Factors affecting the decision of choosing export labor markets of rural workers - Case in phu tho province

Nội dung text: Factors affecting the decision of choosing export labor markets of rural workers - Case in phu tho province

1. FACTORS AFFECTING THE DECISION OF CHOOSING EXPORT LABOR MARKETS OF RURAL WORKERS - CASE IN PHU THO PROVINCE MA. Nguyen Nhat Anh Department of International Cooperation - Hung Vuong University Email: nhatanh1971992@gmail.com; Tel: (+84) 968.043.385 Ph.D. Pham Thai Thuy Institute of Applied Research and Development - Hung Vuong University Email:phamthaithuy2013@gmail.com; Tel: (+84) 914 365 007 MA. Tran Thi Thuy Sinh Economics and Business Administration - Hung Vuong University Email:thuysinh2592@gmail.com; Tel: (+84) 3672.633.621 Abstract: Labor export is now considered one of the foreign economic activities which brings great benefits in term of socio-economic aspects in Vietnam. Seizing this opportunity, from a poor province in the northern midland and mountainous region of Vietnam - Phu Tho is gradually changing thanks to labor export activities. With a source of foreign exchange deposited hundreds of billions of VND each year, labor export has helped thousands of households to stabilize their livelihoods and contribute to the renewal of many rural areas in Phu Tho province. This study was conducted to find out the factors affecting the decision to export labor of rural workers in Phu Tho province relying on the data set of 142 observations are those who are studying at the labor export center at Hung Vuong University - Phu Tho province. The analytical results are based on descriptive statistical methods, comparative methods and regression analysis, which shows why workers choose to export workers abroad, especially in Japan market because the country brings high income and many opportunities to work overtime compared to other countries. In addition, the research team also surveyed the elements of individuals, expected markets, orientations from family and friends and cost factors also affected on the decision to export labor of rural workers in Phu Tho province. Key words: Labor Export, Rural Workers, Remittances, Phu Tho province. 665
2. 1. Introduction Labor export is determined by the Communist Party and State of Vietnam as an important external economic activities, which plays a huge role in the country's socio-economic development. Viet Nam's labor export activities are increasingly expanding to many countries and territories around the world, partly meeting the needs of countries' labor resources, with different types of labor. In recent years, labor export activities have obtained some positive results, 2018 is the 5th year in a row that the number of Vietnamese workers working abroad exceeds 100,000 employees / year, more than 142,800 employees, exceeding 30% compared to the year plan and up 6% compared to 2017 (Department of Management of Foreign Labor, Ministry of Labor, Invalids and Social Affairs, 2018). With such a number, it is only about the money that oversea workers transfer by the official way to reach over 3 billion USD (World Bank, 2018), contributing greatly to the socio-economic situation of the country, especially the construction of new rural areas, unemployment and poverty reduction. On the other hand, number of laborers have absorbed the experience and advanced technology for applying in Vietnam. Phu Tho is a province located at the gateway to the Northern midlands and mountains region of Vietnam, so the terrain is divided into a sub-region. In particular, the mountainous area accounts for 79% of the natural area of the province, so the proportion of the population living in rural areas and mountainous areas is about 70% (2017), so the economic situation in the province still faces many difficulties. On the other hand, the average population of the province in 2017 is estimated at 1,392 thousand people, the natural population growth rate is 11.65 (per 1,000) and the number of people in working age is estimated at 775.6 thousand people (Statistical Yearbook Phu Tho province, 2017). The working age population is concentrated mainly in rural areas and poor rural areas with many difficulties, reaching 655.1 thousand people (accounting for 84.5%), contrary to the working age population in urban areas only reached 120.5 thousand people (accounting for 15.5%) (Appendix 1). The population in working age accounts for over 80%, mainly concentrated in rural areas, so it is difficult to have opportunities for improving skills and receive high quality professional training. Therefore, the level of trained labor in rural areas in Phu Tho province accounted for 17.1% compared to the whole province (Appendix 2). Currently, labor export has always been concerned as one of the effective way in poverty reduction and new rural construction in Phu Tho province. Encouraging people participating in labor export market has helped a large number of workers have working skills and social skills so that after the contract expires, they can work effective at the facilities in the province. Simultaneously, Phu Tho province also 666
