i MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY MASTER THESIS THE EFFECTS OF FDI ON THE LABOR MARKET OF ASEAN COUNTRIES Specialization: International TradePolicy and Law HO THI HONG NGAN ii Hanoi - 2019 MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY MASTER THESIS THE EFFECTS OF FDI ON THE LABOR MARKET OF ASEAN COUNTRIES Specialization: International Trade Policy and Law Full name: Ho Thi Hong Ngan Supervisor: Dr Nguyen Thi Viet Hoa iii Hanoi - 2019 i DECLARATION I hereby declare that this master thesis is the scientific research of my own which made on the basis of theoretical studies, field surveys and under the direction and supervision ofDr. Nguyen Thi Viet Hoa. The research contents and results of this thesis are completely honest. These data and documents for the analysis, review and evaluation were collected from various sources which are fully listed in the reference list. I am fully responsible for the content of this master thesis as well as this declaration. Hanoi, 21 February 2019 Author Ho Thi Hong Ngan ii ACKNOWLEDGEMENT During the completion of this master thesis, I received the guidance and valuable help from the lecturers, siblings and friends. With great respect and deep gratitude, I would like to express sincere thanks to: Dr. Nguyen Thi Viet Hoa who wholeheartedly helped, supported and encouraged me from the initial to the final level of this dissertation. She provided me with comprehensive guide from choosing the topic, outlining the thesis and editing this research. Professors and lecturers from FTU as well as World Trade Institute in the Master of International Trade Policy and Law Intake Four, who not only spread profound knowledge and information in the fields of economy and law but generated strong motivation for me while I was taking this course as well. Last but not least, I would like to express my sincere thanks to my family, my colleagues and my friends, who have always by my side encouraging, supporting, contributing valuable ideas and giving me favorable conditions for me to complete this scientific research. iii TABLE OF CONTENTS DECLARATION.iiii LIST OF ABBREVIATIONS.vivi LIST OF FIGURES.viiiviii SUMMARY OF THESIS RESEARCH RESULTS.ixix In some certain aspects, the author has answered all the questions which have been raised when considering about the topic.The characteristics of foreign direct investment and labor market have been listed and analyzed carefully. The effects of foreign direct investment (FDI) on the labor market of ASEAN countries are quite mixed and need to be further analyzed by in-depth models. In general, FDI has brought positive impacts on the labor market of ASEAN countries, but these effects are not well adapted due to both subjective and objective reasons. The labor force of ASEAN still faces a lot of difficulties in taking advantage of huge FDI capital from outside. Therefore, some solutions have been proposed to help ASEAN labor force in general and Vietnamese labor in particular get access to this type of investment and gradually raise their capabilities to work abroad.ixix CHAPTER 1: INTRODUCTION. Scope of research.88 CHAPTER 2: THE THEORETICAL FRAMEWORK OF THE EFFECTS OF FDI ON THE LABOR MARKET. Fundamentals of FDI. The concept of FDI. Characteristics of FDI. Classification of FDI. Fundamentals of labor market. The concept of labor market. Composition of labor market. Functions of labor market. Characteristics of labor market. Classifications of labor market. Theoretical framework of the effects of FDI on the labor market.2827 CHAPTER 3: EFFECTS OF FDI ON THE LABOR MARKET OF ASEAN COUNTRIES. Current situation of FDI into ASEAN countries. ASEAN is one of the most attractive destinations for foreign investment of the world. Major Powers in the world invest more in ASEANdue to the strong internal force. Current situation of the labor market of ASEAN countries. Abundant and young labor force. Lack of skilled workers. Facing a lot of difficulties. Effects of FDI on the labor market of ASEAN countries. Effects of FDI on labor cost. Effects of FDI on labor demand………………………………………. Other effects of FDI. Effects on productivity. Effects on inequality. Effects on working environment.5858 CHAPTER 4: RECOMMENDATIONS FOR VIET NAM ‘S LABOR MARKET. Perspectives of attracting FDI into Viet Nam. Top investment destination in ASEAN. Focus on the quality of FDI projects. Some experiences from ASEAN countries. Recommendations for attracting FDI to strengthen the positive effects of FDI on the labor market of Vietnam. Promote the investment environment of Vietnam to attract FDI inflow . Hold annual meetings/seminars to exchange and learn between Vietnamese and foreign businesses and vice versa to increase joint ventures . Encourage the use of Vietnamese labor at all levels of management in the FDI enterprises. Introduce foreign universities / vocational schools to invest in Vietnam to improve the quality of education in Vietnam. Promulgate legitimate policies to protect the right of labor force. Raising awareness of the workers about MRAsand exploring the possibility of extending MRAS to more sectors. Reducing protection for domestic labor in AEC. ii LIST OF ABBREVIATIONS. vi LIST OF FIGURES. viii SUMMARY OF THESIS RESEARCH RESULTS. ix CHAPTER 1: INTRODUCTION. Scope of research. 