I: Vietnam has comparative advantages in producing labor intensive industries because:

- Vietnam has a knowledgeable and competitive workforce and an abundant workforce: Vietnam
has a population of 90.73 million people (13th largest in the world), which is expected to grow
to 100 million by 2020 at an annual growth rate of 1.2%. Over 50% of the population is 25 years
old or younger. Possessing young, highly skilled workers with a good work ethic and a literacy
rate of more than 90%, Vietnamese are well-educated and ready to serve in skill-demanding
industries. such as information technology, pharmaceuticals and financial services at a more
competitive cost than other countries in the region.
- Vietnamese workers are highly regarded as smart, quick to learn, skillful, and if they are well
paid and organized, they will work with high productivity and efficiency.

II : Vietnam gradually loses its comparative advantage in those industries because

- Subjective reasons

+ Labor is unevenly distributed among regions: Large areas of land have a low proportion of labor (the
Northern Midlands and Mountains only account for 13.8% of the labor force, the Central Highlands
accounts for 6.5% of the workforce. labor force), labor allocation has not created favorable conditions to
promote advantages of land, create jobs for workers and positively affect labor movement from rural
areas to urban areas.

+ Low-quality labor, mainly agricultural and rural workers, has not met development requirements:
Labor supply in Vietnam is always a serious shortage of high-skilled workers. , workers in some service
industries (banking, finance, information and telecommunications, tourism…) and new industries. The
percentage of workers with vocational training is still low, skills, skills, physical strength and industrial
working style are still weak, so the competitiveness is low. The physical condition of Vietnamese workers
is poor on average, both in terms of height, weight as well as endurance, flexibility, not meeting the
working intensity and requirements in using machinery and equipment. according to international
standards. The labor discipline of the Vietnamese people, in general, has not met the requirements set
forth by the industrial production process. A large part of workers has not been trained in industrial
labor discipline. The majority of laborers come from rural areas, agriculture, bearing heavy production
style of small-scale agriculture, arbitrary in terms of time and behavior. Employees are not equipped
with knowledge and skills to work in groups, are not able to cooperate and take risks, are afraid to
promote initiatives and share work experiences.

+ There are still many barriers and limitations in labor mobility: Most migrant workers only register for
temporary residence, do not have a household registration, have difficulties in housing, study, and
medical treatment... migrant workers are low and most have not received vocational training. Most
industrial zones and export processing zones, which employ up to 30% of migrant workers, do not have
social infrastructure services (dormitories, kindergartens, cultural houses, vocational training,
participation in social insurance). society…), migrant workers have little opportunity to access basic
social services. This situation leads to the result that the labor supply is not able to meet the economic
development needs of the regions, industrial zones, and export processing zones.
+ Lack of strong enough resources for state administrative reform. Resources, especially concentrated
resources for administrative reform, are limited.

+ There is a growing contradiction between governance capacity in general and the capacity to
administer overall programs.

+ Currently, the quality of Vietnam's labor force is still limited. The rate of trained laborers is still low,
the shortage of skilled workers has not yet met the needs of the labor market and integration; The gap
between vocational education and the needs of the labor market is widening. At the same time, the shift
in economic model and structure has caused the supply and demand in labor to change, while the
training majors in schools have not caught up with the trend of enterprise use of labor.

- Objective reasons:

+ As technology develops, machines gradually replace people, so workers in Vietnam easily lose their
jobs

+ The integration period has placed higher requirements on Vietnamese workers, requiring human
resources to have many skills other than professional knowledge such as: communication ability, ability
to work in groups. , reporting skills or computer literacy... Vietnamese workers have not been equipped
with these skills