REPUBLIC OF KOREA:
POLICY CHALLENGES AND RESPONSES
Dang Nguyen Anh*
International migrafion has increased to the top of the global policy agenda. As the scale, scope and complexity of migration has grown, states and other stakeholders have become critically aware of the challenges and opportunities presented by international migration. There is now a common understanding that the economic, social and cultural benefits of international migrafion must be more effecfively realized, and that the issues of labor migrafion could be better addressed. However, both labor sending and labor receiving countries often pursue own short-term aims. The former are concerned with obtaining a fiexible, low cost labor whereas the latter are mainly aimed at generating jobs for an underutilized and low-skilled workforce and at getting the maximum possible inflow of foreign currencies (Abella, 1995). Many countries actively encourage labor export and actual government involvement in recruitment and deployment of workers, regulation and supervision of placement agencies.
Because of the breadth of the emerging issues and complexity of migrafion types within East Asia, the paper focuses only on labor migration and concentrates primarily on the situafion and policy challenges of migrant workers from Viet Nam to the Republic of Korea (ROK). In this regard, the paper employs a definition of international labor migrants generally as those who have been working outside their countries of origin for contracted work initially an-anged by the placement companies in Viet Nam. It does not examine the problems related to Vietnamese migrant workers or married women in
' A.-i Prof, and Director, Instiliilc of Sociology'. Hanoi. Vietnam
A Quantitative Measurement Of Child Costs In Vietnam Dunns High Inflation Period
ROK (which have been well documented by lOM/MRTC); neither the paper attempts to assemble statistical data on migrant workers originating from Viet Nam to ROK. given the severe lack of accurate data on irregular migrafion.
The paper will begin with a background of labor migration from Vietnam to East Asia, followed by an analysis of the causes and impact of migration to ROK. Then, policy and legal mechanisms regarding overseas deployment and labor migration will be discussed.
At the conclusion, the paper will present some recommendations and suggestions on the gaps in the existing measures and policy responses to better manage labor migration from Viet Nam to ROK.
Migration of workers from \'iet Nam
Intemafional migration is not a new phenomenon in Viet Nam, but has been greatly occurring for decades. Since the Doi Moi Renovation labor migration has emerged as the most significant aspect of visible changes in the country', requiring and generating policy responses.
Vietnam entered the intemational and Asian labor markets fairly late, compared with other Southeast Asian countries. When neighboring countries such as ROK. Singapore, Mala}sia were achieving high economic growth in the 1980s. Vietnam was suffering severe poverty, unemployment and low growth. Like other sending countries in the region, the primary means of understanding migration of workers from Vietnam is demographic and under-employment, given its relatively young workforce. The country has been described as a labor surplus economy with its comparafive advantage of low- cost labors. Despite high growth rates and remarkable achievements in poverty reduction during the 90s, and notwithstanding the growth of the private sector and its capacit) for job creation, unemployment has risen in Vietnam s\er\ year. 0\'erall, it is esfimated that up to 25 million people, or 56 percent of the total workforce, are either unemployed or underemployed (World Bank. 2009). Modernization of the agricultural sector has significantly reduced the sector's capacity to absorb labor, motivating rural labors to migrate. Going abroad to work has been a survival way for people in mral areas in addressing unemployment, especially under the pressure of agricultural land reduction.
There is increasing number of people who want to migrate as contract workers.
In East Asia, labor shortage and ageing workforces are among many underiying factors that generate migrafion in the region. Demand for and supply of foreign workers in many sectors that cannot be filled by nati\e workers. Migration of both unskilled and skilled labors have increasingly been taking place in response to the demand for workers
and manual labors in Taiwan (China), Japan, RepubUc of Korea. Overall, the demand- pull" factor of income differentials and the "supply-push" factor of excess labor supply interact to induce migration of workers from Vietnam. Migrants tend to find ways, even illegal ones, to migrate and stay in foreign countries where they have better opportunities. Receiving countries often tighten regulations to deter migration that even increases irregular migration.The lack of information and transparency in policies has pushed migrants into vulnerable situations where they can easily become irregular immigrants.
