THUONG MAI UNIVERSITY

ENGLISH FACULTY

ASSIGMENT FOR DISCUSSION

TOPIC: THE GIG ECONOMY AND ITS IMPACT ON LONG-TERM

CAREER STABILITY

Lecturer: Tran Anh Thu

Class: 241_ENPR4911_04

Group: 3

Hanoi, 2024

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 TABLE OF CONTENTS
INTRODUCTION ........................................................................................................ 3
I.Overview of the gig economy .................................................................................... 4
1. The definition and examples .................................................................................... 4
2. The development of the gig economy ...................................................................... 4
2.1. In the world ....................................................................................................... 4
2.2. In Vietnam ........................................................................................................ 5
3. The State of the Gig Economy ................................................................................. 5
4. The Difference Between the Gig Economy and the Traditional Economy ......... 7
II. Impacts of the Gig Economy on Long-Term Career Stability ............................ 8
1. Positive Impacts ........................................................................................................ 8
1.1. Diverse Skill Development ............................................................................... 8
1.2. Enhanced Self-Management and Independence ............................................... 8
1.3. Expansive Professional Network ...................................................................... 8
1.4. Flexibility to Pursue Multiple Career Paths ..................................................... 9
1.5. Resilience and Adaptability in the Changing Job Market ................................ 9
1.6. Job Opportunities for All Groups of People ..................................................... 9
2. Negative Impacts .................................................................................................... 10
2.1. Income Instability ........................................................................................... 10
2.2. Lack of Benefits and Social Security.............................................................. 10
2.3. High Competition ........................................................................................... 10
2.4. Lack of Career Advancement and Development ............................................ 10
2.5. Unstable Relationships ................................................................................... 11
III. Strategies for Gig Workers to Enhance Career Stability ................................ 11
1. Diversify Income Sources ................................................................................... 11
2. Keep Learning New Skills .................................................................................. 12
3. Build Relationships and Connections ................................................................ 12
4. Financial Management ....................................................................................... 12
5. Build Your Personal Brand ............................................................................... 13
6. Build a Scientific Work Schedule ...................................................................... 13
7. Raise Awareness and Protecting Legitimate Rights ........................................ 13
8. Leverage Technology to Optimize Work .......................................................... 14

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CONCLUSION ........................................................................................................... 16
REFERENCES ........................................................................................................... 17

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 INTRODUCTION

The gig economy refers to a labor market characterized by the prevalence of

short-term, flexible, and freelance jobs rather than traditional, full-time employment.
In this system, workers often referred to as "gig workers" are hired for specific tasks or
projects, typically on a contract or temporary basis. The rise of digital platforms has
revolutionized the way people work, enabling individuals to offer their skills and
services to a global marketplace with greater ease and autonomy. This shift reflects
broader changes in the nature of work, driven by technological advancements,
changing employer needs, and evolving worker preferences for flexibility and
independence. While the gig economy offers numerous opportunities for workers to
earn income on their own terms, it also presents challenges related to job security,
benefits, and workers' rights. As the gig economy continues to grow, its impact on the
workforce, business practices, and labor laws remains a subject of significant debate
and exploration.

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I.Overview of the gig economy

1. The definition and examples

A gig economy, also known as the sharing economy or access economy, relies
heavily on temporary and part-time positions filled by independent contractors and
freelancers rather than full-time permanent employees

● A gig economy is based on flexible, temporary, or freelance jobs.

● The gig economy can benefit workers, businesses, and consumers through a
flexible model.

● Gig workers do not earn paid holiday or sick leave, and experience fluctuating
wages.

The gig economy spans a wide range of industries, providing numerous

opportunities for individuals to earn income flexibly. Below are some prominent
examples illustrating how this model functions across different sectors:

● Ide-sharing (Uber, Lyft, Grab): Drivers work flexibly, choosing when and
where to drive, using their own vehicles.

● Home-sharing (Airbnb): Hosts rent out their properties or rooms on platforms

like Airbnb, earning income on their own terms.

● Freelancing (Fiverr, Upwork): Creative professionals like writers and

designers take on short-term projects and get paid per task.

● Food delivery (DoorDash, UberEats): Delivery drivers work on-demand,

picking up and delivering food orders for payment.

