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Human resource development in Ho Chi Minh City in the context of Vietnam's accession to the World Trade Organization in the period 2006 - 2020 - 5

Table 2.14: Labor recruitment needs at enterprises in the city in 2008 classified by level

STT

Education level

Total

labor

Rate (%)

1

University degree or higher

9,093

5.85

2

THCN

5,394

3.47

3

CNKT with degree

35,129

22.60

4

CNKT is not equal

12,901

8.29

5

Vocational and general labor

92,921

59.78

TOTAL

155,439

100.00

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Human resource development in Ho Chi Minh City in the context of Vietnams accession to the World Trade Organization in the period 2006 - 2020 - 5

Source: Department of Labor, War Invalids and Social Affairs

The above statistics were surveyed on a total of 3,649 business units. Although not a general figure, the above statistics also show a reality that in 2008, the demand for workers with college or university degrees or higher only accounted for 5.85%, while the demand for workers with technical qualifications (both with and without degrees) accounted for 30.89%. Obviously, this also shows that, in the development process, the demand for "workers" is very large.

If this situation is not adjusted, it will certainly affect the structure and quality of human resources. This is one of the most core issues that the city's human resources development strategy needs to be quickly resolved, especially in the context of Vietnam becoming a member of the WTO. Integration has caused a boom in industries and fields that require a lot of highly qualified workers and good "teachers", but besides that, many more industries and fields have appeared in which the demand for a skilled workforce is very high. Ho Chi Minh City is one of the places with the largest concentration of industrial parks and export processing zones, and is also one of the leading processing locations in Vietnam and has a reputation compared to some regions and territories in the region. This situation is increasing as Vietnam integrates and opens up according to the roadmap to join the WTO, so the need for a skilled workforce is becoming more and more urgent. It is also an indispensable requirement in implementing the process of "training according to social needs" that we have mentioned a lot in recent years.

◆ Fourth: Human resources with high technical qualifications have not met the requirements of economic development and restructuring. The city is seriously "thirsty" for highly qualified human resources in high-end service industries: finance - banking, post and telecommunications, information technology, electronics, transportation and warehousing, tourism, real estate, securities... and especially middle and high-level management workers . This is associated with another prominent problem: the city's training mechanism has not met the market's requirements in terms of occupational structure, or in other words, the viewpoint and policy of "training what society needs, not training according to what we have" has not been well implemented. The opening up according to the WTO roadmap along with the economic restructuring of the city (the target by 2020 is: services 59.5%; industry 40%; agriculture 0.5%) has caused the service sector to explode, especially high-end service sectors. Meanwhile, the city's training capacity is still limited, so it is not enough to meet the demand.

◆ Fifth: Another problem for the city in solving the problem of retaining employees. The phenomenon of "brain drain" has existed for many years and is on the rise. The "brain drain" mainly flows from the State sector to the FDI sector or the private sector. This problem has brought about extremely serious consequences for the use and exploitation of human resources.

Table 2.15: Labor increase and decrease in 2007 in enterprises in the city

Economic components

Number of employees increased (%)

Number of employees decreased (%)

Number of employees fluctuated (%)

Note

1. State-owned enterprises

1.01

1.37

- 0.24

Reduce (-)

2. Enterprises operate under the Enterprise Law.

41.96

32.12

+ 9.84

Increase (+)

3. Cooperative

0.02

0.01

+ 0.01

Increase (+)

4. Other organizations

0.38

0.12

+ 0.26

Increase (+)

5. Foreign invested enterprises

11.96

9.41

+2.55

Increase (+)

Source: Department of Labor, War Invalids and Social Affairs

Through the fluctuations of labor in enterprises in the area, it shows that, despite many fluctuations, the number of employees in the year still increased sharply in the non-state sectors, especially enterprises operating under the Enterprise Law (up 9.84%) and enterprises with foreign investment (up 2.55%), while the state sector lost 0.36% of its workforce. That shift shows that there has been a wave of labor migration from the state sector to the private and foreign-invested sectors. The problem here is that the working mechanism, recruitment and remuneration are not commensurate, the working environment does not create conditions for employees to develop their expertise and capacity... are the reasons why this phenomenon has existed for many years and tends to increase. In one year, 3 Deputy Directors of the Department (1 of the Department of Planning and Investment, 1 of the Department of Tourism and 1 of the city's Department of Commerce) submitted their resignations. Also in 2007, the Ho Chi Minh City Institute of Economics had 20 officials resign, the Urban Traffic Management Area No. 1, Department of Transport, in 2007 had 33 people resign, including 27 experts who were senior bridge and road engineers, along with a series of "departures" from many other departments in Ho Chi Minh City. These are prominent figures that contribute to clearly showing this topical issue, the "brain drain" has taken place right in the city's key agencies and departments and many "officials" are the ones who have left. In the context of Vietnam joining the WTO, the above situation is at risk of becoming more and more serious, because the presence of many large corporations and large enterprises in the world in the city will be ideal "places to join" for these people with reasonable and effective treatment and working regimes. Obviously, at this time, the city's "brainpower" has become a resource for enterprises from other countries, and that also means that the advantage will belong to other countries, the competition will become more and more difficult for the city's enterprises, and the difficulty will become more and more difficult in this context. The "brain drain" is happening right at home and that is a huge loss, and an ineffective investment in human resources, because if we keep investing but if we cannot retain people, the beneficiaries will be "competitors". And it becomes a very big risk. Besides, integration also creates

