Microsoft Word - 25506-pro.doc


Lentera Hukum, Volume 8 Issue 3 (2021), pp. 447-470 
ISSN 2355-4673 (Print) 2621-3710 (Online) 
https://doi.org/10.19184/ejlh.v8i3.25506 
Published by the University of Jember, Indonesia 
Available online 30 November 2021 
 
 

__________________________ 
 
* Corresponding author’s e-mail: huyenluat1976@gmail.com 

Impact of Economic Downturn on Child Labor in 
Vietnam 
 
Nguyen Thanh Huyen* 
Vietnam National University, Vietnam 
 

ABSTRACT: The economic recession led to the economic downturn, loss of jobs and income, 
and the risk of falling back into the poverty of near-poor and poor households. This recession 
caused an increase in child labor. This study aimed to analyze the concept of child and child 
labor under a regulatory framework and assess how the economic downturn affects child labor in 
Vietnam. This study used analytical research methods through synthesis, comparison, and legal 
analysis, emphasizing literary research based on secondary research data. This study showed that 
the economic downturn increased the proportion of child labor because the parents and the 
family's breadwinner are unemployed or cut down on their income. Children were out of school 
to help household businesses or look for work for extra income. The economic downturn 
increased the number of children working in unsafe working conditions. It increased the risk of 
children being forced into illegal jobs prohibited and exposing children to labor to risk forced 
labor. It resulted in difficulties preventing and eliminating child labor, especially in a developing 
country like Vietnam, due to the high number of employees working in the informal sector, 
who were often unsupported by social security policies such as unemployment insurance and 
social insurance. This study suggested that the Government should establish policies to promote 
sustainable economic development and promulgate appropriate social security policies to 
promptly support workers and their families out of difficulties caused by job loss. Also, it should 
organize the effective implementation of regulations on eliminating child labor and raise social 
awareness in preventing and eliminating child labor. 

KEYWORDS: Economic Downturn, Child Labor, COVID-19 Pandemic. 
 
Copyright © 2021 by Author(s) 
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International 
License. All writings published in this journal are personal views of the authors and do not 

represent the views of this journal and the author's affiliated institutions. 

 

 

 

Submitted: 16/07/2021  Reviewed: 08/09/2021  Revised: 12/11/2021  Accepted: 22/11/2021 

HOW TO CITE: 
Huyen, Nguyen Thanh, “Impact of Economic Downturn on Child Labor in Vietnam” (2021) 8:3 
Lentera Hukum 447-470. DOI: <https://doi.org/ 10.19184/ejlh. v8i3.25506>. 



448 | Impact of Economic Downturn on Child Labor in Vietnam 

 

I. INTRODUCTION 

Socio-economic conditions and poverty are key factors to contribute to 
child labor.1 The economic downturn caused by the COVID-19 pandemic 
is considered the biggest catastrophe. It confronts the world since World 
War II, the most significant economic downturn since the Great 
Depression of 1930.2 The economic downturn has affected all aspects of 
social life, including child labor which the international community, 
countries, and society are trying to eliminate because of its severe 
consequences for the younger generation.  

There have been previous studies on child labor and its impact on 
economic recession and economic growth. First, the International Labor 
Organization (ILO) in 2013 showed that child labor is a vital part of a 
symptom of poverty; child labor is most pervasive in countries where 
income levels are lowest.3 This report affirmed child labor is not an isolated 
issue explained by poverty. Instead, the child labor phenomenon is the 
combined product of many factors that bridge traditional policy 
boundaries.4 Secondly, another research pointed out that household-level 
poverty is a crucial driver of child labor and some factors contributing to 
child labor, including economic vulnerability associated with poverty, risk 
in driving children to work, barriers to education, discriminatory social and 
cultural norms, poor enforcement of legislation and policies to protect 
children, and lack of decent work opportunities.5 Third, another study also 
concluded that widespread child employment dampers future economic 

 
1  Sourav Mondal, et al., “Characteristics of Child Labour and Their Health Problems: 

Findings from Rural Community of India” (2016) 8:10 Health, online: 
<https://www.scirp.org/journal/paperinformation.aspx?paperid=68374>. 

2  Nhật Minh, “World economy before the COVID-19 epidemic,” online: <https:// 
tapchicongsan.org.vn/web/guest/the-gioi-van-de-su-kien/-/2018/820140/kinh-te-
the-gioi-truoc-dich-benh-covid-19.aspx>. 

