mekong Delta region. Basing on these, the
dissertation suggests what problems should be solved in the labor market of the
Mekong Delta region.
- Basing on the natural and economic - social characteristics of and the
existing status of the labor market of the Mekong Delta region, the dissertation

provides a basis of orientation and proposes 4 groups of solutions so as to promote
the development of the labor market in the Mekong Delta region towards 2020.
6. Structure of the dissertation
Besides the introduction, the conclusion and bibliography, the thesis is
structured into 4 chapters and 11 parts.

Chapter 1
OVERVIEW OF RESEARCH LABOR MARKET
The purpose of this Chapter is to study the works related to the thesis in order
to determine the theoretical and practical labor market, from which showing the
theses issues need further study. To ensure inheritance and affirm the contributions
of the thesis, dissertation divided the relevant scientific product categories:
publications (domestic and foreign) Ph.D thesis and scientific topics; specialized
journals. Based on this classification, the thesis shows that the study of the labor
market in Vietnam is still very small. In Mekong Delta region, there has not studied
about the labor market here yet. Therefore, the inheritance and collection of the
results from scientists, to add to the available range that is determined as thesis
research development next, with the following contents: 1) chemical system,
additional analysis and clarification of the rationale for the labor market, and
classification approach this particular type of market; 2) features different labor
market than any other market in the market system, the factors affecting the
constituent parts of the labor market; 3) matching the experience of market
development effort the nature of labor, the development of the region in a
comprehensive system of national market economy transformation is still quite new
problems need intensive research; 4) connecting the development experience labor
markets in some countries, an overview of the results of labor market regions nature
area in the development of the system of nation's market economy is the
transformation still relatively new issue in-depth research is needed.

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Chapter 2
THEORETICAL AND PRACTICAL BASE OF LABOR MARKET
The goal of this chapter is to systematize the theoretical issues and practical
labor market. To achieve this goal, the thesis focuses on the following issues:
2.1. Some general common problems in the labor market
2.1.1. The concept of labor market
On the basis of the concept of labor market researchers, thesis analysis with
different ideas, including the way that show is not correct about labor market.
According to the thesis, each explains has its own nuances derives from the
author's approach:
- Some authors present on the perspective of assessing employment status to
give a definition of the labor market definition emphasize the relationship in
regulating employment. Here, the labor market is a generalization definition, is the
contract that the demand - supply of labor are tied together;
- Some authors emphasize institutional issues of the labor market; consider
the labor market on the basis of assessment of the labor movement under the impact
of the system of social relations, economic institutions - given society;
- Other authors emphasize the relationship in regulating employment when
making the concept of the labor market.
- Another the author based on Karl Marx’s opinion. This point stated: labor is
goods and such as objects of exchange, buying and selling on the market to
introduce the concept of the labor market;
There is still no uniform called “labor power market” and " labor market ".
Labor market in terms of terminology is not entirely accurate, but in fact still use
popular terms rather than using the term “labor power market ". Thus, although the
wording is “labor market ", but need to understand here is “labor power market ".
According thesis can understand overview of the labor market as follows:
The labor market (or labor power market) is where the social relations between
sellers of labor (workers employed) and buyers of labor (labor power users),

through the form of agreement on price (wages and salaries) and other conditions of
employment, on the basis of an employment contract the writing, orally, or through
the form of contract or agreement khac.Voi the approach of the thesis, the concept
of labor market fully reflects aspects: 1) consistent with approach to the labor
market of specialized political economy; 2) adequately reflects the fundamentals of
the market; 3) Consistent with the objective requirements of the market economy,
the requirements requires synchronous development of the market categories in
which the labor market is an important component.


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On the basis of these concepts, the thesis continues to present the contents of
theoretical knowledge about the labor market:
2.1.2. Classification of labor market
Depending on the criteria and research purposes, the labor market is divided
in many perspectives, the thesis provide basic division: division a legal perspective;
management perspective, on the extent and nature of the market, according to the
nature of the market, according to the geographical perspective, skill, according to
the level of development of market institutions;... And there are many other
methods of distribution such as divided according to the level of maturity and scale
of the market regulator, divided by gender, division management level….
2.1.3. Characteristics and role of labor market
Thesis overview and basic characteristics of the labor market, such as:
* Characteristics of the labor market
First, the goods exchanged on the labor market are particular goods.
Second, the exchange of goods - labor has many differences compared with
the exchange of goods and other material
Third, the price of labor in the labor market due to supply relationships demand identifying labor needs. However, price is not the only signal to adjust the
supply relationship - for labor.
Fourth, prices of goods and labor are relatively stable and less likely to

respond flexibly to fluctuations in demand - supply on the market as other
common goods.
Fifth, in relation to transactions on the labor market, rather weak position in
negotiations always belongs to the employee.
Friday, in the process of buying - selling, using labor can to build the labor
positive relationship.
* The role of labor market
- Labor market ensures jobs for the population economic activity regularly,
connecting them to the manufacturing sector and services, enabling them to receive
income that help them to improve themselves, as well as to feed his family.
- Labor market provides sufficient information for both employees and
employers.
- Labor market promotes competition among workers to facilitate the
expansion of professionally employed, professional development and synthesis
capabilities for employees.
- Labor market secures the division and reorganization of economic activity
of the population regularly in case the reform, restructuring the economy.