● Task-based services (TaskRabbit, Handy): Workers offer services like

cleaning or repairs on a per-job basis.

2. The development of the gig economy

2.1. In the world

The Gig economy, also known as the sharing economy, has shown signs of
emergence since the Great Depression of the 1920s-1930s, when the unemployment
rate surged and workers had to take on side jobs alongside their full-time employment
to make ends meet. This situation was repeated during the 2007-2009 global financial
crisis and the Covid-19 pandemic, when many workers were forced to shift to more
flexible forms of work, such as short-term or contract-based jobs. After the economy
recovered, many workers continued to choose this way of working due to its flexibility
and freedom. At the same time, businesses realized the benefits of hiring labor in a Gig

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economy model, as it helped reduce production costs and increase competitive
advantage.

Since the first digital platforms like Upwork, Amazon, and Uber were
introduced in the 2000s-2010s, the Gig economy has grown rapidly, thanks to the
application of advanced technologies such as Artificial Intelligence (AI), the Internet
of Things (IoT), Big Data, and Cloud Computing. These technologies have facilitated
direct connections between labor supply and demand globally, forming a solid
foundation for the rise of the Gig economy. Over the past 10-20 years, the continuous
development of digital platforms and technology applications has led to the
widespread growth of the Gig economy, impacting a wide range of industries from
services and transportation to creative and digital work.

2.2. In Vietnam

The gig economy in Vietnam has undergone significant changes over the years,
evolving from informal, network-based freelance work to a robust and competitive
sector shaped by technological advancements and socio-economic factors. Its
development can be categorized into distinct phases, each marked by unique
characteristics and milestones:

Pre-2015 – The Early Stage: Freelance jobs like writing, translation, and
design were mainly conducted through personal networks and small websites, with no
large platforms connecting workers to clients.
2015-2018 – Emergence of Technology Platforms: Technology apps like
Grab, Uber, and Shop Food began operating, introducing flexible working models that
allowed workers to control their time and workspace.
2018-2021 – Boom During the COVID-19 Pandemic: The Gig economy grew
rapidly, expanding into sectors like space sharing, creative labor, and on-demand
domestic services, especially during the pandemic.
2022 – Present – Stability and Sustainable Growth: The Gig economy
continues to expand with strong competition between platforms, and the government
has started developing a legal framework to protect workers' rights while encouraging
sustainable development.

3. The State of the Gig Economy

3.1. In the World

The gig economy is an essential part of the global workforce, growing

exponentially over the past decade. A report by the World Bank in 2023 (“Working
Without Borders: The Promise and Peril of Online Gig Work”) highlights:

● The number of gig workers globally is estimated at 154 million to 435 million,
making up 4.4% to 12.5% of the global labor force.
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 ● In 2015, there were only 48 million gig workers, showing the rapid expansion
of this segment.

● From 2016 to Q1 2023, the demand for online labor increased by 41%, driven
by the digitalization of services and a shift towards remote, flexible work.

Regional Highlights:

High-income countries account for 77.2% of global online labor demand, led
by:

● United States: 36.83%

● United Kingdom: 8.61%

● Canada: 5.71%

● Australia: 5.1%

Middle-income countries are catching up, with 15.5% of demand from lower-
middle-income nations and 6.93% from upper-middle-income countries.

This growth underscores the gig economy's ability to integrate workers from
diverse economic backgrounds into global markets, reducing income disparities and
fostering economic inclusion.

3.2. In Vietnam

Vietnam is witnessing significant growth in its gig economy, reflecting global

trends. Fueled by a young, tech-savvy population and increasing access to digital
platforms, the sector is transforming the labor market.

Key Numbers:

● According to a report by Asia Development Bank (ADB) in 2022, 21% of

Vietnam's workforce (about 11.6 million people) participate in gig work,
including drivers, delivery personnel, freelancers, and online sellers.

● Popular platforms like Grab, ShopeeFood, Be, and Gojek employ over 300,000
gig workers nationwide, with Grab alone having 175,000 drivers.

● Earnings for gig workers vary widely, averaging between 5 to 15 million

VND/month, depending on hours worked and demand.

