In recent years, training has not been in line with real demand for socio-economic development so graduates must be retrained. The current labour force is seeing an imbalance between qualifications and job opportunities.

Economic expert Le Dang Doanh says that Vietnam has a golden population with a high number of working age people. Vietnamese workers are intelligent and skillful and wage levels are affordable for employers. However, this is currently not working to its more highly qualified workers. Moreover, Vietnam is developing strongly and its labour force costs will increase so workers should improve their qualifications and productivity to raise the competitiveness of the economy in the integration process, Mr Doanh says.

Regarding the weaknesses of the Vietnam’s labour market, Mr Doanh says that both businesses and workers suffer from a lack of proper information. In the organised labour market, such as the State-owned sector, small- and medium- sized enterprises, and foreign directed investment businesses, workers are managed quite well while in the informal economic sector, they are not. Currently, more than 3 million economic households across the country attract around 38 percent of the total labour force but they do not strictly implement State regulations on minimum salary, labour practices, healthcare and social insurance and other rights.

The artificial shortage in the labour force is due to the inefficient performance of Vietnamese labour market, Mr Doanh says. Workers do not access useful information about the real needs of businesses, occupational fields and income. In addition, businesses have not developed the necessary infrastructure, such as houses, kindergartens, hospitals, and schools, to help workers feel secure with their jobs.

Improving the quality of the labour force requires close coordination among many agencies, in which the education and training sector plays a key role, Mr Doanh emphasises. It should renew its training methods as workers lack discipline and do not know how to adjust to working conditions. Therefore, to have an efficient labour force, training centres should work closely with businesses.

The productivity of Vietnamese workers is low. Over the past 25 years, productivity increased by 300 percent while in the Republic of Korea, it rose by 3,000 percent. To raise productivity, Vietnam must pay attention to health and the quality of population, ensure the gender balance and renovate training.

Promoting mutual understanding between businesses and workers

According to Nguyen Lam Thuy, director of employment network 116, it is essential to disseminate information on job recruitment, not only through newspapers, but also at vocational training centres.

In addition, workers should also conduct their job search in such a way that both businesses and workers know each others’ needs, Ms Lam said.

She also suggested that businesses employ workers for long-term contracts, rather than short-term ones. Moreover, workers should understand their job properly and choose the job that suits their ability, she added.

Regular job fairs have created good opportunities for businesses and workers to directly meet, exchange information and sign contracts. Through these events, workers gain access to employment information, while businesses can recruit employees easily at the fairs. However, such fairs will become more useful if they include job consultancy groups to help workers secure suitable positions.

Furthermore, workers should seek information relating to the businesses which they are planning to work for. Information on job recruitment should be expanded, not only within the framework of the fairs, but also at job placement centres.

The State should encourage job consultancy centres to provide updated information on the labour market, both inside and outside the country.

Taking an active role in ensuring the labour force

Luong Quoc Toan, Deputy General Director of Phu Giang Paper and Packaging Co. Ltd. in Bac Ninh province, says that his company did not suffer a shortage of workers after the lunar New Year festival as 95 percent of its workers are locals.

Most local workers are young and have good professional skills. They want to work for the company at a stable level of salary because it is convenient for them to go to work a short commuting distance from the factory, Mr Toan says.

He elaborates that his company creates a friendly working environment to make workers feel they are working at home.

According to Mr Toan, young workers often work hard and are eager to learn more to increase their professional skills. Currently, each locality has at least one vocational training centre, so local businesses do not face a shortage of workers. However, businesses should draw up long-term employment plans to ensure an adequate labour force. For example, if a company wants to apply new production technology and install new facilities in the next two years, it should promptly create a new employment plan, not wait until the new production chain becomes operational. To attract more workers, businesses must consider them as a valuable asset, create a good environment and ensure them a stable income, he adds.