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- Labor market increases the mobility of labor between firms in an industry,
across industries and regions together.
2.1.4. The elements of labor market
Supply of labor
Labor supply is the number of economically active population often, be
dominated by factors of population size, migration rates, labor rates and other
factors are economic, cultural, another society.... In which workers sell their labor in
a given time with a remuneration agreement.
Labor supply is affected by factors, including factors on population and
migration, economic factors, cultural factors - social.

Labor demand
Labor demand is the requirement for labor in order to meet the
requirements of economic development, the ability to attract labor in the
economy. On the labor market, labor demand is the amount of labor that tenants
can rent at acceptable prices.
Labor demand depends on factors such as changes in the volume of
production of the economy, productivity, economic situation, the price of goods on
the labor market; difference exchange rates of other resources, and the regulations
of the regime, the state's policy.
Price of labor
- On the labor market, wages and salaries are the price of labor
- Factors affecting wages, such as bow ties - the demand for labor,
commodity prices and services to meet consumer demand in the market, the
political factors - social...
Competition in the labor market
The operation of the labor market has created competition on this market: It is
the competition between buyers and seller of their labor, competition among buyers
of labor, competition between those who sell their labor together... which affects the
price formation of labor.
Competition is an important factor of the labor market, enterprises engaged in
the labor market or as a competitor or as a complete monopoly. Depending on
market conditions, but they may change accordingly.

2.1.5. Institutional system, organizations and tools to regulate the
labor market
Institutional system and organizations
- Institutional system of labor market includes:


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+ Legislative system control issues related to employment, namely the Labor
law, the Trade Union law, Social Security law and the guiding documents of the
Labor law.
+ Policies system relates to labor - jobs such as salary policies, wages,
insurance policies, employment policies, training policies and training again for
workers, supporting unemployment policies..
- The organizational structure of the labor market including: The institution of
state management of the labor market; representative organizations of workers,
organizations representative of employers, organizations professional and social
organizations, mass organizations and other non-governmental organizations.
System tools labor market include: vocational training system; system of
employment services and systems exporters of labor; statistical information systems
labor market; insurance system society.
2.2. Labor market in Vietnam
2.2.1. The basic characteristics of the labor market in the economy market oriented socialism in Vietnam
The thesis focused on exploiting the basic characteristics of the labor market
in the economy market -oriented socialism in Vietnam as:
Commodity value of labor, as well as the waste of social labor necessary to
produce and re- produce it decides. But it is done under the regulation of the
socialist state, the government of the people, by the people and for the people who
are always interested in labor and create conditions for comprehensive development
that meets the needs physical and mental requirements for employees to not only
work, but also gradually improve physical, mental ability in conditions allow.
The intervention of state in the labor market through value impact on
commodity labor power embodied in the wages policies of regulations state,
minimum wages for workers. This is the basis of ensuring equality relations
purchase - sale of labor power and maintain long-term relationships, stability in the
production and reproduction of labor. At the same time, workers are also concerned
by the stimulus through the form of rewards, allowances, distributed through social
welfare, unemployment benefits, subsidize, policy, so that they an active mind and

enthusiastic employees.
If the labor market of economy capitalist market, the value of goods using
labor primarily to satisfy the needs of the capitalists, manifest all relationships between employing labor and workers during bourgeoisie and proletariat. In the
contrast, the labor market - oriented market economy socialist, the form is still
between employing labor and workers, but the relationship is improved: the labor
seller and buyers are owners of society, in which rights and obligations are


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established on the basis of the legal system as: business law, labor law, law on
Cooperatives,... Since then, the number and quality of labors also increased.
The thesis also assess the limitations and weaknesses of the labor market in
Vietnam, from which, given the direction to develop.
2.2.2. Development orientation of labor market Vietnam today
The thesis has launched six major orientation as a basis for development of
the labor market in Vietnam in the context of international integration:
First, create a synchronous elements of the labor market in terms of domestic
and international integration.
Second, ensure distribution of labor to meet the needs of economic
development, thriving labor market official, paying special attention to business
development in large urban areas, the major economic regions, industrial parks,
export processing zones, supporting workers in areas in order to reduce the
differences between urban and rural areas, between economic regions, between
different types of businesses, among groups of workers skills and no skills.
Third, in the current period is to develop strategies based on sectors that is
using a lot of labors, export-oriented, promote the comparative advantages and
potential of the workforce but gradually eliminate dependent on cheap labor and
low skills, the next stage focuses on the needs of human resources for the
development of industry, services and technologies required to achieve the high
skill level of labor productivity central regional average.

