Promotion of labor export activity in Thai Binh province, Vietnam, in period of economic integration
Рубрика: 15. Региональная экономика
Дата публикации: 02.02.2018
Статья просмотрена: 46 раз
Динь Вьет Хынг, Нгуен Хоанг Ань Ту Promotion of labor export activity in Thai Binh province, Vietnam, in period of economic integration [Текст] // Экономика, управление, финансы: материалы VIII Междунар. науч. конф. (г. Краснодар, февраль 2018 г.). — Краснодар: Новация, 2018. — С. 58–63.
According to current actual situation, promotion of labor export is a sound guideline of the Communist Party and Vietnam Government that meets both actual trends and public expectation. This is an intensively social activity by solving job, earning more income and improving qualification and skill to workers, increasing the foreign currency source to country as well as playing as a part in international economic activities that strengthen and tighten the international cooperation relations between Vietnam and labor receiving countries. Thai Binh province, Vietnam has achieved positive outcomes on labor export. However, Thai Binh must issue the solutions and policies encouraging and speeding up labor export as well as attracting return of the fulfilled workers to intensify economic-social development, industrialization and modernization of province in order to uphold the local human resource potentials and assistance of central ministries and industries. This research has summarized the whole context of labor export in Thai Binh Province, Vietnam and proposed the relevant labor export promotion solutions.
Keywords: labor export, job, Thai Binh, Vietnam, workers, international economic integration.
- Labor export reality in Thai Binh Province, Vietnam
Since 2002, after Project No. 10/ĐA-UB dated December 21st, 2002 regarding assignment of recruiting and training laborers to work overseas under contracts is issued, labor export activities in Thai Binh Province has coped with sharp change. From 2002 to 2007, the whole province exported total 17,783 laborers to work overseas under contracts, in which there were 6,397 workers in Malaysia, 6,197 workers in Taiwan and remaining 2,070 workers in Middle East nations, Japan and Korea. Due to unstable situation in some regions like Libya (2011) as well as changes in labor receiving policies in some countries such as Malaysia, Korea, the number of exported workers declined. However, from 2013 to present, Thai Binh’s exported workers have increased gradually and obtained 90 % planned target. As of 2015, there were 2,800 exported workers in Thai Binh, equaling 46.67 % of Ha Tinh and accounting for 2.4 % of the whole country.Up to Nov-2017, the number of laborers working overseas under contracts continued remain at a high level of around 2,890.
Fig. 1. Number of exported workers in 2005–2016Source: Annual report of Department of Labor, War Invalids and Social Affairs of Thai Binh Province
Up to now, all 08 districts and cities of province have exported workers; in which districts have exported many workers such as Vu Thu District (about 500–600 workers/year), Dong Hung District (about 400–500 workers/year), or Hung Ha District and Quynh Phu Districts (about 300 workers/year); on the other hand, Thai Binh City only exports 50 workers annually. There are 285 communes, wards have workers working overseas under contracts.
Before 2005, Thai Binh’s exported workers just mainly graduated from secondary and high school who obtained low professional skill, as a result, their income were low. Exported workers were often trained short-term vocational training and just around 80 % exported workers were undergone orientation training. Rencently, educational and training facilities have newly built and developed in line with the province’s economic-social development, education and training quality is therefore improved obviously. In recent years, due to higher demand of international labor market, most exported workers have graduated from high school and some have graduated from colleges, evenly university. After initial screening, all workers shall be trained and obtained the orientation training courses and intensive training if they pass the entrance test of recruiters.
Although there were many improvements, province’s human resource quality still suffered from shortcomings such as strength, manner, skills, etc., especially the foreign language skill and labor discipline have not met the requirements in terms of global integration.
Labor supply-demand relation in countries
Due to worker’s qualifications are restricted, the traditional labor export market of Thai Binh Province are countries that require low profession and skill requirement; meanwhile province’s labor receiving markets focus on ensuring jobs but pay cheaper to workers in order to reinforce the competitiveness.
Competiveness at labor market of labor receiving country
Thai Binh’s exported workers are also coping with competitiveness from workers of other country and other provinces. Although the East Asia market needs a large number of workers, Vietnam’s workers still suffer from difficulties and challenges when they must compete fiercely with other region’s workers. For example, in Japan, Vietnam’s workers are in competition with China’s workers, with Thailand’s workers in Taiwan and Korea. In Middle East, the competition is also harsh because workers coming from Indonesia, Pakistan, Sri Lanka, India are taking advantage in health, geographic distance, common Islamic religion.
