Publication:
Vietnam : On the Road to Labor-Intensive Growth?

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dc.contributor.authorBelser, Patrick
dc.date.accessioned2015-02-05T20:22:25Z
dc.date.available2015-02-05T20:22:25Z
dc.date.issued2000-07
dc.description.abstractSince Vietnam's adoption of the doi moi or renovation policy in 1986, the country has been undergoing the transition from central planning to a socialist market-oriented economy. This has translated into strong economic growth, led by the industrial sector, which expanded more than 13 percent a year from 1993 to 1997. Vietnamese policymakers are concerned, however, that employment growth has lagged. To address this concern, the author compares new employment data from the Vietnam Living Standards Survey (VLSS 2), completed in 1997-98, with data from the first household survey undertaken in 1992-93. He shows that in 1993-97, industrial employment grew an average of about 4 percent a year, which is low compared with industrial GDP growth. This slower growth was attributable to the capital-intensive, import-substituting nature of the state sector and foreign investment, which dominate industry. The more labor-intensive, export-oriented domestic private sector is still small, although growing quickly. In the future, growth promises to become more labor-intensive. Before the Asian crisis there were signs of an emerging export-oriented sector. Using previous statistical analysis (Wood and Mayer 1998) as well as factor content calculations, the author estimates that given Vietnam's endowment of natural and human resources, Vietnam could triple its manufacturing exports and create about 1.6 million manufacturing jobs in export sectors in the near future. After examining Vietnam's labor regulations, the author concludes that there is no need for basic reform of the labor market. At current levels, minimum wages and nonwage regulations (even if better enforced) are unlikely to inhibit development of the private sector or hurt export competitiveness. But a restrictive interpretation of the Labor Code's provisions on terminating employment could hurt foreign investment, reduce the speed of reform in the state sector, and slow the reallocation of resources to the domestic private sector.en
dc.identifier.doi10.1596/1813-9450-2389
dc.identifier.urihttps://hdl.handle.net/10986/21410
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 2389
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectemployment
dc.subjecttransitional economy
dc.subjecteconomic growth
dc.subjectindustrial sector
dc.subjectlabor intensive industries
dc.subjectexport oriented industries
dc.subjectcapital intensity
dc.subjectmanufacturing production
dc.subjectlabor regulations
dc.subjectprivate sector development
dc.subjectsurvey data
dc.subjecthousehold data
dc.subjectforeign investments
dc.subjecteconomic crisis
dc.subjectaccounting
dc.subjectaged
dc.subjectagriculture
dc.subjectamount of land
dc.subjectaverage annual growth
dc.subjectbanking system
dc.subjectbasic metals
dc.subjectcapital inflows
dc.subjectcentral planning
dc.subjectclimate
dc.subjectcomparative advantage
dc.subjectcompetitiveness
dc.subjectcurrent prices
dc.subjecteconomic development
dc.subjecteconomic growth
dc.subjectelasticity
dc.subjectemployment
dc.subjectequilibrium
dc.subjectequilibrium models
dc.subjectexchange rates
dc.subjectexport growth
dc.subjectexports
dc.subjectfactors of production
dc.subjectfood industry
dc.subjectforeign direct investment
dc.subjectforeign investment
dc.subjectforestry
dc.subjectGDP
dc.subjectGDP deflator
dc.subjectGDP per capita
dc.subjectgross output
dc.subjectgrowth policies
dc.subjectgrowth rate
dc.subjectgrowth rates
dc.subjecthuman capital
dc.subjectimport barriers
dc.subjectimports
dc.subjectincome
dc.subjectindustrial expansion
dc.subjectindustrialization
dc.subjectintermediate goods
dc.subjectinternational trade
dc.subjectiron
dc.subjectlabor costs
dc.subjectlabor force
dc.subjectlabor productivity
dc.subjectliving standards
dc.subjectmacroeconomic management
dc.subjectmanagers
dc.subjectmarginal productivity
dc.subjectmarket economies
dc.subjectmarketing
dc.subjectminimum wages
dc.subjectmonopolies
dc.subjectnatural resources
dc.subjectoil
dc.subjectoil reserves
dc.subjectpartial equilibrium analysis
dc.subjectprivate sector
dc.subjectproduction costs
dc.subjectproduction possibility frontier
dc.subjectproductivity growth
dc.subjectquotas
dc.subjectreal GDP
dc.subjectrelative prices
dc.subjectsavings
dc.subjectstate enterprises
dc.subjectstatistical analysis
dc.subjectsustainable growth
dc.subjecttax rates
dc.subjecttaxation
dc.subjecttotal output
dc.subjecttrade flows
dc.subjecttrade policies
dc.subjecttrade reforms
dc.subjecttransport
dc.subjectvocational training
dc.subjectworkers
dc.titleVietnam : On the Road to Labor-Intensive Growth?en
dspace.entity.typePublication
okr.crossref.titleVietnam: On the Road to Labor-Intensive Growth?
okr.date.disclosure2000-07-31
okr.date.doiregistration2025-04-10T10:53:45.533441Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeSocial Protection and Labor
okr.guid333381468778482981
okr.identifier.doi10.1596/1813-9450-2389
okr.identifier.reportWPS2389
okr.language.supporteden
okr.region.administrativeEast Asia and Pacific
okr.region.countryViet Nam
okr.sectorHealth and other social services :: Other social services
okr.topicMacroeconomics and Economic Growth::Economic Growth
okr.topicMacroeconomics and Economic Growth::Economic Theory & Research
okr.topicSocial Protections and Labor::Labor Policies
okr.topicSocial Protections and Labor::Labor Law
okr.topicSocial Protections and Labor::Labor Markets
okr.topicSocial Protections and Labor::Labor Policies
okr.unitVietnam Country Office, East Asia and Pacific Region
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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