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Globalization, industrialization, and labor markets in Vietnam

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  • Angie Ngoc Tran
  • Irene Nørlund

Abstract

This paper investigates the dilemmas of reaching the Vietnamese goal of ‘civilized and equitable’ society expressed from central planning towards a ‘socialist market economy under state guidance’ with deeper integration into the global capitalist system, and their impacts on the labor markets. Using long-run statistical data, historical contexts and industrial policies, and fieldwork interviews (from 1980s to 2014), we focus on two important labor-intensive, export-based industries: the long-established textile/garment industry and the emerging electronics industry, which surpassed textile exports in 2013. Evidence shows that the ‘high road’ to industrialization model – with domestic linkages and skills upgrading – does not accompany growth in exports, as low-skilled assembly, mostly young female workers join the labor force with non-liveable wages and substandard working conditions. These two case studies delve into different stages of industrial policy, which is more defined in the textile/garment case and underdeveloped in the electronics case.

Suggested Citation

  • Angie Ngoc Tran & Irene Nørlund, 2015. "Globalization, industrialization, and labor markets in Vietnam," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 20(1), pages 143-163, January.
    • Handle: RePEc:taf:rjapxx:v:20:y:2015:i:1:p:143-163
    DOI: 10.1080/13547860.2014.974343
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    References listed on IDEAS

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    1. J. A. Giesecke & N. H. Tran & G.A. Meagher & F. Pang, 2011. "Growth and Change in the Vietnamese Labour Market: A decomposition of forecast trends in employment over 2010-2020," Centre of Policy Studies/IMPACT Centre Working Papers g-216, Victoria University, Centre of Policy Studies/IMPACT Centre.
    2. Melanie Beresford & Dang Phong, 2000. "Economic Transition in Vietnam," Books, Edward Elgar Publishing, number 2291.
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    Cited by:

    1. Bach Xuan Tran & Tracy Vo & Anh Kim Dang & Quang Nhat Nguyen & Giang Thu Vu & Linh Gia Vu & Khanh Nam Do & Carl A. Latkin & Cyrus S.H. Ho & Roger C.M. Ho, 2019. "Characterizing Unsafe Sexual Behavior among Factory Workers in the Context of Rapid Industrialization in Northern Vietnam," IJERPH, MDPI, vol. 16(24), pages 1-11, December.

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