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How ASEAN integration affects labour migration in Vietnam

Vietnam is well positioned to benefit from ASEAN Economic Community integration, but economic integration could mean movements of workers both in and out of the country. Sally Barber and Max Tunon, International Labour Organization, Regional Office for Asia and the Pacific, analyse the issue.
Vietnam is well positioned to benefit from ASEAN Economic Communityintegration, but economic integration could mean movements of workersboth in and out of the country. Sally Barber and Max Tunon,International Labour Organization, Regional Office for Asia and thePacific, analyse the issue.

The occasion ofInternational Migrants Day (December 18) is an opportunity to recognisethe contribution of migrant workers to growth and development of Vietnamand the ASEAN region. The coming together of the ASEAN member states ina single economic community in 2015 is expected to provide a greaterwealth of opportunities for growth across the region. But there is stilla lot of misunderstanding about what this will mean for migration flowsin the region and at the country level. People sometimes refer to afree movement of labour, as in Europe, but that prospect remainsdistant.

As this new economic community emerges,there will be opportunity for the greater mobility of workers, who moveacross national boundaries to fill skills shortages, increase theirincomes and gain new experiences. However, discussions have primarilyfocused on labour mobility for skilled workers, through MutualRecognition Arrangements (MRAs) that provide freedom of movement andrights to work across the region for professionals in eight fields -accountancy, engineering, surveying, architecture, nursing, medicalservices, dental services and tourism.

BecauseVietnam’s wages are close to the median wages for the region, economicintegration could mean movements of workers both in and out of thecountry. For Vietnam, well-planned integration could lead to increaseddomestic productivity through skilled migration, but it’s important toanticipate the potential impacts of large numbers of skilled workersfinding higher-paid work abroad through the MRAs. A report by the ILOand the Asian Development Bank, which will be published in mid-2014, isexpected to shed more light the labour market impact of the regionaleconomic integration.

But migration among theprofessional categories is and will only represent a very smallproportion of the labour migration flows in Southeast Asia. It isimportant to remember the ASEAN Economic Community (AEC) is not astandalone process; it is very much complemented by the Socio-CulturalCommunity pillar of ASEAN integration, which supports the AEC’s goal ofequitable economic development across the region. The contribution oflow- and semi-skilled migrant workers should not be forgotten. And takenin isolation, the emerging ASEAN economic community does notsufficiently address social issues including safe migration, protectionfrom exploitation, access to skills training, and welfare provisions forworkers.

Vietnam is well positioned to benefitfrom AEC integration, and with 15 percent of the ASEAN population, italso has a significant contribution to make to the new regional market.The 500,000 migrant workers already make a substantial contribution toVietnam’s economy, with remittances of approximately 1.6 billion USDeach year. The Government of Vietnam is active in its support ofmigration for work as part of the poverty reduction strategy andemployment strategy. A suite of policies and services have beenintroduced to reduce costs and increase opportunities through trainingsubsidies. This includes target-setting for skilled migration.

The ILO perspective is that migration should be a choice rather than anecessity. While migration may provide a route out of poverty, it isimportant to balance the promotion of migration with appropriateprotection measures.

For a number of years, theASEAN member states have been cooperating to strengthen migrationmanagement and protect the rights of migrants. There are a number offrameworks and forums that provide the possibility of greater policycoordination and dialogue to advance the protections contained withinthe ASEAN Declaration on the Protection of the Rights of MigrantWorkers, including the ASEAN Forum on Migrant Labour, an annual meetingof governments, workers’ and employers’ organisations and civil society.In addition, cooperation on migration management is being fostered,including through the Initiative on ASEAN Integration, wherein thePhilippines is committed to sharing their experience on administrationof overseas employment.

Some of the areas for actioninclude the need for migrants to be better informed on the costs andbenefits of migration; how to protect themselves throughout themigration cycle; mutual skills recognition in low- and semi-skilledjobs; portability of social security; and training and support forreturning migrants, who can use their savings and knowledge developedabroad to enhance their livelihood options and help to grow thecommunities they return to in Vietnam. International Migrants Day is atime to re-commit our efforts to make migration work for all, and theILO is committed to continuing to work with the Government of Vietnamand the workers and employers’ organisations to strengthen migrationmanagement and the protection of migrant workers, both at the nationallevel and at the ASEAN level.-VNA

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