Fourth, improve the quality of human resources through promoting skills
training, practice capabilities, system development education and training to meet
the needs of the labor market in the country and the need lifelong learning needs of
the people, standardized quality training according to international standards.
Fifth, ensure freedom of choice of employment and to promote labor mobility
to meet the needs of economic restructuring towards industrialization and
international economic integration, construction of infrastructure labor market and
institutions providing public services effectively.
Sixth, strengthen social welfare for workers while working and when
switching jobs.
2.3. Experience in the development of labor markets in some Asian
countries, some regions of Vietnam Economic and lessons learned for the
Mekong Delta
2.3.1. Experience developing labor markets of some Asian countries
The thesis focused on analyzing the development experience of the labor
market of Asian countries such as Japan, China, and Thailand. According to the
thesis, these countries are more successful resolution of labor and labor market


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conditions and economic transformation currently in the development process. In
addition, similarities in culture, geography, the potential virtues of hard-workers, are
the elements that thesis option these countries.

2.3.2. Development of the labor market in some regions of Vietnam economy
The thesis focused on analyzing the development experience of the labor
market some economic regions in Vietnam such as: 1) Convert the economic
structure, employment structure, developing the labor market in the Red Delta to
meet the requirements of industrialization and modernization shorter style; 2)
Promote the development associated industrial complex - services - tourism and

human resources training, create marketing breakthroughs to navigation the labor
force in Central Coast meet the requirements of economic restructuring towards
modernization; 3) Enhance the quality of education, human resource development,
promoting connections supply - demand creates new sustainable labor market in the
South East.
The reason for choosing thesis development experience labor market of the
Red Delta, Central Coast and South east regions, because according to the thesis,
these economies has achieved great success in in the development of the labor
market last time. It also has many similarities to natural conditions, economic social with the Mekong Delta region.

2.3.3. Experienced lesson in developing the labor market for Mekong
Delta region
Based on the experience of the economic zone in the country, the thesis draws
some lessons for Mekong Delta region can consult, apply to developing the labor
market as follows:
First, need to recognize more fully the role of the labor market for the process
of economic restructuring.
Second, respect the principle of uniformity of both supply factors - labor
demand in the construction of strategic economic development and labor market.
Third, to develop a high quality workforce to meet the requirements of
economic development and international integration
Fourth, connect supply - demand fair labor, there is a combination of
employees - business-employers. Provide information, manpower forecasting,
overcoming the “imparity”on the labor market.
Fifth, construction of mechanisms and policies to create a favorable
environment to attract resources to developing the labor market
Sixth, the implementation of links created breakthrough economic
restructuring, improve the quality of labor resources, and divert the labor market in
a reasonable manner.

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Chapter 3
EXISTING STATUS OF LABOR MARKET
IN THE MEKONG DELTA RIGION
The purpose in this chapter is analyzing, assessing the labor market in the
Mekong Delta area from 2000 to indicate existing drawbacks, then support
necessaries and determine approaches for the development in this market. Chapter 3
focus on resolved main contents:
3.1. Natural characteristics, economic and social that impact to labor
market in the Mekong Delta
3.1.1. The natural conditions of the area in the Mekong Delta affect the
development of labor market
3.1.2. Economic - social sector of Mekong Delta influence the development
of labor market
3.1.3. Evaluation of natural conditions, economic - social that affects
development of the labor market area in the Mekong Delta
Thesis has choosed and analysed of natural conditions, economic - social
development affect the labor market area in the Mekong River Delta, such as
geographical location, climate, natural resources, population, cultural - social, the
economic restructuring, investment,... On that basis, the thesis draws the advantages
and disadvantages as follows:
Advantages:
First, Mekong Delta is economic area with great potential and strengths
where are big scale in population and employment, economic growth in recent years
reached a high level, is creating supply - big demand for labor market areas.
Second, The Favorable geographic location is assisting the region the
Mekong Delta scalable relational exchanges of knowledge and experience from the
outside, expanding consumer markets of agricultural products - forestry - fishery of
region. Especially the dynamics of Ho Chi Minh City will create a positive impact,

besides economic development, trade are the growing of labor markets for adjacent
areas such as Mekong Delta.
Third, the labor of the Mekong Delta plentiful, young, workers with patriotic
tradition, smart, creative, dare to think, dare to do, dare to confront challenges in
life, the spirit of unity, cooperation….This is a potential important to assist for the
employment quality, if it get efficient investment.
Fourth, the economic structure of the region Mekong Delta rapid shift
towards industrialization, modernization, increased investment, accelerate the
process of restructuring labor and labor market development active in the region.