The Gig Economy Ecosystem in Vietnam consists of 3 groups:

Low-skilled workers: Perform manual labor and earn income based on the
amount of work completed.
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 Example: Technology car drivers, delivery people

Medium-skilled workers: Possess basic administrative skills, find part-time or

contract work to increase income.

Example: Content writers for businesses through platforms such as Upwork,

Freelancer.

High-skilled workers: Experts with high professional experience, receive

consulting contracts or large projects.

Example: Marketing experts advising on strategies for companies

4. The Difference Between the Gig Economy and the Traditional Economy

Aspect Gig Eoconomy Traditional economy

Employment Workers engage in short- Employees work under

structure term, task-based roles via long-term contracts with
platforms clear job roles

Flexibility High; workers choose their Low; employees follow

tasks and hours set schedules and
locations

Benefits Minimal or none; workers Provided by employers;

must arrange their own includes health insurance,
insurance, retirement, etc paid leave, pensions

Job security Earnings vary based on gig Fixed, stable salary with
availability and demand periodic increments

Income Low; workers can lose High; contracts often

stability income with sudden ensure stable employment
changes in demand or
platform policies

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 Control over Workers have autonomy Employers dictate tasks,
work over which tasks to accept schedules, and
performance standards

Technology Heavily reliant on digital Varies; traditional roles

usage platforms for finding work may use technology but
and tracking performance are not platform-centric

II. Impacts of the Gig Economy on Long-Term Career Stability

1. Positive Impacts

1.1. Diverse Skill Development

Gig work can enable individuals to leverage their unique skills and talents,
often leading to greater job satisfaction and personal fulfillment. For instance, a
freelance graphic designer might not only focus on their creative work but also handle
tasks like negotiating contracts, managing project timelines, marketing their services,
and troubleshooting technical issues. This multifaceted work environment pushes gig
workers to constantly learn and adapt, helping them acquire skills that are both
specialized and transferable. Over time, these diverse abilities enhance their value in
the labor market. Therefore, workers can comfortably make money from their passion,
their talent and proactively learn and develop personal knowledge.

1.2. Enhanced Self-Management and Independence

The gig economy empowers workers to take charge of their own careers,
fostering self-discipline and independence. Gig workers choose their own clients,
projects, and work schedules. This level of autonomy allows them to focus on jobs that
align with their interests and long-term goals. Without traditional managerial
oversight, gig workers must plan their tasks efficiently. This builds strong time-
management, organizational, and financial skills that are crucial for long-term career
success.

1.3. Expansive Professional Network

The gig economy opens up opportunities to work with a diverse range of clients
and collaborators, enhancing professional networks. By working on various short-term
projects, gig workers connect with professionals from different industries and regions.
For example, a freelance writer may collaborate with clients in education, technology,
and media sectors. Moreover, strong professional networks can lead to repeat business,
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referrals, and even permanent job offers. Not only widening partners, networking
within the gig economy provides access to knowledge, tools, and industry insights that
can support long-term career growth.

1.4. Flexibility to Pursue Multiple Career Paths

Gig work offers significant flexibility, allowing individuals to choose when,

where and how they work. For example, workers don't have to go to the office to
work; instead, workers and companies mainly exchange work through digital media,
connecting via websites thanks to the explosive development of technology. Therefore,
they are flexible regarding time, environment, or the amount of work they undertake,
leading to improved work-life balance, and the ability to pursue multiple income
streams. On the other hand, many workers see Gig economy jobs as a tool to earn extra
income in their spare time besides their official jobs.

1.5. Resilience and Adaptability in the Changing Job Market

The gig economy prepares workers to thrive in uncertain and rapidly changing
job markets. Firstly, it can help adapt to market needs. Gig workers regularly update
their skills and adapt to new trends, such as remote work or digital tools. This
adaptability makes them better equipped for shifts in the economy or technological
advancements. Going into global opportunities, many gig platforms are global,
enabling workers to access international markets. This exposure helps them understand
and adapt to diverse cultural and professional contexts.

