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Labour Market in HCM City: Rapid Increase in Both Quality and Quantity

Posted: Tuesday, June 12, 2018

In order to meet the demand for labour in the context of intensive economic integration and the Industrial Revolution 4.0 (IR4), the labour market in Ho Chi Minh City has managed to rapidly develop human resources in both quality and quantity with its structure having been adjusted to urbanisation requirement.

According to Ho Chi Minh City Centre for Human Resources Forecast and Labour Market Information, there are currently over 300,000 enterprises in the city and this number is projected to increase to 500,000 by 2020. For the past time, enterprises in Ho Chi Minh City have paid due attention to human resources development policy, aiming to attract skilled workers. The diversification of industries, the increase in the types of business and the rapid development in the size of small and medium enterprises have resulted in the increasing need for human resources in the city. However, the city still lacks human resources, particularly skilled workers. This is a great challenge for the city in the context of the IR4.

According to Mr Le Minh Tan, Director of Department of Labour, Invalid and Social Affairs of Ho Chi Minh City, the IR4 has not only affected industries, but also human resources. Therefore, the city has introduced the master plan on Socio-economic Development in Ho Chi Minh City by 2020, vision to 2025 approved by the Prime Minister in Decision 2631/QD-TTg dated December 31, 2013. Under this master plan, the overall objective of human resources development in Ho Chi Minh City is meeting the demand of socio-economic development in the city in both quality and quantity, on the basis of promoting productivity and enhancing professional qualifications of the labour force. In detail, the city has aimed to provide sufficient human resources for production and business activities, especially for nine service sectors and four key industries, in which human resources are trained at each level and the quality is gradually improved.

The Centre for Human Resources Forecast and Labour Market Information has projected that the total need for human resources in 2018-2025 would increase by 31.6 per cent, from 4.41 million employees in 2018 to over 5,804 million in 2025; in 2025-2030, the total need would increase 44.14 per cent, from 5,804 million in 2025 to 8,366 million in 2030. In 2018-2025 to 2030, there will be 300,000 workplaces each year (150,000 new workplaces); of which the demand for trained workers accounts for 77.94 per cent, for secondary level 13.14 per cent, for primary level 10.18 per cent, for skilled workers 29.76 per cent (the highest number), for college level 17.38 per cent and for university level and beyond 7.48 per cent.

The labour market development process in coming years will be oriented to industrialisation, modernisation and intensive integration, which will result in the restructuring of industries in the society; some new industries will appear such as information technology, technology and technical sector, business administration – financing – banking; social science; and healthcare. These sectors will develop based on the older industries. There will also be the connection among these industries leading to the formation of new businesses in line with general Vietnamese economic development, and that of Ho Chi Minh City in particular.

Mr Le Minh Tuan noted that in the context of intensive international economic integration, market economy and the IR 4.0, the labour market in Ho Chi Minh City is developing rapidly, demanding skilled employees who have been prepared with science, technology, production, business knowledge. At that time, there will be more opportunities with higher requirement for workers. “In order to attain more success in the competitive environment, employees in the city need to improve their professional knowledge, enhance capacity for scientific and independent thinking, be creative, apply new technology and constantly develop professional skills,” said Mr Tuan.

Kien Thuy

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