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Industrialization, economic and employment structure changes in Vietnam during economic transition

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  • Tran, Tuyen
  • Doan, Tinh

Abstract

This paper presents the effects of industrialization on economic and employment structure during the economic transition in Vietnam. Although Vietnam has made a significant progress in changing economic structure in which the share of agricultural contribution in GDP has dramatically decreased over the last two decades, the employment structure changed slowly. Consequently, majority of labour force is still in the agricultural sector. The economic reform has failed to shift redundant workers away from agricultural sector since most of the country’s investment has been allocated to capital-intensive industries. Therefore, policy adjustments are needed to absorb more redundant workers from agricultural sector and improve living standards for rural households.

Suggested Citation

  • 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.
    • Handle: RePEc:pra:mprapa:26979
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    References listed on IDEAS

    as
    1. Belser, Patrick, 2000. "Vietnam - on the road to labor-intensive growth ?," Policy Research Working Paper Series 2389, The World Bank.
    2. Bryceson, Deborah Fahy, 1996. "Deagrarianization and rural employment in sub-Saharan Africa: A sectoral perspective," World Development, Elsevier, vol. 24(1), pages 97-111, January.
    3. 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.
    4. Heberer, Thomas & Kohl, Arno & Lai, Tuong & Nguyen Duc Vinh, 1999. "Aspects of private sector development in Vietnam," Working Papers on East Asian Studies 24/1999, University of Duisburg-Essen, Institute of East Asian Studies IN-EAST.
    5. Midmore, D. J. & Jansen, H. G. P., 2003. "Supplying vegetables to Asian cities: is there a case for peri-urban production?," Food Policy, Elsevier, vol. 28(1), pages 13-27, February.
    6. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    7. John McMillan & Christopher Woodruff, 2002. "The Central Role of Entrepreneurs in Transition Economies," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 153-170, Summer.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Nguyen Thi Tue Anh & Luu Minh Duc & Trinh Duc Chieu, 2014. "The Evolution of Vietnamese Industry," WIDER Working Paper Series wp-2014-076, World Institute for Development Economic Research (UNU-WIDER).
    2. Chao Zhou & Hongling Zheng & Shenwei Wan, 2023. "Industrial Structure, Employment Structure and Economic Growth—Evidence from China," Sustainability, MDPI, vol. 15(4), pages 1-21, February.
    3. Anh, Nguyen Thi Tue & Duc, Luu Minh & Chieu, Trinh Duc, 2014. "The evolution of Vietnamese industry," WIDER Working Paper Series 076, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    Capital-intensive industries; employment structure change; economic transition;
    All these keywords.

    JEL classification:

    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • P00 - Political Economy and Comparative Economic Systems - - General - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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