3  International Labor Organization, World Report on Child Labor: Economic 
Vulnerability, Social Protection, and the Fight Against Child Labor (Geneva: 
International Labor Office, 2013) at 11-12. 

4  Ibid at 13. 
5  Paola Pereznieto, et al., “Eliminating Child Labor, Achieving Inclusive Economic 

Growth” (2016) World Vision UK and Overseas Development Institute, online: 
<https://assets.worldvision.org.uk/files/2214/7801/5728/Child_labour_-_Economic_ 
Growth_report_-_Oct_2016.pdf> at 13-14. 



449 | LENTERA HUKUM 

 

growth through its negative impact on child development and depresses 
current growth by reducing unskilled wages and discouraging the adoption 
of skill-intensive technologies.6 ILO and the United Nations Children’s 
Fund (UNICEF) in 2020 reported that the COVID-19 pandemic 
increased economic insecurity, profoundly disrupted supply chains, and 
halted manufacturing.7 Tightening credit is constraining financial markets 
in many countries, and public budgets are straining to keep up.8 When 
these and other factors result in losses in household income, expectations 
that children contribute financially can intensify. More children could be 
forced into exploitative and hazardous jobs.9 In summary, these previous 
studies showed some impacts from many social factors on child labor, in 
which economic factors are emphasized.  

However, they only focused on the consequences of economic recession, 
poverty, increased child labor, and labor laws for minor workers. They did 
not critically examine how poverty and economic recession affect child 
labor as well as ways to limit the impact of the economic downturn on child 
labor. This study aimed to critically examine the impact of the economic 
downturn on child labor, encompassing children dropping out of school to 
support the family economy and work in hazardous jobs, as well as work in 
unguaranteed conditions. They are at risk of doing the worst jobs 
prohibited by law and at risk of being forced into labor.  

This study consists of two main discussions to deal with reflections on the 
legal basis of child labor. The first part analyzes the impact of economic 
recession on child labor by referring to the case in Vietnam. The second 
part provides alternatives to limit the negative impacts of the economic 
downturn on child labor. This study suggested preventing and eliminating 
child labor caused by the economic downturn in Vietnam. 

 
6  Eric V Edmonds & Caroline Theoharides, “Child Labor and Economic Development” 

in Handbook of Labor, Human Resources and Population Economics (New York, 
Springer, 2020) at 1. 

7  International Labor Organization and United Nations Children’s Fund, COVID-19 
and Child Labor: A Time of Crisis, A Time to Act (New York: ILO and UNICEF, 
2020) at 1. 

8  Ibid. 
9  Ibid. 



450 | Impact of Economic Downturn on Child Labor in Vietnam 

 

II. METHODS 

This study used qualitative research methods based on the collection and 
analysis of data mainly from the 2018 National Child Labor Survey of 
Vietnam. It was conducted in conjunction with the 2018 Labor Force 
Survey by the General Statistics Office of Vietnam (GSO) in November 
and December 2018, with a sample size of 38,280 households nationwide 
in 2,552 enumeration areas. In addition, this research used the data from 
published papers. These data were analyzed or illustrated with charts to 
prove the statements in this study. Also, this study used analytical, 
synthetic, and comparative research methods, emphasizing literary research 
to assess the impact of the economic downturn on child labor in different 
aspects. Moreover, the legal analysis method was used to analyze 
shortcomings in policies and legal regulations to promote the economy to 
overcome the recession, as well as some rules of Vietnam to prevent and 
eliminate child labor.  

 

III. IMPACT OF ECONOMIC RECESSION ON CHILD LABOR 
IN VIETNAM 

The surveys on child labor showed that family financial conditions, poverty, 
and income pressures are still the fundamental reasons children participate 
in work and child labor.10 The economic downturn and the COVID-19 
pandemic have had many implications on child labor.  

 

A. The Pandemic and Economic Recession’s Impacts on Children’s Study 

The pandemic and economic recession make children ineligible to study 
well, even leave school early to join the labor force to help support the 
family economy. The Ebola epidemic from 2014-2016 was a reason for the 
significant increase in child labor in West Africa.11 Large numbers of 

 
10  International Labor Organization & General Statistics Office & Ministry of Labor, 

Invalids and Social Affairs, Viet Nam National Child Labour Survey 2018 - Key 
Findings (Geneva: ILO, 2020) at 67. 