1.6. Job Opportunities for All Groups of People

The Gig economic model contributes to providing employment opportunities to

help reduce unemployment. Digital labor platforms are also growing strongly,
becoming an excellent source of income and job opportunities for individuals who
may not fit into traditional employment models, such as students, retirees, and those
with caregiving responsibilities. In particular, the Covid-19 pandemic has accelerated
the development of the Gig economy, as many unemployed or jobless workers have
turned to freelance work through digital platforms. The Gig economy positively
impacts the labor market, creating many new job opportunities, especially part-time,
short-term jobs. In addition, the requirements and procedures for entering are
relatively simple, helping disadvantaged groups of workers, such as people with low
education levels, poor backgrounds, disabilities or facing financial difficulties, have
easy access to many kinds of jobs.

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2. Negative Impacts

2.1. Income Instability

The gig economy provides the advantage of flexible working hours, but this
flexibility often comes at the cost of unpredictable income. Demand for services can
vary significantly based on factors like seasonality, economic conditions, or even
platform algorithm changes. For instance, a freelance graphic designer may face
months of high demand followed by periods with little to no work. This fluctuation
complicates financial planning, as it becomes difficult to budget monthly expenses,
save for emergencies, or allocate funds toward long-term goals such as retirement,
purchasing a home, or paying off loans. Furthermore, irregular income can affect a
worker’s creditworthiness, making it harder to access loans or credit facilities when
needed.

2.2. Lack of Benefits and Social Security

Gig workers are generally classified as independent contractors, which excludes

them from traditional employee benefits such as health insurance, paid leave,
unemployment insurance, or retirement contributions. As a result, they bear the full
cost of healthcare, and they have no safety net during times of illness or economic
downturns. This lack of support increases their financial vulnerability, especially as
they age or encounter unexpected emergencies. For instance, a gig worker unable to
work due to illness may lose their income entirely without any provision for paid sick
leave. Additionally, the absence of employer contributions to pension plans means gig
workers must independently save for their retirement, which is particularly challenging
given the income instability described earlier.

2.3. High Competition

The low entry barriers to gig platforms attract a large pool of workers, creating
an oversaturated market. This intense competition often drives down the rates that
workers can charge for their services, especially when new entrants underbid to secure
jobs. For example, on freelancing platforms like Upwork or Fiverr, workers frequently
compete with global talent willing to work for lower wages. This oversupply of labor
also makes it harder for workers to secure a steady stream of gigs, leaving many in a
perpetual struggle to find consistent work. Moreover, platforms themselves often favor
clients by lowering the visibility of higher-paid workers, further disadvantaging those
trying to maintain fair rates.

2.4. Lack of Career Advancement and Development

Unlike traditional employment, gig roles often lack structured career pathways,
mentorship, or training opportunities that help workers develop professionally. The

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repetitive nature of many gig tasks such as or data entry limits opportunities for skill
enhancement or specialization. Without access to professional development, gig
workers may find it challenging to transition to more stable or lucrative career options.
This stagnation can be demotivating, leaving workers feeling stuck in roles that do not
align with their long-term aspirations. Over time, the absence of skill-building
opportunities may also reduce their competitiveness in evolving job markets.

2.5. Unstable Relationships

Workers and Platforms: Gig workers largely depend on online platforms to

find jobs, yet they are not treated as official employees. This lack of formal status
denies them important benefits such as health insurance, paid time off, and retirement
savings. Moreover, platforms can deactivate or suspend workers without warning,
putting them in a precarious position.

Workers and Clients: Gig workers usually take on short-term or project-based

assignments, which hinders the development of lasting relationships with clients.
Clients often prioritize affordability over loyalty or quality, frequently opting for
cheaper or more convenient alternatives.

Platforms and Clients: Platforms tend to focus on maximizing profits, often at

the expense of both customer and worker satisfaction. This approach can result in
inconsistent service quality, with clients experiencing delays or subpar outcomes when
platform algorithms fail to match workers to tasks efficiently.

III. Strategies for Gig Workers to Enhance Career Stability

1. Diversify Income Sources

Relying solely on one platform or gig type can leave workers vulnerable to
income fluctuations. By diversifying their sources of income, gig workers can
minimize risks and improve financial stability. This strategy involves offering multiple
services, leveraging various platforms, or combining gig work with part-time or
freelance roles in other industries. For example, a freelance writer could provide
content creation services while also teaching writing workshops or creating monetized
blogs.

To further secure income:

● Explore Multiple Platforms: Register on several gig platforms to access a

broader client base and minimize downtime.

