Fluctuation of the Structure of Labor Segments in Vietnam after Integrating Profoundly into the Multilateral Trade Communities

Abstract

Abstract: Globalization encourages the forming of a lot of economic commonwealths and bilateral, multilateral trade agreements such as WTO, European Union, ASEAN Economic Community or Vietnam-Japan Economic Agreement, which provides more opportunities for developing countries like Vietnam to integrate more deeply with other regional and global nations. In 1986, Vietnam Government formally joined the international integration trend by launching an all-sided and synchronized renovation called “DoiMoi”. The shift from the centrally-planned economy to the socialist-oriented market economy had positively influenced the financial and capital flow, technology and science foundations, goods and services market as well as labor market. The government has made efforts to produce a dynamic, creative economy through finalizing the legal system and policy-making process, which helped form and expand an open labor market under the market mechanism in the early twenty-first century. The Communist Party of Vietnam (CPV) new policy has encouraged the development of a multi-sector economy, in which, the private and FDI sectors have been creating more and more job vacancies. As a result, the Vietnamese labor market has experienced a big change in workers’ quantity, quality, sex, age and especially, in the number of employees moving from rural to urban areas. This report analyzes the fluctuation in the structure of Vietnam’s labor segments under the impact of multilateral economic communities.