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Fifth, labor market in the Mekong Delta region is developing in the context of
globalization and regionalization, the scientific and technological revolution has
obtained the remarkable achievements; economic regions in nation have great
experience. It is an important prerequisite for the Mekong Delta where can
approach, inheritance and learning experiences have been developed to serve the
labor market.
Disavantages:
First, although the economic structure of Mekong Delta region in recent years
have changed the direction of increasing the proportion of industry and services and
reduce agriculture's share, but so far the agricultural economy is still basically.
Second, the potential for agricultural development in general is very large, but
the current economic transformation is still lower than potential. Population lives in
rural areas, especially remote, ethnic areas is very difficult.
Third, the Mekong Delta is the coastal lowlands of Vietnam, will be the
region most severely affected by climate change.
Fourth, population scale and big labor market, the growth rate of annual
labor force is relatively high, besides creating huge supply for the labor market, it
also increases the pressure on employment and poverty of the people in the

Mekong Delta.
Fifth, locating between dynamic economic regions so the Mekong Delta has
to subject to intense competitive pressure not only domestically, but also abroad.
The rapid development of Ho Chi Minh City, the southeastern province will create
attraction of investment and labor. This will definitely impact negatively on the
development of labor market areas in the Mekong River Delta, especially attracting
talent, high-quality workforce.
3.2. Existing status of the organization and operation of the labor market
in the Mekong Delta region.
3.2.1. The status of operation of labor market in the Mekong Delta region
3.2.1.1. The status of the labor supply
The thesis analyzes the labor supply areas Mekong Delta with the basic
elements: labor supply in terms of quantity, labor supply in quality and the situation
of labor mobility.
Providing the number of labors
- The Mekong Delta region is the second highest population in Vietnam. The
total population of the Mekong Delta region is 17,325,167 in 2011 (accounting for
19.8% of the national population).
- The structure of labor in the Mekong Delta region is relatively young,
the employment rate in the 15-59 age is very high (67.6%) compared to the


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entire rural areas in nation (65.4%), workers from aged 15-49 accounted for the
majority (87.3%) of the total labor. This is the advantage of labor supply
Mekong Delta region.
- Most labor in the Mekong Delta region is concentrated in rural, mainly
agriculture production. In total of 9,982 million labors who are working directly at
the Mekong Delta region in 2011, in that: 51.7% workers in agriculture, 16.8% in
industry, 31.5% in construction and trade services.

Providing about quality
- Level of education, technicality and skills of the employees work in the
Mekong Delta region is gradually improving, labor quality improved and step by
step suitable with the development of human resources that assists industrialization
and modernization of agriculture and rural development in the Mekong Delta
region. However, compared with the whole country, the quality of the labor sector
in the Mekong Delta region is still low.
- Percentage of labors trained technical expertise in workforce structure in
the Mekong Delta is very low compared with the whole country, the proportion
of untrained workers accounted for 90.7%, while the national rate of 84.6%
overall and the Mekong Delta region ranked last of eight areas with the rate of
trained workers.
- Satisfaction of businesses with employees in the Mekong Delta region was
low (70.45%) compared to the national average (72.81%).
- Percentage of labor time used in rural areas in the Mekong Delta is limited.
In interviews with the employees, 60% of respondents said they only used up 2/3 of
their time employees, one third of the time remaining without work.
- Unemployment rate (2.77%) and lack of employment (4.79%) of the
participants in regional economic activities in the Mekong Delta is higher than the
South East (1.97 and 1.21) and the Red Delta (2.28 and 4.12) as well as the national
average (2.22 and 2.96). In particular, the number of unemployed people focused in
urban areas (3.37%), lack of employment concentrated in rural areas (5.39%).
Female labor supply
Female labor supply in the Mekong delta region is formed, developed in the
differently context with other regions in the country. Firstly, from the requirement
to use female labor in some sectors, such as industry - specific vocational
agricultural processing service restaurants, hotels, family services or secretarial jobs,
marketing... Next is the development of a number of lines "sensitive" such as the
prostitution activities at levels and in different forms that form needs to recruit
women workers young, pretty, specialy, recruiting of women marry to foreigners...

therefore, with female labor supply to labor market legally, the Mekong Delta
region is also place where the women labor supply to the labor market are illegal.


