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Why has employment not grown more quickly in Vietnam?

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  • Rhys Jenkins

Abstract

A paradox of Vietnam’s economic performance in the 1990s has been that despite rapid economic growth, extensive economic reforms, increased openness and significant reductions in poverty, the rate of employment growth has been disappointing. Conventional explanations of the slow growth of employment emphasize the incomplete nature of the economic reform process emphasizing three key areas – trade policy, the role of state-owned enterprises and labour market policies – which have led to resources being misallocated to the detriment of labour-intensive export sectors and the private sector. The paper shows that the slow growth of industrial employment in Vietnam has not been a result of an excessive concentration of resources on capital-intensive industries or state-owned enterprises. It is primarily the changes which have occurred within industries, resulting in increases in labour productivity from the very low levels at the beginning of the 1990s, that have prevented industry from absorbing more workers.

Suggested Citation

  • Rhys Jenkins, 2004. "Why has employment not grown more quickly in Vietnam?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 9(2), pages 191-208.
    • Handle: RePEc:taf:rjapxx:v:9:y:2004:i:2:p:191-208
    DOI: 10.1080/1354786042000207335
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    Cited by:

    1. Kokko, Ari & Sjöholm, Fredrik, 2004. "The Internationalization of Vietnamese SMEs," EIJS Working Paper Series 193, Stockholm School of Economics, The European Institute of Japanese Studies, revised 14 Oct 2004.
    2. Rezart Hoxhaj & Florian Miti, 2020. "Do Foreign Firms Transfer Gender Norms in the Labour Market? Evidence from Sub‐Saharan Africa," South African Journal of Economics, Economic Society of South Africa, vol. 88(3), pages 227-241, September.
    3. Tran, Tuyen & Doan, Tinh, 2010. "Industrialization, economic and employment structure changes in Vietnam during economic transition," MPRA Paper 26979, University Library of Munich, Germany, revised 25 Nov 2010.
    4. Yoon Heo & Nguyen Khanh Doanh, 2009. "Trade Liberalisation and Poverty Reduction in Vietnam," The World Economy, Wiley Blackwell, vol. 32(6), pages 934-964, June.

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