Overall Situation of Workers in Informal Employment in Viet Nam

Viet Nam is currently in a demographic dividend period, with the statutory working-age population twice as high as the non-working age one. Every year, the statutory working-age population participating in the labour market makes up a relatively high proportion exceeding 75 per cent. Nevertheless, the majority of workers in Viet Nam accept vulnerable jobs, do not have their social insurance premiums paid by employers or a guaranteed labour contract. Such workers are considered to work in informal employment.

For a country with a large population and developing economy such as Viet Nam, informal employment is still an integral part of society, making an important contribution to job creation and income generation for workers. Although informality often has negative impacts on workers’ incomes, safety and health, they are in many cases left with no choice but to work in informal jobs to secure livelihoods in the context of limited social welfare conditions or insecure earnings from formal work.

Throughout the country’s dynamic socio-economic development, the Government of Viet Nam has made unwavering efforts to further develop the economy and formalize informal sectors to ensure decent work for workers. However, many workers can still be found in the informal sector, with the situation becoming particularly acute during 2020–21 amid the severe impacts of the COVID-19 pandemic.

In order to paint a comprehensive picture of workers in informal employment in Viet Nam, especially amid the pandemic, the General Statistics Office with technical assistance from International Labour Organization (ILO) Country Office for Viet Nam has compiled this “Overall Situation of Workers in Informal Employment in Viet Nam” report. Based on data and information collected from annual Labour Force Surveys, this report has highlighted key characteristics of informality in Viet Nam in different dimensions. It has also assessed the determinants of informality and come up with a number of recommendations to enhance the quality of Viet Nam’s labour force, to help ensure decent work for all. The report is comprised of four chapters.

Chapter I. Concept, methods, data sources for calculating informal employment
Chapter II. Features of informal workers in Viet Nam
Chapter III. Impacts of the COVID-19 pandemic on informal workers
Chapter IV. Conclusions and recommendations
The General Statistics Office would like to extend its sincere appreciation to the ILO for its technical support and to relevant agencies, organizations and individuals for their close coordination and cooperation during the course of compiling this report.