3. determined that labor export is the right direction, helps to reduce poverty, create jobs, raise income and enrich the people well. Every year, Phu Tho province has more than 2,500 employees working abroad for a definite time, concentrating in traditional markets such as Japan, Korea, Taiwan, Malaysia, etc. In recent years, the number of exported people labor exceeds 8 - 12% of the target annually. For poor and near-poor households, the province has always disseminated in time so that they can grasp the policies and labor export programs, especially to facilitate the implementation of procedures bank loans. Thereby, it helps poor and near-poor households find suitable labor export markets in order to get out of poverty and improver their livelihood. However, in which country to export is something that every worker is interested in and why they choose that country to go to work or study abroad to find solutions to encourage workers doing better. Simultaneously, to provide solutions and recommendations to continue to promote the role of labor export policy in contributing to socio-economic development of Phu Tho province, the authors carried out this study with three specific objectives: (i) Overview of theoretical basis to clarify the framework of factors affecting the decision to export labor (or study abroad) of rural workers (ii) Identify factors affecting the decision to export labor (or study abroad) of rural workers in Phu Tho province; (iii) Propose some recommendations to continue promoting the role of labor export policy in contributing to socio-economic development in Phu Tho province in the future. 2. Overview of selection theory and labor export activities 2.1. Overview of selection theory There are many different theories regarding the factors that influence the decision to export labor that have been built and developed, but these can be divided into two groups: Theory of Action logical action (TRA) and planned behavioral theory (TPB). Reasonable action theory of Fishbein and Ajzen (1975) said that before deciding to perform a certain behavior, people will consider and consider the possible consequences or consequences if they perform those acts . After that, everyone will choose to perform any behavior that is likely to bring about the desired results. TRA model shows that the behavior is determined by the intention to implement that behavior. The relationship between intent and behavior has been introduced and tested empirically in many studies in many fields (Ajzen, 1988; Ajzen và Fishbein, 1980; Conner và Armitage, 1998). The two main factors that influence the intention are personal attitude and subjective standards, in which an individual's attitude is measured by belief and appreciation for that behavior. Ajzen (1991) defines Subjective Norms as the perception of influencers who will think that the individual 667
4. should perform or not perform behavior. Reasonable action tells us the behavior of People can predict through the intention to implement behavior and the intention to carry out behavior depends on two factors, attitude and subjective standards. In it, (i) The attitude is understood as the likes or dislikes that we want to do and the perception is whether or not we are going to bring benefits or disadvantages to us; (ii) The subjective standard is to identify the influential people around the family, friends, teachers, etc, think that we should be that or not. This leads to the intention to take action when we feel that the opinions we have about what we are about to do are reasonable or unreasonable. Planned behavioral theory (Ajzen, 1991) is the development and improvement of rational action theory (Ajzen and Fisbein, 1980; Fishbein and Ajzen, 1975). As mentioned above, TRA considers that behaviors can be performed (or not done) completely under the control of reason. This limits the application of TRA theory to the study of certain behaviors (Buchan, 2005). To overcome this point, TPB was born (Ajzen, 1985; 1991). Planned behavioral theory suggests that consumer intentions are influenced by three factors: attitudes towards behavior, subjective norms, and behavioral control perceptions (PBC - Perceived Behavior Control). The difference between the two models TPB and TRA is in the TPB model that adds the influence of the PBC factor to the behavioral intention. In addition, the TPB model also demonstrates the impact of the "trust in favor" factor on the "perception of behavior control". Currently, there are many research works of some authors that mention labor export activities in Vietnam in general as well as Phu Tho province in particular such as Phan The Cong (2011), "Vietnam's model of export-based economic growth"; Nguyen Kim Anh et al. (2017). "Remittance policy for socio-economic development of Vietnam"; Nguyen Thi Lan Huong (2016). "Laborers returning to work overseas for a definite period of time"; Bui Thi Hong Minh, Nguyen Ngoc Minh Tuan (2018). "Labor export contributes to labor restructuring in Phu Tho province". The above studies have generalized the theory of labor export activities and the status of labor export and state management of labor export, and provide some solutions to improve and renovate the organizational system and management mechanism of labor export activities of Vietnam. As far as our understanding, there have been no studies on the factors affecting the decision on labor export of rural workers in Phu Tho province. From the review of previous studies, the authors proposed the model and research hypotheses as follows: 668