Table 1: Vietnamese contract workers under contract-based employment in some major destinations by year, 2000-2010((/«//. workers)
Year
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Total
Total
31,500 36.168 46.122 75,000 67.447 70,594 78,855 85,020 86,990 73,028 85.546 736,270
Destinations Chinese
Taipei 8,099 7.782 13,191 29,069 37.144 22,784 14,127 23,640 31,631 21.677 28,499 237,643
Japan
1,497 3,249 2,202 2,256 2,752 2,955 5,360 5,517 6,142 5,456 4,913 42,299
South Korea 7,316 3,910 1.190 4,336 4.779 12,102 10,577 12,187 18,141 7,578 8,628 90,744
Malaysia
239 23 19,965 38,227 14,567 24,605 37,941 26,704 7,810 2.792 11,741 184,614
Africa - Middle East
34 1,094
408 750 938 1,276 5,246 6,184 11,113 16,083 10.888 54,014
Others
14,315 20,110 9,166 362 7,267 6.872 5,604 10,788 12,153 19,442 20,877 126,956
Source: MOLISA (2012)
International labor emigration from Vietnam is extensively shaped and directed by the government which has followed other Asian migration players in actively promoting labor export with the multiple aims to ease domestic job situation, to increase the inflow
A Quantitative Measurement Of Child Costs In Vietnam Durins Hish Inflation Period
of hard-currency remittances and intemational integration. The country's labor export policy is marked by three waves (Dang. 2000). The first and second waves were directed to Eastern Europe and the Soviet Union. The third wave started in 1994, with East Asia and some Middle East countries being the main destinafions of Vietnamese workers.
Indeed, labor migration from Viet Nam will probably scale up in the future as trade links between Viet Nam and the East and Southeast Asian nations are fijily developed.
No less than 80,000 Vietnamese workers leave the country for jobs overseas each year.
There are now more than 500,000 Vietnamese workers under the definite time contracts working in over 40 nations and territories worldwide. They work in about 30 different types of occupations and ranging from low to highly skilled laborers and professionals (MOLISA. 2010). Unskilled workers still account for a large proportion of the total labor export and labor migrants concentrate mainly in construction, mechanics.
electronics, textiles, aquatic processing, shipping industry, healthcare, education, and agriculture (Dang, 2008).
The above figures are however under-esfimated, as they do not include a large number of irregular or undocumented migrants. Many migrant workers flowed through irregular channels or individual arrangement. The problems are reinforced when migrants usually do not know the local language and are of^en unprotected by laws of their destinafions countries. In emergence, they have very limited or no access to remedies and supportive social networks. These workers are considered a burden for the host society despite their contribution to economic growth. Regardless of high costs and risks associated with migration process, many believe that the hardship will be more than compensated by the anticipated gains through migration. We know unfortunately very little about this as accurate figures and updated statistics on these hidden flows are difficult to obtain.
Motives and Consequences of Labor Migration to ROK
The marked differences in wage levels between ROK and other labor markets woridwide become i strong factor of migration. High demand for labor from impoverished and low income regions to areas with better economic opportunifies where the income to be gained from manufacturing and construction work is many fimes greater. ROK is considered a relatively attractive destinafion which is not geographically far from Viet Nam and culturally friendly. There is a fairiy well developed demand for migrant workers from Vietnam, Indonesia and the Philippines across many manufacturing and service sectors.
63
There are four main types of migrants fi-om Vietnam to ROK: the first consists of labor migrants working as short-term contract workers under the EPS system for 2-3 years who account for about 60,000 workers; the second includes persons who arrived as trainees but overstay their visas and work illegally whose number is about 12,000 workers; the third group include Vietnamese students include people who hold governmental scholarships and full-fee paying private students (also called private students). They mainly go for colleges and universities for high education. Their number is less than 6,000 persons; the last group includes young females married to Korean men with an esfimated number reaching 50.000 women. These women migrate as a result of their inter-culture marriage and seek permanent settlement in ROK. Given the different nature and motives of education or marriage migrations, the present paper will not include married women and students in the analysis. It employs the data collected by a sample survey on Vietnamese migrant workers to and from ROK in 2010.
The below figure allows us to invesfigate motives driving migration. Informafion was provided by both returnees and absent migrants (N=779). As displayed in Figure 1, 'earn more', 'save money', and 'finding a better j o b ' are the main reasons for migrafion. The main motive of Vietnamese workers is overwhelmingly economic.
