Economic study paints positive GDP and jobs forecast

(VOV) - Vietnam’s GDP is forecast to jump up by 14.5% and employment growth by 10.5%, according to the latest study of the International Labour Organisation (ILO), Asian Development Bank (ADB) and the ASEAN Secretariat.

However, the report cautions the benefits won’t be evenly distributed among the work force and those who lacking necessary skills and experience will most likely experience difficulties locating a good paying job.

The results of the study were announced at a national policy dialogue entitled “ASEAN Community 2015: Managing Integration for Better Jobs and Shared Prosperity” held in Hanoi on September 4.

The Asian Economic Committee (AEC) which is expected to be officially established by late 2015 plays an instrumental role in the expansion of the nation’s GDP and employment outlook.  The formation of AEC will allow highly skilled workers its 10 member countries to freely move in the region.

Yoshiteru Uramoto, ILO Director in Asia-Pacific region, said the new study showed that Vietnam will be one of countries benefiting most from regional economic integration as its economy depends highly on foreign trade. It forecast that fields- construction, transport, garment and food processing should witness strong growth.

economic study paints positive gdp and jobs forecast  hinh 0

The study indicated that economic integration should generate an additional 14 million jobs in ASEAN and improve living conditions for 600 million people. In the 2010-2025 period, demand for average skilled workers is projected to grow at an average rate of 28% per annum.

The study warns that two-third of new jobs may be low quality and vulnerable work. Despite strong development, nearly half of Vietnamese labourers might still work in agriculture and sectors having lower productivity, income and working conditions compared to other ASEAN economies.

Minister of Labour, Invalids and Social Affairs Pham Thi Hai Chuyen said Vietnam is fully cognizant of opportunities and challenges brought about by the AEC and the Government has made every effort to prepare for deeper international integration to ensure all people have the opportunity to benefit from the process.

Experts proposed that Vietnam implement measures to raise productivity and the quality of jobs in agriculture and diversify jobs in new manufacturing industries.

The nation should expand unemployment insurance mechanism and improve high school education and vocational training systems to meet the increasing demand for average skilled workers.

Vietnam should also promote legal regulations for the protection of migration workers to best utilise their skills, they said.