5. The market expected The expected income Job opportunities Decided to take the Orientation from family and labor friends export Personal factors Cost factor Theories: Hypothesis H1: The expected market has a positive impact on the decision to export labor of rural workers in Phu Tho province Hypothesis H2: The expected income has a positive impact on the decision to export labor of rural workers in Phu Tho province. Hypothesis H3: Employment opportunities positively affect the decision to export labor of rural workers in Phu Tho province. Hypothesis H4: Orientation from family and friends has a positive impact on the decision to export labor of rural workers in Phu Tho province. Hypothesis H5: Personal factors positively affect the decision to export labor of rural workers in Phu Tho province. Hypothesis H6: Cost factor has a positive impact on the decision to export labor of rural workers in Phu Tho province. 2.2. Labor export activities in Vietnam and Phu Tho province in the period of 2010 - 2018 2.2.1. Export activities in Vietnam Laborer export quantity In the past year, many enterprises operating services to send workers abroad to work under contracts have been step by step actively seeking and developing overseas labor markets, Investing in creating and training labor skills and foreign languages before leaving the country. Therefore, the number of Vietnamese workers 669
6. in international markets has continuously increased over the years. Vietnam has a number of foreign workers exceeding 100,000 employees per year during the last five years. According to statistics of the Department of Overseas Labor, in 2018, the total number of Vietnamese workers working abroad was 142,860 (of which 50,292 female workers), exceeding 30% as planned in 2018, an increase of 6% compared to 2017 (In 2017, the total number of Vietnamese workers to work abroad is 134,751 workers) (Chart 1 ). Unit: People 160000 142860 140000 134751 126296 120000 115980 106840 100000 85546 88298 88115 80320 80000 60000 40000 20000 0 Year Year Year Year Year Year Year Year Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 Chart 1. The size of Vietnamese workers to work abroad in 2010 - 2018 (Source: Department of Management of Foreign Labor, Ministry of Labor, Invalids and Social Affairs, 2018) According to statistics of the Department of Overseas Labor Management (Ministry of Labor - Invalids and Social Affairs), up to now, the labor export market in Vietnam has continuously increased in quantity. In 142,860 employees going to labor export in 2018, the Japanese market has 68,737 employees (27,610 female workers), Taiwan: 60,369 workers (19,273 female workers), South Korea: 6,538 employees (736 female workers) and other markets. Based on the statistics, it is found that Japanese labor export dominates to become a career choice of many workers. With the advantage of salary and attractive remuneration, in 2018 Japan continued to maintain as the largest market, while the number of Vietnamese employees registered to Japan also increased significantly (Chart 2). 670
7. 4.58% Year 2018 42.26% 48.11% 5.05% 3.84% Year 2017 49.67% 40.45% 6.04% 6.68% Year 2016 54.03% 31.62% 7.66% 5.19% Year 2015 57.87% 23.29% 13.65% Taiwan 6.53% Year 2014 58.05% 18.62% 16.80% Japan 6.24% Korea Year 2013 52.20% 10.89% 30.66% Other countries 11.45% Year 2012 37.97% 10.96% 39.62% 17.04% Year 2011 39.64% 7.22% 36.10% 10.09% Year 2010 33.31% 5.74% 50.86% 0% 20% 40% 60% 80% 100% 120% Chart 2. Vietnamese labor structure to work abroad from 2010 to 2018 Source: Department of Management of Foreign Labor, Ministry of Labor, Invalids and Social Affairs, 2018 An estimated 500,000 Vietnamese workers are working in 40 different countries, bringing in remittances from 1.7 to 2 billion dollars annually. Regarding the labor market structure, the markets receiving many Vietnamese and stable laborers are Taiwan, Japan and Korea. Other markets still have a strong need for stable reception, the Japanese market needs to recruit more and more Vietnamese workers. Overseas remittances from Vietnamese labor force for export Overseas remittances from the Vietnamese labor force tend to increase over the years, contributing a large proportion to the total remittances. According to the survey results conducted by the Institute of Labor and Social Sciences, the remittance channels that workers use to transfer money to the country are quite diverse, including money transfer through credit institutions, through labor export enterprises, private and other forms, in which the method of transferring money through credit institutions is the most common. With the convenience of money transfer channels, it is estimated that the total remittance amount of all 671