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According to statistics of the Ministry of Labour - Invalids and Social Affairs,
in 2009, there were nearly 30,000 sex workers, particularly in Ho Chi Minh City
has nearly 5,000 objects, mostly from the Mekong Delta provinces.
Status illegal marriage brokers’ also very stressful place, from 2006 to present
regional Mekong Delta has 70,000 women married to foreigners, while nearly
16,500 employees female export to abroad.
Status illegal marriage brokers also very stressful place, from 2006 to present
regional Mekong Delta has 70,000 women married to foreigners, while nearly
16,500 employees only female labor go to abroad.
Labor mobility
The emigrant rate in the Mekong Delta region is the highest of whole country,
3-4 times higher than the number of immigrants into the provinces in areas.
Contrast, the immigration rate of Mekong Delta region is lowest in country.
According to the survey data, the rate of out-migration from the Mekong
Delta is 9.6%, whereas the rate of immigration to the Mekong Delta, only 3.1%.
Labor migration in the Mekong Delta region is mainly due to the difference
in labor income by geographic region: rural-urban shift, the shift in the agricultural
economy move to the industrial park
3.2.1.2. Current status of labor demand on the labor market area in the
Mekong River Delta
Domestic labor demand
- Total of labor demand Mekong Delta region is also increasing rapidly. In
2000, total labor demand in the Mekong Delta region was 7,650 million labors. in
2005, increased to 8,901 million people and in 2010 was 9,783 million; in 2011 was
9,982. The average labor demand in the Mekong Delta increased over 200,000

people each year.
- The structure of labor in the Mekong Delta was changed in to a positive
trend. In 2000, the share of agriculture, forestry and fishing accounted for 53.5%,
industry and construction 18.5%, trade and services 28%. By 2011 that ratio
corresponding change on agriculture and fisheries accounted for 40% (down
13.5%), and construction industry is about 25% (up 7.5%), remaining in service
approximately 35% (up 7%).
+ The change in employment structure in agriculture, forestry and fisheries in
recent years is quite fast. Compared with 2004, employment in agriculture, forestry
and fishing fell 9.2%, while the contribution of this sector decreased by 6.5%.
Compared with the previous 5 years labor in agriculture, forestry and fishing fell
3%, while the contribution decreased by 8%.


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Unlike the trend for workers in agriculture, forestry and fisheries, the recent
years, demand for labor industry, construction and trade services in the Mekong
Delta has developed high speed.
+ At the moment, the Mekong Delta has 99.966 industrial production
facilities (15. 931 increase over 2005 base); 52 active industrial park with an area of
16.594 hectares, 32 industrial parks with a total area 3,816 ha, a total investment of
46.373 billion, employing 52,400 workers.
Seafood processing industry exports is key that always accounts proportion
and rapid growth. Mekong Delta region currently has 133 seafood processing plants
with a total capacity of over 690.000tan/ year. processing of fruits and vegetables
are also the strength of the area with vegetables, canned fruit reached 14,709 tonnes/
year, creating jobs for thousands of workers each year.
Food processing industry is traditional occupations of the Mekong Delta,
Many factories are distributed throughout the provinces with a variety of different
machines with capacity to serve domestic demand and exports. The rate of food

production in 2009 reached 7.883 million tons, attracting a large amount of labor.
+ Craft village in the Mekong Delta is also very diversity, the entire region
had 161 craft villages, mostly concentrated in the rural areas, of which 133 villages
have been recognized, attracting 84,500 employees.
+ In the commercial sector, the Mekong Delta is 1,625 markets, in which
1,290 rural markets (accounting for nearly 80%) and some of wholesale markets of
rice, vegetables, large-scale fisheries, create conditions of employment for
thousands of workers, especially unskilled labor.
+ The service employees serving regional tourism Mekong Delta is also
increasing rapidly, mainly local labor. If in 2000, the tourism industry in the
Mekong River Delta has attracted only 5,956 direct employees, then by 2012, this
number grew to 23 509 (up 3.95 times).
+ As of late 2010, regional Mekong Delta has 530 investment projects with a
total foreign direct investment on the register at about $ 9.2 billion, focused
primarily in the industrial sector processing and manufacturing. FDI projects in the
Mekong Delta mostly small, medium technology and use many unskilled workers.
With the process of industrialization and modernization, since 2020 the
agricultural and rural in Mekong Delta provinces will follow development trends:
diversification of agricultural development, the production of high intensity,
increases the volume of products. In the future, economic of rural in Mekong delta
will develop more diverse, more abundant. At the same time, the labor mobility will
take place primarily in rural areas. Hence the number of labor who work in
agriculture and rural will remain great.


