PRESS RELEASE: Nordic Day 2024: Adapting Vietnam's Labour Market - Lessons Learned from the Nordic Region and Implications for Vietnam

Ho Chi Minh City, 20 March 2024: The Nordic Embassies in Vietnam (Denmark, Finland, Norway, and Sweden), in collaboration with the Fulbright University are pleased to announce the Nordic Day 2024 event today. This year marks the sixth edition of the event in conjunction with the Nordic Day on 23 March.

The Nordic Day event serves as a platform to share valuable insights and experiences from the Nordic countries with the Vietnamese audience. The theme of this year's event is "Adapting Vietnam's Labour Market - Lessons Learned from the Nordic Region and Implications for Vietnam."

The event brings together Nordic and Vietnamese researchers, government agencies, media, academia, civil society, and other relevant stakeholders. The seminars will feature presentations and panel discussions on how an adapted labour market can effectively respond to global demands, fostering innovation, productivity, and competitiveness.

Vietnam's economy has undergone a significant transformation in recent decades, transitioning from an agrarian lower-income country to a modernized lower middle-income country. This transformation has been driven by economic reforms, free trade, and foreign direct investments, making Vietnam a manufacturing hub for various industries, attracting investments from around the world.

Ambassador of Norway Hilde Solbakken stressed "Dialogue between government, employers and workers has been central to the development of the welfare state in the Nordic countries, and in enabling our economies and labour markets to adapt to a continuously changing world. I hope that sharing the Nordic experiences can contribute to Vietnam's journey towards a highly skilled, innovative, and equitable labour market."

 Vietnam now aims to become a higher-income country with net-zero emissions by 2050. To achieve this goal, the country is shifting its labour market towards high-skill, high-tech industries and technology. This transformation necessitates a focus on innovation, digitalization, vocational training, education, skill development, and investments in research and development.

"Security and innovation are key to the success of the Nordic Region. The social security net in the Nordic countries fosters innovation by providing individuals with the confidence to take risks and think creatively. This allows them to explore new ideas without the fear of losing everything they have built in life. Further, the Nordics also pay great attention to work-life balance. Employee-friendly working time, flexibility at work, strong support for families including parental leaves and affordable day care, are just some of the social innovations that we are taking to ensure a healthy balance between work and personal lives. It is no coincidence that the Nordic countries are consistently in the top 10 happiest countries of the World Happiness Report." added Ambassador of Finland Keijo Norvanto.

Vietnam has committed to ratify, during the 2021-2030 period, all of the International Labour Organization's core conventions on labour standards, including Convention No. 87 on Freedom of Association. Strengthening workplace dialogue and improving working conditions are essential aspects of this commitment. Additionally, Vietnam faces the challenge of an aging population, which will eventually test its social welfare system.

In opening the event, President of Fulbright University Vietnam, Professor Scott Fritzen expressed: "We are honored to co-host the Nordic Day 2024 event and contribute to the discussions on Vietnam's evolving labour market. As an institution committed to fostering innovation, critical thinking, and interdisciplinary approaches, Fulbright University recognizes the importance of learning from successful models like the Nordic Region. By bringing together academia, policymakers, and industry experts, we aim to facilitate meaningful dialogue and explore how Vietnam can leverage its potential to create a dynamic and inclusive labour market. We believe that this event will provide valuable insights and inspire actionable strategies to shape Vietnam's future workforce."

 Ambassador of Sweden Ann Måwe stated "Employers, unions, and governments in the Nordic Region collaborate closely, which has resulted in a well-developed social safety net for individuals. This model, known as 'the Nordic model,' has garnered international attention and is credited for the Region's resilience during the recent economic crisis. Free education and substantial investment in research contribute to a highly skilled population and a modern, high-tech society." She also highlighted the importance of developing robust plans including social insurance systems to face challenges such as an aging population, which eventually will also be a pressing reality for Vietnam.

The "Nordic model" offers valuable lessons on how to improve and adapt the labour market to meet the demands of the global and greener economy. The Nordic countries are renowned for their public provision of social services funded by taxes, investments in education, childcare, elderly health care, and other services associated with human capital. They also prioritize strong labour-force protections through independent unions and a robust social safety net. Notably, the Nordic countries rank among the world's richest nations in terms of per capita GDP and excel in global innovation. Ambassador of Denmark Nicolai Prytz shared 'As we all know, the green transition cannot take place without an adequately skilled workforce that can satisfy the demands of a greener economy. It offers many new employment opportunities but risks leaving behind lower-skilled and informal workers that have pollution-intensive jobs. We, therefore, are both excited and humble to share with our Vietnamese partners and friends the experiences and lessons learnt that the Nordic countries have gained for the last 40 years during our green transition. We hope that they can serve as an inspiration for Vietnam to develop a labour market which does not only effectively respond to the demands of Vietnam's ongoing green transition but equally important to ensure a just transition process and address the economic concerns of vulnerable groups.'

The Nordic Day 2024 event aims to gather speakers from the Nordic countries to share their experiences and expertise on various topics, including vocational training and skill development, workplace dialogue and decent work, innovation and increased productivity, and social welfare systems. The event also include perspectives from the Nordic relevant agencies and the private sector. Notably, Vinnova - The Swedish Innovation Agency, H&M from Sweden, Jotun and The Confederation of Norwegian Enterprise from Norway, Wärtsilä and EduCluster from Finland, LEGO LMV from Denmark, the International Labour Organisation etc. participated and expressed a strong desire to contribute to a dynamic and well-developed labour market in Vietnam.

The EU-Vietnam Free Trade Agreement (EVFTA) has created new trade and investment opportunities between the EU and Vietnam. By eliminating tariffs, promoting market access, protecting intellectual property, enhancing labor rights, and environmental protection, the EVFTA has greatly benefited Vietnam's labor market. It has expanded market access for Vietnamese businesses, particularly in labor-intensive sectors, leading to increased employment opportunities and overall labor market development. In addition, the sustainability chapter of the agreement emphasizes the importance of sustainable practices, further contributing to Vietnam's long-term economic and ecological well-being. By fully implementing the EVFTA and adopting elements of the Nordic model, Vietnam can strengthen its labor market, drive innovation and productivity, and foster sustainable economic growth.