Enhancing employment policies, economic stabilization and restructuring for an inclusive, effective and sustainable growth model for Vietnam

In recent years, the Vietnamese economy experienced a prolonged period of macroeconomic instability. As a consequence, the Government of Vietnam introduced a macroeconomic stabilization package in February 2011 and subsequently embarked on long-term and large-scale structural reforms known as economic structuring as part of a shift from resource-based towards an efficiency-based growth model, in late 2011. The economic restructuring will focus on three key areas including: (i) investment restructuring with a focus on public investment, (ii) financial market restructuring with a focus on restructuring commercial banks and financial institutions system and; (iii) restructuring of state-owned enterprises (SOEs) with a focus on state owned groups and state corporations. These major changes in the policy and business environment are expected to have short-term adjustment costs, including employment and social impacts, although the long term benefits in terms of higher and more sustainable growth are commonly agreed. To make a contribution to the on-going discussion on the unfolding economic restructuring process, this project has the ultimate objective to ensure the linkage and coherence between macro-economic policies and promotion of sustainable and decent job creation. Under this project, a number of research and consultancy services will be conducted to assist Viet Nam in building and improving economic policies, review and measure the impacts of these policies on labour market. Other activity includes capacity building for managers and key technical staff of policy making agencies and research institutions in the field of economics and labour. The project will apply international standards in general and the provisions of the ILO Convention on Employment Policy (No. 122) which Viet Nam ratified in May 2012.

Project symbol

VIE/13/03/OUF

Admin unit

CO-Hanoi

Start date

01/09/2013

End date

31/08/2017

Total allocation

377720

Total expenditure

Status

Closed

377276

Development Partners

Multi Partner Trust Fund Office, UNDP

Country/Countries

Viet Nam

Outcomes

More and better jobs for inclusive growth and improved youth employment prospects