Employment and quality of employment in Vietnam: The roles of small firms, formalization and education

r4d Working Paper 2016/10 by Nguyen Tu Anh, Nguyen Thu Thuy and Dang Thi Thu Hoai

ABSTRACT: In  this  paper,  we  examine  the  contributions  of  Vietnam’s  SMEs  to  employment  and  quality  of employment.   We   also   study  the   impact   of  technological  upgrading   on   employment   in   enterprises  in Vietnam including SMEs. Finally, we examine the role of education in probability in getting a job and a decent job in Vietnam.  Our results confirm that SMEs are net job creators.  In addition,  the  main  channel  of  Vietnam  SMEs’  technological  upgrading  is  found  to  be  investing  in  equipment,  and  by  doing  so  it  expands  the  possibility  of  employment.  The  results  also  show  that education plays an important role in  helping labors to  get a job and a decent job. Based on these  empirical  results  we  propose  some  recommendations  for  Vietnamese  government  to  improve quantity and quality of jobs in the country.