8. employees in recent years has averaged about 2.5 billion USD. Thus, the income of overseas workers significantly contributes to the annual remittance to the country (Table 1). Table 1. Remittance to Vietnam via official channels, 2001-2017 Unit: USD billion Year Remittances Year Remittances 2001 1.82 2011 8.9 2003 2.6 2012 10 2005 3.8 2013 11 2007 5.5 2014 12.5 2009 6.283 2015 13.2 2010 8 2016 9 2017 3.6 Source: World Bank, 2017 It can be seen that, through the scale, the increasing and stable growth rate of remittances to this country, this amount of foreign currency has contributed significantly to reducing the imbalance in the balance of payments, improving reserves foreign exchange, reducing exchange rate pressure. At the same time, it positively and directly impacts domestic households to improve their lives, build houses and invest in production and business. However, the amount of remittances declined in 2016-2017 due to the fact that not only is the interest rate for USD deposits in Vietnam too low, but also because of economic recession, leading to business and production markets in Viet Nam had low profitability. 2.2.2. Labor export activities in Phu Tho province Phu Tho is one of the provinces with the largest number of workers working overseas. Thanks to labor export activities, the economic and life aspect of the people of Phu Tho province has changed markedly. On average each year, Phu Tho province has about 2,500 laborers going to work abroad, particularly in 2018, the number of people going to labor export was 3,420. Remittances of workers sent about 1,000 billion VND1 each year. From that money, many families have invested in agricultural production, created jobs on the spot, emerged from poverty and contributed to the socio-economic development of Phu Tho province (Chart 3). 1 23,000VND = 1US Dollar 672
9. Unit: People 4000 3420 3500 3000 2774 2500 2534 2558 2500 2000 1500 1000 500 0 Year 2014 Year 2015 Year 2016 Year 2017 Year 2018 Chart 3. Labor scale of Phu Tho province to work abroad in 2014 - 2018 (Source: Department of Labor, Invalids and Social Affairs of Phu Tho province, 2018) The province had more than 3,000 people participating in foreign export labor market, most of them in Taiwan accounted for over 50% of the whole market, then to Japan (accounting for 24.51%) and other countries like Korea, Malaysia, Eastern Europe market. Since 2006, labor export enterprises in the province have started to open new markets such as Northern Europe, Brunei, Middle East, United Arab Emirates, Qatar, opening up many opportunities and more reasonable choice for workers (Chart 4). 5.84% 9.16% 5.26% Taiwan 4.47% 50.76% Japan Korea 24.51% Malaysia Middle East Other countries Chart 4. Labor structure of Phu Tho province to work abroad in 2017 Source: Department of Labor, Invalids and Social Affairs of Phu Tho province, 2017 673
10. It is said that labor export is an important task in order to contribute positively to the work of hunger elimination and poverty alleviation, to raise incomes for the people. Therefore the provincial People's Committee has directed the branches and localities to continue maintaining diversifying the form of labor export focusing on quality, improving efficiency and effectiveness of state management in order to develop labor export in a sustainable way, bringing many economic and social effects. Therefore, the city/districts with a high number of labor export workers such as Viet Tri city, Lam Thao district, Thanh Ba district, Cam Khe district have changed significantly regarding to labor export activities. To improve the effectiveness of labor export in a sustainable manner, the Department of Labor, War Invalids and Social Affairs had advised the province leaders to develop a vocational training plan to serve labor export. It focus on the selection of labor operation points between labor export enterprises and vocational training schools in the province to increase the rate of skilled export workers, gradually reducing the export of unskilled workers. Up to now, the percentage of skilled workers who go to work abroad account for 50% (mainly mechanical, welding, mechanic scaffolding, tiling, garment, nursing, medical care, household helpers). In particular, about 5% of employees were in college and university graduates who also participated in labor export, focusing on construction engineering, mechanical engineering, machine manufacturing, computer science and nursing staff with college level or higher. According to statistics, the province now has nearly 8,000 people working abroad for a definite time, annually the amount of workers sent to nearly 500 billion VND. 3. Research methodology This study was conducted in two main steps: preliminary research and formal research. In particular, preliminary research was conducted through qualitative research methods with research on domestic and international documents and in- depth interviews with 10 students who are studying Japanese in Hung Vuong university to go to labor export to adjust the preliminary scale accordingly and the interview time is 30-45 minutes in depth. The results of in-depth interviews show that the research model and the above hypotheses are appropriate, the scales are adjusted accordingly. The secondary data was collected during the period 2000 – 2018, mainly in Phu Tho province. Formal research was done by quantitative research methods. The study used the method of exploratory factor analysis and linear regression model to analyze the factors affecting the decision to export labor of rural workers in Phu Tho province. 674
