DECISION

PROMULGATION OF THE PROGRAM FOR ASSISTANCE IN DEVELOPMENT OF THE LABOR MARKET BY 2030

THE PRIME MINISTER

Pursuant to the Law on Government Organization dated June 19, 2015; the Law dated November 22, 2019 on Amendments to the Law on Government Organization and the Law on Local Government Organization;

Pursuant to the Law on Employment dated November 16, 2013;

Pursuant to Resolution No 11-NQ/TW dated June 03, 2017 of the 12th Central Executive Committee of the Communist Party on improvement of the socialist-oriented market economy;

Pursuant to Directive No. 37-CT/TW dated September 03, 2019 of the Secretariat on enhancement of leadership, development of harmonious, stable and advanced labor relations in new circumstances;

Pursuant to the Government’s Resolution No. 01/NQ-CP dated January 01, 2020 on primary tasks and solutions for implementation of the 2020’s socio-economic development plan and state budget estimates;

At the request of the Minister of Labor, War Invalid and Social Affairs,

DECIDES:

Article 1. Promulgation of the Program for Assistance in Development of the Labor Market by 203 (hereinafter referred to as “the Program”)

I. VIEWPOINTS

1. Development of the labor market must be comprehensive and sustainable; aim towards modernization, effectiveness, suitability with characteristics of each region and administration; be the foundation and motivation for socio-economic development of the country.

2. The State shall build and assist in development of the labor market by improving the effectiveness of policies and the system of legislative documents on labor market development, enhancement of administrative reform to minimize the risks relevant to workers’ benefits during the 4th industrial revolution.

3. Seek international integration; intensify connection between domestic labor demand and supply in association with international labor market.

II. Targets

1. General targets

Establish a strong foundation for uniform development of various elements of the labor market; contribute to the mobilization, distribution and utilization of resources for socio-economic development; modernize the labor structure; ensure connection between the domestic labor market and that of other countries in the region and the world.

2. Specific targets

a) Increase the quantity of skilled workers to satisfy the labor demand:

- The ratio of trained and qualified workers is expected to reach 30% by 2025 and 35-40% by 2030;

- Vietnam’s ranking of “Knowledge Worker” in Global Innovation Index (GII) is expected to in the top 60 by 2025 and top 55 by 2030;

- The ratio of workers with information technology skills is expected to reach 80% by 2025 and 90% by 2030.

b) Creation of better jobs for workers:

- The overall employment rate is expected to drop below 3%; employment rate in urban areas is expected to drop below 4%;

- The ratio of workers in agriculture is expected to drop below 30% by 2025 and below 20% by 2030;

- Productivity growth rate is expected to reach at least 6,5%/year.

c) Reduction in ratio of unemployed, uneducated or untrained youth:

- The ratio of unemployed, uneducated or untrained youth is expected to drop below 8%;

- Maintain unemployment youth ratio below 7% in urban areas and below 6% in rural areas.

d) Assurance of safe working environments for workers:

The ratio of workers in the working age having social insurance is expected to reach 45% in 2025 and 60% in 2030, where ratio of farmers and workers in the informal sector having voluntary social insurance is expected to account for 2,5% of the work force in 2025 and 5% by 2030.

dd) Invest in, develop job-related transactions and the existing national labor market information system towards modernization, uniformity and connectivity among info systems. To be specific:

- The ratio of high school graduates provided with career counseling is over 80% by 2025 and over 90% by 2030;

- The ratio of workers who find jobs through employment agencies is expected to reach 40% by 2025 and 45% by 2030;

- Complete the technical infrastructure, software applications, systems for connection and sharing of data, conversion and standardization of national labor database by 2025.

From 2026, put the national labor database into operation; connect with and share data with other national database and information system. By 2030, modernize the labor market information system; ensure nationwide access of data; expand connection to other ASEAN countries, especially in some countries that are major labor markets of Vietnam in 2030.

III. OBJECTIVES AND SOLUTIONS

1. Completion of a uniform legal system to develop the labor market towards modernization

a) Review, amend legislative documents on labor demand – supply relationship, matching of labor demand and supply according to the labor market rules, international conventions and standards recognized by Vietnam, lawful and justifiable interests of workers and employers.

b) Develop a mechanism and execute programs and schemes for assistance in job creation and participation in the labor market for special groups (disabled people, ethnic minorities; rural workers; new graduates from universities and vocational education institutions).

