The impact of free skilled labor movement policy in the asean economic community on improving working skills of neu’s international economics students

Nội dung text: The impact of free skilled labor movement policy in the asean economic community on improving working skills of neu’s international economics students

1. THE IMPACT OF FREE SKILLED LABOR MOVEMENT POLICY IN THE ASEAN ECONOMIC COMMUNITY ON IMPROVING WORKING SKILLS OF NEU’S INTERNATIONAL ECONOMICS STUDENTS Pham Quang Khai1 – Nguyen Viet Dung2 – Trinh Phuong Thao3 Abstract: This study investigated the impact of free skilled labor movement policy in the ASEAN Economic Community on improving working skills of NEU's international economics students. The study has collected data through two data sources to analyze and evaluate advantages, disadvantages, influencing factors, labor movement situation in ASEAN, and the involvement of Vietnam. The results show that: (1) The policy of free labor movement in AEC attracted many attentions and interest of students, but they have not had enough awareness as well as preparation to take advantage of these opportunities; (2) In terms of regulation and law, participants show that they are not willing to give up certain benefits to have better opportunities. People with a deep understanding are relatively small, but they are generally aware that knowledge of responsibilities and laws will be an advantage for them in the integration. (3) This policy is not yet a strong driving force to promote the development of students' professional qualifications and soft skills, although this is a major determinant of workers' work; (4) The survey results also show that most international economic students can adapt well in the new environment, but cultural awareness is still limited. The study recommends careful consideration in the issue of human resource education and training to enhance Vietnam's labor competitiveness when joining the ASEAN Economic Community. We also highlight the importance of the training of human resources in the field of International Economics. The research team proposes some specific solutions for students, lecturers and National Economics University. Keywords: Free skilled labor movement policy; AEC; NEU's international economics students; Working skills; Impact. 1. INTRODUCTION 1.1. Background and rationale Globalization and international economic integration have been currently turned into one of the most indispensable factors of contemporary international economic relations. One of the foremost manifestations of globalization is to develop a Multinational Association in Southeast Asian, specifically in a dynamic and diverse area with significant economic growth, namely ASEAN. ASEAN Economic Community (AEC) was founded with the primary mission is to build a stable, prosperous and highly competitive economy in ASEAN which contain not only free mobilities of commodities, 1 National Economics University. Email: khaipham124@gmail.com. 2 National Economics University. Email: vietdung.nguyen.310899@gmail.com. 3 National Economics University.Email: trinhthao.k59neu@gmail.com. 107
2. services and investment, but also corresponding economy. Apart from commodity, service, investment flows, human resources shifted freely among ASEAN are professional. It is likely to be a tremendous opportunity for Vietnam as a member of ASEAN in order to shift the economic structure from a low productivity sector to a higher one. This also pressurises to move unskilled labor into skilled labor. There, however, will be a non–zero chance for human resources in Vietnam to transfer to the labor market of ASEAN if their skills are not met headhunter’s requirements. Certainly, the ability of seeking a well–paid job will collapse. Simultaneously, the speed of skilled labor movement can be limited if the government does not improve legal systems and policies which support mobility, especially education, information and counsel, worker protection Thus, this paper will clarify theoretical basis such as core, requirements of shifting professionals, related factors, criterion of evaluation, results. To undergraduates and postgraduates at National Economics University, especially international economics researchers who are well trained labours, apart from learning subject’s lore at university and improving social skills, students had better equipped themselves more to adapt for a whole new era of free worker mobility in ASEAN. Acknowledging this urgency, we decided to research this paper with the title of “The impact of free skilled labor movement policy in the ASEAN Economic Community on improving working skills of NEU’s International Economics students”. This contributes to give comprehensive evaluations, objective scientific basis, actual situations, background, challenges, personal