Labor market in the mekong delta region

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: Examiner 2: Examiner 3: 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 1 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 2 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 3 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. 4 - 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 5 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. 6 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. 7 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. 8 - 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: [...]... 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. .. 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... 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 12 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,... 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. .. 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... in the production process, distribution, circulation and use of goods is labor scale, system level labor market the regional Mekong Delta 24 The situation of the labor market area in the Mekong Delta on the time to study (2010) is the foundation of the labor market provinces in the region before 1975, after the development of Doi Moi (1986) and the process of improving the system of institutions involved... 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... 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... 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. .. 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 . 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. 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. accelerate the process of restructuring labor and labor market development active in the region. 13 Fifth, labor market in the Mekong Delta region is developing in the context of globalization and regionalization,