Assignment 3 individual report on the world of work

As technology accelerates, workers must adapt to new skills, brings competitive pressures and potential job displacement.. Additionally, many Vietnamese migrant workers face exploitative

RMIT

UNIVERSITY

Assignment 3: Individual Report on the

World of Work

Lecturer Chuong Than

Team SGS — Team 3

Introduction:

Vietnam's economic landscape is undergoing a profound transformation, driven by rapid industrialization and technological advancements (Sarah 2020) As technology accelerates, workers must adapt to new skills, brings competitive pressures and potential job displacement The evolving nature of work, fueled by globalization and automation, presents both opportunities and threats to Vietnamese workers Globalization opens doors to international markets but also led to significant brain drain, with skilled workers migrating abroad, affecting local innovation and growth Additionally, many Vietnamese migrant workers face exploitative conditions and inadequate labor protections, highlighting the need for decent work standards This research paper will explore the technological changes reshaping industries and the globalization of labor

in Vietnam

Topic: Technology Change

Vietnam's rapid industrialization and technology in recent decades has shifted its economy from agrarian to industrial, with science, technology, and innovation playing crucial roles in driving economic growth (Binh and Phuong 2020) However, this growth has also brought challenges, including job displacement and labor skill shortage (Rasmi 2017) This necessitates a focus on regeneration, which involves revitalising economies and communities that have been impacted

by these changes, especially the workers

Key Trends and Insights in Vietnam's Labor Market (Q3 2023)

Labor Force and Skills Development

a 24 97 8% BLS

Sy 48K \wý +0.5% +87.4K_ a +525.6K

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Figure 1: Key Trends and Insights in Vietnam’s Labor Market (Q2 2023)

Critical issues:

Job displacement due to automation and AI is a significant concern, with 45% of Vietnamese workers expressing worry about the potential for machines to replace them in the future, according to a survey by PwC In the digital economy era, young Vietnamese workers face the risk of losing their jobs to automation The COVID-19 pandemic has accelerated the adoption of

robots in production, as they offer advantages in terms of resilience and productivity over human workers, posing a challenge for workers to compete with robots in terms of efficiency and product quality (VietnamNet 2021)

2 Reducing headcount

16%

18%

Benefits that Al brings to humon resources (Photo: Microsoft

Figure 2: Benefits of Al

Moreover, the rapid transformation brought about by AI is poised to disrupt the IT job market in Vietnam, with up to 40% of IT jobs at risk of automation by 2030, according to Amanuel (2024) Therefore, AI is a double-edged sword that presents challenges for the industry, highlighting the potential for significant changes ahead One more reason for job displacement is skill mismatch The economic growth and industrialization in Vietnam have led to a rising skill mismatch or deficit, attributed to the failure of supply-side initiatives to keep up with the growing skill demand Therefore, employers are not uniformly troubled by significant skill shortages as many

do not need a large number of skilled workers due to heightened supply chain competition, limited domestic markets, and gradual technological advancements (Junichi 2021) In 2021, there

were 33.6 million informal workers recorded, with over 40% categorized as unskilled labor

(General Statistics Office 2021)

148.0 Household sector

Source: Vietnam General Statistics Office, Labour Force Survey 2021 Figure 3: Number of Informal workers worked in formal, informal, and household sectors in 2021

This skills gap is particularly evident among young individuals aspiring to enter the fast-evolving tech sector, as a staggering 70% of the workforce lacks basic vocational training, limiting their opportunities for stable and well-paying jobs, both locally and internationally (VietnamNew 2024) A study shows that 41% of those in displaced jobs lack crucial IT skills required for emerging roles, while nearly 30% lack essential interactive skills like negotiation, persuasion, and customer service abilities (VietnamNew 2018).The technology change in Vietnam has resulted in environmental degradation and increased carbon emissions In response, the Vietnamese government has pledged to achieve Net Zero carbon emissions by 2050, focusing on the transition to renewable energy sources (International Trade Admission 2024) This shift raises concems about job insecurity for workers in traditional energy sectors like coal, oil, and gas, which may face potential job cuts Addressing labor displacement is crucial in energy transition planning, along with ensuring that companies can recruit qualified workers for new roles in the renewable energy industry (Laura 2021) Furthermore, the technology sector generates significant amounts of e-waste containing hazardous materials such as lead, mercury, and cadmium Poor handling and disposal of e-waste can expose workers to toxic substances,

leading to severe health issues For instance, in the Samsung case, the absence of a production

wastewater treatment tank resulted in chemically contaminated water being discharged directly into a nearby river through rainwater pipes, highlighting the critical need for proper waste management practices (Rest of World 2023)