perspectives, and solutions. Hence, boosting Vietnamese workforce’s competitiveness in the integration era. 1.2. Overview of Free skilled movement policy in the AEC 1.2.1. Movement of Natural Persons (MNP) Movement of Natural Persons (MNP) refers to the temporary presence of individuals in another country in order to supply services and is one of the four ways through which services can be supplied across international borders, also known as “Mode 4”. ASEAN Economic Ministers (AEM) signed the ASEAN Agreement on Movement of Natural Persons (MNP) on 19 November 2012 in Cambodia while the schedules of commitments annexed to this agreement were endorsed by the ASEAN Economic Community (AEC) Council on 10 April 2013 in Brunei Darussalam. The scope of this agreement covers business visitors, intra corporate transferees (ICT), contractual service supplier (CSS) with the following objectives: (i). provide rights and obligations in relation to the MNP as set out in ASEAN Framework Agreement on Services (AFAS); (ii). facilitate the movement of natural persons engaged in the conduct of trade in goods, trade in services and investment; (iii). establish streamlined and transparent procedures for immigration applications; (iv). protect the integrity of Member States’ borders and protect the domestic labor force and permanent employment in the territories of Member States. The MNP Agreement only deals with the temporary movement of persons to other countries to provide services. It mainly covers business visitors, contractual service suppliers, intra–corporate transferees as well as other categories as may be specified in the Schedules of Commitments of ASEAN Member States. The MNP Agreement does not provide for permanent entry by such persons, nor does it provide for movement of all types of persons (e.g. unskilled labor) even on a temporary basis. The MNP agreement also does not apply to employment measures, permanent residency or citizenship. 108
3. 1.2.2. Mutual Recognition Arrangements (MRAs) Mutual Recognition Arrangements (MRAs) forms another important area of ASEAN cooperation on trade in services. MRAs are enabling tools to allow mutual recognition of qualifications of professional services suppliers by signatory ASEAN Member States to facilitate mobility of professional services providers in the region. The objective of the Mutual Recognition Arrangement (MRA) is to develop a global network of conformity assessment bodies. This includes certification bodies, testing and calibration laboratories, and inspection bodies, which can be relied on to provide competent services, such as certification activities, testing, calibration and inspection. Key to international trade, the MRAs promote cross border stakeholder confidence and the acceptance of accredited conformity assessment bodies. 1.2.3. ASEAN Qualifications Reference Framework (AQRF) The ASEAN Qualifications Reference Framework (AQRF) is a common reference framework that enables comparisons of education qualifications across participating ASEAN Member States (AMS). The objectives of AQRF include: (i) Support recognition of qualifications; (ii) Encourage the development of qualifications frameworks that can facilitate lifelong learning; (iii) Encourage the development of national approaches to validating learning gained outside formal education; (iv) Promote and encourage education and learner mobility; (v) Support worker mobility; (vi) Improve understanding of qualifications systems; (vii) Promote higher quality qualifications systems. Referencing is a process that establishes the relationship between the eight–level AQRF and NQF or qualifications system of participating AMS; and the number of levels an NQF may differ, and typically between 8 and 9 levels. AQRF would therefore improve the understanding of the qualification of each level of a NQF or qualifications system of the participating AMS. AQRF also works as an information tool to facilitate the recognition of qualifications and does not replace the decision–making process of the competent authorities in each AMS. According to AQRF, the determination of the working level of workers in the ASEAN region is not based on qualifications but on the skills, knowledge, and expertise that workers learn and adapt in. work progress. In particular, the ASEAN–level reference framework emphasizes individual competencies, soft skills such as leadership skills, problem–solving skills, and communication skills, Several factors have had an impact on the movement of skilled workers to work in the AEC, including: the demand for skilled labor, the ability of member countries to provide skilled labor and the legal framework, the development model, the capacity of the regional economic bloc to implement and the national governments. Among of which, the ability