Figure 1: Reasons for migration
Did
To enjoy lite p ^ f l ^ ^ '' ^*
Tofol!o^vcorrtparaest?,=?i.
efrfiBdom to do what warned tVs\
To earn moie money ^ ^ • ^ • • ^ • ^ • i *
To learn another language ^ ^ H ^ ^ ^
. liiiJ jbi-lluuLi P ^ ^ _ _
™
"'..
i'iS»._ ^.<
i 25% 30% 35% 40% 45% 50%
Sources: Survey on Migrant Workers to/from ROK (20!OJ
Figure 2 examines the frequency of contacts between migrants and their families in Viet Nam. Often, migrants contact with their families more than once a month (23.0%). In addition. 17% of households report that they communicate with their members more than once every three months. The result may reflect the Vietnamese tradition of tight
A Quantitative Measurement Qf Child Costs In Vietnam Dunns High Inflation Period family relationship and the improvement of telecommunicafion such as telephone, mobile phone and internet, especially in mral Viet Nam.
A posifive impact for Viet Nam is that there was a large proportion of retumed migrants reported teaming new skills from working in ROK. Among returnees, over 30 per cent brought with them advanced working skills. Also, about 30 per cent of retumed migrants reported ability to handle a new language, and the other 30 per cent understood well the Korean culture (Figure 3). They can become efficient human resources for both local and ROK companies in Viet Nam.
Figure 2: Frequent contact between migrants and their families
1 don't have contact with them anymore Less than once a year More than once a year More than once every six months More than once every three months Monthly More than once a month Weekly More than once a week Daily Moj^e than once a day
E H
•
IZZI
•
1 9%
3%
I I I 4 1 % 2 3%
3%
5%
8 0%
8-6%
10%
12 8%
15% 20% 25%
Sources: Survey on Migrant Workers to/from ROK (2010) Figure 3: Skills gained by migration
Learn/improve vision,knowledge on culture and society
Learn/improve working skills and styles
Learn about new social issues
Learn/improve life skills
Learn/improve professional skills or trade
Learn a new language
0
' f-— I
E " " : n
#15/1
i : ' » ? i ^ l 14.78%t
1 1 1 51%L-
122.68%;
% 5 % 1 0 % 1 5 % 2 0 % 2 5 % 3 0 % i iO.07% 1
30 5 8 %
30 5 8 %
3 5 %
65
Sources: Survey on Migrant Workers to/from ROK (2010)
As above mentioned, migrafion can help relieve labor surplus and population pressure in the sending countnes. Labor migrafion. by creating a significant number of jobs annually, help reduce unemployment rate in Vietnam, particularly in rural areas. About 40% of surveyed households with current and retum migrants) stated that migration reducesunemployment in the sense of preventing the likelihood that a migrant falls into unemployed status or creating job vacancies for the left-behinds. (Figure 4)
Figure 4: Impact of labor migration
Slrenglhenmg the economy Investing in businesses Reducing poverty Sending money htjme Gaming skills and resources Reducing unemployment 0
1 9 5%
1 23 5%
m 55 8%
c 20%
1 37 3%
«.
60% 80%Policy Changes and Responses
As afore-mentioned, the Vietnamese govemment has regarded labor deployment abroad as an important factor contributing to the national development. Exporting labor has been facilitated in order to accelerate the inflow of foreign capital, as well as to reduce the pressure of job creation in the country. The wide gap between Vietnam's and mtemational wage/income levels is a key pull factor for migration from Vietnam Unemployment is another factor. Despite recently high growth rates, unemployment in Vietnam has been increasing every year. There are about 1.3-1.5 million new labors enter the job market every year (Vietnam Trade Office, 2008). In the meantime the massive job shedding by the state sector, agricultural modernization, reduction of agricultural land, and the economic and financial crisis all add up to a large number of unemployment m Vietnam. Since the year 2000. the government has announced that sending laborers to work abroad is one of Vietnam's major efforts to settle issues of employment.
Following the open-door models and Doi Moi introduced in 1986. national policies in Viemam were slowly relaxed with regard to intemafional migration. The Govemment introduced a series of policies to institutionalize and regulate labor export. Starting in 1992, state-owned companies with operating licenses were permitted to send workers to other countries, based on bilateral labor contracts. In 1998, further measures were taken
A Quantitative Measurement Of Child Costs In Vietnam Durins Hish Inflation Period
to expand and diversify labor export, when the Central Communist Executive Committee enacted Directive No. 41CT/TW. Reflecting changes in intemational and domestic labor markets, in 1999 the govemment approved a policy on overseas employment (Decree No.l52/1999/ND-CP) which specifies procedures and mechanisms to facilitate overseas employment of workers from the state and non-state/private sectors.