Domestically, workers from provinces such as Ha Tinh, Nghe An, Thanh Hoa, Phu Tho, Hai Duong are also abundant with the same target market that cause high pressure to Thai Binh’s workers.
Enterprises system specialized in labor export, oversea job and legal consultancy services
Currently in Thai Binh province, apart from the Job Services Center of Thai Binh directly under Department of Labor — Invalids and Social Affairs, there are about 45 enterprises that are licensed to provide the labor and job service, however few labor export companies have prestige and professional partners such as Thai Binh Labor Cooperation and Trade Company Limited, Thai Binh Tourism and Hotel Company. Accordingly as of 2012, Thai Binh has received over 100 companies and units out of province, introduced by Center of Overseas Labor (Ministry of Labor, War Invalids and Social Affairs) to select and establish the labor export enterprises. In recent years, province have accepted the qualified companies and units to recruit workers, in which there are many experienced companies and units such as Simco Song Da Joint Stock Company, Petrovietnam Manpower Development and Services Joint Stock Company, Vinaconex Trading And Manpower Joint Stock Company. As a result, the Thai Binh Province’s workers have more chance to access to diversified labor export activities.
We can easily see that in line with fierce competition in the integration period, labor export enterprises are more and more professional and considerable in their operation. They are more active in finding partners, negotiating contract, fulfilling the selection and training of workers and clear in fees and expenses. According to survey, information on working condition, laws, culture and social condition in receiving countries are all disseminated by the labor export companies in Thai Binh Province to workers that make workers well-prepared before arriving to the receiving countries. However, some labor export companies violate the regulations applicable in training, recruitment, especially fee collection that negatively affect the labor export activities. Meanwhile, due to short-handed management capability, many companies can not supervise current conditions of overseas workers and therefore find difficulties in supporting workers in case of accidents.
Tradition, culture and ethnic group factors
Like nationwide workers, Thai Binh Province’s workers have many similarities and friendliness in the East Asia countries in term of customs, habits, culture and near geographic distance. Economic and foreign affairs relations between Vietnam and region’s countries also move in positive way that make favorable conditions to access the labor market. Moreover, employers in such countries are also familiar with Vietnam’s exported workers and they shall re-employ the Vietnam’s exported workers. In other regions, province’s workers are difficult in getting acquainted with new countries such as in Middle East area where Muslim deeply penetrates into all aspects of social life or in Africa, Europe the cultural and living differences and limited communication make workers reserved and they sometimes fall into separation from the others.
Shortcomings and reasons in labor export activity in Thai Binh Province, Vietnam
About the competent authorities
Authorities, industries and people are limited in disseminating information and propaganda. Thai Binh has not yet issued the intensive dissemination and propaganda plans relating labor export policy to each commune, ward and worker’s family. People find difficult and inconvenient to access the labor export information. Many localities are so passive in creating sources and understanding the unemployed workers who have demand to find both domestic and oversea jobs; labor — social affairs officers in district and commune level have not paid considerable attention for this aspect. Worker selection management activity at some localities are not well-controlled, some organizations and individuals unqualified in labor export cheat and collect fee of worker illegally. Approriate authorities at district level have not regularly managed, operated and checked the labor export activities and have not detected negative matters at grass-root level; have not promptly settled violations in sources creation and labor selection of enterprises.
Vietnam’s workers generally and Thai Binh Province’s workers particularly are overhasty in earning higher income, therefore, they run away to work illegally and make many shortcomings. This situation is so popular in Korea so on July 29th, 2016, Ministry of Labor — Invalids and Social Affairs has sent official dispatch to People’s Committee of Provinces, Cities to stop receiving workers for oversea job in Korea under EPS program in 2016 at 44 districts of 10 provinces and cities (in which Thai Binh Province has 05 districts named Vu Thu, Kien Xuong, Tien Hai, Dong Hung and Thai Thuy).
Enterprises only focus on developing the tradditional markets and have not explored new partners and expanded the labor export market, they are so passive in finding more high income markets. Some enterprises make use of labor export activities to establish the intermediate level to collect fee from workers illegally. Many enterprises have not established the oversea representative office so they are unable to handle difficulties and problems promptly to workers. Some enterprises are low in settling risks and therefore affect prestige to workers, therefore when enterprises provide loan and finance the workers do not believe and do not register; many enterprises fail to comply with information and report regulations that cause many difficulties for state management at province and district level.