of member countries to provide skilled labor plays very important role. 2. RESEARCH METHOD AND DATA COLLECTION 2.1. Research method Research method acts as a glue which holds research together in a perfect rigid shape, providing a framework to carry out the research in its entity (Herbst & Coldwell, 2004). This study focuses on analyzing qualitative and quantitative research method. Criteria and tools are presented objectively to measure the common ground of the National Economics University students on self–awareness and understanding. The quantitative research method is used effectively to analyze the research data results. The research team first collects the respondents’ data from launching survey (conducted by NEU’s International Economics students). The data is completely raw, and then the team extracts the data into 109
4. categories to establish assessment criteria to evaluate the impact of free skilled labor movement policy in the AEC on improving NEU’s International Economics working skills by the main factors including attitude, regulation and law, professional qualification and culture. The quantitative method is expected to help the surveyors discover the effects of free skilled labour movement policy in AEC, thereby proposing some appropriate recommendations and solutions to improve working skills of International Economics students in NEU in the context of integrating ASEAN completely, particularly free labour movement. 2.2. Data Collection Questionnaires sent to the selected respondents via social network were used as the main data collection tool. The questionnaire gathered information about their demographic profile (gender, academic level) (See appendix 1 and 2). * The gender of the participants In the survey of 300 students, statistics showed that 211 females participated (occupying more than 70% of the total). Meanwhile, the number of male participants is 89 students (approximately 30% of the total). * The academic level of the participants The number of Junior occupies with the highest proportion (39.7%), followed by the different levels: 80 second–year students (26.7%), 60 first–year students (20%), 23 final–year students (7.6%). The number of graduates is 18 (occupying 6%). 3. PRESENTATION AND ANALYSIS OF RESULTS 3.1. Attitude question set Figure 1: Attitude question set Source: Research team’s calculation from survey data 110
5. The result in Figure 1 shows the awareness of International Economic students in terms of AEC’s labor mobility policy. Based on the statistics, agree/strongly agree, or very familiar/extremely familiar is almost the least sector. The research concludes, therefore, that AEC's awareness and student policy remain at a modest level (less than 15% of respondents who said they had knowledge of this policy). An undecided response rate dominates the chart (35% to 44.3%) all–time, which means that the majority of participants are either uncertain or undecided between disagreement and agreement. From the data collected on the attitude issue, it can be easily seen that labor mobility attracts the attention of the respondents (32% of the respondents' interest in the policy). However, more than 40% of the participants replied that they did not have a good preparation in the sense of the free flow of skilled labor in the AEC, which could lead to a negative sign. 3.2. Regulation and Law question set The research used some categories related to law and rights as well as the attitude of responders when working in other countries. Figure 2 shows that the percentage of person who moderately familiar/very familiar leads the chart. This result indicates that participants are likely to understand the basics about this issue. However, the highest rate of disagreement (36.7%) is in the third column, which means that people still do not really accept to give up certain benefits to get better job opportunities in other countries in ASEAN. Besides, those who understand deeply about responsibilities and laws occupy with quite few proportions. But most people agree that integration with the community will bring many benefits to the workers. Figure 2: Regulation and Law question set Source: Research team’s calculation from survey data 111
