FDI and the Labour Market Changes in Vietnam

Type Journal Article - 淡江大學亞洲研究所碩士班學位論文
Title FDI and the Labour Market Changes in Vietnam
Author(s)
Volume 1
Publication (Day/Month/Year) 2013
Page numbers 1-74
URL http://www.airitilibrary.com/Publication/alDetailedMesh?docid=U0002-1601201315280900
Abstract
In 1975, the Communist Party of Vietnam had completed the unification. Vietnam adopted communist rule and remained the country a poverty state. In order to develop, the biggest problem was lack of national capital. Thus, the government needed to get foreign capital investment in order to solve out the lack of domestic funds and get rid of the Vicious Circle of Poverty. Therefore, attracting foreign investment is one of the main policies of Vietnam.
In 1986, Vietnam adopted innovation policy (doi moi) and modified the national development routes. Opening FDI was one of the main polices. The Government was actively attracting foreign companies and hoped Vietnam’s economy can be developed by investing of foreign capital. As a result, Vietnam’s economy was growing very fast. There was a large decreasing of a number of poor people. The large labor force is one of the advantages of Vietnam. However, the government has to provide adequate employment opportunities for the labor force to be conducive to the country development in order to attract FDI as a development policy. This article is discussing how FDI investment can help the Vietnamese labor market.
FDI is focus on investing to the labor-intensive industries. Vietnamese industry is mainly agriculture-based. When FDI invested huge fund to industrial, it has affected all industries in Vietnam. Industrial development in Vietnam quite relied on FDI. When FDI concentrated in the southeast region, there was a big increasing of the industrialization of the South East. On the contrary, the rest of regions, industrial structure have not been changed a lot. Under the influence of investment in the southeast area of increasing FDI, the southeast area of employment structure has been changed and industrial jobs have gradually increased. Meanwhile, the southeast industrial employment population has increased dramatically, and thus the local salary has been promoted too. As FDI helped southeast area’s economy, the uneven of expansion of the regional development has increased. The regions received very little investment where the economy development were lagging behind. Thus, the southeast region has become the first choice for people. Especially, younger have migrated to southeast region to seek new opportunities.

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