11  Iffat Idris, Impact of COVID-19 on Child Labour in South Asia (K4D Helpdesk 
Report 819) (Brighton: Institute of Development Studies, 2020) at 2. 



451 | LENTERA HUKUM 

 

children were left vulnerable, and child labor (and child marriage) is 
influenced regions expanded.12 Children also reported accomplishing more 
family errands, like gathering kindling and getting water.13  

In Vietnam, the COVID-19 pandemic has severely affected the whole 
society. As of December 2020, Vietnam had 32.1 million people aged 15, 
and they were affected. In the first quarter of 2021, the unemployed 
working-age was nearly 1.1 million, increasing 12,100 people compared to 
the first quarter of 2020.14 Unemployment and rotational leave mean no 
income or reduced income; all directly affect workers and their families. 
Vietnam had between 4.6 and 10.3 million workers affected by the 
pandemic in April 2020.15 They have to cut many types of spending, 
including spending on their children's education and learning. This 
pandemic has also affected nearly 23 million students,16 from pre-school to 
high school, impoverished children who are not eligible for online or 
television learning. During the implementation of social distancing, the 
number of children absent from school tends to increase mainly due to the 
difficulty of their families' economy. Then, they drop out of school to help 
support the family, especially children in highlands, deep-lying, remote, 
and economically disadvantaged areas. The high dropout rate (with over 10 
students per year) mainly concentrates on ethnic groups such as Mong, 
Dao, Xodan, Ede, Cham, Khmer.17 It affects an individual's positions and 

 
12  Edo Fernando, “Criminal Law Policy on the Protection of the Marriage of the Underage 

Children” (2020) 1:1 Indonesian Journal of Law and Society 75–100 at 76. 
13  Iffat Idris, supra note 11. 
14  TuoiTre Online, “More than 1 million people were unemployed and underemployed in the 

first quarter because of COVID-19,” online: <https://tuoitre.vn/hon-1-trieu-nguoi-
that-nghiep-thieu-viec-lam-trong-quy-1-vi-covid-19-20210416103932254.html>. 

15  UNICEF, "World Day Against Child Labour 2020: Viet Nam joins global campaign to 
confront the intensified risk of child labor resulting from COVID-19," online: 
<https://www.unicef.org/vietnam/press-releases/world-day-against-child-labour-
2020-viet-nam-joins-global-campaign-confront>. 

16  Giaoduc Vietnam, “Nearly 23 million students nationwide start the new school year 
2020-2021,” online: <https://giaoduc.net.vn/giao-duc-24h/gan-23-trieu-hoc-sinh-
ca-nuoc-khai-giang-nam-hoc-moi-2020-2021-post212153.gd>. 

17  Thanh Huyền (2020) “What is the solution to the problem of ethnic minority students 
dropping out of school?,” online: <https://baodantoc.vn/giai-phap-nao-cho-van-nan-
hoc-sinh-dtts-bo-hoc.? 



452 | Impact of Economic Downturn on Child Labor in Vietnam 

 

pays in the future because each year of additional schooling prompts an 11 
percent ascending later income for an individual on average.18 In particular, 
as of October 2020, children orphaned by the pandemic have reached 2,500 
children. Ho Chi Minh City is the locality with the highest number of 
orphans with 1,584 children, Binh Duong has 233 children, Dong Nai has 
121.19 As a result, these children are at risk of dropping out of school and 
will engage in labor for a living. 

Due to the economic recession, the absence of children from school does 
not only help families reduce spending but also contributes to finding more 
income. Many families believe that children's participation in working 
helps them grow up faster. Child labor is mainly involved in economic 
activities in the informal economy. In the formal economy, there are still a 
few cases of child labor participating in working before reaching the age of 
majority, at least as required by law, or children working in heavy, 
hazardous, and dangerous conditions prohibited by law. According to ILO, 
instances of child labor under 15 were discovered.20 One deals with a 
teenager working for a catering service sub-contractor. Another involves 
two teenagers recruited as temporary sewing assistants four months short of 
their 15th birthdays.21 Only 2/15 of child labor continued to attend the 
Continuing Education program in the evening or weekend.22 From 2020, 
the implemented social distance in Vietnam has made it even more difficult 
to check and detect early acts of abuse and exploitation of child labor at 
production facilities. 

