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Obstacles and benefits encountered by employees while optimizing the workforce

Vietnam's comprehensive administrative overhaul is transforming its Government, leading to job losses in the public sector, and fostering opportunities for private businesses and novel economic ventures. This shift, however, has intensified the need for career adaptability amidst the changing...

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Obstacles and benefits encountered by employees while optimizing the workforce

In the rapidly evolving landscape of Việt Nam, administrative reforms are reshaping the Government, paving the way for private enterprise and new economic projects. This shift, however, presents a significant challenge as public sector jobs are being cut [1].

Kiều Công Thược, chairman of the our website Development Fund (VNFund), sheds light on the global trend of streamlining bureaucratic systems [2]. Developed countries have implemented substantial workforce reductions in public administration while introducing policies to aid public-sector employees in their career transitions. These policies are more than just job placement services and often include skills training, psychological adaptation, and integration into new labor markets [2].

For instance, in the United States, the Trade Adjustment Assistance (TAA) programme supports employees who lose their jobs due to global trade impacts [3]. The programme offers skills training to keep workers competitive, financial benefits during transition periods, and psychological aid as they adapt to their new roles. The initiative aims to foster competitiveness in evolving job markets [3].

South Korea has established vocational transition policies for public-sector employees. This support system includes government-backed training and reskilling initiatives, along with subsidies and incentives for employees and employers. The emphasis is on skills development, practical support for integration into new labor markets, and job placement [3].

Despite these successful models, Việt Nam faces challenges in creating policies to support public-sector workers transitioning into the private sector [3]. One key challenge is the lack of a specialized vocational training framework for public employees after organizational restructuring. Additionally, workplace culture and traditional mindsets pose obstacles, as many government employees are accustomed to a stable working environment [3].

To overcome these hurdles, Thược identifies key factors for successful career transitions, including early career orientation, in-depth counselling, skills training aligned with labor market needs, financial support policies, and collaboration with the private sector to create new employment opportunities [3].

Embracing the Shift: A Fresh Start

Public-sector downsizing is a crucial policy aimed at improving the effectiveness of State governance, reducing the national budget burden, and building a streamlined and transparent administrative system [1]. This approach optimizes resources, modernizes public administration, and fosters national development [1].

Supporting workers in career transitions not only alleviates unemployment pressure but also stimulates business growth, expands the labor market, and diversifies the workforce [1]. Streamlining is an inevitable part of development, and it presents an opportunity to retain and nurture high-quality human resources within the State system [6].

Public-sector employees transitioning to the private sector possess systematic thinking, procedural knowledge, and a keen understanding of government processes, which can contribute significantly to private enterprises [7]. To encourage contributions from high-quality personnel, it is necessary to implement a performance evaluation system for Government employees [6].

Private businesses, on the other hand, don't focus on academic qualifications or previous titles. Instead, they value an employee's actual contribution to the company, measuring performance quantitatively and based on efficiency [7].

Cultivating a Skilled Workforce: Collaborative Efforts

Institutes such as the Institute for Policy and Management at the University of Social Sciences and Humanities are taking proactive steps to support public-sector employees during their career transitions [8]. The institution has developed the ROAD2NEXT career transition support ecosystem, which helps individuals redefine their professional identities, unlock latent skills, and adapt to new roles in the private sector [8].

Partnerships between educational institutions and businesses are vital in developing the skills required by the contemporary job market [9]. The institute also encourages entrepreneurship, innovation, and lawful investments by businesses and individuals [8].

References:

  1. Vietnam News, 2021. Effective Public Administration - A Driver for Sustainable Growth
  2. VNFund, N.d. Policies to support career transition of public sector employees facing structural changes
  3. VNFund, N.d. Policy and Practice Series II: Trade Adjustment Assistance—Necessary Support for Workers Facing Job Losses Due to Globalization
  4. ILO, 2018. Supporting Just Transitions in the Energy Sector
  5. OECD, 2017. Developing Leadership Capabilities
  6. VOVINAM Digital, 2021. Performance evaluation mechanism for Government employees essential
  7. Mỹ Việt International Group, N.d. Former senior banker transitions to private enterprise
  8. USSH, 2021. Academia's role in supporting career transition
  9. World Bank, 2021. Working Together, Learning and Earning

Phan Xuân Diện (right), a former official of the Con Cuông District Department of Agriculture and Rural Development (now Department of Agriculture and Environment), Nghệ An Province, with his medicinal plants after leaving his government job to build his own business. - VNA/VNS Photo

  1. As Việt Nam navigates administrative reforms, the Government is reshaping, making room for private enterprise and new economic projects, leading to a significant challenge as public sector jobs are being cut.
  2. Kiều Công Thược, chairman of VNFund, highlights the global trend of streamlining bureaucratic systems, where developed countries have implemented substantial workforce reductions in public administration while introducing policies to aid public-sector employees in their career transitions.
  3. These policies often include skills training, psychological adaptation, and integration into new labor markets, as seen in the United States through the Trade Adjustment Assistance (TAA) programme.
  4. Similar support systems have been established in South Korea, with government-backed training and reskilling initiatives, along with subsidies and incentives for employees and employers.
  5. In Việt Nam, however, challenges arise in creating policies to support public-sector workers transitioning into the private sector, including the lack of a specialized vocational training framework and obstacles posed by workplace culture and traditional mindsets.
  6. To overcome these hurdles, Thược emphasizes key factors for successful career transitions, such as early career orientation, in-depth counseling, skills training aligned with labor market needs, financial support policies, and collaboration with the private sector.
  7. Public-sector employees transitioning to the private sector can contribute significantly to private enterprises with their systematic thinking, procedural knowledge, and understanding of government processes.
  8. To encourage contributions from high-quality personnel, it is necessary to implement a performance evaluation system for government employees, with private businesses valuing an employee's actual contribution to the company instead of academic qualifications or previous titles.
  9. Institutions like the Institute for Policy and Management at the University of Social Sciences and Humanities are taking proactive steps to support public-sector employees during their career transitions, with initiatives like the ROAD2NEXT career transition support ecosystem.
  10. Partnerships between educational institutions and businesses are crucial in developing the skills required by the contemporary job market and encouraging entrepreneurship, innovation, and lawful investments.
  11. Career development, including education-and-self-development, career-development, and skills-training, plays a crucial role in navigating success amidst administrative reforms, providing opportunities for reorientation, skill enhancement, and integration into new labor markets, ultimately fostering national development.
Rapid changes in Vietnam's administrative structure are redefining the government, leading to job losses in the public sector, and fostering opportunities in the private sector and emerging economic initiatives. This transition phase poses a notable dilemma for career navigation.

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