Firstly, People’s Committee and competent authorities at district and commune levels had not paid special attention to labor export. Performance of Labor Export Permanent Committee in many localities were not high. Permanent committee in some districts were passive in proposing the specific solutions to promote the labor export activities at locality; competent authorities have not made favorable conditions for enterprises to recruit workers.
Secondly, profession and skill of some labor export officers at province, district and commune levels were limited, they were inexperienced in inspection and supervision of labor export enterprises in localities.
Thirdly, some enterprises did not have specialized staffs and employees who shall go directly to grass-root level to consult workers but via intermediate step and broker that result in unfair competition among enterprises. Some enterprise did not make public contracts and did not clearly state rights, responsibilities and income of workers.
Fourthly, there were many shortcomings in education and training sector especially the vocational training therfore worker’s legal compliance and vocational skills were so low; cooperation between enterprises and localities in selecting workers, teaching foreign language, fostering the knowledge required to workers were not well-performed that oversea workers were unable to understand local customs, culture and legal regulations of receiving countries, contract’s content, labor discipline, etc.
Fifthly, some localities, officers and people were not informed the labor export activities, they were therefore not aware of labor export impact to poverty eradication. Workers did not want to live far from their family and they are unready to accept the organization’s living and working style with tie and industrial time management.
Sixthly, global economic crisis 2008–2009, unstable political situation in Middle East and North Africa countries from beginning of 2011, impact of legal and social policies in local countries, public debt crisis impact of some European countries, migration crisis and recent event BREXIT caused international labor market unstable, narrowed and reduced because many nations did not desire to receive the oversea workers to create more jobs for their residents. Moreover, discipline violation, changing employer without proper reasons, run-away and illegal stay of oversea workers also pose negative impact to market development.
- Solutions for labor export promotion in Thai Binh Province, Vietnam in period of international economic integration
Solutions to improve oversea worker quality, enhance competitiveness of oversea workers
About labor training,
People’s Committee of Thai Binh Province should prepare and issue the vocational training projects and programs available for oversea workers such as Vocational Training Project to oversea workers to 2015, Vocational Training Project to rural workers to 2020, etc. In whichl local community funds are encouraged to develop in order to support the vocational learning fees for oversea workers. It is also required to actively perform Decree No. 61/2015/NĐ-CP of Government detailing jobs support policy and national jobs fund. Moreover, training activities of oversea workers training facilities must be inspected and supervised efficiently to improve the vocational training and orientation education quality to oversea workers in order to present the situation that enterprises enroll and training workers in mass.
Labor export enterprises must enhance capability, infrastructure and improve the management staff, actively focus on labor training activities, especially the foreign language training, industrial style to provide qualified human resource. Enterprises should diversify industries sectors and jobs available for labor export and combine to train the industries and sectors that market requires and potential to Province.
About worker selection,
Oversea workers are selected by fixing labor export enterprises’ responsibilities to vocational training facilities, local competent authorities and workers’ family. Accordingly, localities, vocational training facilities are responsible for finding resources, screening participants, disseminating recruitment information to workers. Labor export enterprises shall pay for such activities, meanwhile enterprises must also provide clear information such as recruitment fee and other receivables to ensure efficiency and prove the positive aspect of such model. Province’s Department of Labor — Invalids and Social Affairs also assign officers to regularly monitor and manage such procedure to make prompt remedy and measure in case of any failure.
Solutions to expand and develop more labor export markets
Firstly, authorities must cooperate with labor export enterprise to stabilize and exploit the province’s traditional labor export markets like Malaysia, Taiwan, Japan, Middle East region, etc. Thai Binh must also mobilize all channels to re-check quantity, current jobs situation, living and working conditions of oversea workers in countries, especially the workers who suffers from premature termination of labor contract, reduction of working hours, reduction of salary and reduction of remuneration regimes.
Secondly, authorities and enterprises must improve their research and analysis capability and actively refer labor export market forecasts of experts and higher competent authorities such as Center of Overseas Labor to clearly identify the labor recruitment demand of the receiving countries on quantity, type, industries and quality of labor, etc., to make bases for building labor export products, programs and plans proper to local labor supply capacity.
Solutions to develop the professional labor export enterprises that have full competition capability on labor export market.
Authorities must encourage the labor export enterprises to enhance scale and operation capability, proper organization; propose merger, affiliate among enterprises that earn low revenue, small scale, limit in market approach, violate law on labor export many times, conduct unclear business activities, infringe rights of workers and national benefits, etc., in order to establish the strong enterprises in province.