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Labor demand through labor export
Labor export is one of the many activities bring economic benefits, social,
especially jobs for densely populated areas like the Mekong Delta.
The program, project labor export has been the provincial areas Mekong

Delta completed over a period of 2003 - 2006 and 2006 - 2010 with the initial
success is very encouraging.
Export market labor in the Mekong Delta region is mainly Malaysia,
accounting for 72% - 90% of the labor export market of the region, Taiwan
accounted for 10% - 15%. From 2003 - 2007, the provinces have put labor to work
primarily in Malaysia in particular: Dong Thap: 81%, Tien Giang: 92%, An Giang:
86%, Ca Mau: 96%, Soc Trang: 95% Can Tho: 72%, Bac Lieu: 81%, Kien Giang:
72.8%, Ben Tre: 76%. Other markets such as Japan, South Korea... very little
proportion, about 1% - 2%, and concentrated in a few provinces, mainly in Vinh
Long, Long An, Ben Tre and Can Tho. From 2003 to 2008, the Mekong Delta has
sent 30.631 workers go overseas labor, facilitates job creation and income growth
significantly for people.
However, labor export sector in the Mekong Delta are mainly unskilled
workers. Number of employees trained exports also account for the low rate, have
not met the requirements of the labor market, especially in some difficult markets
like Japan, the UK, France... So, in recent years, the number of employees declining
exports strong. This has affected the workers and the economy of the area in the
Mekong River Delta.
3.2.2. The development of price for labour
Regarding the relation of labour market’s transaction:
In the units, organizations which use wage labours in the area of provinces
and cities in the Mekong Delta, most laborers do not deal with the issue of their
labour price through reaching an agreement. Almost all, the price for labour was set
for each type of subject; therefore, laborers have few opportunities to adjust the
price through negotiation and agreement.
Regarding setting the price for labour:
The basis of setting salary, wage for labour market in the areas of Mekong
Delta is relatively ensured under the principle that salary is the price for labour and
conducted according to market principle. Most laborers agree with the disparity of
salary between different labour skills; this provides the logical and fair in the

evaluation of labour quality in the labour market.
Regarding the level of the price for labour:
Setting the price for labour is mainly based on the produce of labour and
balance relation between income arising from wage of laborers and total costs of


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maintaining and regenerating labour for laborers and people supported by them.
According to the survey’s result on living standards of people living in the Mekong
Delta in 2010, laborer’s income (1,247,200 dong) just ensure the minimum essential
expenditures (1,058,000 dong) for themselves.
Real survey conducted at enterprises in the areas of the Mekong Delta shows
that the current salary is not reasonable because of many reasons; in which the basic
reason is that setting salary is not in a correlative relationship with the price of other
goods. This increases the distance between real salary and nominal salary.
Low salary shows many corollaries, the negatives and paradoxes widely
appear. It is clearly shown through the lack of laborer in industrial zones in the areas
of the Mekong Delta recently.
Low salary which is not appropriate to the intensity and time spent by laborers
is one of the major reasons that lead to strikes in the Mekong Delta recently.
3.2.3. The competitive development of labour market in the Mekong
Delta’s areas
The competition of the labour market in the Mekong Delta’s areas takes
place in three fields: training, buying and selling labour. For each field,
participated subjects, purposes, methods and the competitive degree of subjects
are also different.
For vocational training units in the Mekong Delta, they use legal measures
such as enhancing ability and training quality to create the competition in the
market; besides, it is also to extend the training scale.
For the laborers, to enhance the competition in the labour market, they

incessantly study and practice to improve the labour value and to choose a job
which is appropriate to their characteristics such as age, gender, appearance
and aptitude…
For the enterprises, to enhance the competition, they create conditions to
enhance ability and business production efficiency, to improve working conditions
and regulations related to living condition of laborers. It is also to create a friendly
team atmosphere.
However, for the real activities of labour market in the Mekong Delta,
there are still employers who use unsound measures to have temporary
advantages: providing fake information for recruiters, devaluating working
contract… (For the laborers), conducting “bogus” services (for labour and job
agency) or giving “virtual” regimes to decrease costs for recruitment, using
employees… (For employers).