11. In order to test the research hypothesis, the author used questionnaires through survey questionnaires. There are 26 observed variables in this topic, so the minimum number of samples needed is 26x5 = 130 samples. To get research information, the group surveyed 150 students who are studying Japanese to go to labor export market at Hung Vuong University. The study uses convenient method of sampling by geographical area to collect primary data. Methods of data collection by distributing the survey sheets to each participant by "tick" the questions. The results of the survey used for the study were 142 valid votes, the rest were unsatisfactory due to the lack of information. The data was analyzed by SPSS16 software. The data set is used to perform statistics to describe the use of quantities such as average, variance, standard deviation, etc, combined with tools such as frequency tables, graphs used for tissue describe characteristics of interviewees such as gender, education level, work experience; Evaluate the scale value by EFA analysis: EFA concurrent analysis for all measurement criteria with angle rotation Varimax with eigenvalue criteria> 1.0 and KMO index> 0.5 to find out the factors representing variables; Evaluate the reliability of the scales: evaluate through Cronbach’s Alpha for each of the observed variable groups of different factors to remove garbage. The reliability of Cronbach’s Alpha must be between 0.6 and 1.0, the correlation coefficient of the right variable> 0.3 to ensure the variables in the same group of factors are correlated in meaning. Five-point Likert scale was applied to measure variables affecting some basic competitiveness indexes (1 = Strongly disagree, 5 = Strongly agree). Besides, the authors also used secondary data from Phu Tho Statistical Yearbook to get an overview of the current situation on labor export. The model reflects the factors affecting the decision to export labor of rural workers (Y- dependent variable) in Phu Tho province is supposed to be the linear regression equation as follows: Y = β0 + β1 TT + β2 TN + β3 VL+ β4 ĐH + β5 CN + β6 CP + ui; Thus, combined with qualitative research results and inherited results of the studies analyzed by the author. Since then, the author has synthesized the influencing factors after qualitative research with the results shown in Table 2. 675
12. Table 2: Interpretation of variables in the model Coding Observed variables The country has a dynamic, democratic and scientific TT1 working environment fully equipped The country has good infrastructure (roads, schools, TT2 hospitals, etc) TT3 The country has clear information and procedures The market The country has many opportunities to reach a high expected TT4 educational level The country has good shopping and entertainment TT5 conditions The country has many opportunities to access TT6 advanced and modern science and technology (with association and investment with foreign enterprises) TN1 Your income in that country deserves the ability to work The expected TN2 Your income in that country is just enough to live and save income Your income in that country is much higher than TN3 income in Vietnam The country you are pursuing has favorable conditions VL1 to improve your skills The country you are pursuing is easy to get promoted VL2 Job in future work. opportunities The country you are pursuing has many conditions for VL3 employees to work overtime Your country is pursuing a high demand for unskilled VL4 workers in other countries Your family, relatives, friends have been working in ĐH1 that country Your family, relatives, friends have a wide and familiar ĐH2 relationship with the citizens of that country Orientation Your family, relatives and friends have financial support from family ĐH3 (give or lend to help you get to that country) and friends My family, relatives, friends you have available ĐH4 business establishments in that country 676
13. Coding Observed variables CN1 You love people, living environment in that country Personal CN2 You love that country from a young age factors You see that country is being chosen by many CN3 Vietnamese people for export You see that labor export in that country has a cost that is CP1 consistent with the level of payment from the family Cost factor CP2 You see that labor export in that country has the lowest cost You see that labor export in that country has an CP3 appropriate cost of living Workers will earn a high savings after returning to their Y1 Decided to homeland take the Workers will have professional skills and opportunities to labor export Y2 work with wages at foreign companies after returning home Y3 Workers will be able to use foreign languages fluently (Source: Authors’ illustration) 3. Research results 3.1. Characteristics of survey samples The data