6. 3.3. Professional qualification question set This graph refers to professional credentials, which are a way to identify yourself as an expert with comprehensive experience in your field. Getting such certifications can mean the difference between landing a great job with a big pay and constantly losing out to highly qualified people on jobs. According to Figure 3, the response rate of moderately familiar and very familiar is dominant in all four designs (the maximum 47.3 per cent and 45.7 per cent respectively), which means that participants have demonstrated the value of professional credentials when employed in either sector. The number of students who are highly confident in themselves and confident in their ability is still relatively low (from 5.7% to 19%). In the fourth column, the trio of views (undecided, accepted and disagreed) is very close in percentage, with the difference only varying from 0.7% to 15%. Consequently, while workers know that technical qualifications and soft skills are important, not all of this policy is inspiring the participants in the labor movement. This issue demonstrates that it is important to influence students ' perception of this policy. Figure 3: Professional qualification question set Source: Research team’s calculation from survey data 3.4. Cultural awareness in ASEAN member states One of the main goals of ASEAN as committed by the Heads of ASEAN countries in the ASEAN Declaration of Establishment of 8/8/1967 is to promote cultural cooperation among member countries to enhance understanding. mutual, solidarity and friendship between the people of the Association countries. In the trend of globalization, the wide cultural interference has sometimes been difficult for youth people to recognize the characteristics of indigenous Southeast Asian culture. As a matter of fact, the 112
7. impact of understanding the culture of ASEAN member states is enormous for students who intend to work abroad in this region. Figure 4 presents the results of the survey on awareness of cultural differences among ASEAN member states. Figure 4: Culture question set Source: Research team’s calculation from survey data The first column of Figure 4 shows that cultural awareness of ASEAN is still low and the majority of students (46.3% Undecided/ Moderately familiar) admit that they do not have a good understanding of the cultures of the countries in this region. Afterward, once again, by gathering these statements on the issues, the survey has provided a wide open vision on the students’awareness about the ASEAN members which can worsen the great bond among collegues for the state of their lacking of cultural understanding. With this in mind, those students express a desire to change their awareness in tandem with working hard and sprightly to adapt to the environment. This is evidenced by the survey data in the second column in figure 4 (44% Agree/ Very familiar). 3.5. The necessity of English in the context of free movement of skilled labor in AEC Not only is English the dominant business language, it also has become almost a necessity for people to speak English if they are to enter a global workforce. Despite ranking second in term of users (after Chinese), English is still the language we can use on the largest scale, in most countries, especially in the ASEAN region. From figure 5, it is clear that all the columns show 1 thing in common. The Agree sector and the Strongly Agree market are the two highest components with the percent variance from 30% – 43.7% and 30.7% – 62%. This proves that almost all survey participants believe that English is an essential and important language to be proficient when entering the skilled workforce in ASEAN member states. It thus can be assumed that Proficiency in English is not only an important skill but also will be equipped firstly. It is considered a positive sign that the respondents can be self–equipment in English, improving their position in the Global Competitiveness Index. 113
8. Figure 5: The necessity of English question set Source: Research team’s calculation from survey data 4. CONCLUSIONS AND RECOMMENDATIONS In this study, the impact of free skilled labor movement in the AEC on improving working skills of NEU’s International Economics students was centered and discussed. The results showed that the policy of free labor movement in AEC attracted many attentions and interest of students, but they have not had enough awareness as well as preparation to take advantage of these opportunities. In addition, in terms of regulation and law, participants show that they still do not really accept to give up certain benefits to have better occupation opportunities in other ASEAN countries. People with a deep understanding of this issue are still relatively small, but they are generally aware that knowledge of responsibilities and laws will be an advantage for them in the integration. In addition, this policy is not yet a strong driving force to promote the development of students' professional qualifications and soft skills, although this is a major determinant of workers' work. In addition, the survey results also show that most international economic students can adapt very well in the new environment, but cultural awareness is still limited. 