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3.2.4. The reality of organizational institution of labour market in the
Mekong Delta’s areas
- Service of state jobs which are in charge of management agencies of the
government in provinces and cities in the Mekong Delta. In recent years, provinces
and cities in the Mekong Delta promote the network of job center, information
system on labour market, organizing job trading floor to districts and communes
attached with supply employees for employers in and out of the Mekong Delta. In
2010, the Mekong Delta had 23 job centers belong to the government, introduced
jobs for over 30,700 laborers, organized 72 turns of job trading floor, created
conditions to connect the supply and demand of labour market in the area. In late
2012, job center in the Mekong Delta was started to build; this will be a place to
collect information and give advice to 100,000 people/ year, introduce job for about
30,000 people/ year.
System of job center which is out of the state management in the Mekong

Delta has also widely developed, contributed an important part in the development
of labour market, introducing jobs, supplying labor for markets such as: Job center
for Can tho youth, job center of labour unions of provinces and cities in the
Mekong Delta…
- Job training and retraining center for laborers in the Mekong Delta’s areas
ensure the competitive ability of working places for laborers, increase job
opportunities for jobless laborers. Until 2010, the Mekong Delta had 336 vocational
units, including 95 district vocational centers, increased 3 times in comparison with
in 2001; 142 units which are job introducing centers, technical and vocational
centers, continuing education centers, enterprises, vocational associations and trade
village also took part in training vocational. Network of vocational training unit has
a rapid development in multilevel training and ownership forms; it is basically to
meet the requirement of vocational training and to over-fulfill defined norms.
- The systems to adjust social labor relations are also element composing
labor market in the Mekong Delta; it conducts mutual impact relations between
employees, employers and the state management agencies in the local. It is the
trilateral regime which is gradually formed in solving labour relations in labour
market in the Mekong Delta. Its effect depends on the organizational, working
ability of the participated parties.
The reality in the Mekong Delta shows that most negotiations, agreement on
purchasing labour take place easily and has a one-way imposed form for laborers.
There are many reasons for this real situation. The legal basis is not fully-made;
firstly, it still not builds regulations for labor relation of subjects. Another reason is
that the operations of provincial trade unions in the Mekong Delta are weak or


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occupy modest position in negotiating. These trade unions still not include all of the
enterprises belong to every ownership forms.
3.3. An evaluation of labour market in the Mekong Delta

For the real situation of organization and operation of labour market in the
Mekong Delta, the thesis summarizes achieved reasons and results. Simultaneously,
it also shows shortcomings, arising issues during the operation process of labour
market in the Mekong Delta and finds out reasons which are the basis for releasing
development solutions.
Chapter 4
THE ORIENTATION, SOLUTION OF DEVELOPMENT
LABOR MARKET IN MEKONG DELTA REGION TO 2020
On the basis of assessing the existence, the arising need to be addressed for
the labor market in the Mekong Delta as well as the content of economic
development and the forecast for the changes in regional labor market; this thesis
provides a basis for orientation and solution groups to enhance the development of
labor market in the Mekong River Delta region by 2020.
4.1. The basis for orientating and developing the labor market in the
Mekong Delta region
4.1.1. The goals of economic development and the forecast of changes in
the labor market in the Mekong Delta
- Building Mekong Delta Region to become a centre of agriculture, fisheries,
and is one of the energy centers of the country.
- Targeting at achieving economic growth per capita for the period 2011-2020
of the Mekong Delta region at 12-13% (agriculture, forestry, fishery will rise by
6.24% per year; industry and construction will rise by 17.99% per year; trade and
services will increase by 15.85% per year).
- Economic growth must be linked to social justice as well as narrowing the
gap between rich and poor strata.
4.1.2. Orientating the development of labor market in the Mekong Delta
- First of all, creating a synchronization of the elements of the labor market in
the conditions of industrialization, modernization and international integration.
- Secondly, distribution of labor force must ensure that workers can meet the
economic development needs of the region; thriving main labor market especially

focusing on business development in large urban areas, industrial parks;
supporting workers in the informal sector to reduce the gap between urban and


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rural areas, between different types of businesses, and between groups of skilled
and unskilled labor.
- Thirdly, basing on the strategy of developing industries that use intense
labor force; orienting towards export, promoting comparative advantage and
potential workforce; step by step eliminating the dependence on cheap and
unskilled labour. Besides, focusing on human resource needs for industrial and
service development which requires technology and skills.
- Fourthly, improving the quality of human resources through the promotion
of training in skills and practice capabilities; developing education and training so as
to meet the needs of the labor market domestically, regionally and globally as well
as lifelong learning needs of the people; standardizing the quality of training based
on international standard.
- Fifthly, ensuring the freedom of choice of employment and promoting labor
mobility so as to meet the needs of economic restructuring in the conditions of
industrialization and international integration; constructing the infrastructure of
labor market and providing public service with high efficiency.
- Sixthly, guaranting social security policies for workers at work as well as in
working transition period.
4.2. Basic solutions to develop labor market in the Mekong Delta by 2020
4.2.1. Solution groups impacting on labor supply
- Firstly, promoting the health care activities; improving laborers’ health so as
to facilitate the supply of high quality labor.
- Secondly, promoting high qualified workforce with sufficient quantity,
quality and and reasonable career structure to support career sectors, localities,
especially in key economic sectors and key economic regions, thereby