used in the study were collected from 142 questionnaires that were included in the analysis, including: 84 female students (59.15%) and 58 male students (40.85%). Regarding labor qualification: There are 96 workers with high school level (67.61%), 31 workers have elementary, intermediate level (accounting for 21.83%) and 15 qualified workers colleges and universities (accounting for 10.56%). Regarding the economic situation: there are 15 workers belonging to poor households (accounting for 10.56%), there are 39 workers belonging to near poor households (accounting for 27.46%), there are 67 workers belonging to medium income households (accounting for 47.18%), there are 16 laborers belonging to households with good incomes (accounting for 11.27%) and there are only 5 laborers belonging to rich households (accounting for 3.52%). Analysis of descriptive statistics shows that the average score in the decision to export labor due to expected income and employment opportunities is highest with 4.28/5 and 4.12/5 points. The rating of cost factor is the lowest of the factors with 2.42/5 points. Therefore, it can be seen that the problem of rural 677
14. workers in Phu Tho province decided to choose the Japanese market to go to labor export because this market having larger income opportunity to work overtime to increase income (Table 3). Table 3: Descriptive Statistics N Minimum Maximum Mean Std. Deviation TN 142 3 5 4.28 .533 VL 142 3 5 4.12 .574 CP 142 1 4 2.42 .713 MT 142 2 5 3.51 .608 ĐH 142 1 5 3.20 1.052 CN 142 2 5 3.60 .663 Y 142 3 5 4.16 .657 Valid N (listwise) 142 (Source: Summary results and research of authors) 3.1.1. Evaluate the reliability of data The results of the reliability test using the Cronbach’Alpha coefficient show that all 6 independent variables and the dependent variable (Y) are greater than 0.6. However, the correlation coefficients of the corrected total variable (Corrected Item- Total Correlation) of variables TT3, TT6, DH2, DH4, CN2 0.30. Thus, this scale after eliminating the above variables has increased the reliability required and satisfactory (Table 4). The exploratory factor analysis (EFA) was conducted to determine the factors affecting the decision to migrate labor of rural workers in Phu Tho province. The results of exploratory factor analysis of 6 independent variable scales show that the coefficient KMO = 0.657 and the scale of dependent variable (Y) with KMO coefficient = 0.669 are in the range of 0.5 <KM0 <1, factor analysis The factor is appropriate. Testing Bartlett’s with Sig. = 0,000 represents a high level of significance (Appendix 3). 678
15. Table 4. Results of assessing the reliability of the scales Scale Mean Scale Corrected Cronbach's Observed if Item Variance if Item-Total Alpha if variables Deleted Item Deleted Correlation Item Deleted (1) The market expected: Cronbach’s Alpha coefficient = 0,67 TT1 15.13 5.892 .323 .654 TT2 14.99 4.670 .701 .508 TT3 15.86 6.779 .101 .719 TT4 14.95 5.025 .595 .554 TT5 15.11 4.997 .570 .561 TT6 16.74 6.673 .150 .702 (2) The expected income: Cronbach’s Alpha coefficient = 0,704 TN1 8.55 1.148 .679 .604 TN2 8.53 1.591 .339 .616 TN3 8.59 1.180 .575 .642 (3) Job opportunities: Cronbach’s Alpha coefficient = 0,938 VL1 12.36 3.004 .938 .894 VL2 12.44 3.166 .815 .931 VL3 12.32 2.898 .813 .936 VL4 12.35 3.057 .862 .916 (4) Orientation from family and friends: Cronbach’s Alpha coefficient = 0,684 ĐH1 7.25 2.480 .725 .633 ĐH2 8.16 4.780 .241 .665 ĐH3 7.27 2.402 .403 .647 ĐH4 8.71 5.786 .226 .604 (5) Personal factors: Cronbach’s Alpha coefficient = 0,699 CN1 6.23 1.095 .527 .623 CN2 7.20 1.758 .164 .665 CN3 6.15 1.178 .492 .647 (6) Cost factor: Cronbach’s Alpha coefficient = 0,916 679
16. Scale Mean Scale Corrected Cronbach's Observed if Item Variance if Item-Total Alpha if variables Deleted Item Deleted Correlation Item Deleted CP1 4.84 2.065 .911 .815 CP2 4.85 2.180 .795 .908 CP3 4.80 2.106 .792 .913 Decided to take the labor export: Cronbach’s Alpha coefficient = 0,932 Y 8.32 1.632 .936 .837 Y 8.31 1.940 .818 .924 Y 8.34 1.785 .832 .923 (Source: Summary results and research of authors) 5.1.3. Evaluate the relationship between the factors affecting the dependent variable According to the analyzed data, the multiple regression results have a value of 0.68 (satisfying 0 ≤R2 ≤ 1), indicating that the relationship between the variables in the model is quite strict (R2> 0.5 ). This says 68% of the volatility of the decision to export labor is explained by six factors included in the model. The adjusted value of 0.64 indicates the variability of the factors affecting the decision to export labor of rural workers in Phu Tho province (Y) is explained by 64% by the impact of the independent variables in the model, the remaining 36% is explained by the variables outside the model. According to the analysis results we see F = 23.66, the level Sig. = 0,000 <0.05. From there, we can conclude the linear regression model built in accordance with the overall. In other words, the independent variables are linearly related to the dependent variable and the 95% confidence level. Table 5. Estimated parameters of the model 680