● Offer Complementary Services: Expand skillsets to provide bundled services,

such as combining graphic design with social media marketing.

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 ● Develop Passive Income Streams: Create digital products (e.g., e-books,
templates, or online courses) that generate recurring revenue without requiring
constant effort.

Diversification not only ensures a more consistent income but also increases the
worker’s adaptability to changing market demands. Over time, this approach can help
gig workers build a broader skill set, making them more competitive and resilient in
the evolving gig economy.

2. Keep Learning New Skills

Gig workers must continually learn and improve their skills to remain
competitive. Old skills may become outdated, and staying updated with new
knowledge helps you meet market demands. This is particularly important as
technology and work methods evolve rapidly. Dedicate time to online courses, attend
workshops, or use free resources like YouTube and industry blogs. For example, a
graphic designer in the gig economy can learn new software tools or trends to attract
higher-paying clients. Continuous learning not only boosts your confidence but also
helps you secure a variety of gigs.

3. Build Relationships and Connections

In the gig economy, relationships are one of the most valuable assets. A strong
network not only provides access to new opportunities but also allows you to receive
recommendations from trusted connections. To build relationships, attend networking
events, join online communities, or connect with others on platforms like Facebook,
Zalo, etc... For example, a photographer could network with event organizers or local
businesses to secure more projects. At the same time, maintain these relationships by
staying in touch and showing genuine interest in others.

4. Financial Management

Since gig work doesn’t provide a fixed income, financial management plays a
crucial role in maintaining stability. Create a clear budget that outlines fixed expenses,
savings, and investments. For instance, you can follow the 50/30/20 rule: 50% of your
income for basic needs, 30% for personal desires, and 20% for savings or investments.
Additionally, set up an emergency fund to handle periods of low income. Effective
financial management not only reduces stress but also gives you the flexibility to
invest in yourself and your career.

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 5. Build Your Personal Brand
In the competitive gig economy, having a strong personal brand can help you
stand out and attract better opportunities. A personal brand is not just about the work
you do but also how you present yourself and the unique value you bring to clients or
customers.

● Create a Professional Online Presence: Develop profiles on platforms where

gig workers are often discovered, such as LinkedIn, Fiverr, or Upwork.
Showcase your skills with a well-written bio, professional photos, and examples
of past work. If possible, build a personal website with a portfolio, testimonials,
and an easy way for potential clients to contact you.

● Showcase Your Expertise: Share knowledge through blog posts, social media
updates, or short videos. For example, if you’re a freelance writer, post tips
about writing or share successful projects. This positions you as an expert in
your field.

● Be Consistent: Your brand should be consistent across all platforms, including

the tone of your communication, the quality of your work, and your visual
design (e.g., logos, banners). This helps clients recognize and remember you.

● Ask for Feedback and Testimonials: After completing a job, request reviews
or testimonials from satisfied clients. Display these prominently on your
profiles or website to build trust with new clients.

● Network Actively: Attend industry events, join online groups, and engage with
others in your field. A strong network can amplify your personal brand and lead
to referrals.

6. Build a Scientific Work Schedule

One common pitfall for gig workers is working without a schedule or

overworking themselves. This can lead to burnout and negatively impact the quality of
work. To avoid this, create a well-organized work plan. Use tools like Google
Calendar, Trello, or Asana to manage your tasks and prioritize important gigs. Don’t
forget to allocate time for breaks to recharge your energy. For instance, you can follow
the "Pomodoro Technique," where you work for 25 minutes and take a 5-minute break,
to maintain energy and focus.

7. Raise Awareness and Protecting Legitimate Rights

As a gig worker, you’re often in a gray area when it comes to legal protections,
so it’s essential to take steps to safeguard your rights and ensure fair treatment.

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 ● Use Clear Agreements: Before starting a gig, always ensure there is a written
agreement or contract in place. This document should outline the scope of
work, deadlines, payment terms, and any other expectations. Avoid verbal
agreements, as they can lead to misunderstandings.

● Understand Platform Policies: If you work through gig platforms like Uber,
DoorDash, or Upwork, familiarize yourself with their terms of service, dispute
resolution processes, and policies regarding fees or penalties.