Laws regarding Vietnamese nationals working abroad under contracts (No.
72/2006/QHll) were passed and became effective from 1 July 2007; Decree No.
126/2007/ND-CP in the same year was enacted to regulate, in detail, and guiding the implementation of the law and various other legal regulations related to migration of workers, have created a comprehensive legal framework aimed at facilitating sending contract-based workers to work abroad. These legal documents aim to formalize the process of out-labor migration. By defining the rights, and obligations of recmiting and other sending entities, the govemment ministries/agencies and the workers themselves, the 2007 Law enables local labor export agencies and placement agencies to expand to better meet the needs of their foreign partners. Workers are required to take language, culture and vocational training before they are sent overseas. For those who wish to go and work in ROK. they must first pass the Korean language test before being listed online for recruitment by employers.
In general, legal documents for each laborer are often incomplete and do not provide a strong basis for liquidation of employment contracts and settlement of workers' disputes when retuming, which affects the benefits of these workers. Meanwhile, the prescribed sanctions that are applicable to enterprises' violations are generally not strict enough, the result typically being a warning or a fine ranging from VND 500 thousand to 40 million (25-2000 USD). These fines are extremely low in comparison to the profits eamed by these companies, and they do not provide enough disincentives for placement companies.
It would be hard to apply the above Law to irregular and undocumented migrant workers who work abroad by their own means. The question of implementing polices is a matter of concern. There are a number of concems with placement agencies and their associated brokers which often overcharge high fees from migrant workers and their families. Some workers become deeply indebted in even pre-departure stage, as they must borrow from private money lenders in order to pay overcharging fee and other associated costs.Placement agencies often lack responsibilities in informing workers about the real situation in receiving countries, assisting and compensating unwanted retumees. The recruitment agents devote very little attention to the situation of the workers after they leave Viet Nam, making it very difficult for monitoring migrant workers. Privatizing the recruitment agencies and gi\e wa\s for exploitative brokers
67
and traffickers to manipulate and take advantage people who wish to work abroad.
Because the management issues of the migrant workers in destination countries have already been documented (MOFA and lOM, 2011), the present paper will not discuss but acknowledge the relevance of these issues in managing migration of workers from Viet Nam to countries of destinafion, including ROK.
In addition, migrant workers going to ROK are not aware of the laws and cultures of the country. They are likely to rim away al^er arrival in ROK or breach their work contract aiter the first year. These labors continue to work in KOR without proper documents, becoming illegal migrants. They are vulnerable to abusive unscrupulous middlemen and exploitative employers. As a result, they are even vulnerable to trafficking, arrest and deportation. Community-level communicafion campaigns in Viet Nam for awareness- raising and combating labor brokerage would be greatly useful for potential migrants who seek overseas employment.
Last but not least, the transfer of the laws and legal documents into concrete actions becomes great challenges for ROK and Viet Nam in reality. The process will not only require policy enforcement, capacity building but also effective partnership of the two governments with other stakeholders such as trade union, NGOs. migrant's associafions, employers, private sector etc. in safeguarding the rights of migrant worker.
Concluding Remarks
Current problems in managing and regulating migration activities suggest the necessary for better policies and programs to opfimize the possible positive impacts of migration.
Law system on migration should be improved. Close management and tighten supervision from the government should be given to ensure the correct and high quality implementation of labor placement companies while sending workers abroad and to protect laborers in every stages of migration process.
The differentials in income and employment opportunities between among the Asian economies, including ROK and Viet Nam, have led to the movement of labor from low wage to high wage countries. Rather than decreasing, international labor migration is likely to increase largely in the future, becoming a global phenomenon. Around the world, it is an undeniable fact that migration cannot be stopped and migrant workers have become indispensable to many economies.
Migration is a complex issue and the economic, social and cultural benefits of migration must be more effectively realized. The analysis suggests that the impacts of migration to ROK on the migrants themselves and their families at origin generally positive.
Strengthening legal and formal systems that can provide support to migrants would make migrants more producfive and better off in there new environment. Poor management of migration movements and other related issues could cause serious damage, putting Vietnamese people in more vulnerable situation. For these reasons the
A Quantitative Measurement Qf Child Costs In Vietnam Durins Hish Inflation Period
govemment should pay more attention and strengthen its supervision of labor placement agencies and labor export programs. Labor migrants need to be protected before, during and after migration.
