Vietnam is a country with a large population, a relatively young population pyramid, and started to step into the so-called golden population structure.
CNCTech Hanoi.
Abundant labor resources
Out of a total of more than 50.0 million employed workers, workers in the service sector make up the largest proportion with 38.7%, equivalent to 19.4 million people, followed by workers in the public sector industry and construction, accounting for 33.5%.
Vietnam has been possessing a young, healthy, dynamic workforce with potential and the ability to acquire advanced knowledge to meet the requirements of the knowledge economy.
Low-cost workforce
Cost optimization is one of the most pivotal reasons enterprises outsource operations, especially in the supporting industry sector.
The average monthly income of Vietnamese workers in the first quarter of 2022 is 277 USD. As reported by The Japan International Cooperation Agency (JICA). Vietnamese employees have incomes just above Cambodia, Laos, Myanmar, and the Philippines which is only half that of Thailand.
Meanwhile, Labor cost in Vietnam is only 1/3 of that in China – one of the vital reasons explaining the reproduction of production factories to Vietnam in the recent period.
Vietnam female worker.
High Skilled and Well-Trained Workers
Statistics of the Ministry of Education and Training has shown that the rate of literate people between the ages of 15 and 60 across the country reaches 97.85%. The domestic labor market has about 11% of highly skilled workers and more than 26% of trained workers.
In Asia with 24 countries and territories, Vietnam ranks 12th when it comes to the percentage of workers who are fluent in English, lower than Singapore, Philippines and Malaysia and India.
According to The PCI Provincial Competitiveness Index 2021 report conducted by the Vietnam Chamber of Commerce and Industry (VCCI), unskilled workers are the easiest group to recruit when businesses replace or open new jobs. production expansion, about 62%.
Vietnam has identified enhancing the quality of human resources, boosting an integrated labor market and training future ready workforce as one of the breakthroughs to entice foreign investment.
For that reason, over the past time, the government has issued policies to invest in education and training for the workforce for the purpose of increasing labor productivity and industrial efficiency as well as country’s competitiveness in the times of globalization.