2. Assistance in development of labor demand - supply

a) Formulate and provide pre-employment vocational training courses for new graduates; vocation-specific advanced training courses for workers during their employment. Employers are encouraged to participate in the education and vocational training process.

b) Improve the organization structure and personnel management; improve the effectiveness of instruments for supervision, evaluation, recognition of vocational skills of workers according to national standards.

c) Design basic and advanced vocational training programs according to standards of vocational skills; apply digital technologies; study formulation of policies on assistance in provision of basic and advanced training for special groups of workers. Encourage frequent and flexible provision of short-term training courses in digital skills for workers.

d) Study formulation of policies on attraction of talents, especially policies on housing, salaries, living and working conditions in order to attract and retain high-level experts, scientists and managers.

dd) Encourage enterprises, enterprise associations and professional associations to participate in the process of innovation and improvement of education and vocational training quality in order to meet the demand of the labor market.

e) Review, simplify procedures conversion of household businesses into enterprises; introduce policies on assisting enterprises in collecting, paying and refunding tax in order to improve effectiveness of assistance for enterprises converted from household businesses.

3. Assistance in development of labor market information system and matching of labor demand - supply

a) Completion of the labor market information system as the basis for matching of labor demand – supply:

- Complete the institutions, procedures and methods for collecting, updating, storing and consolidating labor market data;

- Formulate, implement solutions for digitizing and updating data and information about workers; store and manage data at provincial, regional and central levels; ensure connectivity and sharing of data about population, enterprise registration and social insurance;

- Upgrade infrastructure and equipment serving collection, storage, analysis of data, forecasting labor demand – supply serving management, analysis, sharing and publishing of information about the labor market;

- Implement solutions for connection, transmission, sharing of information about workers and employments with databases of Ministries, central authorities and local governments; complete the central employment web portal which is connected to local web portals in order to ensure provision of essential information for the public.

b) Design diverse career counseling programs in terms of subjects, contents and forms with flexible locations; provide training for participants in provision of career counseling for students.

c) Planning and development of the system of employment services:

- Develop the network of employment agencies which is appropriate for the labor market of each region and province. Focus on investment in development of employment agencies in administrative divisions that are centers of 6 socio-economic regions with an aim to make them into both centers of the provinces and employment agencies that share labor market information, analyze and make forecasts about the labor market in their regions and other regions;

- Apply new technologies to employment services; develop instruments (software, criteria, standards) serving uniform management of employment services nationwide;

- Provide advanced training for personnel of employment agencies in terms of knowledge and skills in collecting, analyzing and searching information about the labor market serving their employment counseling tasks;    

- Review, evaluate existing facilities of employment agencies in order to determine the necessity of investment assuring the matching of labor demand and supply in a professional, modern and effective manner.

4. Assistance in development of insurance and welfare network

a) Improve the accessibility of social insurance, health insurance and unemployment insurance to workers in order to maintain stable life and continuous production.

b) Promote the roles and operation of Trade Union of Vietnam and trade associations in order to develop members, connect share and exchange information among workers in the same fields, improve the effectiveness of workers’ rights protection.

c) Formulate a mechanism for provision of information and legal counseling services for workers where necessary.

d) Diversify social security packages for workers in terms of forms, method and level of contribution, and benefits; simplify administrative procedures and develop a mechanism for provision of administrative and legal assistance for workers who participate in voluntary welfare programs.

5. Assistance in connecting domestic and foreign labor markets, development of special labor markets

a) Study and disseminate systems of vocational skill recognition according to international standards in order to assist workers in participation in domestic and foreign labor markets.

b) Formulate policies on assistance in development of special labor markets, especially labor markets of rural areas, ethnic labor markets, skilled labor markets.

6. Improvement of organization and operation of labor markets

a) Continue arranging, innovating the organization and state management of employments and labor markets; improve quality and effectiveness of employment units and labor markets towards uniformity, specificity of functions, duties and cooperating mechanism.

b) Disseminate and raise awareness of regulations of law on labor, labor relations, responsibilities and interests of social partners in improvement of quality, effectiveness, productivity and competitiveness of the economy.

c) Enhance inspection and taking of actions against violations against labor laws, especially regulations on conclusion of employment contracts, payment of social insurance and other social security benefits for employees.

d) Formulate a system of indexes for evaluation of labor markets, employments and incomes through comparison with other countries in the region and the world; evaluate the differences in development of labor markets, job creation, incomes between provinces and regions of Vietnam.

dd) Promote study, sharing of experience, technical assistance in formulation of policies, operation and management of labor markets.

