Article Sidebar

PDF
Date Published: 30/04/2015
Abstract Views: 248
Views PDF: 245
Issue
No. 72 (2015)
Section
Articles
How to Cite
Form, W., Huynh, L. D. T., & Le, D. T. V. (2015). Challenges for Vietnam’s participation in AEC: Free flow of skilled labor and lessons learned from European Union. Journal of International Economics and Management, 72, 21-31. https://jiem.ftu.edu.vn/index.php/jiem/article/view/124

Metrics

Challenges for Vietnam’s participation in AEC: Free flow of skilled labor and lessons learned from European Union

Wolfgang Form1,, Huynh Luu Duc Toan2, Le Dong Thao Vy3
1 University of Marburg
2 University of Ho Chi Minh City
3 International University, National University Ho Chi Minh

Main Article Content

Abstract

The formal establishment of the ASEAN Economic Community (AEC) at the end of 2015 will ceremonially mark a milestone in the process of economic integration in Southeast Asia. AEC will open new chapter in ASEAN countries when it promotes four main free flows: capital, goods, skilled labor and services. Apparently, skilled labor mainly contributes to the economic growth nationally and regionally. Vietnam has a segment of the work force with low or medium skill level which has restricted economic value through the work performed. This is considered as Vietnam’s challenging matter in context of integration. This paper is dedicated to analyze the theoretical basis of free flow of skilled labor in AEC, Vietnamese current situation and some lessons from European Union to suggest in the further application. The scientific methodologies used by group author are descriptive, explanatory, comparative, observable researches to complete this paper.

Article Details

Author Biography

Le Dong Thao Vy, International University, National University Ho Chi Minh

The formal establishment of the ASEAN Economic Community (AEC) at the end of 2015 will ceremonially mark a milestone in the process of economic integration in Southeast Asia. AEC will open new chapter in ASEAN countries when it promotes four main free flows: capital, goods, skilled labor and services. Apparently, skilled labor mainly contributes to the economic growth nationally and regionally. Vietnam has a segment of the work force with low or medium skill level which has restricted economic value through the work performed. This is considered as Vietnam’s challenging matter in context of integration. This paper is dedicated to analyze the theoretical basis of free flow of skilled labor in AEC, Vietnamese current situation and some lessons from European Union to suggest in the further application. The scientific methodologies used by group author are descriptive, explanatory, comparative, observable researches to complete this paper.

Keywords

AEC, labor mobility, Vietnam

References

1. ASEAN, Secretariat (2008): Asean Economic Community Blueprint. Association of Southeast Asian Nations. Available at: http://www.asean.org/archive/5187-10.pdf at (20.09.2014).
2. Bonin et al. (2008): Geographic mobility in the European Union: Optimising its economic and social benefits. European Commission DG Employment, Social Affairs and Equal Opportunities.
3. Chia Siow Yue (2011): Free Flow of Skilled Labor in the ASEAN Economic Community. Singapore Institute of International Affairs, Singapore. Chapter 4. p. 206.
4. European Union (2011): Commission report on transitional arrangements regarding free movement of workers from Bulgaria and Romania. Available at: http://europa.eu/rapid/pressrelease_MEMO-11-773_en.htm (28.09.2014).
5. Heinz, Frigyes and Ward-Warmerdinger, Melanie (2006): Cross-border Labour Mobility within an enlarged EU. European Central Bank occasional paper series.
6. Klump, R., and O. de La Grandeville (2000): Economic Growth and the Elasticity of Substitution: Two theorems and some Suggestions. American Economic Review, vol. 90, no.1. Pp 282-291.
7. International Labor Organization (2014): Improvement of competitiveness of Vietnam towards career and deep integration into ASEAN. Overall report about Vietnam. Available at: http://www. ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/---ilo-hanoi/documents/genericdocument/ wcms_304632.pdf (27.09.2014).
8. James M., Susan L., Byron A., Sreenivas R. (2012): Help wanted: The future of work in advanced economies. The McKinsey Global Institute with discussion paper. Vol. 2012. pp 13-20.
9. Kahanec, Martin (2012): Skilled Labor Flows: Lessons from the European Union. Report under the World Bank ASEAN Labor Markets program funded by AusAid. IZA Research Report No. 49.
10. Nguyen A. (2013): Shortage of skilled workers hinders FDI in Vietnam. TN News. Available at:http://www.thanhniennews.com/business/shortage-of-skilled-workers-hinders-fdi-invietnam-537.html (28.09.2014).
11. OECD (2013): World Migration in Figures. A joint contribution by UN-DESA and the OECD to the United Nations High-Level Dialogue on Migration and Development. Available at: http:// www.oecd.org/els/mig/world-migration-in-figures.pdf (25.09.2014).
12. Phillips, Liz (2013): European Health Insurance Card - all you need to know. Available at:
http://www.moneysupermarket.com/c/news/european-health-insurance-card-all-you-need-toknow/0017734/ (28.09.2014)
13. Sarah Huelser, Adam Heal (2014): Moving Freely? Labour Mobility in ASEAN. Policy Brief. Asia-Pacific Research and Training Network on Trade. Number 40. p. 2.
14. Summary Report on Vietnam, August 2014. To boost competitiveness and prosperity of Vietnam through better jobs and greater integration into the ASEAN region. ASEAN Community 2015: Integration Management towards better jobs and prosperity of ADB and ILO 2014.
15. Yue Chia Siow (2011): “Free Flow of Skilled Labor in the AEC” in Urata S. and M. Okabe, Toward a Competitive ASEAN Single Market: Sectorial Analysis. ERIA Research Project Report 2010-03; pp. 205–279.