a more favorable and open environment, encouraging the establishment of many private enterprises, enterprises operating under the Enterprise Law. Therefore, many talented and intelligent employees who are facing difficulties and dissatisfaction in the current working environment may "go out on their own"... If there are no satisfactory and timely solutions to overcome the above situation, it will be one of the great challenges for the city in particular and the country in general in investing and developing human resources for the future.

2.2.2 Causes and influencing factors

The problems that have existed in the training and use of human resources in the city in recent times stem from the following reasons:

- Firstly: although it is the largest economic and financial center in the country, with GDP and per capita income higher than the national average (2007: 2,180 USD/person), but basically, the city is a province in a developing country but has a low per capita income equal to that of underdeveloped countries with a high agricultural production value in total GDP, a large agricultural workforce (56% of agricultural workforce), the city is affected by the general policies on education, training and human resources of the whole country, therefore, it cannot escape the general situation where manual labor is still very large and trained labor is low (nearly 55%).

- Second: the city does not have a comprehensive strategy for building, developing and using human resources for the city's development process at least until 2020. This leads to overlapping planning, development and use of human resources among sectors; there are no forecasts or labor needs in each specific industry. This is one of the important and indispensable issues in building a human resource that meets the development requirements of the city in particular and of the country in general and needs to be placed at the forefront of overall solutions for human resource development. In particular, the city has not been really proactive in preparing human resources to meet the development requirements.

Responding to development requirements in the context of joining the WTO, Vietnam has been really passive in integrating, especially in terms of weak human resources and lacking in both quantity and quality.

- Third: the quality of training in the city's education and training system is still not high. The content and teaching methods in schools and training facilities are still limited, the teaching methods are heavy on theory and light on practice, often creating passivity for learners; there is a shortage of teachers, the infrastructure is not complete, and does not meet the teaching needs... Therefore, the quality of human resources after training is often inadequate. Learners often have little ability to apply what they have learned, or if they want to work, they have to accept a "retraining" process that is not only a waste of money but also a waste of time, career opportunities, etc. Especially, in the process of innovation and joining the WTO today, these limitations and inadequacies have been and are a major obstacle requiring appropriate reform and innovation.

In addition, training has not yet met social demands because there is no “cooperation” between the three parties: employers, trainers and managers , thus leading to a situation where labor supply and demand have not met. In particular, schools are still passive in proactively grasping market needs in order to create output “products” that meet social demands, while still struggling to train according to what they have. Employers are too indifferent to their own responsibility in training employees, considering it the responsibility and duty of the trainers alone, not proactively and boldly "ordering" according to requirements, not ready to cooperate with trainers in supporting learners in the process of "learning while doing" ... Managers do not have support policies to orientate careers for employees as well as appropriate and timely measures to create conditions for trainers to promote dynamism and practical policies to support the "combination" between the two: training and use. These reasons lead to the situation of surplus and shortage of labor in many sectors of the economy.

- Fourth: Society has incorrect awareness of vocational training, so the status of intermediate vocational or intermediate vocational schools in reality is not respected.

