HÀ NỘI — Việt Nam now accounts for more than a quarter of the more than 75 million jobs tied to global supply chains in South-East Asia, underscoring the country’s expanding role in regional production networks, according to a newly released International Labour Organisation (ILO) report.

The study finds that over 35 per cent of Việt Nam’s total employment is linked to global supply chains, signalling a moderate level of reliance as trade uncertainties intensify worldwide. It examines the country’s growing participation in these networks and outlines key policy actions to strengthen their resilience and inclusiveness, while promoting decent work and supporting just transitions for workers and enterprises.

Rising global volatility means Việt Nam must recalibrate its approach to building a more resilient and inclusive supply chain base if it is to sustain growth and meet its socio-economic ambitions. The report notes that Việt Nam has seen steady growth in supply chain-related employment since 2008 and hosted the largest number of such jobs in South-East Asia in 2023.

Manufacturing makes up 49 per cent of all supply chain-related employment in the country, with textiles and textile products contributing nearly a third of these jobs within the sector. Industries with a high concentration of supply chain-linked work tend to employ larger shares of women and young people and offer more formal wage employment than other sectors, although the proportion of high-skilled jobs remains low.

More than 76 per cent of Việt Nam’s supply chain-related jobs in 2023 depended directly or indirectly on foreign demand from ASEAN, China, the EU, Japan, the Republic of Korea and the US, highlighting the country’s exposure to external market fluctuations.

To secure decent work outcomes in global supply chains, the report stresses the need for coordinated action across several policy areas to reduce short-term disruption risks and reinforce Việt Nam’s medium and long-term positioning.

Priorities include diversifying trade and strengthening domestic industrial linkages; developing inclusive, demand-driven skills systems; adopting gender-responsive labour market policies and shock-responsive social protection for just transitions; improving job quality and raising labour standards; and promoting inclusive social dialogue and institutional coordination.

Strengthening supply chain resilience and capitalising on new growth opportunities would support Việt Nam’s structural transformation, enabling shifts towards higher value-added activities and higher-skilled employment and reinforcing progress on the decent work agenda, according to the report. — BIZHUB/VNS