Wage policies reform and labour market development in the period 2016-2020

03/08/2015 00:00:00

This research was conducted to analyse the situation of wage and labor market in the period 2011 – 2015, thereby, propose measures to reform wage policies and develop labor market of Vietnam in the period 2016 – 2020.

Main Findings

Regarding wage:

  • Achievements: (i) Minimum wage policy was gradually completed; (ii) Wage mechanism in enterprises was improved towards giving self-control to enterprises; (iii) conditions for wage negotiationswere initially created.
  • Limitations: (i) Minimum wage remained low, did not meet the minimum needs of labor; (ii) Wage in enterprises had not been paid based on productivity, quality and efficiency; (iii) Wage negotiation mechanism was uneffiecient.
  • Causes:(i) Legal framework for wage and labor relations contained wide range of defects; (ii) wage negotiation and agreement competence of people remained weak; (iii) checking, inspection and supervision by administrative agencies was infrequent; (iv) system of wage information was inaquadate.

Regarding labor market

  • Achievements: (i) Legal framework created favorable conditions for market labor to develop; (ii) qualification of labor supply-demand was improved; (iii) connection between labor supply-demand shifted; (iv) labor market administration was developed.
  • Limitatitions: (i) Problems in the scale and the qualification of labor supply-demand were more and more serious; (ii) labor market was fragmented; (iii) vulnerable groups were not supported in time.

Causes: (i) Legal framework for labor market has not been sustainably reformed; (ii) education and training system did not meet the requirements of the labor market; (iii) Infrastructure of labor market had not been comprehensively developed; (iv) System of modern labor relations had not been created based oneffective dialogue and negotiation system between social partners.

Solutions, Recommendations

Solution for wage reform

  • Complete institutions, policies and promote government management.
  • Calculate accurately minimum wage.
  • Building dialogue, negotiation and agreement mechanism on wage and labor relations between the parties in enterprises in an effective way.
  • Enhance representative competency of the parties involved in labor relations in enterprises.

Solution for labor market development

  • Complete institutions, policies and promote government management.
  • Create adequate and sustainable jobs.
  • Establish harmonious labor relations.
  • Enhance competitiveness of human resource.
  • Connect labor supply-demand.
  • Support vulnerable groups and ensure social protection.