1. Tran Thi Duyen Tran Thi Duyen(duyenvass@gmail.com) HUMAN RESOURCE DEVELOPMENT COOPERATION BETWEEN VIETNAM AND TAIWAN IN THE CONTEXT OF EAST ASIAN ECONOMIC INTEGRATION Graduate student College of Social Sciences and Humanity University Vietnam National University - Hanoi Researcher Vietnam Institute for Northeast Asian Studies International Young Scholars Exchange Workshop Kyoto, August 3, 2011

2. Outline Introduction Vietnam – Taiwan labor cooperation Overview of Taiwan’s labor needs Vietnam labor market situation Vietnamese labor export to Taiwan Vietnam labor export structure to Taiwan The interest and limitations of labor cooperation Prospects for Vietnam – Taiwan HRD cooperation and policy implications

3. Introduction East Asia, which has shown a dynamic growth pattern, has achieved considerable economic growth since the mid- 1980s. Before the financial crisis of 1997-1998, the high economic growth rate of East Asian countries was based mainly on their sequential industrialization and the resultant intra-regional spillover. This sequence of industrialization is often called the “flying geese” pattern. Human resource development cooperation between Vietnam and Taiwan has developed very well and achieved very considerable results.

4. Introduction For many years Taiwan has been among the top 3 investors in Vietnam, training of skills for Vietnamese labrorers to work for Taiwanese companies in Vietnam. Labor exports from Vietnam to Taiwan have also contributed considerably to solving employment situation in Vietnam. The number of students who come to study in Taiwan is on an increasing trend.

5. Overview of Taiwan labor needs Taiwan has achieved remarkable economic growth and is one of four large dragons of Asia changes in social - economic life: standards of living and quality of life as well as labor skill of Taiwanese people also increasingly advanced. social problems such as aging of the population and declining birth rates labor shortage labor import. In October 1989, Taiwan Council of Labor Affairs (CLA) accepted legislation allowing the importation of foreign labor in order to meet the demands of planned construction projects.

6. Vietnam labor market situation  Vietnam is a populous country: over 86 million (2009), density is 260 people/km 2.  The average rate of population increase yearly by about 1.07 million, or 1.4 percent from 2000 to 2009.  Vietnam’s workforce is estimated at 48.1 million people, consisted of 25.7 million men and 22.4 million women.  Every year, from 1.3 to 1.5 million new workers enter the market and the labor force will continue to expand significantly from 2010 to 2015.

7.  Viet Nam’s labor force remains very young  The number of youth aged 15-24 in the workforce increased by 15 percent.  Currently, Vietnam has sent around 500 thousand workers to a total of nearly 40 countries/territories.

8. Vietnamese labor export to Taiwan HRD cooperation between Vietnam and Taiwan began in 1999 with the signing of agreement on the sending and receiving Vietnam laborers to Taiwan. Taiwan has become one of the major destinations for Vietnamese labor migrants. From 1999 – 2005: 167,800 workers in Taiwan

9. In 2000, the number of labor export to Taiwan accounted for 47% of the labor market to Northeast Asia, and accounted for 25.71% total of Vietnam labor export. The corresponding figure in 2002 was 79.55% and 28.60%, and in 2004 was 83.14% and 55.07%. From 2005, Vietnamese workers export to Taiwan has significantly decreased. Vietnamese labors has fled outside so that Taiwan decided to stop receiving Vietnamese labor in term of housework, the old and children caring. Vietnam workers are the second largest one in Taiwan, but it is one of the countries which of the highest employee escape rate. For example, in 2004, with 8,647 people who fled in total of 80,890 Vietnam laborers were working in Taiwan. Reason

10. Table 1: Number of Vietnam laborers left job under the contract and working outside

11. The cause of Vietnam laborers left job: Vietnam laborers’ awareness is still limited. They come from Vietnam’ countryside, they were not aware of the nature of labor export and Taiwan law. The high cost of brokerage: USD 5-6 thousand they fled outside with higher wages and have not to pay too much cost. The objective reasons from Taiwan side

12. Vietnam labor export structure to Taiwan

13. The interests of labor cooperation The importance of promoting labor cooperation is to meet the needs and interests of the parties For Taiwan: Vietnamese laborers are really important contributors to offset to Taiwan’s labor shortage. For Vietnam: To create more jobs and increasing incomes for workers’ family and themselves and contributing to reduce unemployment rate in society. To help laborer approach advanced machinery and technology, modern way of management, industrial working style and turning them into a good team of workers.

14. Enhancing mutual understanding and develop friendly cooperative relations between Vietnam and Taiwan It was helping mutual understanding about culture, manners and customs, contributing to strengthening Vietnam - Taiwan friendship cooperation not only in the past and present but also in the future.

15. The limitations of labor cooperation between Vietnam and Taiwan The lack of uniformity of laws and implementation of labor export to abroad in general and Taiwan in particular. Vietnam’s labor export companies have not focused on improving the quality of labor export. Although the number of labor export to Taiwan market increasing, but, generally, the rate remaining low compare to Vietnam ability and Taiwan needs. The labor quality is not high, and a badly awareness and discipline of employees. The rate of quit off Vietnamese workers and infringe the Taiwan is quite high. This is not only damage the reputation and economy of businesses supply Vietnamese labor but also it causes many adverse impacts on security and order in Taiwan.

16. Prospects for Vietnam - Taiwan HRD Cooperation and Policy Implications Assessments Assessments Taiwan has become an important partner of Vietnam's labor export sector. The benefits of labor cooperation between two sides have been clearly confirmed. However, it is not really commensurate with each sides ability. For Vietnam, strengthen state management in the labor export; Improve cultural knowledge and qualifications for labor force to export to Taiwan. Enhance its cooperation with Taiwan’s enterprise leaders to protect Vietnamese workers legitimate interests in Taiwan.

17. Prospects (cont) Prospects for the cooperation between two sides is very bright in the coming years. Taiwan's economy has been spectacularly recovered after the global economic crisis late in 2008. HR demands in Taiwan are very positive. Vietnamese labor import demand in the coming years in Taiwan will continue increasing, especially, in electronics sector that were previously hired Philippine by Taiwanese employers. According to Vietnam Labor Management Committee in Taiwan, they reopen in term of housework and the old and children caring for Vietnamese labors. Overcoming situation that laborer leave contract Reasons

18. Thank you for your attention