ASEAN movement of labour: opportunities and challenges

The effect of the AEC was discussed by experts at the workshop titled “The Vietnamese labour market after the ASEAN Economic Communication takes effect”, co-organised by American multinational human resources consultancy ManPower Group and the Ministry of Labour, Invalids, and Social Affairs on January 13 in Hanoi.

According to a study on how the Vietnamese labour market will be affected by deeper integration into the ASEAN released by the International Labour Organization (ILO), and the Asian Development Bank (ADB) in August 2014, joining the AEC will help Vietnam’s GDP increase by 14.5 per cent and employment by 10.5 per cent, creating 14 million jobs by 2025.

Besides, from 2010 to 2025 the demand for low-level employees will increase by 23 per cent, mid-level employees by 28 per cent, and skilled employees by 13 per cent.

AEC would pave the way for the free flow of skilled labour in eight professions, including nursing services, medical practitioners, dental practitioners, surveying qualifications, engineering, architecture, tourism profession, and accountancy services.

Thus, employers will benefit from the AEC because the labour market extension will not only create abundant employment opportunities, especially for skilled workforce, but also help employers expand their business operations.

The Vietnamese labour force, especially skilled employees, will have opportunities to exchange and accumulate experience, as well as enhance skills at their workplace.

However, Vietnamese employees will face with challenges due to their relatively weak skills, knowledge of foreign languages, labour productivity, and other technical skills.

“Employees in ASEAN countries in general and Vietnam in particular will face technical barriers, including soft skills, teamwork, foreign languages, and labour productivity. Vietnamese employees’ competition capacity is weaker. Foreign investors only invest in countries meeting their requirements in infrastructure, logistics, and employee skills,” said Simon Matthews, country manager of Manpower Group in Vietnam, Thailand, and Middle East.