Authorities must both strictly fine enterprises that violate laws and infringe rights of workers, province also need studying to rank quality and performance of labor export enterprises. This shall both motivate development of enterprises and create fair competition among enterprises and moreover make bases for the competent authorities to issue the necessary management and assistance measures.
Solutions to improve the State’s management capability on labor export sector
Firstly, Provincial People’s Committee must direct relevant offices and units to sum-up and summarize major projects and programs of State on labor export activities recently and labor export promotion programs and plans in the future in which also clearly state districts, cities, units and enterprises that do not well perform the labor export activities. People’s Committee at all levels and competent authorities must enhance leadership and direction role to labor export activities; enhance inspection and audit to handle timely violations relating to labor export laws.
Moreover, one of the significant factors to the labor export is the credit assistance and preferential interest loan applicable to workers. Banks and credit funds, especially Vietnam Bank for Social Policies must actively support and make favorable conditions for workers who need to borrow capital.
Solutions to enhance information dissemination and propaganda to improve people’s awareness on labor export activities
Province’s competent authorities and labor export enterprises must invest human resources and finance to establish the teams specialized in propaganda, laws dissemination and supply of labor export news, registration the broadcasting duration in radio station, television, printing, newspaper, leave-leafs or via meetings of the women’s union branch, youth union, the Party’s cell, including in the hamlet meeting, residential group, quarter group, etc., to make information available to all families, organizations and workers that can keep people informed fully and correctly the labor export activities.
It is a must to give warning and clarify the defraud tricks, legal violations, decoy, broker, “empty” enterprises and enterprises breaking the labor export laws so that localities and people can raise awareness as well as prevent, stop and mitigate risks and damages to workers and ensure social order and security.
Department of Labor — Invalids and Social Affairs must cooperate with Department of Information and Communication to give regular announcements and notices on public media on licensed labor export enterprises and enterprises that are approved the labor export contracts in each market.
Solutions to handle the post-labor export matters
Provincial People’s Committee shall base on National programs, encouragement policies of small and medium enterprises, Law on cooperatives, etc., to perform policies and measures encouraging and assisting returned workers to use financial sources originated from labor export to invest production and business and create job for workers themselves and other peoples, in which Province must especially encourage workers who can contribute capital to establish companies, enterprises, business cooperatives, village society. To do this, province must firstly know exactly number of annually returned workers.
Moreover, province must issue preferential and supportive policies to labor export enterprises in negotiating with foreign partners to extend labor contract of province’s workers who are expired the oversea labor contracts; encourage and support exported workers to find the re-recruitment contracts in foreign countries.
In recent years, Thai Binh Province has achieved the significant outcomes on labor export. However in order to uphold human resource potentials of province in line with close assistance of central ministries and industries, Thai Binh Province must issue the labor export encouragement and promotion solutions and policies as well as attract the expired workers returning hometown to enhance economic-social development, industrialization and modernization process of province.
This research has analyzed the current labor export situation of Thai Binh Province recently and also pointed-out shortcomings and respective reasons. Accordingly, researchers group also propose solutions to enhance labor export activities of Thai Binh Province in the future, this is an important document for study and research of readers concerned and rationales for further study of researchers group.
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- Thai Binh Province’s Department of Statistic (2016), Statistic Edition of Thai Binh Province in 2015, Statistical Publishing House, Hanoi.
- Pham Thi Thanh Binh, Challenges and prospects of Philippines economy in 2010, website: http://dangcongsan.vn/quoc-te/tin-tuc/thach-thuc-va-trien-vong-cua-kinh-te-philippines-nam-2010–52656.html, dated December 18th, 2010
- Nguyen Thi Kim Chi (2014): Vietnam’s labor export activities to Malaysia in context of ASEAN integration, Vietnam National University, Hanoi Publishing House.
- Nguyen Manh Cuong (2006), «Matter of natural person movement during international economic integration process», Ministerial-level research topic, Ministry of Labor — Invalids and Social Affairs.
- Thai Binh Province’s Department of Labor — Invalids and Social Affairs (2015), Situation and results report of assigning workers for finite term oversea jobs 2014 and plan in 2015, website: http://mvp.thaibinh.gov.vn
Firstly, the instability of politics around the world concerned with Brexit in UK
Secondly, after participating several free trade agreements include Vietnam- EU, ATIGA, AFTA, ASEAN-Japan, etc.
Firstly, the instability of politics around the world concerned with Brexit in UK
Secondly, after participating several free trade agreements include Vietnam- EU, ATIGA, AFTA, ASEAN-Japan, etc.