Research report: Informal employment in Viet Nam through a gender lens

Drawing on data from the Labour Force Survey 2021 and a targeted survey conducted in Ha Noi and Ho Chi Minh City from August to September 2022, the report examines the prevalence, characteristics, and dynamics of informal employment and offers actionable policy recommendations to address gender disparities and promote decent work.

Informal employment accounted for 68.5 per cent of total employment in Viet Nam in 2021. Men were more likely to engage in informal work, with an informal employment rate of 71.6 per cent compared to 65 per cent for women. Women, however, face disproportionate vulnerabilities in the informal economy. They are more frequently concentrated in own-account work or contributing family work, positions that lack income security or social protection. Female informal workers also earn significantly less than their male counterparts. Women’s engagement in informal employment is often driven by the need for flexible working arrangements to balance family responsibilities, as they dedicate significantly more time to unpaid care work than men.

Education and skills gaps further exacerbate these challenges, with fewer female informal workers having formal training compared to men. Informal employment remains concentrated in sectors such as agriculture and services, where informality rates are high, and women dominate low-wage, elementary occupations. The COVID-19 crisis intensified these vulnerabilities, as women experienced greater job losses and income declines, reflecting their concentration in sectors heavily affected by the crisis. Women express a stronger desire to transition to formal employment. However, barriers such as low skills, family responsibilities, and limited access to resources need to be addressed to facilitate this transition.

The report underscores the critical need to address gender-specific vulnerabilities in informal employment in Viet Nam. Achieving inclusive and sustainable development requires targeted, gender-responsive policies and multi-stakeholder collaboration and coordination that promote decent work opportunities, enhance social protection, and shift societal norms towards gender equality. By addressing these issues, Viet Nam can create a labour market that supports all workers, particularly women, in their transition to formal employment.