Vietnam has become one of the potential countries in Asia to attract a great variety of investors from Japan, Korea, China, etc. thanks to the rapid development of the industrialisation. Moreover, Viet Nam’s active business environment, young population, growing wealth, changing consumer attitudes, greater mobility and urbanisation are pushing Viet Nam through a period of great change (the World Bank’s Doing Business 2017 Report).
In particular, Nguyen Xuan Phuc, Prime Minister of Viet Nam, asserted that Viet Nam continued to drive the global economic integration agenda and expected to maintain annual average GDP growth rate of 6.5% to 7% over the period of 2016 – 2020. However, the labour market in Vietnam has significantly changed in recent years, especially in the unemployment rate. According to VOV news, a popular online news in Vietnam, Ministry of Labor, War Invalids and Social Welfare mentioned that in 2016, the rate of unemployment increased rapidly in many fields and youngsters, who have bachelor’s degree, made up the highest proportion in that group (more than 500.000 people).
That status is getting worse till now whereas many companies have needed a huge workforce. Therefore, the labour market in Vietnam contains various opportunities but it still faces serious challenges.II. Opportunities in labour market2.1: The increase in foreign investmentViet Nam has achieved a noticeable shift in economy in recent years. The inflation fell quickly from a peak of 28.24 % in August of 2008 to 2.6% in December of 2017 and slightly changed in the previous month (Vietnam Inflation rate, Trading Economics).
In addition, after joining the World Trade Organisation (WTO) in 2007, Viet Nam has boosted to become an open economy and opened a wide door for the Southeast Asia countries. Therefore, Viet Nam is one of the most attractive destinations for foreign investors in South East Asia, especially Korea (29%), Japan (11%) and Singapore (10%). Comparing to the past, about a century ago, Viet Nam attracted few foreign investors and the amount of money invested was not huge. For instance, in 2007, Vietnam obtained the foreign investment capital of US$11.26 billion with 99 projects. On the other hand, many great opportunities of FDI (Foreign Direct Investment) have come to Vietnam these days.
Vietnam is considered “a key investment location” with such great advantages as the rapid growth of population and potential resources which businesses cannot ignore (FDI Opportunities in 2017 for Vietnam, Unilaw). In 2016, this country experienced a breakthrough and reached a very high level of investment. FDI rose to nearly US $24.4 billion, pointing to a nine percent growth, as opposed to 2015. During that period, 2,556 registered projects, 1,225 existing projects and 2,547 companies of foreign investors supported the development of Vietnam’s economy. Moreover, there have been an increasing number of investors coming from more than 95 countries in the world.
As a result, the increase in foreign investment has led to a huge chance for the workforce in Vietnam. More and more companies will be established and expanded, more and more employees will be recruited.