There are practical measures to implement the policy of streamlining high school students, so it is not possible to attract many students to vocational training. The root cause of the problem is due to social psychology, there is still a state of valuing degrees, not valuing technical and vocational skills while the demand of society for these two groups is increasing. Therefore, it leads to a serious imbalance between workers with college and university degrees and technical and vocational skills, the situation of "too many teachers, not enough workers" for a long time. The outstanding characteristic of Vietnamese people in general and city people in particular is the mentality of valuing exams and degrees. Normally, high school students, regardless of their academic performance, register to take the entrance exam to a certain university, very few students choose vocational training from the beginning. This stems from the current paradox in our country in general and the city in particular: parents worry about their children's education, invest money for their children to study, but they do not know what their children's jobs and benefits will be after they finish studying. All expenses are borne by the parents, but businesses and society enjoy the results (have the power to choose to use according to their needs). Therefore, the choice of training majors and levels of education for students is largely up to the parents, who want their children's jobs after graduation to be worthy of the effort and money they have invested. This mentality is becoming more common in Ho Chi Minh City, which is considered the largest economic center in the country with a high average income per capita and especially the locality with many large and prestigious universities and colleges in the country. To change this mentality, there must be a joint effort from the State, businesses and society, in which the State plays a management, operation and control role; Enterprises need to attract and retain skilled workers and vocational training workers through recruitment and salary policies; the whole society needs to have a campaign to make everyone see that vocational training has an important position and is highly valued by society.

In addition, the system of professional and vocational schools lacks information on forecasting training needs by occupation and information on the labor market in the city. There is no interest or active participation in the training process at schools by labor-using establishments, so it has not created a bridge between training and labor use. Investment resources for vocational training are not appropriate and reasonable, and policies are inconsistent.

However, there have not been satisfactory solutions to promptly resolve the existing contradictions between the increasingly high demands for quality and quantity on one side and the very limited capacity and conditions of training institutions on the other.

- Fifth : There is no reasonable labor policy, especially for highly qualified labor in the State sector, leading to loss and brain drain. The working environment and human resource policies still have many shortcomings. Low income, not commensurate with the labor results and dedication of employees; unreasonable labor use mechanism, not allowing the exploitation of professional capacity and strengths of employees, no mechanism to detect and reward talents properly, especially during the time when Vietnam joined the WTO, employees have more opportunities to find a new job with a better working environment, with appropriate treatment... leading to the situation of "brain drain" from the State sector to foreign-invested and private sectors. In addition, the city has not really promoted policies to attract talented people from all over the country to work here, especially the highly qualified labor force living and working abroad.

- Sixth: Investment in education and training is not high and not effective. Although in recent years the city's annual investment rate in education and training has increased along with economic growth, that investment is still too low (2005: 0.83% of GDP; 2006: 0.89% of GDP; 2007: 0.91% of GDP). Compared with the investment rate of countries with developed education in the world such as the US: 6.7% of GDP, the Netherlands: 6.7% of GDP, Japan: 5% of GDP, France: 5.7% of GDP; Singapore: 18.1% of GDP, Malaysia: 18.1% of GDP,

: 19.4% of GDP, South Korea : 19.6% of GDP, China : 14.6% of GDP [appendix 8,9], we can easily see that this is one of the main reasons why the quality of education and training in the city is still low.

Chapter 3‌

ORIENTATION AND SOME BASIC SOLUTIONS TO DEVELOP HUMAN RESOURCES IN HO CHI MINH CITY IN THE CONTEXT OF WTO ACCESSION

3.1 Orientation and goals for socio-economic development of the city until 2020 3.1.1. Orientation for socio-economic development

1. Development must be sustainable. Sustainability in the economic field is to ensure the long-term development of the city's economy. Therefore, it is necessary to create the basic foundations for long-term, sustainable development and continuously improve the quality of life of the people. Special attention should be paid to environmental protection and sustainable urban development.

2. Economic development must be in harmony with socio-cultural development. Putting people at the center of development and the ultimate goal is to develop people. Culture is both the foundation and the driving force for economic development. Material wealth must go hand in hand with the corresponding development of spiritual life, to ensure a civilized and modern society.

3. The economy of Ho Chi Minh City is an urban economy, different from the national economy. Urban development and economic development are closely linked. The essence of the city's economic development is to solve urban development problems.

4. City development must be linked to regional development. The city is the core of development of the Southern Key Economic Zone. Therefore, the city's development plans and orientations must be closely linked to the entire region.

5. The coming period is the period in which the national economy will further integrate into the regional and world economy. As a WTO member, the city will continue to negotiate, sign and implement free trade commitments with regional countries. The city's development plan and strategy must be placed in the context of the above integration. The issue of improving competitiveness, especially of enterprises, must be considered one of the top priorities.

The city's perspective is to proactively integrate and accelerate development. Must be used for

integration tools to leverage city development.

