The country hosted the largest number of GSC-related jobs in South-East Asia in 2023

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.

VGP-Pham Long