 

 
18  Paola Pereznieto, et al.,, supra note 5. at 16. 
19  Cong an Nhan Dan Online, “Proposal to support 2,500 orphans due to the death of their 

parents due to COVID-19,” online: <https://cand.com.vn/Xa-hoi/de-xuat-ho-tro-2-
500-tre-mo-coi-do-cha-me-mat-vi-dich-covid-19-i632106/ “Đề xuất hỗ trợ 2.500 
trẻ mồ côi do cha, mẹ mất vì dịch COVID-19>.  

20  ILO & IFC, Better Work: Annual Report 2019 An Industry And  Compliance Review 
Vietnam (Geneva: Better Work, 2019) at 17. 

21  Ibid. 
22  NTT Thuy, et al., “Impact of COVID-19 on Child Labor Prevention in Industrial – 

Construction Sector,” online: <https://shapesea.com/wp-content/uploads/2021/05/ 
impact-of-covid-19-on-child-labor-prevention-in-industrial-construction-sector-
thuy-huyen.pdf>.  



453 | LENTERA HUKUM 

 

Causes Total % Sex (%) Age group (%) 

Male   Female       5-12 
years 

 13-14 
years 

      15-17 
years 

Nationwide 1,031,944 100 100 100 100 100 100 
Income generation for oneself 95,956 9.3 9.8 8.5 3.9 3.6 14.6 
Income generation for family 213,319 20.7 21.9 18.9 10.2 24.8 25.5 

A desire to involve in household's 
production and business 

281,651 27.3 27.4 27.1 37.6 27.8 20.9 

Desire for apprenticeship 32,549 3.2 4.2 1.7 0.0 0.4 6.0 

Non-school attendance 68,688 6.7 8.2 4.4 2.7 4.6 9.8 
Others 11,561 1.1 1.0 1.3 1.2 0.5 1.3 
Not classified 328,220 31.7 27.5 38.1 44.4 38.3 21.9 

Table 1: Causes for participation in economic activities by children in child labor23 

 

According to the above table, up to 30% of children work to generate 
income for themselves and their families. The trend is most evident in 
older children in child labor (15-17 years), where almost 40.1 percent 
expressed that they worked to generate pay. 27.3 percent of them 
participate in labor to assist in the production and business process of 
households. While the economy is not the main reason, up to 30 percent of 
children are not deprived of the right to study. Children's participation in 
labor can earn money to serve their life, but it deprives the opportunity to 
work sustainably in the future because of being uneducated and untrained 
at a young age. In addition, the younger children start to work, the more 
significant the impact of work on learning loss. It is demonstrated to be 
especially the case for children under 13 years old, experiencing different 
adverse consequences beyond education, such as health and attitudes. 
Vietnamese data show that child labor prompts generous negative 
implications on school participation and accomplishment. Then, decreased 
generally cumulated profit in the mid to long haul.24 

 
 

23  International Labor Organization & General Statistics Office & Ministry of Labor, 
Invalids and Social Affairs, supra note 9 at 34. 

24  Paola Pereznieto, et. al., supra note 5 at 17. 



454 | Impact of Economic Downturn on Child Labor in Vietnam 

 

B. Economic Downturn as A Cause of Child Labor 

The economic downturn is also a cause for children to work in unsafe 
working conditions. More than 50 percent of children did not attend 
school due to working to help families earn extra income.25 They often have 
to work from 8 hours to 10 hours per day to help support their families.26 
Due to the economic recession, children participating in labor work as 
employees or work with their families in unguaranteed conditions, such as 
working age, working time, rest time, employment, and hazardous 
workplace with dangerous elements.  

 

1.  The age of child labor starting to work 

Due to the economic downturn or poverty, children often have to join the 
labor force at an early age to support the family economy or to earn their 
living. As indicated in the diagram below, there is 53.4 percent that begin 
to work at 12 years old or more. 10.3 percent began to work under 10 years 
old, and 3.5 percent began to work at 5-7 years old, which is exceptionally 
young to start working since it often adversely influences children's health.  

 

 
Chart 1: The age of child labor starting to work27 

 
25 The Management and Sustainable Development Institute & Save the Children 

Survey Results Report Young Voices in Vietnam (2020) at 13.  
26  Ibid. 
27  International Labor Organization & General Statistics Office & Ministry of Labor, 

Invalids and Social Affairs, supra note 9 at 40-41. 