3.1.2 Development goals of Ho Chi Minh City to 2020

The basis for building strategic orientations for city development is based on important legal documents such as Resolution 20 of the Politburo (20-NQ/BCT) dated November 18, 2002 on the development of Ho Chi Minh City, Resolution 53 of the Politburo (53-NQ/BCT) dated August 29, 2005 on the development of the Southeast and the Southern Key Economic Zone, Decision 146/QD-TTg of the Prime Minister dated August 13, 2004 on the development of the Southern Key Economic Zone, Decision 123/QD-TTg of the Prime Minister dated May 29, 2006 on the implementation of Resolution 53 of the Politburo on the development of the Southeast and the Southern Key Economic Zone, documents of the city Party Congress, and references to previous city development planning orientations. In addition, the proposed orientations and goals are also based on analysis of the city's socio-economic situation and the domestic and foreign context affecting the city's future development.

The general goal of city development is to build Ho Chi Minh City into a civilized and modern socialist city; leading in the cause of industrialization and modernization. Developing rapidly and sustainably. Building the city into a major center in many aspects of the country and the Southeast Asian region.

(1) In terms of economy , the city takes services and high value-added industry as the foundation for its development. As the largest economic center in the country, it is a gathering place for the business community. Building the city into a place that attracts large domestic and foreign economic corporations to set up their business headquarters to conduct business activities nationwide and in countries in the region; gradually becoming an industrial center, financial and commercial center of the Southeast Asian region.

(2) Regarding urban areas , build a civilized, modern city, a green and clean city, a river city suitable for the Southern soil. Develop the city into an open city with many centers. Limit the city's population size to an appropriate level.

(10 million people excluding visitors). The city is the nucleus of the Ho Chi Minh City Metropolitan Area, connecting with surrounding provinces.

(3) Regarding science and technology , build the city into a major science and technology center of the country and Southeast Asia. The city focuses mainly on research and application of cutting-edge science and technology fields to effectively serve the cause of industrialization and modernization of the country. Strengthen the city's scientific potential, when strong enough, it will selectively research large-scale, modern science and technology contents, actively contributing to creating a breakthrough development in the years 2015-2020.

(4) Regarding education and training, healthcare , the city will be a major center for high-quality education and training and high-tech healthcare in the country and Southeast Asia. Raising the city's education quality to the same level as other countries in the region. The city is home to prestigious foreign branches and training facilities in Vietnam.

(5) Socially , build the city into a model socialist city that harmoniously combines economic development and social development. Focus on poverty reduction, inequality reduction, and people-centered development.

(6) Regarding culture, build the city into a major cultural center of the country, develop high-level cultural fields. Harmoniously combine traditional culture and modern culture. Strongly develop cultural and entertainment industries; make culture truly the foundation of the city's development.

(7) Regarding political security and social order , it must always be stable and must be

is considered as the premise of development.

In general, after 2020, the city must truly return to its position as the “Pearl of the Far East”, one of the most modern, fastest-growing and dynamic cities in Southeast Asia and the Asia-Pacific region. Ho Chi Minh City will rise to become a multifunctional center, notably a high-end financial and service center of the country. The city’s economic structure after 2020 will be similar to that of developed economies (post-industrial), with

High-end service industries play a dominant role. The city will become a global metropolis. The city's economic life is closely linked to the world's economic life through countless economic links on the global telecommunications and internet networks, and is the most important gateway for economic exchange between Vietnam and the outside world.

3.1.3 Forecast of economic restructuring of the city to 2020

It is forecasted that by 2020, the GDP structure among the city's sectors will be:

Table 3.1: GDP structure of Ho Chi Minh City in 2010 and 2020

2007

2010

2020

Total (%)

100.0

100.0

100.0

Agriculture (%)

1.0

0.8

0.5

Industry - construction (%)

47.2

47.5

40.0

Service (%)

51.8

51.7

59.5

Source: City Economic Institute

Regarding the economic structure, after 2010, industry and construction were basically stable, continued to increase the proportion of services in the city's GDP, continued to gradually reduce agriculture, and transformed agriculture towards high-quality agriculture. Forecast of the city's specific economic structure by 2020:

- Industry and construction: 40%

- Service: 59.5%

- Agriculture: 0.5%

In industry and construction, continue to invest in mechanical engineering, electronics, automation, telecommunications, and information technology. Apply science and technology to industry, develop new materials technology and nanotechnology.

In agriculture, shift towards no longer purely agricultural production, develop agricultural biotechnology. By 2015, become a center providing high-quality plant and animal varieties for the whole country. By 2020, become a center of agricultural biotechnology in Southeast Asia and have a field

Reaching out to the Asia-Pacific region. Encouraging the development of agricultural sectors that produce products with high scientific and technological content and value.

In services, continue to maintain the growth of 9 key industries. In the period 2010-2020, focus on the following 6 industries: financial-credit-banking-insurance consulting; postal-telecommunications services, in which promoting the trading of information technology and communication products; consulting services; science and technology; healthcare and high-quality education and training consulting.

