2010年-世界发展银行全球_Dynamics_of_the_Informal_Sector_in_Hanoi_and_Ho_Chi_Minh_City_2007-2009___Main_Findings_of_the_Household_Business_and_Informal_Sector_Survey_33页_893kb

Summary of the Informal Sector Dynamics in Hanoi and Ho Chi Minh City (2007-2009)

Core Content

This report presents the findings of the Household Business & Informal Sector (HB&IS) survey conducted in Hanoi and Ho Chi Minh City (HCMC) between 2007 and 2009, focusing on the dynamics of the informal sector in the context of the global economic crisis. The study was carried out by the General Statistics Office (GSO) in collaboration with the French Institute of Research for Development (IRD), and supported by the World Bank and the Department for International Development.

Main Findings

• Informal Sector Dominance: The informal sector remains the leading employer in both Hanoi and HCMC, accounting for 32% and 34% of total employment, respectively. It also constitutes a significant portion of private non-farm jobs (57% in Hanoi and 41% in HCMC).

• Growth of the Informal Sector: Between 2007 and 2009, the informal sector expanded in both cities, with Hanoi seeing a 6% increase and HCMC a 19% increase. The informal sector contributed to 40% of net job creation in HCMC and 30% in both cities in 2009.

• Structural Changes: There was a shift towards tertiary activities (services and trade), with services becoming more predominant in HCMC (55% of IHBs) and trade in Hanoi (40% of IHBs). Manufacturing activities still play a significant role in both cities.

• Labour Conditions: The informal sector is characterized by insecure working conditions. Social security, profit sharing, and paid leaves are largely absent. The percentage of workers without contracts increased in both cities, especially in HCMC, where it reached 73.6% in 2009.

• Income Trends: The average income in the informal sector grew in Hanoi (22% in real terms for old Hanoi) and slightly declined in HCMC (-3.5%). The median income increased in both cities, but the gap between average and median income highlights significant inequality.

• Working Hours: In Hanoi, working hours increased, while in HCMC, there was a slight increase in some sectors. Formal HBs in HCMC showed a marked increase in working hours, indicating higher workload and stress.

• Economic Performance: The informal sector showed substantial growth in value added, with Hanoi doubling its output and HCMC increasing by 15%. However, formal HBs in HCMC experienced a decline in production and value added.

Key Information

• Survey Methodology: Two surveys were conducted in 2007, one national and two specific to Hanoi and HCMC. In 2009, the survey was repeated with a focus on both macro and micro dynamics, including panel data from previously surveyed HBs.

• Informalization Trend: The rate of formalization decreased in both cities, from 19.5% in Hanoi to 15.3% in 2009, and from 25.4% in HCMC to 17.6%. This reflects a trend of informalization, especially in HCMC.

• Income Disparities: The average income in the informal sector is much higher than the median, indicating the presence of a few high-earning units that skew the data. In Hanoi, the average income grew significantly, while in HCMC, it slightly declined.

• Economic Impact of Crisis: The economic crisis had mixed effects on the informal sector. While it negatively impacted the earnings of certain groups, such as employers and self-account workers in HCMC, wage workers in Hanoi showed some improvement.

Conclusion

The informal sector in Hanoi and HCMC remained a vital part of the labor market and economy during the 2007-2009 period. Despite the challenges posed by the economic crisis, the sector demonstrated resilience and dynamism, particularly in terms of job creation and income growth. However, the lack of formalization and insecure working conditions persist, raising concerns about the sector's long-term sustainability and efficiency. The findings suggest the need for targeted economic policies to support the informal sector while addressing its structural vulnerabilities.

Additional Notes

• The report is complemented by two other studies: one on the national labor market and informal economy (Nguyen et al., 2010) and another on the impact of the crisis on the informal sector in Hanoi and HCMC (Cling et al., 2010b).

• The data is based on surveys conducted under the GSO-ISS/IRD-DIAL project, with the analysis of both macro and micro dynamics.