17. Unstandardized Coefficients Model T Sig. B Std.Error 1 (Constant) 0.986 0.487 2.024 0.027 TT 0.161 0.052 3.096 0.022 TN 0.501 0.209 2.397 0.047 VL 0.424 0.121 3.504 0.064 ĐH 0.236 0.084 2.809 0.037 CN 0.088 0.077 1.142 0.056 CP -0.250 0.130 -1.923 0.000 (Source: Summary results and research of authors) According to the regression results, we find that the content of regression analysis with reliability is 95%, corresponding to independent variables with Sig. 0.05. Thus, six independent variables are significantly correlated with the dependent variable. However, there are CP variables that negatively affect the regression equation. The regression equation has the following form: Y = 0,986 + 0,161 TT+ 0,501 TN + 0,424 VL + 0,236 ĐH + 0,088 CN - 0,250 CP From the results, it is shown that in the decision of going to export labor of rural workers in Phu Tho province (Y), it is positively influenced by 5 factors, including the market expected; the expected income; job opportunities; orientation from family and friends; personal factor. On the contrary, the cost factor influences the decision to export labor. In particular, The expected income; employment opportunities are two factors that have the strongest impact on the decision to export labor of rural workers in Phu Tho province. 4. Conclusions and recommendations 4.1. Conclusions From the findings, the decision to export labor of rural workers in Phu Tho province (Y) is influenced by 6 factors that are the market expected; the expected income; job opportunities; orientation from family and friends; personal factors; cost factor. The expected income; Job opportunities are two factors that have the strongest impact on the decision to export labor of rural workers in Phu Tho province. In fact, the majority of workers who want to export come from low-income families, so they want to go to high-income markets like Japan. With a minimum travel time of 3 years, real income depends on time but averagely from 16-22 million VND / month, when 681
18. returning to the country they have about 500 - 800 million VND (salary after deducting expenses for life in Japan). So compared to working in Vietnam, the money to get out of the laborers to Japan is pretty much higher. With such a simple view, we find that going to work in Japan will naturally have more money than going to work in the country. The market expected; Orientation from family and friends and personal factors are 3 factors that have low impact on the decision to export labor of rural workers in Phu Tho province. Therefore, labor export enterprises need to look for high-income markets and the creation and enhancement of the image of labor export enterprises in Phu Tho will affect the group's awareness well. This factor to relatives, friends, and workers themselves thereby contributing to the attraction of this target group. Cost factors have a negative impact on the decision to export labor of rural workers in Phu Tho province. Cost is one of the issues that many people are interested in when learning about the labor export program in general and Japan in particular. The lower the cost of businesses, the more workers will be attracted to the labor export program. In contrast, export costs higher for rural workers of low incomes will choose to market have lower export costs. Therefore, labor export enterprises in Phu Tho should have competitive measures to reduce non-export costs to attract workers. 4.2. Recommendations 4.2.1. On the side of Phu Tho province Firstly, continuing to study and consider signing agreements and agreements on labor cooperation with traditional markets to bring more and more workers in Phu Tho to work abroad; promoting promotion and understanding of new markets, many potentials to expand agreement on these markets. Secondly, strengthening the inspection, examination, rectification and strict handling of service enterprises that violate the provisions of law and enterprises operating ineffectively, especially inspection and examination work needs focusing on the organization of the operational apparatus of the enterprise, the selection and fostering of necessary knowledge and especially the collection of fees. In addition, strengthening coordination between relevant departments, localities to detect and strictly handle violations in order to prevent workers from being held by organizations and individuals do not have the function of sending workers abroad to work. 4.2. On the side of the business 682
