Vietnam’s informal employment report announced

Wednesday, 2017-10-04 17:22:47
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Vietnam now has 18 million informal employees, accounting for 57.2% of employees in the non-agricultural sector.
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NDO – Vietnam’s informal employment report was announced at a workshop held in Hanoi, on October 4, providing a deeper look into the informal economic sector and informal employment in Vietnam.

The workshop was jointly held by the General Statistics Office of Vietnam (GSO), the International Labour Organisation, and the Institute of Labour Science and Social Affairs (ILSSA), under the Ministry of Labour, War Invalids and Social Affairs.

The report was compiled based on a labour force survey, which had been conducted since 2007 across 63 cities and provinces throughout the country, surveying approximately 240,000 households per year. However, information on informal employment was only added to the questionnaire of the survey from 2014.

According to the report, employees working in the informal economic sectors share the common characteristics of having unstable jobs with a low income (around VND 4.4 million a month) and long-term working periods without any labour contract, social welfare or health insurance.

The report also shows that Vietnam now has 18 million informal employees, accounting for 57.2% of employees in the non-agricultural sector. 60% of the informal employees live in rural areas which are home to a number of traditional craft villages, household economy and collectives.

Hanoi and Ho Chi Minh City are two major political economic hubs in which 20% of the total informal employees nationwide are living.

Speaking at the event, GSO General Director Nguyen Bich Lam said that the release of the report laid a foundation for the building of proper policy and planning for Vietnam’s socio-economic development at a time when the country has deeply and widely integrated into the world.

ILO Director Chang-hee Lee noted that Vietnam is among the countries that have a relatively high rate of informal employment in the region, which poses a number of challenges for developing countries.

The collection of data, statistics and analysis on informal employment will help to boost the transition from an informal to a formal economy, he stressed.

To reduce the vulnerability of informal workers, ILSSA Director Doan Quang Vinh called for more favourable polices from the State which broaden the protection of the group.

He emphasised the need to simplify the administrative procedures required by household businesses to transform into enterprises and provide them with assistance in accessing capital, the use information and technology, product consumption and human resource training.