IV. FUNDING SOURCES

1. State budget as prescribed by the Law on State Budget, the Law on Public Investment and their elaborating documents.

2. Private investments, revenues from employment services as prescribed by law.

3. Funding from Unemployment Insurance Fund as prescribed by unemployment insurance laws.

4. Other lawful sources.

V. ORGANIZATION OF IMPLEMENTATION

1. The Ministry of Labor, War Invalid and Social Affairs shall:

a) Preside over the planning and organization of dissemination and implementation of the Program.

b) Complete regulations of law on labor, employments, vocational education and social insurance by reviewing, evaluating and amending the Law on Employment, the Law on Social Insurance and relevant legislative documents; study the formulation of policies on assisting in job creation, promoting enterprises, enterprise associations and trade associations to participate in innovation and improvement of vocational education quality in order to satisfy labor market demand.

c) Formulate a system of indexes for evaluation of labor market development, employments and incomes.

d) Develop and run training courses in new skills for workers.

dd) Develop the system of vocational skill recognition; organize evaluation of workers’ vocational skills according to requirements of labor markets and the fourth industrial revolution.

e) Preside over the development and completion of the labor market information system and matching of labor demand – supply.

g) Provide instructions; carry out inspection, supervision and evaluation of implementation of the Program; submit reports to the Prime Minister as per regulations.

2. The Ministry of Education and Training shall:

Take charge and cooperate with the Ministry of Labor, War Invalid and Social Affairs, other Ministries and central authorities in development of training human resource development programs according to labor market requirements.

3. The Ministry of Planning and Investment shall:

a) Take charge and cooperate with the Ministry of Labor, War Invalid and Social Affairs, other Ministries and central authorities in promoting conversion of household businesses into enterprises.

b) Take charge and cooperate with the Ministry of Labor, War Invalid and Social Affairs, other Ministries and central authorities in completing the labor market information system.

4. The Ministry of Finance shall propose necessary funding for implementation of the Program to competent authorities in accordance with state budget laws.

5. The Ministry of Health shall take charge and cooperate with the Ministry of Labor, War Invalid and Social Affairs, other Ministries and central authorities in expanding the scope and simplifying administrative procedures in order to encourage participation in health insurance by the people.

6. Other Ministries, ministerial agencies and governmental agencies shall

a) Participate in implementation of the Program within the scope of their functions and duties.

b) The Ministry of Public Security, Vietnam Social Security, the Ministry of Health, the Ministry of Planning and Investment shall, within the scope of their jurisdiction, cooperate with the Ministry of Labor, War Invalid and Social Affairs in sharing and connecting to labor and employment data.

7. The People’s Committees of provinces and central-affiliated cities:

a) Organize the implementation of the Program locally.

b) Formulate annual plans for implementation of the Program.

c) Provide funding and human resources for implementation of the Program.

d) Send reports on implementation of the Program by December 20 every year to the Ministry of Labor, War Invalid and Social Affairs for consolidation and reporting to the Prime Minister.

8. Vietnam General Confederation of Labor shall:

a) Take charge and cooperate with the Ministry of Labor, War Invalid and Social Affairs, relevant Ministries and central authorities in developing essential services for workers, especially those working in industrial zones and export processing zones.

b) Provide instructions for inferior trade union units to cooperate with employers, heads of agencies and units in formulation and implementation of internal workplace democracy regulations; provide advanced training in negotiation skills for trade union representative in order to contribute to development of harmonious, stable and advanced labor relations in enterprises.

9. Central Committees of Vietnamese Fatherland Front, Vietnam Cooperative Alliance, Vietnam’s Women Union, Vietnam Farmer’s Union, Communist Youth Union shall:

a) Disseminate policies and guidelines of the Communist Party and regulations of law on labor and labor markets among their members.

b) Monitor, manage and assist their members in their participation in labor markets; participation in basic and advanced training.

Article 2. This Decision comes into force from the day on which it is signed.

Article 3. The Minister of Labor, War Invalid and Social Affairs, other Ministers, heads of ministerial-level agencies and Governmental agencies, Presidents of the People’s Committees of provinces, relevant organizations and individuals are responsible for the implementation of this Decision./.

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