19. Firstly, Vietnamese enterprises in general and Phu Tho province in particular need to select contracts with Japanese enterprises with high contractual wages and much overtime. This is a matter of concern for workers but most workers misunderstand the wage of signing labor contracts from Japan. The salary of the employee is the basic salary, so in all industries, there is no big difference, the difference is mainly due to the work area, the risky and heavy nature of the job. The actual salary of employees is much lower than the basic salary due to being deducted a part of insurance, housing, living, etc. However, if more work is done, the income of workers will change greatly. Secondly, the export costs that workers have to spend in many companies are different, there is also a big difference. The issue of employees should be concerned about not the initial cost but the final cost that employees must spend. Many export companies quote very low exit costs, but when employees register, a lot of incurred that they have to pay extra, especially when the successful candidate realizes that the cost is completely not the same as at the beginning. Therefore, businesses need to clearly stipulate the fees to be paid at the lowest level to attract workers to export. Thirdly, labor export enterprises need to build their own reputable brand in labor export activities to impact on groups of family, friends and workers themselves. At the same time, the creation and enhancement of the image of enterprises with the above-mentioned groups will help both businesses and workers to benefit in labor export activities and contribute to the socio-economic development of country. 5. Limitations Firstly, the topic of selecting small sample size of 150 labors and research sample is only focused on rural workers in Phu Tho province. Although, this is the most labor export component in the province with a variety of components such as gender, age, education level etc, but it is difficult to have a basis to confirm the conclusions and assessments about their decision to export labor representing employees in Phu Tho province. Secondly, how to collect non-probability samples with convenient sampling methods can be difficult to represent highly in all areas when interviewing subjects who have decision to export labor (though controlled by regional attributes countryside). In addition, research is limited to only survey students who are studying to export to Japan at Hung Vuong University. Thirdly, actually many other factors of individuals and environment expected having impact on the decision to labor export of rural workers in Phu Tho province but we have not been mentioned in this study yet. 6. References 683
20. 1. Nguyen Kim Anh et al. (2017), "Remittance policy for socio-economic development of Vietnam". Independence national level code number ĐTLL- XH.15 / 15. Branch topic 3 "Current situation of remittance policy for socio- economic development in Vietnam in recent years". 2. Ajzen, I. (1988), Attitudes, personality, and behavior, Milton Keynes: Open University Press. 3. Ajzen, I. (1991), The theory of planned behavior, Organizational Behavior and Human Decision Processes, 50, 179–211. 4. Ajzen, I., and Fishbein, M. (1980), Understanding attitudes and predicting social behavior, New Jersey: Prentice Hall. 5. Buchan, H. F. (2005), “Ethical decision making in the public accounting profession: An extension of Ajzen's theory of planned behavior”, Journal of Business Ethics, 61(2), 165-181. 6. Conner. M & Armitage. C (1998), “Extending the Theory of Planned Behavior: A Review and Avenues for Further Research”, Journal of Applied Social Psychology, vol.28 (15), 1429-1464. 7. Phan The Cong (2011), "Vietnam's model of export-based economic growth" Journal of Science Hanoi National University, Economics and Business 27 (2011) 26575275 8. Fishbein, M., and Ajzen, I. (1975), “Belief, attitude, intention, and behavior: An introduction to theory and research”, Addison-Wesley Pub. Co. 9. Nguyen Thi Lan Huong (2016), "Laborers returning to work overseas for a definite period of time". Presentation at the National Conference "Vietnam's Remittance Policies in the Past - Situation and Solutions", Ho Chi Minh City, October 2016. 10. Bui Thi Hong Minh, Nguyen Ngoc Minh Tuan (2018), “Labor export contributes to labor restructuring in Phu Tho province”, Economic and Development Journal - National Economics University, No. 250 (II), April 2018, p. 43-50. 11. The World Bank (2016), Migration and remittances factbook 2016, third edition. 12. Institute for Social Development Studies (ISDS), (2010). "Labor export from Vietnam to Asian countries: Process, experience and impact. 13. Websites: - Ministry of Labor, Invalids and Social Affairs: www.molisa.gov.vn - The Department of Overseas Labor Management, Ministry of Labor, Invalids and Social Affairs: www.dolab.gov.vn - Association of Labor Export Vietnam: www.vamas.com.vn - Census: www.danso.org - Phu Tho province's statistical yearbook: www.thongkephutho.vn 684
21. APPENDIX Appendix 1. The scale of the population are of working age in Phu Tho province Unit: Thousand people 700 643.8 655.1 623.5 635.7 600 500 400 Urban Rural 300 200 112.7 108.1 107.9 120.5 100 0 Year 2014 Year 2015 Year 2016 Year 2017 (Source: Phu Tho Statistical Yearbook 2017) Appendix 2. Proportion of population in working age who has been trained in Phu Tho province 60% 49.4% 50% 47.8% 45.2% 46.3% 40% 30% Urban Rural 20% 15.6% 15.4% 17.1% 10.8% 10% 0% Year 2009 Year 2015 Year 2016 Year 2017 (Source: Phu Tho Statistical Yearbook 2017) 685
22. Appendix 3. Pattern Matrix Factor 1 2 3 4 5 6 7 VL1 .956 VL4 .923 VL2 .888 VL3 .887 Y .956 Y .917 Y .911 CP1 .952 CP3 .903 CP2 .893 MT2 .874 MT4 .832 MT5 .785 MT1 .620 CN3 .943 CN1 .941 ĐH3 .949 ĐH1 .944 TN1 .900 TN3 .865 TN2 .560 (Source: Summary results and research of authors) 686