Labor market in the Mekong Delta region

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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: 9 + 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 10 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 11 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. 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, 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. 13 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 14 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. 15 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%. 16 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. 17 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 18 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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