Lite review on Vietnam labor market for the Agri-food sector – Employment situation and labor distribution

1. Employment situation

Agricultural, forestry and fishery sector is an economic activity creating jobs the most, followed by industry and construction including food manufacture. According to the labour force survey, in 2018 the number of people working in industry and construction including food manufacture reached to 26.7%, increasing by 13.7% compared to 2000 (GSO, 2018). This survey also presented that there was a moving labour force from agricultural, forestry and fishery to industry and construction and services sector, making increase in the highest labour force for two these sectors (Table 1).

Table 1. Employment percentage in different occupation (%)

(Source: Labor and employment survey in 2018, GSO)

According to labour force and employment survey (GSO, 2018), income of workers operating in in manufacturing and processing industry including food and beverage production received higher salary than those working in agricultural sector, with amount of 5857800 VND/month. In general, however these levels of salary for workers operating in these sectors were still lower than that for those working in information and communication, education and training; or health service..

2. Distribution of enterprises and workers/labour force for Agrifood

According to GSO (2018), there was annually remarkable increase in enterprises performing food production in the past 7 years (2010-2017). The number of food enterprises rapidly increases to 7661 in 2017, growing by 53.9% and 7.3% compared to 2010 and 2016, respectively. This activity created approximately 547335 jobs in 2017, however this figure decreased by 1.2% compared to a previous year (Table 2). However, the number of beverage enterprises continued to increase over recent years and this industry created the opportunity for 50116 employees, increasing by 1.7% and 7.7% compared to 2016 and 2010, respectively.  GSO (2018) also showed that enterprises operating in these sectors were mainly small ones which could employ less than 49 employees (Table 3).

Table 2. Number of acting enterprises having business outcomes and number of employees working in agrifood sector as of annual 31 December in Vietnam

(Source: Statistical Yearbook of Vietnam, 2018-GSO)

Table 3. Number of enterprises in food manufacture by size of enterprise at 31/12/2017

(Source: Statistical Yearbook of Vietnam 2018, GSO)

Hanoi is one of the biggest economic regions with many industrial zones. According to Hanoi Statistical Office (2018), enterprises operating in food sector includes state, non-state and foreign invested enterprises, in which non-state enterprises accounts for 99.8%.  The number of enterprises slightly increased over recent years. In total, this activity created approximately 48911 jobs in 2018, and this figure slight increased over recent years. However, in recent years the number of beverage enterprises remarkably increased and in 2018 this industry created the opportunity for 4939 employees, increasing by 25% and 40.1% compared to 2016 and 2010, respectively (Table 4).

Table 4. Number of acting enterprises and establishments; and employees in food and beverage sector as of annual 31 Dec in Hanoi

(Source: Statistical Yearbook of Hanoi, 2018 )