Migration and inclusive growth in Vietnam: recent trends and policy implications

Type Working Paper
Title Migration and inclusive growth in Vietnam: recent trends and policy implications
Author(s)
Publication (Day/Month/Year) 2015
URL https://idl-bnc-idrc.dspacedirect.org/bitstream/handle/10625/54720/IDL-54720.pdf?sequence=1
Abstract
This study seeks to find new trends of migration in Vietnam, notably rural-urban
migration and in four main labor intensive export-oriented manufacturing sectors
including textile and garment, footwear, electronics and wood processing that are
expected to continue flourish in the context of Vietnam accelerating its integration into
the global economy, notably under the forthcoming Trans Pacific Partnership
Agreements. Our analysis of data of Labor Force Survey conducted in the period from
2011 to 2014 reveals that shares of migrant workers in these manufacturing sectors are
relatively high, at over 40% for the first three and approximately 35% for the last one.
Given the importance of migration as an important income equalizing force, one might
expect that the development of these export-oriented sectors contributes to inclusive
growth.
This report also paints a broader picture of migration at the national level. It is found
that rural-to-urban migration slows down in recent years, while there are signs of rising
urban-to-rural migration rising. This might be explained by the rising employment
opportunities in rural areas thanks to improved infractutures there. However, it is found
that shares of informal employment are highest among urban-to-rural and rural-to-rural
migration, which indicates a higher degree of vulnerability among these groups.
These imply that Vietnam should be consistent in its efforts to deepen its integration
into the global economy with the resultant rising export, which is found by numerous
studies to be an important driver of moving workers out of agriculture into nonagricultural
formal employment in Vietnam.

Related studies

»