Recommendation:

For the job displacement due to AI and automotive, professor Jung Woo Han states that although

AI may eventually replace all skills and knowledge, there is one aspect that technology may never replicate which is a positive attitude Cultivating a culture of productivity, fostering

innovation, and encouraging creativity can unlock limitless potential for an organization and for the worker (Vietnam.vn 2024) It needs a strategic blend of AI and human creativity, emphasizing the need for individuals to skillfully assess and utilize Al-generated data to drive progress, rather than impede it

Building an Al-ready workforce starts with a citizen-led approach to upskilling

Providing tools and

CY

to their day-to-day work

Identify new skills and roles needed 48%

as a result of Al Implement upskilling and continual learning

initiatives that include Al

Figure 4: The percentage of skills in the workforce that require Al leadership

Moreover, the government must prioritize empowering both current and future workforce with essential digital skills to seize digital opportunities This involves implementing sector-specific technical training programs and expanding apprenticeship opportunities in STEM fields (Thuy n.d) There are a lot of workshops related to AI skills that are organized for young students Being an AlI-first tech company, Google is dedicated to fostering a responsible approach to AI through the workshops, this includes educating users and society about Al's advantages and crucially, ensuring equal access to AI training opportunities They also offer the young workers many available free courses and a Google AI Essental’s five-module training course will also be announced (VietnamNet 2024) A research study revealed that Vietnamese employees have a high value of analytical and digital skills Analytical skills, including project management, critical thinking, and problem-solving, are deemed crucial by 62% of Vietnamese workers, surpassing the regional average of 49% This emphasis is due to the recognition that while AI can assist in coding, programmers still require strong analytical abilities to approach, analyze, and design solutions (Economist Impact 2023) Additionally, Vietnam's focus on sustainability and its progress in the region highlight the growing importance of green skills Therefore, young workers have to learn more about these soft skills in online learning platforms such as Linkedin learning of UN:CC Learning to catch the new trends of the globe

About the issue related to regeneration, the company must implement a collection system for e- waste in EPR activities to protect workers in e-waste environments This includes aligning legal regulations with recycling rates, standards, and quotas, and establishing formal dismantling and classification facilities for electronic waste (VietnamNet 2024) Therefore, the government also has a policy for this issue According to the Environmental Protection Law 2020, manufacturers and importers must recycle specific e-waste categories such as tablets, laptops, desktop computers, and mobile phones according to designated proportions and specifications starting on

February 1, 2025 (Vietnam+, 2024)

Topic: The Globalisation of Labour

The globalisation of labour has brought significant changes to Vietnam's workforce As the country becomes more integrated into the global economy, it faces challenges such as Brain Drain and the need to ensure Decent Work for Migrant Workers These issues have far-reaching implications for the country's development and the well-being of its workers

Critical issues:

Brain drain is a significant issue in Vietnam, as highlighted by a brief survey of domestic universities showing that fewer than 20 percent of professors, doctors, and management officials have received international training This limited exposure to foreign educational systems hampers Vietnamese universities’ ability to meet the teaching standards of developed nations (Hong 2024) Additionally, experts have identified a lack of connectivity between secondary and tertiary education levels in the country, hindering the production of highly skilled human resources crucial for national development (Hong 2024) Mr Nguyen Huy Hoang of the Institute

of Southeast Asian Studies pointed out that Vietnam faces challenges in cultivating a skilled intellectual workforce due to ineffective policies The current policies fail to attract overseas Vietnamese intellectuals to contribute to national issues or local intellectuals to engage with global scientific and cultural institutions (Jasmine 2020) Furthermore, there are ongoing issues

in financial policies for science, technology, culture, and art activities, compelling scientists to

employ unconventional tactics to secure funding for their projects This compromises the quality

of their work and damages the reputation of intellectuals by wasting time, effort, and resources Despite a decade of efforts to build a pool of intellectuals through Resolution 27, Vietnam continues to grapple with this significant obstacle (Jasmine 2020) Nearly 215 million migrants, accounting for 3.3% of the global population, are currently living and working abroad

