Workshop on “Firm’s operation, employment and household in the context of economic recession”

Hanoi, August 19th 2013 – Dr. Phung Duc Tung, the Institute Director, on behalf of the research team, presented a report, titled “Firm’s operation, employment and household in the context of economic recession”.
The topic has received huge attention from researchers and policy makers. The research used data extracted from Vietnam Household Living Standard Survey, Labor Force and Employment Survey and Enterprise Census from 2007 to 2012 to assess the impact of economic recession to firms, labor and household by comparing between the pre-recession period with current situation. The result shows that economic recession has had some initial negative impact on firms’ operation, labor and household. Even though the number of firms still increases but at a much lower rate compared with the pre-recession period. Firms’ revenue, profit and size have dramatically declined. The number of firm shifting their main business into other sectors increases, signaling that the business environment under economic recession is still quite challenging to firms. Besides, the economic downturn and macroeconomic uncertainty also depress decent work opportunities and labor income, which consequently restrain household income growth. The unemployment rate within 2008-2012 still remained at a low rate, even declined from 2.9 percent in 2009 to 2 percent in 2012 but still, there are some signals showing that the underemployment has been increasing.