1 AIT Asian Institute of Technology

Employment structure and underemployment in rural Vietnam : a case study in Thanh Hoa Province

AuthorVu Thi Kim Mao
Call NumberAIT Thesis no.RD-02-04
Subject(s)Underemployment Vietnam Thanh Hoa
Unemployment Vietnam Thanh Hoa
Manpower policy, Rural Vietnam Thanh Hoa

NoteA thesis submitted in partial fulfilment of the requirements for the degree of Master of Science
PublisherAsian Institute of Technology
AbstractEmployment is a critical issue for any society. Before the Renovation (Doi Moi) policy was implemented, Vietnam followed full employment policy that guaranteed employment for the labor force. After the policy change, providing employment is no longer considered as a responsibility of the State. In Vietnam where a large majority lives in rural areas and rely on agriculture dismantling of agricultural and fishery cooperatives and introduction of Household Responsibility system had a dramatic effect on employment. Individuals have to find jobs; they could engage in any economic activity and move to any place in the country to work. Due to these changes, rural households could increase the sources of income, if they have the capacity. If the laborers are unable to find jobs in their locality, they could migrate in search of jobs. Given this background in Vietnam. This research examined the employment structure of rural households under the new economic policy environment and the status of the underemployed because now it is admitted that underemployment in rural areas exist and it is a serious problem. The study was conducted in Quang Thach commune in Thanh Hoa Province where the situation in coastal areas where fishing is prominent could be compared with interior parts of the commune where agriculture is predominant. Employment structure of the households have changed. Many households have diversified their economy by engaging in more than one activity. In the interior parts of the commune, agriculture still dominates but farmers have added other activities to their livelihood such as aquaculture, salt production, trade, handicrafts, wage labor and services. Household size, land resources, and availability of physical capital are the main factors that dete1mined the structure of employment and diversification of household economy. In the coastal area, fishing is still a main economic activity and the rate of diversification is relatively less. Lack of land is a major constraint. The laborers in the coastal area migrate to urban centers for jobs but the jobs are seasonal. Income from wage labor is more prominent in their household economy. Underemployment is widespread, particularly in the coastal area. Employment in the fishing industry is limited and seasonal. Other non-farm employment opportunities have not expanded adequately to absorb the labor. The small landholdings is a constraint for expanding on-farm employment opportunities. Lack of proper skills and capital are the constraints for engaging or starting non-farm activities. The income level of most of the households is low and so are the savings. Therefore, they face a shortage of capital for investment. For the development of employment opportunities, besides the efforts of the households, support from external agencies are needed in the form of credit, extension services, marketing support, infrastructure and provision of information.
Year2002
TypeThesis
SchoolSchool of Environment, Resources, and Development (SERD)
DepartmentDepartment of Development and Sustainability (DDS)
Academic Program/FoSRural Development, Gender and Resources (RD)
Chairperson(s)Wickramanayake, B.W.E. ;
Examination Committee(s)Soparth Pongquan;Routray, Jayant Kumar ;
Scholarship Donor(s)No1wegian Agency for Development (NORAD);
DegreeThesis (M. Sc.) - Asian Institute of Technology, 2002


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