Figure 5: Emigration of Vietnamese nationals for employment from 2006 to 2017

Their contributions drive growth and development in destination countries, while their home countries benefit from remittances and the skills acquired during their migration journey (ILO n.d), Vietnamese migrant workers set a record by sending home a staggering US$3.8 billion just

behind the Philippines

10,00 8,00 6,00

4,00

0,00

Thailand Lao PDR Malaysia Indonesia Cambodia Vietnam Philippines

Figure 6: Percentage of GDP contributed by remittances and compensation of employees in

ASEAN countries in 2008

As Vietnamese nationals are increasingly dispersed worldwide, engaging in work, studies, and residence abroad, the categorization and quantification of these movements become more complex and challenging with the escalating scale of migration (IOM 2012) The Law on Contract Based Overseas Workers 2006 governs international labor migration in Vietnam However, many Vietnamese migrant workers are employed informally outside of agreements,

leading to concerns about overstaying visas and becoming irregular migrants in countries like South Korea, Taiwan (China), and Malaysia This irregular status increases vulnerability to

exploitation and limits access to assistance, with both Vietnam and destination countries

imposing fines and sanctions for such migration (ILO 2019) During international migration, workers, especially women, encounter numerous challenges Female migrants are disproportionately affected by gender-based violence due to entrenched gender inequality and stereotypes This heightened vulnerability is particularly pronounced for women working in the informal sector, where legal protections are minimal or non-existent (Binh, 2017) Moreover, global challenges such as climate change, demographic shifts, and technological advancements pose significant impacts on the future of young migrant workers worldwide Therefore, addressing these issues effectively demands comprehensive adaptation and innovation plans involving all sectors of society IOM 2023)

Recommendation:

The Vietnamese government should promote professional growth and career advancement by providing leadership roles and competitive salaries in both public and private sectors since Vietnamese returnees expect their advanced skills and international education to be valued by employers in Vietnam (Ly 2018) Therefore, the Prime Minister's Decision 1268/QD-TTg approves the program to enhance lifelong learning activities for workers in enterprises until

2030 This initiative will bolster vocational training programs and promote continuous learning opportunities to empower individuals with the skills necessary for career progression (Vietnam Law and Legal Forum 2022) Moreover, to cultivate a skilled workforce in critical fields such as science, technology, education, healthcare, and information technology, aligning with Vietnam's talent development objectives, Vietnam's Prime Minister recently approved Decision 899/QD- TTg, unveiling the National Strategy on Talent Attraction and Utilization until 2030, with a Vision to 2050 (Mark 2023) Furthermore, improving the quality of life is also a crucial way to attract skilled workers to come to Vietnam According to the report Vietnam 2035, it states the importance of economic development since focusing on STEM fields and practical skills better prepares students for the modern workforce, fostering innovation and productivity As well as, collaborations with international institutions and promoting research create a knowledge-based economy, attracting talent and investment (World Bank 2016)

For the irregular migrant workers, young workers who go to labor export, the Government has to promote and work with the host countries to practice the policies more strictly Under the law, the ICCPR guarantees freedom of movement and residence within a country, as well as the right

to leave and return to one's own country Additionally, the ICCPR states that aliens can only be expelled in accordance with the law and for compelling reasons The ICESCR ensures that all

migrant workers have economic, social, and cultural rights, including access to healthcare,

education, housing, and fair working conditions It emphasizes equal and favorable working conditions for all individuals, including immigrants (Brill 2021) About the “worker working aboard” under the contract will follow under the law which is called The Politburo's Directive

No 41/CT-TW emphasizes that exporting labor and experts is a key socio-economic activity that enhances human resource development, generates employment, boosts income and enhances workers’ skills It also plays a crucial role in increasing foreign currency earnings for the country Therefore, this strategy is vital for building a skilled workforce and accelerating the government's industrialization and modernization efforts (Brill 2021)

Conclusion:

Vietnam's journey through industrialization, deindustrialization, and regeneration presents complex challenges and opportunities Therefore, addressing job displacement, skill mismatch, and environmental degradation requires a multi-faceted approach involving government policies, corporate responsibility, and individual upskilling Moreover, embracing AI and automation while fostering creativity and innovation will be crucial for future success Similarly, addressing brain drain and ensuring decent work for migrant workers necessitates comprehensive policies that prioritize human capital development and protect workers' rights By proactively tackling these issues, Vietnam can ensure a just and sustainable transition towards a brighter future for its workforce and its economy

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