Migrants from Vietnam still face difficulties in migration. Many of these difficulties are the results of the current management system largely involved brokerage and the migrants' lack of information. Because migration is multidimensional in nature, and migrants are not simple commodity but human beings, they need to be respected and protected by national laws and governments in both countries of origin and destination.
Last but not least, Vietnam is not a signatory of the 1990 Intemational Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families.
This furthers the impression that Vietnam remains a passive partner in migration, not wishing to endanger established markets for its surplus labor. The preparing process to ratify the Convention would take time and requires the amendments and adaptation of current legal framework and law instmments in Vietnam. Nonetheless, the ratifying of the Convention would provide a basis from which to address the violations of rights of Vietnamese workers abroad. This seems a critical need, given the large numbers of Vietnamese working overseas and the continuing outflows of migrants from the country.
The report draws some ways by which policy could respond to the migration of workers from Viet Nam:
1 Tightening government's monitoring and supervising of labor placement agencies' activities. It is necessary to complete the formal and legal system on migration and strengthening law enforcement. Specific policies to state clearly responsibilities of labor placement agencies should be developed.
2. Facilitating policies, programs and activities to support contract laborers.
Govemment. local authorifies and civil society organizafion should participate in raising awareness through training and media, helping migrant workers to make right decisions on working abroad. Credit and fimd support programs to provide loans for poor people to cover the cost of migration should be facilitated. The migrants should be equipped with adequate information, knowledge, training and working eondifions abroad.
3. Promoting the cooperation of origin and destination countries, and the participation of various actors in the society to protect Vietnamese laborers.
The Vietnamese govemment should develop bilateral and mulfilateral agreements with the governments of desfination countries, including ROK. to protect and regulate Vietnamese citizen's right and safety. The Union, the Vietnamese diplomatic representative agencies, intemational and local NGOs in Vietnam should also corporate with local NGOs in destination countries to support and protect Vietnamese workers abroad.
69
4. Paying high attention to migration motives and implications of migrant workers from Viet Nam. The analysis of the size, migration to and fi-om ROK has indicated that a closer cooperation between Viet Nam and ROK is required to better manage the labor migration between the two countries. In this regard, Viet Nam and ROK Govemment policies toward labor exporting over time have strong impact on not only the number of people who migrate, but also the way migration have impact. Govemment policies and regulation on intemational migration have been added as well as amended to cover emerged issues in migration.
5. Attracting migrant workers to return. The government should have incentives and attracfive eondifions for the retum of workers, skilled laborers, trainees and professionals to maximizing the impact of migration through significantly contribution to the development of human resources in Vietnam.
6. Reacting to some specific development related to migration. For example, suitable policy on family planning and population redistribution would reduce the pressure of migration. Secure private property rights and symmetric business information should be a must. Gender linked migrafion programs, acfivities and policies should also be considered as a key for better managing migrants development./.
References
1. Abella, Manolo. "Policy and institufions for the orderly movement of labor abroad" in Abella. M. and Lonnroth K. (eds) Orderly International Migration of Workers and Incentives to Stay: Options for Emigration Countries. Geneva- International Labor Office. 1995.
2. Commission for Overseas Vietnamese Affairs. Vietnamese Community Abroad- Questions andAns-wer. Hanoi: The Gioi Publisher, 2005.
3. Dang. Nguyen Anh. Labor Export from Vietnam: Issues of Policy and Practice Working paper, ILO, Bangkok, 2008.
4. Dang, Nguyen Anh. Emigration and Emigration Pressures in a Transitional Vietnam APEC/JETRO Conference Proceedings. Institute of Development Economies. Japan. 2000.
5. MOFA (Ministry of Foreign Affairs) and lOM (Imernational Organization for Migrafion). of Vietnamese Migration Abroad. Hanoi. 2011.
6. lOM (Intemational Organization for Migration) Labor Migration in Asia' Trends, Challenges and Policy Responses in Countries of Origin. Geneva- Intemational Organizafion for Migration, 2003.
7. MOLISA (Ministry of Labor, War Invalids and Social Affairs). Cumulated Data on Overseas Laborers by Countries of Dettination. Hanoi: Department for Administration of Overseas Employed Labor Force, 2011.
