The paper examines the relationship between employment and economic growth during the period 1991–2012 in Vietnam and obtains forecasts for employment from 2013 to 2020, using theories of production function for establishment of econometric models. | 40 | Phạm Hồng Mạnh, Nguyễn Văn Ngọc & Hạ Thị Thiều Dao | 40 - 50 Relationship between Economic Growth and Employment in Vietnam Phạm Hồng Mạnh Nha Trang University - phmanhdhnt@ Nguyễn Văn Ngọc Nha Trang University - ngvng@ Hạ Thị Thiều Dao Banking University HCMC - thieudao08@ ARTICLE INFO ABSTRACT Article history: Received: Dec. 22, 2013 Received in revised form Jan. 24, 2014 Accepted: Sep. 30, 2014 The paper examines the relationship between employment and economic growth during the period 1991–2012 in Vietnam and obtains forecasts for employment from 2013 to 2020, using theories of production function for establishment of econometric models. The results show that the employment elasticities of economic growth are ; and for agriculture, manufacturing and service sectors respectively and for Vietnamese economy as a whole in the period. The results also indicate that an annual growth rate of 6% - 7% can help create from to million jobs by 2015 and from – million ones by 2020. Additionally, the research offers several important policy recommendations to promote economic growth and job creation in Vietnam in the next period. Keywords: economic growth, employment, relationship. JED October 2014| 41 1. INTRODUCTION After over 25 years of economic reform, Vietnam has escaped from poverty, backwardness and underdevelopment and started an extensive, intensive and overall integration into the world economy. To reach such achievements, the government has reformed its management mechanism, developed a multi-sector economy, and made the best use of internal and external resources to promote the socioeconomic development. In this development, employment policy plays an important role in both individual and social life. Labor market can either promote or restrict economic growth. Hence, examining the relationship between economic growth and .
