The Vietnamese government is pushing the improvement of human capital as seen by the increasing GDP contribution of the education and training sector throughout recent years. However, this attempt has also led to a lower and quite stagnant labor force participation rate since a substantial portion of the population who are 15 years old and older are choosing to study longer in universities.
For Vietnam, agriculture has been an important sector, indicated by the number of new businesses in the agricultural sector that has shown a gradual increase. A large percentage of the population is employed in agricultural jobs, of which approximately two-thirds of total employment is likely to be employed in their own account or through family work.
Even though Vietnam’s agriculture sector shows a continuous contribution to the country’s GDP, this also implies that there is room for sectorial shifts towards a more industrialized economy. The reforms have also led to a greater expansion of the industry sector, demonstrated by a continuous increase in the contribution of the industry sector towards the GDP. This has benefitted the level of overall wages and salary for the Vietnamese population.
Despite the beneficial gains from the country’s economic expansion, a large component of workers is still prone to being employed in indecent work due to a large portion of the population being relatively rural, which leads to a focus on more agricultural-based employment.