UNIDO recently launched its flagship publication, the Industrial Development Report (IDR 2013) in Hanoi. The IDR 2013 is entitled “Sustaining Employment Growth: The Role of Manufacturing and Structural Change.” This is a product of close collaboration between the members of a cross-organisational team coordinated by UNIDO’s Development Policy, Statistics and Strategic Research Branch.
The report highlights how, nearly 40 years after the Lima Declaration of 1975, its underlying principles have stood the test of time: Industrialisation is indispensable on the path towards development. Industry increases productivity, generates income, reduces poverty and provides opportunities for social inclusion. As countries further develop their industries, the motivation to increase added value drives a greater application of science, technology and innovation, encourages more investment in skills and education, and provides the resources to achieve broader development outcomes.
UNIDO’s IDR 2013 examines the role of structural change and employment and explores the underlying drivers of structural change in manufacturing. While manufacturing employment is growing in developing countries, its decrease in developed countries is being mitigated by the rise in manufacturing-related services employment. The food and beverages and textiles and garments industries offer least developed countries tremendous potential for industrialisation, while high-tech industries hold numerous opportunities for developed countries to invest and innovate, and to thus sustain jobs.
Speaking at the event, Mr Le Huu Phuc, Deputy Director General of the International Cooperation Department of the Ministry of Industry and Trade, highly appreciated the IDR 2013’s key findings and policy implications which “are relevant to Vietnam while the country is focusing its efforts and resources to find appropriate policies to address short-term issues, and in the meantime, ensure medium and long-term tasks to improve national competitiveness, promote growth, economic structural change and employment”.
Mr Patrick Gilabert, UNIDO Representative in Vietnam, said that Vietnam sees inclusive and sustainable industries as a great development opportunity, as is stated in the Vietnam Socio-Economic Development Strategy for 2020. He added that manufacturing provided 470 million jobs, employing around 16 per cent of the world’s workforce of 2.9 billion in 2009. Manufacturing industries open up both employment and economic growth opportunities for countries at different stages of development and support inclusive development.
Mr Ludovico Alcorta, Director of Development Policy, Statistics and Strategic Research Branch of UNIDO, stressed, “The impact of the critical drivers of structural change and industrialization - namely costs, technology, demand and resource efficiency - to sustain employment hinges on the industrial policies adopted. These must therefore be geared towards the structural transformation of the economy and will only be effective if the policymaking process plays as important a role as policy content”.
At the launching event, the panel debate sought to underscore the role of manufacturing and its transformation in employment generation and draw policy implications for inclusive and sustainable industrial development in Vietnam. Although Vietnam’s industry has made impressive progress powered by international economic integration and the integration process has also created drivers for its industrial restructuring, many industrial plans have not achieved the desired results. Therefore, Vietnam needs to plan appropriate objectives and policies, especially increased investment for resources, including human resources.
"Continuous innovation and structural change in the industry will create many opportunities for growth, employment, productivity and efficient use of resources. Industry policies must facilitate the restructuring process fitting different national development stages of the nation,” said Le Huu Phuc.
Quynh Chi
Vietnamese