4.1. Recommendations To enhance Vietnam's labor competitiveness when joining the ASEAN Economic Community, it needs to attach great importance to the issue of human resource education and training. The integration process requires the training of human resources in the field of International Economics to be formal, professional and of better quality to provide society with excellent bachelors, with professional qualifications in English as well as other soft skills to be able to work in a multicultural, highly competitive environment. Based on the degree of strong or weak impact of factors affecting the completion of skills for students in the context of AEC's freedom of labor movement as well as the relationship between factors and research, the research team proposes some specific solutions for students, for lecturers and for the National Economics University. 114
9. 4.1.1. Solutions from the National Economics University Complete the curriculum to meet social needs and requirements of international integration Improve the model of association between the university and businesses Disseminate information about countries in ASEAN region and the skilled labor mobility in AEC Regularly renew the content, form of education, diversify types of activities (projects, contests, field trips, exchanges, etc.) to meet integration requirements 4.1.2. Solutions from the School of Trade and Internationa Economics Continuously updated with breaking news about skilled labor movement policy in AEC Organize extra–curricular activities related to international economic activities for students: organize the NEUMUN and establish the Global Economic Club (GEC) of School of Trade and International Economics. Improve the quality and capacity of lectures Using modern teaching methods 4.1.3. Solutions from the students of National Economics University Proactively research information about free labor movement policy in the AEC Students must have a high sense of responsibility for their future life and career while studying at universities to prepare for the future opportunities in general and the AEC labor freedom policy in particular Self–training, reinforcing specializing skills and soft skills. Fostering, enriching English capability Having the right learning method to possess more working opportunity in ASEAN countries Students should focus on forming and developing the quality standards during the integration period. 4.2. Limitation and Subsequent research directions a) Limitation • Only focuses on students majoring in International Economics, not covering all industries related to 8 occupations freely moving workers in AEC. • Due to the relatively short survey period, results were obtained with quite small sample sizes and a lack of cross–year comparisons as well as comparison of analytical results over a period of time. b) Subsequent research directions • Expand the scope of research for students in other majors. • Expand the scope of research for students in other majors. REFERENCES 1. ASEAN agreement on the movement of natural persons, retrieved on January 8th 2020, from df. 2. Ha Thi Duc Minh (2019), Doctoral dissertation, MIT, Graduate Academy of Social Sciences (GASS), Vietnam Academy of Social Sciences, retrieved on January 8th 2020. 3. International Labour Organization (2019), Skills and lack of awareness of AEC 2015 – a major concern for enterprises, ILO warns, retrieved on January 8th 2020, from MS_242827/lang–en/index.htm. 115
10. 4. International Labour Organization and Asian Development Bank (2014),ASEAN community 2015: Managing integration for better jobs and shared prosperity, retrieved on January 8th 2020, from –community–2015–managing– integration.pdf . 5. Lê Minh Hùng Sơn (2019), The impact of the Industrial Revolution 4.0 on the human resource in the economic group at universities in Ha Noi, retrieved on January 8th 2020, from bclid=IwAR2WPCf4meqD– 80wuKXUv8i97CxHOgLQiXi1hpF326dgJLuN1D7DVOiX4es. 6. Pfau, Wade Donald and Giang, Long Thanh (2010), The Growing Role of International Remittances in the Vietnamese Economy: Evidence from the Vietnam (Household) Living Standard Surveys, National Graduate Institute for Policy Studies (GRIPS), National Economics University (NEU), Hanoi, retrieved on January 8th 2020, from ional_Remittances_in_the_Vietnamese_Economy_Evidence_from_the_Vietnam_Hou sehold_Living_Standard_Surveys. 7. Vietnam jumps 10 places in WEF’s Global Competitiveness Report (2019), retrieved on January 8th 2020, from –news/17604– vietnam–jumps–10–places–in–wef–s– global–competitiveness–report. 8. VNA (2018), Vietnamese labour force need to up skill for ASEAN integration, retrieved on January 8th 2020, from –labour– force–need–to–up–skill–for–asean– integration–6956.html APPENDIX Appendix 1: Questionnaire Part 1: Personal information Full name: Gender: Male Female Year of study: 1 2 3 4 Graduated Your university/college: Part 2: Student–related factors Direction: Please check () and rate yourself honestly based on what you actually do given the statements using the following scales: 1: Strongly disagree/ Not at all familiar 2: Disagree/ Slightly aware 3: Undecided/ Moderately familiar 4: Agree/ Very familiar 5: Strongly Agree/ Extremely familiar 116
