Moving Vietnamese workers abroad to work is understood to be the fact that Vietnamese workers go abroad to work under labor contracts, service provision or human presence and are not intended to settle.
Promote sustainable development
First of all, moving labor abroad creates conditions for Vietnam to fully utilize human resources to increase national income (GNI).
Vietnam has an abundant and young labor force, smart, industrious and hardworking workers; all of which is an important premise for moving workers abroad. However, in the transition from an agricultural economy to an industrial and service economy, a large number of workers are unemployed or unemployed, especially agricultural workers. This means that part of the labor force is not used to produce goods and services – that is, they do not create new value, while they still have to consume to maintain their personal lives and family.
Moving workers abroad will open the opportunity to use the number of unemployed workers to produce goods and services in other countries, bringing in income for workers. At the same time, contributing to increasing national income (GNI), because national income (GNI) is the total algebra between domestic income and net factor income, but the net factor income is the difference between the remittance income and the income of foreigners moving out of Vietnam. As a result, it contributes to increasing GNI / person, an important component of the HDI. According to the World Bank statistics, in 2006, overseas Vietnamese sent money home by official road of 4.8 billion USD, equivalent to 7.9% of GDP in 20061.
The number of young and abundant workers, intelligent and industrious workers, and hard work is just a potential for moving workers abroad to impact on national income. The extent and intensity of the impact of migrating workers abroad to work on national income depend on the Government’s policy and the quality of Vietnamese labor.
Secondly, moving workers to work abroad increases household spending and savings increases private investment in the long term.
As mentioned, when workers go abroad to work, of course, they have income, moreover, the income is higher than working in the country. Normally, Vietnamese people working abroad have a higher net income than domestic workers about 3 times2. Thanks to a high net income, workers send that money to their families as savings. According to estimates by the State Bank and the Ministry of Labor – Vietnam, in 2007, only overseas Vietnamese workers moved back to about 2 billion USD3.
The amount of money sent home by workers is divided into two parts: a part of the family spends on raising the standard of living, taking care of the family’s health, especially spending on children’s education, contributing to improving intellectuals; a large part is devoted to savings for future investment purposes.
According to the Ministry of Labor, War Invalids and Social Affairs, the average annual saving of each worker is approximately USD 4,000. If workers go to work for 5 years abroad, they can save 20,000 USD which is the money that can help families invest or contribute to production and business.
Thus, moving workers to work abroad contributes to increasing household spending and increasing private investment in the long term.
Thirdly, moving workers to work abroad boosts government spending for improving the quality of human resources.
In order to work abroad, workers must have certain professional skills and foreign language skills as required by the employer. However, not all employees who want to go abroad to work can meet the requirements of employers. Therefore, training and retraining for employees must be organized. To implement this effectively, the Government must invest in facilities, teaching staff and other conditions to ensure the training and retraining of workers. This will increase government spending. As government spending increases, it will contribute to GDP growth both in the short and long term.
Fourthly, moving workers to work abroad creates conditions for economic restructuring in the short term and promotes economic restructuring towards modernization in the long term.
In the early stages of industrialization, the recovery of agricultural land to build industrial parks inevitably caused a certain number of agricultural workers to lose their jobs. Under the impact of competition, investors tend to choose a capital-intensive investment plan. Both of these trends make up for more than one unit of agricultural land to be reclaimed, the number of employees employed will be significantly reduced. This is an indispensable rule of the process of industrialization and modernization.