Urbanization, Employment and Urban Poverty during the Early Industrilization Period in Vietnam

Luu Bich Ngoc, and Nguyen Thi Thieng

National Economics University, Hanoi, Vietnam

Abstract: After Reform (1986), Vietnam switched to a market economy and opened up to attract foreign investments. Since 2000, Vietnam entered a period of industrialization and urbanization. The proportion of urban population was growing over the years. Rural-urban migration, along with rapid urbanization would result in critically socio-economic issues. Under the economy and development view point, this article aims to analyze the urbanization trend, employment situation, unemployment and urban poverty in the early stages of industrialization. These are powerful factors affecting the natural, economic and social urban environment. The data sources were used for analyzing included: Census on Population and Housing (1989, 1999, 2009), Annual Survey on Labor and Employment (2010-2014); Vietnam Living Standard Survey (2010, 2012, 2014)...Urbanization rate rose from 20.3% in 1989 to 33.0% in 2014. There was a huge difference between geographical regions on this rate. The unemployment rate in urban areas was not high as that of other countries, but always higher than that in rural areas. Unemployment rate has been gradually felling, however, labor quality

was still low. The living standard has been improved. Poverty rate gradually reduced but focused on immigrant workers. Some policy implications for urbanization in Vietnam were recommended.

Key words: urbanization, industrialization, employment, poverty, rural-urban migration