Vietnam: Number of workers in informal sector exceeds 18 mln
Source: Asia Insurance Review | Nov 2017
Vietnam
Vietnam has more than 18 million unofficial workers, with seven out of every 10 of them ignorant about employment policies and more than 40% unaware of voluntary social insurance, according to a survey by various national agencies and the International Labour Organisation (ILO).
The monthly wages of these workers average VND4.4 million (US$192) a head compared to VND6.7 million in the formal sector, reported Vietnam News. Informal workers comprise around a third of the total working population. Up to 98% of unofficial workers lack social insurance compared to the 80.5% of workers in the formal sector who have such insurance.
Most unofficial workers are involved in manufacturing and processing, construction, wholesale-retail and vehicle repair, accounting for about 70% of the total. Lodging and catering services account for another 11%.
The data is a result of a survey by several agencies including the General Statistics Office, the ILO and the Ministry of Labour. The survey polled nearly 20,000 households each month nationwide from 2007. Data about the unofficial workforce was added from 2014.
Meanwhile, Vietnam’s working age population is set to decline. The population aged under 15 stands at 23% of the total population today, compared to almost 40% in 1989.
With this demographic backdrop, the country’s social security fund would begin to go into deficit as early as 2021 and be depleted by 2034, according to the ILO. A