BRIEF DESCRIPTION OF THE COUNTRY'S RELATIONSHIP WITH SDG 8

As one of the fastest-growing economies in South-East Asia, Viet Nam is strongly committed to achieving the targets set by SDG 8. Viet Nam’s rampant economic growth over the past four decades is a remarkable development success story that turned one of the world’s poorest countries into a dynamic middle-income economy integrated within global manufacturing supply chains, all within the span of a single generation (World Bank, n.d.). Despite the remarkable progress made in the area of economic growth, Viet Nam still faces significant challenges in the area of decent work for all, particularly with regard to widespread informal employment, the precarious working conditions of most Vietnamese workers, and the systemic challenges faced by the Vietnamese youth seeking education and employment opportunities (Government of Vietnam, 2023, p. 90).

current challenges and recent developments

Similarly to other fast-growing economies in South-East Asia, one of Viet Nam’s pressing challenges is the persistence of widespread informal employment. Although some progress has been achieved over the past decade, 54.9% of Vietnamese workers were still involved in informal employment in 2022. Workers in the informal economy face low and unstable incomes, as well as significant financial uncertainty due to the lack of social protection in case of occupation injuries, which have tended to increase in the informal sector over the past few years (Government of Vietnam, 2023, pp. 94, 98). 

Moreover, informal employment does not affect all workers homogeneously. As reported by the International Labour Organization (2025), informal employment tends to be concentrated in smaller firms operating in the agricultural and construction sectors, it disproportionately affects women as well as the oldest and the youngest individuals. In addition, the probability of becoming informally employed rises significantly the lower the formal education of the individual, as virtually all Vietnamese adults with less than basic education are informally employed (pp. 5-6). From this perspective, significant effort is still needed in the area of accessible education, the reduction of inequalities, and a stricter enforcement of labour laws to reduce informal employment across the country.

Another concern related to widespread employment informality is the limited labour productivity of the Vietnamese economy. Despite the remarkable growth of Viet Nam’s GDP, which grew by more than 6% per year on average over the 2016-2022 period, most of this economic growth was driven by capital accumulation, whereas productivity improvements only played a modest role (Government of Vietnam, 2023, p. 89; Organisation for Economic Co-operation and Development [OECD], 2025, p. 9). Economic growth based on larger capital input alone is not sustainable in the long run, which is why renewed efforts are needed in the area of labour productivity. In this regard, a stronger education system, especially at the tertiary level, would significantly help boost Viet Nam’s labour productivity, while also reducing informal employment (OECD, 2025, p. 9).

Furthermore, despite the progress made in the area of total unemployment, which stood at a commendable 1.53% in 2024, the proportion of youth not in education, employment or training has risen to more than 10% over the past decade, signalling worsening educational and professional prospects for younger individuals (United Nations Department of Economic and Social Affairs, n.d.). The persistence of such a high share of young individuals remaining systematically excluded from productive activities risks fuelling the informal economy, which thrives on younger individuals with lower levels of educational attainment (International Labour Organization, 2025, p. 5).

list of references and useful links

Government of Vietnam. (2023). Socialist Republic of Viet Nam: Voluntary National Review 2023 on the Implementation of the Sustainable Development Goals. United Nations High-Level Political Forum on Sustainable Development. https://hlpf.un.org/sites/default/files/vnrs/2023/VNR%202023%20Viet%20Nam%20Report.pdf

International Labour Organization. (2025). Informality in Viet Nam: Trends, drivers and implications [ILO Brief]. https://doi.org/10.54394/PEZL2270

Organisation for Economic Co-operation and Development. (2025). OECD Economic Surveys: Viet Nam 2025. https://doi.org/10.1787/fb37254b-en

United Nations Department of Economic and Social Affairs. (n.d.). SDG Country Profile: Viet Nam. Retrieved September 7, 2026, from https://unstats.un.org/sdgs/dataportal/countryprofiles/vnm

World Bank. (n.d.). Viet Nam: Overview. Retrieved September 7, 2026, from https://www.worldbank.org/ext/en/country/vietnam#tab-about