9 CHAPTER 2: THE THEORETICAL FRAMEWORK OF THE EFFECTS OF FDI ON THE LABOR MARKET. Fundamentals of FDI. The concept of FDI. Characteristics of FDI. Classification of FDI. Fundamentals of labor market. The concept of labor market. Composition of labor market. Functions of labor market. Characteristics of labor market. Classifications of labor market. Theoretical framework of the effects of FDI on the labor market.27 CHAPTER 3: EFFECTS OF FDI ON THE LABOR MARKET OF ASEAN COUNTRIES. Current situation of FDI into ASEAN countries. ASEAN is one of the most attractive destinations for foreign investment of the world. Major Powers in the world invest more in ASEAN due to the strong internal force. Current situation of the labor market of ASEAN countries. Abundant and young labor force. Lack of skilled workers. Facing a lot of difficulties. Effects of FDI on the labor market of ASEAN countries. Effects of FDI on labor costwages. Effects of FDI on productivity. The case of Viet Nam. The case of Thailand. The case of Indonesia. Effects of FDI on inequality. Effects of FDI on working environment.57 CHAPTER 4: RECOMMENDATIONS FOR VIET NAM ‘S LABOR MARKET. Perspectives of attracting FDI into Viet Nam. Top investment destination in ASEAN. Focus on the quality of FDI projects. Some experiences from ASEAN countries. Recommendations for attracting FDI to strengthen the positive effects of FDI on the labor market of Vietnam. Promote the investment environment of Vietnam to attract FDI inflow. Hold annual meetings/seminars to exchange and learn between Vietnamese and foreign businesses and vice versa to increase joint ventures. Encourage the use of Vietnamese labor at all levels of management in the FDI enterprises. Introduce foreign universities / vocational schools to invest in Vietnam to improve the quality of education in Vietnam. Promulgate legitimate policies to protect the right of labor force. Raising awareness of the workers about MRAs and exploring the possibility of extending MRAS to more sectors. Reducing protection for domestic labor in AEC. 81 viii ix LIST OF ABBREVIATIONS Abbreviation Full name ADB Asian Development Bank AEC ASEAN Economic Community ALMM ASEAN Labor Ministers Meeting ASEAN Association of Southeast Asian Nations CIT Corporate income tax CLMV Cambodia, Laos, Myanmar, Viet Nam CMS Centre for Multilateralism Studies EU European Union FDI Foreign Direct Investment GSO General Statistics Office IMF International Monetary Fund ILO International Labor Organization M&A Merger and Acquisition MNEs Multi-national enterprises MSEs Micro and Small Enterprises MoLISA Ministry of Labor – Invalids and Social Affairs MOMT Ministry of Manpower and Transmigration MRAs Mutual Recognition Agreements NTC National Training Council Organization for Economic Cooperation and OECD Development OLS Ordinary Least Square SMEs Small and Medium – Sized Enterprises SOEs State – Owned Enterprises PCI Provincial Competitiveness Index TNCs Transnational Corporations TVET Technical and Vocational Education and Training UN United Nation UNCTAD United Nations Conference on Trade and Development USA United States of America x VBF Viet Nam Business Forum VCCI Viet Nam Chamber of Commerce and Industry WTO World Trade Organization xi LIST OF FIGURES Figure1. Classification of FDI. The labor market. FDI flows into ASEAN member states in 2017. Intra-ASEAN investment, 1995-2016. EU FDI flows in ASEAN, 1995-2015. FDI in ASEAN. EU services FDI flows in ASEAN, 2000-2016. Labor force in ASEAN member states in 2017. Labor force growth. Employment share of ASEAN in 2017. Minimum wage in ASEAN, 2018. Monthly wage of Vietnamese workers in Q2, 2018. Monthly average wage of Laotian workers, 2017. Productivity growth rate of Viet Nam (in percentage). The gap in absolute productivity between economic sectors (times). Capital, attracting labor and raising productivity, 2006-2016. Indonesian government employment programs. Labor market conditions in ASEAN. Best Places to Work in Viet Nam in 2016, 2017. Attracting FDI to Viet Nam (1988-2017). FDI in Viet Nam by sectors (2018). ASEAN Leaders Statement on Human Resources and Skills Development for Economic Recovery and Sustainable Growth. Priority areas for FDI attraction.70 xii SUMMARY OF THESIS RESEARCH RESULTS In some certain aspects, the author has answered all the questions which have been raised when considering about the topic.The characteristics of foreign direct investment and labor market have been listed and analyzed carefully. The effects of foreign direct investment (FDI) on the labor market of ASEAN countries are quite mixed and need to be further analyzed by in-depth models. In