What is the difference between Vietnamese and Japanese labor? - Delco Construction

What is the difference between Vietnamese and Japanese labor?

The biggest difference between Vietnamese and Japanese workers comes from the law and the labor structure of these two cultures.

Nguoi lao dong Viet Nam

Vietnamese labor law

Unlike Japanese, Vietnamese Labor Law regulates that during the probationary period, the company and the employee, each party has the right to unilaterally cancel the probation agreement without prior notice. This provision is flexible for both parties if the trial work does not meet the requirements agreed by the two parties.

Types of labor contracts in Vietnam:

  • – Term labor contract: maximum term is 36 months. After the contract ends, the labor contract can be renewed and be signed one more time.
  • – After 2 times signing term contracts, if the employee continues to work, he / she must sign an indefinite term labor contract, except for labor contracts hired to work as director in of a state-invested enterprise, contracts for the employment of elderly workers and contracts of foreign employment in Vietnam.

In Japan, there are 3 main types of employee: contract employees with a term of 1-3 years and can extend more, full-time employees with indefinite contracts (until leave retirement) and dispatched staff (job and time vary by project).

In addition to the differences specified in the law, Vietnamese and Japanese employees differ mainly in the labor market structure.

Young labor market in Vietnam

Vietnam population proportion in 2016

The average working age in Vietnam is under 30 years old, and every year more than one million young people enter the working age. So it can be said that this is a young labor market.

Japan is the country with the largest proportion of elderly people in the world, and has a serious shortage of young workers. In Japan, the age of 65 and over accounts for nearly 30% of the population and 13% of the workforce.

According to the Report on Labor and Employment of the General Statistics Office for the period 2015 – 2019 in Vietnam, there were positive changes in the labor structure: the proportion of labor in the agriculture, forestry and fisheries sector decreased by 4.8%, respectively in the industrial sector increased 3% and service sector increased about 1.8%. These are good signs in Vietnam’s labor market, gradually reducing the use of simple labor and increasing the use of skilled and highly qualified workers.

Nang cao chat luong lao dong tai Viet Nam

According to the issued Resolutions, Vietnam also sets out clear goals:

  • – The rate of trained workers by 2025 will reach 70% of the employment structure;
  • – The rate of enterprises using advanced technology, modern governance, environmental protection, and targeting high technology increases by 50% by 2025 and 100% by 2030 compared to 2018.