effectively serving the industrialization, modernization, and international
integration of the country.
- Thirdly, developing workforce to adapt to the market, especially popularizing
jobs for rural labor so as to accelerate economic restructuring and agricultural labor
in the direction of modernization and industrialization of rural areas; creating jobs,
increasing incomes and firmly reducing poverty, and ensuring social security.
- Fourthly, continuing to implement the policy of population and birth-control
in order to have a reasonable supply of labor in the long run.
- Fifthly, implementing policies that serve the development of workforce in
regions inhabited by a large number of ethnic minorities, especially Khmer people
and vulnerable groups in society.


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4.2.2. Solution groups relating to labor demand:
- Firstly, acclerating economic growth is a prerequisite to increase labor demand.
- Secondly, promoting economic restructuring in Mekong Delta region,
creating conditions for increasing the size of labor demand in the market.
- Thirdly, promoting the labor market in rural areas so as to meet employment
needs in rural areas; create conditions to facilitate the development of the labor
market in the Mekong Delta.
- Fouthly, implementing regional links and sector links to exploit maximum
advantage of these links, thereby promoting labor market.
- Fifthly, promoting export of labor, successfully implementing national target
programs on employment.
4.2.3. Solution of supervising labor’s price:
- Continuing the completion of legal framework, wage and salary policy.
- Conducting survey, investigation, and updating the price of market labor. At
the same time, conducting periodical report about the price of various types of
unskilled labor on the mass media.

- Guiding organizations and companies to pay for their employees on the
basis of compliance with the current regimes and policies of salary proposed by the
government. At the same time, it is necessary to access to the labor market in order
to regulate the labor relations, the relationship between wages and salaries.
- Regulating and supervising wages and salary (including basic wage on the
labor market). Firmly fighting cases which are against legal documents. Ensuring
the reasonability and fairness of the labor relations in the market.
4.2.4. Solution of connecting supply and demand
- Developing system of job placement center.
- Enhancing and improving the quality and professionality of the organizations
employment services as prescribed by law.
- Reviewing and planning system of job placement center so as to meet the
needs of society, create trust for employees and employers when using the network
of employment exchange.
- Developing information system and statistics of labor market.
- Establishing specialized agencies of state management on labor market.
These agencies are designed to conduct research on legal practice and the institution
of labor market in order to orient the development of labor market, thereby advising
training activities and the coordination of supply and demand of labor.
- Bringing the “labor market programs” closer to the workers. Combing with
business to hold recruiment examinations and conducting intensive training of basic
knowledge for rural workers to promtly provide to business which to hire workers.


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4.2.5. Solution group of regulating the labor market
Firstly, continuing to enhance the effectiveness of institutional system of
labor market.
Secondly, perfecting management and regulation mechanism of labor market.
Thirdly, ensuring the freedom of labor movement under the control of wages

and salaries.
Fourthly, strengthening the role of representative organizations in regulating
the labor market and protecting the interests of relevant parties.

CONCLUSION
Developing the labor market in the right direction is one of the most
important issues in releasing the potential of the labor force, improving the
effeciency of labor use, as well as successfully implementing the goals set forth.
Accessing the current status and analysing the developments trend of the labor
market allow identifying various principles, identifying the movement of
components as well as the need to propose the suitable regulatory solutions.
The analysis and accessment of current status as well as the identification of
developments trend of labor market in Mekong Delta region should begin with (1)
the analysis of the characteristics of goods in the market e.i (commodity of labourpower); tools to distribute and move commodity of labour-power from the place of
production to the place of consumption (labor market in the Mekong Delta), and
(2) orientation of development of the labor market in the context of economic
development of provinces and cities in the regional, as required to overcome
market imperfections limitations and according to the predict population change,
labor in Mekong Delta area to 2020.
Labor in Mekong Delta is big number with labor diversity and supply;
there is an an important role in economic development - social provinces and
cities in the region, capable of self-adjust to adapt, survive, to develop before
changes, events that occur in each period. The ability to self-adjust to cope, adapt
to events of regional labor Mekong Delta has made the flow of labor mobility,
population, altering the quantity, quality, labor structure provinces and cities in
the region towards improving and better meet the needs mobilization, effective
use of human resources.
The platform makes the flow of labor mobility, which connects people from
all stages in the production process, distribution, circulation and use of goods is
labor scale, system level labor market the regional Mekong Delta.