An approach to the informal sector in Vietnamese metropolises: From the knowable towards the unknown

Transcription

1 International Conference The Informal Sector and Informal Employment: Statistical Measurement, Economic Implications and Public Policies Hanoi, 6-7 May 2010 An approach to the informal sector in Vietnamese metropolises: From the knowable towards the unknown Patrick Gubry, IRD, UMR201, University Paris 1-IRD, Le Thi Huong, HIDS, Ho Chi Minh City, Nguyen Thi Thieng, IPSS, Hanoi, Pham Thuy Huong, NEU, Hanoi,

2 A still relevant subject The subjects of informal sector and informal employment remain fully up-to-date Few studies could directly select the workers of informal sector; Vietnam is not an exception Two recent operations enable to indirectly approach the informal sector in both Vietnamese metropolises, Hanoi (the political capital) and Ho Chi Minh City (the economic capital )

3 Two recent data sources enable to indirectly approach the informal sector The 2004 Census of Ho Chi Minh City (through residential registration, KT1 to KT4) The survey Migration, poverty and urban environment: Hanoi and Ho Chi Minh City (MPEU), implemented in 2007, with 1,000 households (3,983 residents) in Hanoi and 1,500 households (6,592 residents) in Ho Chi Minh City

4 These both operations enable: To distinguish population groups mainly working in informal sector: the population without permanent registration permit (in the first one); the independent workers (in the second one) To analyze population by several socioeconomic characteristics To analyze geographical differences between districts

5 Residential status The 2004 Census of Ho Chi Minh City directly noted down the residential status: KT1 : Permanent resident living and registered in this phuong/xa KT2 : Permanent resident living in this phuong/xa, but first registered in another phuong/xa of the city or Permanent resident living in another phuong/xa of the city but first registered in this phuong/xa KT3 : Long-term temporary resident, intended to remain KT4 : Short-term temporary resident, intended to leave

6 Distribution of the different types of residential permits Urban population (84.0%) ; rural population (16.0%) Only 70.7% KT1 and KT2: 68.7% in the urban zone and 80.8% in the rural zone Total population: 47.4% males and 52.6% females; KT4: 44.8% males and 55.2% females Table 1: Distribution of the population of HCMC by type of district and type of residential permit on 1 th October 2004 Type Residential permit of district KT1 KT2 KT3 KT4 Total Total 3,538, , , ,802 6,026,493 % Urban (quan) 2,862, , , ,637 5,064,273 % Rural (huyen) 676, , ,622 73, ,220 %

7 Who are the persons classified KT4? Figure 1: Distribution of the population of HCMC classified KT4 by year of birth and sex (%) Figure 2: Distribution of the population of HCMC aged 15 years old or more classified KT4 by professional qualification and sex (%)

8 KT4: Working and training Table 2: Distribution of the population of Ho Chi Minh City aged 15 years old or more classified KT4 by situation of activity and sex (%) Situation of activity KT4 Whole M F Together population Working, occupied Unemployed, looking for a job At home, mother s help Being trained Unable to work Doesn t want to work Total

9 The KT4 are living in the districts of the close suburbs Figure 3: Proportion of KT4 by district in HCMC

10 External migrants are living in the near and far suburbs Figure 4: Proportion of external migrants by district

11 What is to be remembered from this analysis of KT4 in Ho Chi Minh City? The KT4 represent 17.7% of the occupied labour force, much lower figure than the data of the 2007 Informal Sector Survey (32.9%) If one added the KT3, the proportion would be 34.5% The KT4 have perhaps be under-estimated, but some KT3, even KT1 and KT2, have also an informal employment Thus the status of short-term temporary resident (KT4) cannot enable to indirectly assess the level of informal employment, but it allows to analyze

12 The non agricultural independent workers Table 3: Distribution of non agricultural occupied labour force aged 13 years old or more by sex, employment status and city (%) Source: Survey Migration, Poverty and Urban environment: Hanoi and HCMC (2007) Sex Employer Wage earner for an unlimited period Hanoi Employment status Wage earner for a limited period Independent worker Mother s help M F Together Ho Chi Minh City M F Together Tot

13 The non agricultural independent workers: Low qualification level Table 4: Distribution of the occupied non agricultural independent workers aged 13 years old or more by qualification level and city (%) Hanoi Ho Chi Minh City Qualification Independent All Independent All level workers workers workers workers Not qualified Secondary professional school level Level Level Level or more Total

14 The non agricultural independent workers: Trade, services and handicraft Table 5: Distribution of the occupied non agricultural independent workers aged 13 year old or more by main occupation and city (%) Hanoi Ho Chi Minh City Main occupation Independent All Independent workers workers workers Industry, handicraft Construction, housing Transportation Trade Services (apart domestic services and public services) Domestic services Public services Total All workers

15 The non agricultural independent workers are more scattered due to their activities Figure 5: Distribution of the occupied non agricultural independent workers by district in Hanoi and HCMC

16 What is to be remembered from the analysis of the non agricultural independent workers in Hanoi and HCMC? With 18.5% of the occupied non agricultural labour force aged 13 years old or more, in Hanoi as in HCMC, the non agricultural independent workers do not enable either to assess the level of informal employment However, the analysis of these workers enables to highlight the characteristics of informality (predominance of females, low qualification level, types of activities )

17 Shortcomings of available data on informa employment and necessity of taking into account the floating population In Vietnam, representative surveys until now exclusively concerned resident population In this context, migrants generally appear rather richer than non migrants, what seems paradoxical, but it is a selected population Contrary to what happens in other countries, besides migrants exists a floating population ( visitors ), which moved to the city for work, but still resident in countryside

18 The capture of floating population : A suitable methodology Most of the temporary movers are welcomed by relatives in an ordinary household, the others are living in collective households or on their working place: thus the survey has to capture all these cases The sampling survey methodology from the blocks, with a two degree-draw (blocks, then households) can answer this demand The selected blocks at first degree constitute areolar units in which it is possible to count those sleeping at the working place

19 A recent progress: The Urban Poverty Survey The Statistical Service has just implemented, at the end of 2009, an Urban Poverty Survey (UPS) in Hanoi and Ho Chi Minh City aiming at filling a part of the gaps For the first time, this survey will provide an estimate of the floating population However, the exam of the methodology highlights some limitations, notably at the level of the geographical field of the survey, encouraging to go more in-depth into this

20 Conclusion: Visible and hidden face of informality The urban informal sector has a visible face which can however only be captured by specific surveys and a hidden face, totally unknown until now, which can only be comprehended by taking into account at last the floating population Floating population represents an important part of the workers of the informal sector and of the poor floating between city and countryside Among this population, the unemployed for example are never counted in the city: either they left the city at the end of their employment; or they are counted as residents at their place of origin, even if they are living in the city Only a more complete knowledge of the informality will enable to initiate policies intended to improve the consideration and the functioning of the informal sector, essential in the Vietnamese context, and the living standards of the workers and the concerned families

21 Hanoi Hang Dao July 2003