11. Questions Response set Attitude 1 2 3 4 5 Your awareness of AEC and its labour 1 mobility policy Your awareness of working opportunity 2 and wage in ASEAN member states 3 Interest in the labour mobility policy Self–planning for the enforcement of this 4 policy Self–assessment of preparation in the context 5 of free flow of skilled labour in AEC Regulation and Law 1 2 3 4 5 Migrant workers find it too challenging to 1 tackle obstacles in Juridical procedures (work permit, visa ) Integration is the key of approaching some 2 information such as: regulation and the policy of social security Some of your benefits are an acceptable 3 trade–off for the working opportunity in member states Your awareness of rights and 4 responsibilities of worker Professional qualification 1 2 3 4 5 1 Confidence in self–consciousness/soft skills Technology has become an essential tool in 2 every field of life. Self–equipment with computer skills/ software awareness Deep understanding of general and 3 professional education on campus The policy of free movement of skilled 4 labour in AEC considers as the driving force for labour export Culture 1 2 3 4 5 Cultural awareness in ASEAN member 1 states 117
12. Flexible self–adaptation in changing 2 environments Cultural differences increase the likelihood 3 of misunderstanding 4 Working in a different religion? The necessity of English in the context of free 1 2 3 4 5 movement of skilled labour in AEC English is the most widely used language in 1 ASEAN English language certificate is compulsory 2 to work in ASEAN Proficient and skilled used of English can 3 enhance career prospects in ASEAN Lack of English proficiency as a barrier to 4 the approach of professional skills Part 3: Other questions Do you think that there are more opportunities opened when using the language of ASEAN? Yes No With the implementation of the AEC’s free movement of skilled labor policy, do you think English is important? Yes No Appendix 2: Results Direction: Please check () and rate yourself honestly based on what you actually do given the statements using the following scales: 1: Strongly disagree/ Not at all familiar 2: Disagree/ Slightly aware 3: Undecided/ Moderately familiar 4: Agree/ Very familiar 5: Strongly Agree/ Extremely familiar Questions Response set Attitude 1 2 3 4 5 Your awareness of AEC and its labour mobility 1 70 56 133 32 9 policy 118
13. Your awareness of working opportunity and wage 2 31 59 132 66 12 in ASEAN member states 3 Interest in the labour mobility policy 26 54 105 97 18 4 Self–planning for the enforcement of this policy 47 79 114 51 9 Self–assessment of preparation in the context of 5 44 89 108 53 6 free flow of skilled labour in AEC Regulation and Law 1 2 3 4 5 Migrant workers find it too challenging to tackle 1 obstacles in Juridical procedures (work permit, 25 61 88 90 36 visa ) Integration is the key of approaching some 2 information such as: regulation and the policy of 9 26 82 121 62 social security Some of your benefits are an acceptable trade–off 3 48 110 97 40 5 for the working opportunity in member states Your awareness of rights and responsibilities of 4 17 57 135 76 15 worker Professional qualification 1 2 3 4 5 1 Confidence in self–consciousness/ soft skills 3 31 123 120 23 Technology has become an essential tool in every 2 field of life. Self–equipment with computer skills/ 4 28 69 142 57 software awareness Deep understanding of general and professional 3 4 31 137 111 17 education on campus The policy of free movement of skilled labour in 4 AEC considers as the driving force for labour 31 69 113 67 20 export Culture 1 2 3 4 5 1 Cultural awareness in ASEAN member states 4 63 139 79 15 2 Flexible self–adaptation in changing environments 7 14 82 132 65 Cultural differences increase the likelihood of 3 9 42 79 116 54 misunderstanding 4 Working in a different religion? 24 51 108 78 39 The necessity of English in the context of free movement 1 2 3 4 5 of skilled labour in AEC English is the most widely used language in 1 1 8 36 107 148 ASEAN 119
14. English language certificate is compulsory to work 2 0 14 63 131 92 in ASEAN Proficient and skilled used of English can enhance 3 1 6 15 92 186 career prospects in ASEAN Lack of English proficiency as a barrier to the 4 5 10 33 90 162 approach of professional skills Do you think that there are more opportunities opened when using the language of ASEAN? Yes: 279 No: 21 With the implementation of the AEC’s free movement of skilled labor policy, do you think English is important? Yes: 300 No: 0 120