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Discussion About the Real Situation of Underemployment in Vietnam’s Rural Area

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Discussion About the Real Situation of Underemployment in Vietnam’s Rural Area
Discussion about the real situation of underemployment in Vietnam’s rural area

Summary

Vietnam started as a backward agricultural country. After more than 20 years of Renovations process, the economy of Vietnam is prospering.

Human capital is one of four most important factors to develop the economy of a country. However, up to three-fourth (3/4) labor force of Vietnam is the rural labor and more than half of them is the labor of agriculture. Meanwhile, there is a significant figure of the labour – mainly the rural labor who are underemployed. Therefore, in recent years, Vietnam has coped to the serious underemployment in rural. The issue is more and more difficult especially in the period of economic crisis.

Not utilizing the labor source is a barrier to economic development and growth. So, it is high time for us to regard the underemployed situation in rural area as an urgent problem and find out the thorough and effective solutions.

Within the field of my knowledge, I would like to give out some data to analysis as well as subjective remarks on the issue.

I. The real situation:

1. The figures:

According to the statistical data of Ministry of Labor-Invalids and Social Affairs ( MOLISA):

• The population of Vietnam is about 83 mil people, in side, there are about 44,5 mil people in the labor force. The number of rural labor is more than 33 mil people, approximately 74,5% of the labor force.

• Average 51-65% of the total labor is the agricultural labor. It equivalents about 67-86% of rural labor who work in agriculture. ( the data fluctuate from 2000 to 2008)

• The rate of underemployment of Vietnam is 5,1% (in 2008), increasing 0.2% compared with 2007. In side, the rate in rural area is 6,1%, while in urban area is only 2,3%. The rate of rural underemployment is still forecasted that it raises to 6,4% in 2009.

In term of the labor supply of rural area:

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