Vietnam has experienced steady growth in global supply chains (GSC) employment since 2008 and hosted the largest number of GSC-related jobs in South-East Asia in 2023, the Government News on December 9 quoted a report by the International Labor Organization (ILO) as reporting.
The report examines Vietnam's expanding role in global supply chains and identifies key policy actions to strengthen their resilience and inclusiveness, while promoting decent work and enabling just transitions for workers and enterprises amid rising global trade uncertainties.
Rising global trade uncertainties demand that Vietnam recalibrate its efforts to enhance the resilience and inclusiveness of GSCs, while promoting decent work and enabling just transitions for workers and enterprises to achieve its socio-economic aspirations, the report noted.
Vietnam accounted for more than 25 percent of the more than 75 million GSC-related jobs in South-East Asia, with over 35 percent of Vietnam's total employment linked to GSCs – reflecting a moderate level of reliance, according to the report.
Manufacturing accounted for 49 percent of all GSC-related employment in Vietnam, with textiles and textile products accounting for nearly a third of all GSC-related employment within the sector, it said.
Sectors with a high intensity of GSC-related employment tend to employ larger shares of female and young workers, with more formal wage employment compared to other sectors, but the proportion of high-skilled jobs remains low, the report remarked.
Over 76 percent of Vietnam's GSC-related jobs in 2023 relied directly or indirectly on foreign demand from ASEAN, China, the EU, Japan, Republic of Korea, and the U.S. – highlighting the country's exposure to external demand fluctuations, it added.
To ensure decent work outcomes in GSCs, coordinated efforts are needed across several policy areas to mitigate short-term disruptions and shape Vietnam's medium and long-term positioning, the report suggested.
These include trade diversification and stronger domestic industrial linkages, inclusive, demand-driven skills development, gender-responsive labor market policies and shock-responsive social protection systems for just transitions, improved job quality and raising labor standards, and inclusive social dialogue and institutional coordination.
Strengthening the resilience of GSCs and taking advantage of new growth areas presents a strategic opportunity to further advance Vietnam's structural transformation, enabling shifts towards higher value-added activities and higher-skilled employment, thereby reinforcing progress on the decent work agenda.
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