3.2 Orientation and some solutions for human resource development to meet the requirements of WTO accession

3.2.1 Orientation for human resource development in the city until 2020

Along with the economic restructuring and to meet the development requirements during the WTO accession period, the city's human resources structure must change to meet the requirements of economic development. The shift must first be implemented in the direction of reducing unskilled labor, increasing highly skilled labor, reducing labor in sector 1, and increasing rapidly in sector 2 and especially sector 3. This requires the city's education and training to also adjust the content and training methods to ensure the provision of sufficient quantity and high quality human resources to meet the requirements of society. It must be a human resource who is proficient in professional skills, knowledgeable about culture and national history, knowledgeable about the law, dynamic, creative, qualified, capable of absorbing and applying science and technology, has an industrial style and a strong political stance, meeting the requirements of world economic integration. In addition to innovation in the field of education and training, the thinking and management methods of a modern industrial and service city of the city's management and leadership team must also be innovated, upgraded, and capable of managing all activities of the city. That is also the goal that the city needs to achieve in developing human resources by 2020.

- About population size

Although the population growth rate in the period 2000-2005 was very high compared to previous periods, changes in recent years show that this rate will gradually decrease in the period 2006-2010 and gradually stabilize in the period 2010-2020. In the immediate future, mechanical population growth is still the main factor causing population growth in the city, but the mechanical growth rate will gradually decrease due to the economic restructuring process of the city and the development of the provinces in the region. In the coming time, the main population indicators of the city are forecasted as follows:

Table 3.2: Forecast of Ho Chi Minh City population in 2010 and 2020

TT number

Target

2005

2010

2020

1

Population size (1000 people)

6,240

7,200

9,200

2

Natural population growth rate (%)

1.15

1.1

1.0

3

Mechanical increase rate (%)

2.0

1.5

0.9

Source: According to calculations of the City Economic Institute

^The city's population in 2010 will be 7.2 million people and in 2020 it will be 9.2 million people, of which over 90% will be urban population.

^The natural population growth rate decreased slightly and stabilized at 1% in 2020.

^The mechanical population growth rate decreased and reached 1.5% in 2010, then decreased slightly and

reach 0.9%/year in 2020.

- About labor

According to the calculation of the City Economic Institute, the city's population will be 7.2 million people in 2010 and 9.2 million people by 2020. Of which, the city's human resources will be 4,877,280 people (accounting for 67.74% of the total population) in 2010 and 6,213,680 people in 2020 (accounting for 67.54% of the total population).

Table 3.3: Forecast of population and human resources of Ho Chi Minh City in 2010 and 2020

Target

2005

2010

2020

Growth rate

average (%)

Value (people)

Structure (%)

Value (people)

Structure (%)

Value (people)

Structure (%)

2006 -

2010

2011 -

2020

I. Population

whole city

6,239,938

100.00

7,200,000

100.00

9,200,000

100.00

2.9

2.5

II. Labor source

dynamic

4.164.161

67.67

4,877,280

67.74

6,290,040

68.37

3.3

2.6

Source: Calculation of the City Economic Institute

In the coming time, the city's demand for labor will continue to increase. However, due to the economic structure developing in the direction of reducing the proportion of industries that use common labor and increasing the proportion of high-tech industries, the demand for labor will increase more slowly than in the previous period. In particular, the demand for high-skilled labor will increase relatively compared to labor without technical expertise.

In addition, the city's economic structure in the next 15 years will shift towards service - industry - agriculture. Therefore, the labor structure in the city will continue to shift towards increasing the proportion of labor in the service sector and gradually reducing the proportion of labor in agriculture. Particularly for the industrial sector, from now until the end of 2010, the proportion of labor in industry will increase slowly and then gradually decrease. It is forecasted that in the period 2006-2020, the city's human resources will be distributed as follows:

^The proportion of labor in the fields of agriculture: industry-construction: trade and services is 2%: 36%: 62% respectively.

^On average, each year the city creates jobs for about 230 to 240 thousand workers, including 100 thousand new jobs.

^Unemployment rate fell from 5.8% in 2006 to 5% in 2010 and 4% in 2020.

^General labor productivity of economic sectors in the city increased by an average of 10%/year.

^The rate of vocational training workers in the total working population will reach over 55% in 2010 and over 65% in 2020 [20,70].

3.2.2 Human resource needs of the city by 2020

3.2.2.1 Human resource demand in the city's economic structure to 2010 and 2020

Based on the city's population and labor estimates from now until 2020, with the goal of achieving a labor structure appropriate to the city's development level, the city's human resource needs for a number of specific industries are as follows:

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