Now, let’s move to part 3, Political and Economic Overview of Japan and
Vietnam. Let’s begin with the political overview of the two countries. Japan
and Vietnam present contrasting political landscapes. Japan has a
parliamentary system led by the Liberal Democratic Party, with a focus on
economic policies, regional security, and alliances, especially with the U.S.
Vietnam, meanwhile, operates under a single-party system led by the
Communist Party. The government, under leaders like President To Lam and
Prime Minister Pham Minh Chinh, aims at economic modernization and
stability while maintaining a non-alignment policy in military matters.
1.2 Japan foreign work labour policy
To address labor shortages, Japan launched two major initiatives: the
Specified Skilled Worker (SSW) Program and the New Skill Development
Program for Foreign Workers. The SSW Program offers two levels of work
visas—SSW1 and SSW2S: SW1, which is for workers with specific skills, and
SSW2, which is for more advanced workers who can stay indefinitely and
bring family members.
In March 2024, Japan launched the New Skill Development Program, or Ikusei
Shuro, which offers better labor rights, job mobility, and a pathway to
permanent residency for skilled foreign workers. These programs are crucial
for sustaining Japan's workforce and allow workers, particularly from
Vietnam, to contribute significantly to the Japanese economy.
However, the Japanese government, led by Prime Minister Kishida, maintains
limits on long-term residency and citizenship for foreign workers, highlighting
the policy’s focus on temporary labor solutions.
2. Economy overview
2.1 Japan
Japan, the world’s third-largest economy by nominal GDP, stands as a
beacon of industrial strength, technological innovation, and economic
resilience. Here is some key economic statistics that could provide you
general image of a supernation in 2023.
And do you wonder why does Japan's labour market have potential? That’s
because Japan is known for its innovation and technological advantages in
production. Many companies require a large workforce due to their
significant global market share. Additionally, Japan's diverse industries, from
manufacturing to finance, have been growing for decades.
Here are some Japan big corporations around the world and their market
share:
Sony market share in CMOS is 42%, All top 5 digital camera companies, with
93,8% of total market share worldwide are from Japan, Furukawa Electric,
Sumitomo Electric and NEC are innovative of new technology, Optical Fiber
Cable technology, Toyota, Honda and Nissan contributed to 26,7% of
car sales in the US in the Third quarter of 2024.
In finance, Japan also has a strong foundation. The Japanese Stock Market
Index and the stability of its banking system attract foreign investors and
create diverse job opportunities, making Japan a promising destination for
Vietnamese workers.
2.2 Vietnam
Vietnam has become one of East Asia's fastest-growing economies, thanks to
economic reforms under the Đổi Mới policy in 1986, which transitioned the
country from a centrally planned to a socialist-oriented market economy.
Here are some key statistics about Vietnam economy.
And there are many reasons why Vietnam has intense labour market.
Vietnam is making significant strides in developing its high-quality human
resources, paving the way for a brighter future. In 2019, Vietnam saw a
remarkable jump of 13 places in the Global Competitiveness Report’s
vocational training index, reflecting a positive shift in workforce
development. The government is actively revising policies to enhance and
invest in the quality of its workforce, ensuring it meets the demands of a
rapidly evolving global economy. Moreover, major investments in education
and healthcare are strengthening the nation’s human capital, with the
government recognizing that a skilled workforce is the foundation of
sustainable growth. Vietnam ranks high in ASEAN, with an average schooling
duration of 10.2 years, second only to Singapore, positioning the country as
a leader in human development. By focusing on education and human
capital, Vietnam is laying the groundwork for long-term economic prosperity,
ensuring its place in the global economy. With a strong workforce and
continued investment in human resources, Vietnam is ready to thrive.