● Track Payments: Keep a detailed record of invoices, payment receipts, and

completed work. If a client or platform delays payment, having organized
documentation can strengthen your case.

● Protect Your Intellectual Property: If your work involves creating content,

such as designs, writing, or software, clarify ownership rights in the agreement.
Ensure that your intellectual property is protected unless otherwise stated in the
contract.

● Stay Informed About Local Laws: Laws around gig work are evolving in
many regions. Keep up to date with regulations on minimum wages, benefits, or
worker protections that may apply to you.

● Seek Professional Advice: If a dispute arises, consult with a lawyer or labor

advocate who specializes in gig work. Many regions offer free or low-cost legal
resources for independent workers.

8. Leverage Technology to Optimize Work

Technology can significantly enhance your productivity, organization, and

overall efficiency as a gig worker. The right tools can also help you access better gigs
and build a strong reputation.

● Task Management Tools: Use platforms like Trello, Asana, or Notion to

organize your projects and prioritize tasks. These tools help ensure you meet
deadlines and manage multiple gigs simultaneously.

● Financial Tools: Apps like QuickBooks, Wave, or Mint can help you track
income, expenses, and taxes. Some tools are specifically designed for gig
workers to calculate mileage or track hours worked.

● Gig Platforms: Maximize the potential of gig platforms by fully optimizing

your profiles. Include relevant keywords, update your availability regularly, and
respond quickly to client inquiries to boost visibility in search results.

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● Automation Tools: Save time with automation tools like Zapier, which can
connect different apps to handle repetitive tasks, such as sending invoices or
scheduling posts on social media.

● Marketing Tools: Use tools like Canva for designing social media graphics or
promotional materials and Hootsuite for managing multiple social media
accounts. These tools make it easier to promote your services effectively.

● Collaboration and Communication Tools: Tools like Zoom, Slack, or Google

Meet make it easier to collaborate with clients, especially for remote gigs. A
professional and timely communication style can leave a positive impression on
clients.

● Stay Updated on Trends: Technology is constantly changing, and staying

updated with the latest apps or platforms in your field can give you a
competitive edge. For instance, if you’re a social media manager, learning to
use new platforms like Threads or BeReal could be advantageous.

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 CONCLUSION
The gig economy has reshaped the way people work, offering flexibility and
diverse income opportunities. However, its impact on long-term career stability reveals
a complex reality. While gig work allows individuals to acquire varied skills and build
professional networks, the absence of traditional job benefits such as health insurance,
retirement plans, and paid leave leaves many workers financially vulnerable.
Additionally, the lack of career advancement opportunities and the instability of
income hinder long-term planning, such as saving for retirement or investing in
personal growth.
For gig workers, securing long-term stability requires more than just adapting to
short-term income fluctuations. They must prioritize building a strong, future-proof
skill set, leveraging multiple income sources, and managing finances prudently. For
instance, a freelance designer might enhance career prospects by learning high-
demand software, diversifying client bases, and setting aside savings during peak
earning periods.
On a broader scale, systemic support is essential. Governments need to implement
policies that offer gig workers a safety net, such as mandatory contributions to social
insurance by platforms or providing access to affordable healthcare. Examples like
Spain’s labor reforms or California’s AB5 law demonstrate steps toward improving
worker protections without completely dismantling the flexibility that defines the gig
economy.

In conclusion, while the gig economy provides valuable opportunities, its long-
term sustainability depends on a combination of worker resilience and systemic
reforms. By addressing current gaps in security and career development, the gig
economy can become a viable model that supports both short-term flexibility and long-
term career stability.

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 REFERENCES

1. Phạm Văn Hiếu. (2024). Người lao động trong nền kinh tế GIG: cơ hội và thách
thức cho thị trường lao động Việt Nam. Retrieved from
https://kinhtevadubao.vn/nguoi-lao-dong-trong-nen-kinh-te-gig-co-hoi-va-
thach-thuc-cho-thi-truong-lao-dong-viet-nam-27981.html

2. Nguyễn Quỳnh Anh. (2024). Sự phát triển và các vấn đề nảy sinh trong nền
kinh tế Gig. Retrieved from https://consosukien.vn/su-phat-trien-va-cac-van-
de-nay-sinh-trong-nen-kinh-te-gig.htm

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