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Social Cohesion Policy Review of Viet Nam

image of Social Cohesion Policy Review of Viet Nam

This report examines the effects of recent economic growth in Viet Nam on social cohesion. It finds that recent rapid economic growth in Viet Nam has not resulted in an increase in overall inequality, but the level of inequality was already high. Growth was not particularly inclusive, benefiting most the middle class and the richest households, and favouring less households in the bottom 20th percentile. Income mobility was also high, and while a majority of households experienced upward income mobility, downward absolute income mobility affected one in five households. Economic growth was not particularly job rich with employment growth lagging behind economic expansion.

In particular, important challenges were identified in the area of education and skills policies relating to fast-changing labour market needs. Minimum wage policies had a small but positive effect on employment, but concerns were highlighted over partial coverage and weak compliance. Tax policy and specifically personal income tax had only a small impact on reducing inequality, but transfers from central to local governments produced an equalising effect, albeit with mixed results in terms of satisfaction with public services. Finally, social protection systems have been extended, but important coverage gaps remain among the poor and ethnic minority groups, and informality remains a key challenge for universal extension.

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Improving social cohesion through employment-friendly policies

OECD Development Centre

The aim of this chapter is to review the role of selected public policies in promoting employment across different groups in society. Specifically, the chapter starts by investigating the extent to which growth policies have been able to generate employment growth and contribute to employment transformation. It then examines whether and how other policies, namely education and skills policies and minimum wage policy, have impacted on the quantity or quality of employment, contributed to adjusting the workforce to a changing economy, and helped make work pay decent wages.

English

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