From the experience of happy countries, shaping Vietnam's future workforce

The social welfare and labor governance models of the Nordic countries can inspire Vietnam's labor market development strategies.

Ngày Bắc Âu 2024: Nâng cao tính thích ứng của thị trường lao động Việt Nam Kinh nghiệm Bắc Âu và khuyến nghị đối với Việt Nam

Speakers attending the event "Enhancing the adaptability of Vietnam's labor market - Nordic experience and recommendations for Vietnam". (Photo: KT)

On March 20 in Ho Chi Minh City, the Embassies of the Nordic countries in Vietnam (Denmark, Finland, Norway and Sweden) in collaboration with Fulbright University organized an event to celebrate Nordic Day 2024. This is the 6th year the parties have organized this event on the occasion of Nordic Day on March 23.

The event is an opportunity for Nordic countries to share their experiences and valuable lessons with Vietnam. The theme of this year's event is "Enhancing the adaptability of the Vietnamese labor market - Nordic experiences and recommendations for Vietnam".

The event brought together Nordic and Vietnamese researchers, government agencies, the press, academia, civil society, and other stakeholders. It featured presentations and panel discussions on how an adaptive labor market can effectively meet global demands, foster innovation, and improve productivity and competitiveness.

Dialogue - the key element to ensuring welfare

In recent decades, Vietnam’s economy has undergone significant transformation, moving from a low-income, agricultural country to a modernized, lower-middle-income country. This transformation has been driven by economic reforms, free trade, and foreign direct investment. As a result, Vietnam has become a manufacturing hub for a variety of industries, attracting investment from around the world.

At the event, Norwegian Ambassador Hilde Solbakken emphasized: "Dialogue between governments, employers and workers is both a central element in the development of Nordic welfare states and in helping our economies and labour markets adapt to a constantly changing world. I hope that sharing the experiences of the Nordic countries can contribute to the development of Vietnam and your journey towards a highly skilled, innovative and fair labour market."

Vietnam is currently aiming to become a higher-income, net-zero emissions country by 2050. To achieve this goal, Vietnam is shifting its labor market towards high-tech, high-skilled industries and technologies. This shift requires a focus on innovation, digitalization, vocational training, education, skills development, and investment in research and development.

For his part, Finnish Ambassador Keijo Norvanto emphasized that security and innovation are key factors in the success of the Nordic region. The social safety net in the Nordic countries promotes innovation by giving individuals the confidence to take risks and think creatively. This security allows individuals to explore new ideas without fear of losing what they have built in life. In addition, the Nordic countries also pay great attention to work-life balance.

“Affordable working hours, flexible working arrangements, a range of support for families including parental leave for both parents and affordable childcare, are just some of the many social initiatives we are implementing to ensure a healthy balance between work and personal life. It is no coincidence that the Nordic countries have been in the top 10 happiest countries in the World Happiness Report for many years,” said Finnish Ambassador Keijo Norvanto.

Vietnam has committed to ratify all core conventions of the International Labour Organization on labour standards, including Convention 87 on Freedom of Association, during the 2021-2030 period. Strengthening dialogue at work and improving working conditions are essential components of this commitment. In addition, Vietnam still faces the challenge of an ageing population, which is a factor that tests the national social welfare system.

A roundtable discussion at the event. (Photo: KT)

"Nordic model"

At the event, President of Fulbright University Vietnam, Professor Scott Fritzen expressed: "We are honored to co-host the Nordic Day 2024 event and participate in the discussion on the topic of enhancing the resilience of the Vietnamese labor market. As an organization committed to promoting innovation, critical thinking, and interdisciplinary approaches, Fulbright University recognizes the importance of learning from successful models such as the Nordic region.

By bringing together academics, policy makers, and industry experts, we aim to foster meaningful dialogue and explore ways in which Vietnam can fully tap its potential to create a dynamic and inclusive labor market. We believe that this event will provide valuable insights and inspire useful strategies to shape Vietnam’s future workforce.”

Swedish Ambassador Ann Måwe said that employers, unions and governments in the Nordic region are working closely together to create a well-developed social safety net for individuals. This model, often referred to as the “Nordic model”, has attracted international attention and has been recognised for the region’s resilience during the recent economic crisis. Free education and significant investment in research have contributed to the formation of highly educated citizens and a modern, high-tech society.

Ms. Ann Måwe also stressed the importance of developing strong plans including social insurance systems to face challenges such as an aging population, which will soon become an urgent reality for Vietnam as well.

The “Nordic model” offers valuable lessons regarding improving labor market resilience to meet the demands of a global green economy. The Nordic countries are known for their tax-based model of state social service provision, investment in education, childcare, elderly health care, and other services related to human capital.

The Nordic bloc also prioritizes strong workforce protection through independent unions and strong social safety nets. Notably, these countries consistently rank among the world’s richest nations in terms of GDP per capita and excel in innovation.

Green transformation and the labor problem

Speaking at the event, Danish Ambassador Nicolai Prytz stressed that the green transition cannot take place without a workforce with the right skills to meet the demands of a greener economy. The green transition brings many new job opportunities but also risks leaving behind low-skilled workers, those working in the informal sector or in polluting jobs.

Therefore, the Nordic countries wish to share with their Vietnamese partners and friends the experiences and lessons that the Nordic countries have gained from the green transition over the past 40 years. "We hope that this will be an inspiration for Vietnam to develop a labor market that not only effectively meets the needs of the ongoing green transition, but equally important, ensures that this is a fair labor transition and takes into account the economic concerns of vulnerable groups," said Ambassador Nicolai Prytz.

Nordic Days 2024 brought together speakers from the Nordic countries to share their insights on a wide range of topics, including vocational training and skills development, workplace dialogue and decent work, innovation and productivity, and social welfare systems. Representatives from relevant government agencies and the Nordic private sector were also present and shared their perspectives at the event.

Vinnova – Swedish Innovation Agency, H&M from Sweden, Jotun and NHO – Confederation of Norwegian Enterprises from Norway, Wärtsilä and EduCluster from Finland, LEGO LMV Denmark, International Labour Organization (ILO)... all expressed a strong desire to contribute to a dynamic and developing labor market in Vietnam.

The EU-Vietnam Free Trade Agreement (EVFTA) has created new trade and investment opportunities between the EU and Vietnam. By eliminating tariffs, promoting market access, protecting intellectual property, enhancing labor rights and protecting the environment, the EVFTA has brought significant benefits to the Vietnamese labor market. The agreement has expanded market access for Vietnamese businesses, especially in labor-intensive sectors, leading to increased employment opportunities and overall labor market development. In addition, the sustainability chapter of the agreement highlights the importance of sustainable practices, further contributing to Vietnam’s long-term economic and environmental prosperity.

By fully implementing the EVFTA and considering adopting elements of the Nordic model, Vietnam can strengthen its labor market, promote innovation, improve productivity, and promote sustainable economic growth.

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