general, FDI has brought positive impacts on the labor market of ASEAN countries, but these effects are not well adapted due to both subjective and objective reasons. The labor force of ASEAN still faces a lot of difficulties in taking advantage of huge FDI capital from outside. Therefore, some solutions have been proposed to help ASEAN labor force in general and Vietnamese labor in particular get access to this type of investment and gradually raise their capaibilities to work abroad. Research Rationale Today, in countries with transitional economies, including Vietnam, in parallel with the expansion of business freedom, the development of commodity and service market and securities market, labor market is also being formed. Economic development is an indispensable goal of all countries to improve the quality of life of the people. In order to develop economically, especially in the market economy, it is necessary to develop different types of markets, as the market is the living environment of the commodity economy. The labor market is formed and developed in the market economy. It has relationship with other types of markets: capital market, science and technology market, information market, monetary market, etc. The labor market displays the relations between the employee and the employer, on the principle of agreement through employment. Under the ASEAN Economic Community (AEC) blueprint signed in 2007, ASEAN will “facilitate the issuance of visas and employment permits for skilled ASEAN and skilled workers engaged in trade activities, cross-border investment” especially in the four priority areas (air, information technology (e-ASEAN), health and tourism) as well as logistics. In order to achieve this goal, functional agencies in each country have come to recognize each other's education and qualifications and grant "ASEAN experts" certification through the creation of curricula and acknowledgment of ASEAN. In particular, ten ASEAN countries have signed Mutual Recognition Agreements (MRAs) under which ASEAN experts will be allowed to seek employment anywhere in ASEAN. In 2005, MRA for technical advisory services was the first to be signed, followed by MRAs in nursing, surveying, architecture, medicine, dentistry, accounting and tourism. A total of eight expert certificates have been created. Individuals wishing to look for work abroad can obtain "expert" certification through the MRA system and continue to apply for a job visa. 2 In addition, the ASEAN Movement of Natural Persons Agreement was signed in 2012. Through this agreement, foreign nationals seeking immigration to a country to carry out work related to current job may be granted a work visa upon completion of certain conditions.
Tác Động Của Đầu Tư Trực Tiếp Nước Ngoài Đến Thị Trường Lao Động Của Các Nước ASEAN
Chuyên khảo phân tích Luận văn the effects of fdi on the labor market of asean countries, đánh giá các khía cạnh quan trọng, đề xuất hướng nghiên cứu tiếp theo.
Trường đại học
Foreign Trade UniversityChuyên ngành
International Trade Policy and LawNgười đăng
Ẩn danhThể loại
master thesisPhí lưu trữ
35 PointMục lục chi tiết
THÔNG TIN CHI TIẾT
Tác giả: Ho Thi Hong Ngan
Người hướng dẫn: Dr Nguyen Thi Viet Hoa
Trường học: Foreign Trade University
Chuyên ngành: International Trade Policy and Law
Đề tài: Tác Động Của Đầu Tư Trực Tiếp Nước Ngoài Đến Thị Trường Lao Động Các Nước ASEAN
Loại tài liệu: master thesis
Năm xuất bản: 2019
Địa điểm: Hanoi
Tài liệu "Tác Động Của Đầu Tư Trực Tiếp Nước Ngoài Đến Thị Trường Lao Động Các Nước ASEAN" cung cấp cái nhìn sâu sắc về cách mà đầu tư trực tiếp nước ngoài (FDI) ảnh hưởng đến thị trường lao động trong khu vực ASEAN. Tác giả phân tích các yếu tố như tăng trưởng việc làm, chất lượng lao động và sự chuyển giao công nghệ, từ đó chỉ ra rằng FDI không chỉ tạo ra cơ hội việc làm mà còn nâng cao kỹ năng cho lực lượng lao động địa phương. Điều này mang lại lợi ích lớn cho các quốc gia trong khu vực, giúp họ cải thiện năng lực cạnh tranh và phát triển kinh tế bền vững.
Để mở rộng thêm kiến thức về chủ đề này, bạn có thể tham khảo tài liệu Luận văn thạc sĩ tác động của nguồn vốn đầu tư trực tiếp nước ngoài đối với công nghiệp hóa của các quốc gia asean, nơi phân tích sâu hơn về mối liên hệ giữa FDI và sự phát triển công nghiệp trong khu vực. Ngoài ra, tài liệu Luận văn thạc sĩ tác động của các yếu tố vĩ mô đến việc thu hút dòng vốn đầu tư trực tiếp nước ngoài ở các quốc gia châu á đang phát triển giai đoạn 1995 2017 sẽ giúp bạn hiểu rõ hơn về các yếu tố vĩ mô ảnh hưởng đến FDI. Cuối cùng, tài liệu Luận văn thạc sĩ đầu tư trực tiếp nước ngoài fdi đối với phát triển ngành công nghiệp ô tô của việt nam trong bối cảnh mới cũng là một nguồn tài liệu quý giá để tìm hiểu về tác động của FDI trong một ngành cụ thể tại Việt Nam. Những tài liệu này sẽ giúp bạn có cái nhìn toàn diện hơn về tác động của FDI đến thị trường lao động và phát triển kinh tế trong khu vực ASEAN.
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