455 | LENTERA HUKUM 

 

2. The conditions of working time of child labor 

Some children participating in work are not guaranteed the working time 
and rest time. According to the Labor Code of Vietnam 2019, the 
operating hours of people under 15 years old must not exceed 04 hours per 
day and 20 hours per week. The minor is not allowed to work overtime and 
work at night.28 Working hours of people from full 15 years old to fewer 
than 18 years old must not exceed 8 hours per day and 40 hours per week.29  

 
Chart 2: Child labor by working time per week30 

 

According to the chart above, 34.1 percent of child labor had extended 
working hours 40 hours or more per week. It is in opposition to the Labor 
Code 2019 of Vietnam and adversely influences the health of most working 
children, particularly the young ones. 
 

3. Work and workplace of child labor 

According to the chart above, regarding the work that child labor does 
mainly in the agricultural sector, which attracts 62.2 percent of child labor, 
in the industry and construction, 18.3 percent of child laborers participate, 
and the service industry attracted 19.5 percent of child laborers to 
participate. With working location, children in child labor work in very 
assorted areas for certain primary places where these children often work, 

 
28  Clause 1 Article 146 Labor Code of Vietnam 2019. 
29  Clause 2 Article 146 Labor Code of Vietnam 2019. 
30  International Labor Organization & General Statistics Office & Ministry of Labor, 

Invalids and Social Affairs, supra note 9 at 36. 



456 | Impact of Economic Downturn on Child Labor in Vietnam 

 

namely their house (24.7 percent); farms, fields, and gardens (12.1 
percent); construction sites (12.2 percent); mobile workplaces (over 8 
percent); shop/kiosk/restaurants (around 4.8 percent).31 

 

 
Chart 3: Child labor by sector of work32 

 

In the past period, due to the COVID-19 pandemic, children had to stay 
home from school. Many families did not have a babysitter (especially 
kindergarten and primary school age). Their parents had to take their 
children to work (like selling goods at the market, working on the farm, or 
working in a small factory at home), both working and looking after them. 
Children do not participate in labor, but their safety is not guaranteed. 

 

C. Economic Downturn and Children’s Engagement to Worst Jobs 

The economic downturn increases the risk that children are forced to 
engage in the worst jobs prohibited by law. In compliance with the 
provisions on prohibition and urgent action to eliminate the worst forms of 
child labor in Convention No. 182, 1999 of ILO, Viet Nam has issued a 
list of jobs and workplaces where it is strictly forbidden for minors to 

 
31  Ibid at 35. 
32  Ibid at 34. 



457 | LENTERA HUKUM 

 

participate.33 In fact, according to Viet Nam National Child Labor Survey 
2018 Key finding, nearly 10.5 percent of children in child labor had to lift 
heavy objects weighing 30 or more kilograms. It was almost 9.1 percent of 
them had to operate production machines and equipment during their 
working process. However, the majority of these children were adolescents, 
about 15-17 years old, and at this age, they are more physically mature and 
more mindful of labor safety at work.34  

Children in child labor often worked in hazardous environments and 
working conditions to the working environment. The survey results in the 
table above indicate that 27.7 percent of these children were in touch with 
ashes, garbage, and exhaust at their workplace. 11.5 percent worked in 
environments that had high levels of vibration and strong movement. 
Nearly 11 percent of them were involved in work environments with 
extreme temperatures, and over 8 percent were in touch with chemical 
substances at work. Primarily, more than 3.2 percent of them worked on 
construction sites, and more than 3 percent worked in the underwater 
environment. These working environments were regularly considered 
hazardous for children. It affects children's health negatively, physical and 
mental health such as poor growth, malnutrition, higher incidence of 
infectious and system-specific diseases, behavioral and emotional disorders, 
and decreased coping efficacy,35 even affecting their lives. For example, an 
estimated 13.3 percent of these children have undergone skin or open 
wounds, dislocations, sprains, bruises (over 4 percent).36 

 

 
 

 
33  Article 147 Labor Code 2019 and Appendix III and Appendix IV issued with 

Circular No. 09/2020/TT-BLDTBXH dated November 12, 2020, of the Minister 
of Labor, War Invalids, and Social Affairs. 

34  International Labor Organization & General Statistics Office & Ministry of Labor, 
Invalids and Social Affairs, supra note 9 at 38.  

35  Abdalla Ibrahim, et al., “Child Labor and Health: A Systematic Literature Review of the 
Impacts of Child Labor on Child’s Health in Low and Middle-Income Countries” (2019) 
41:1 Journal of Public Health 18–26. 

36  International Labor Organization & General Statistics Office & Ministry of Labor, 
Invalids and Social Affairs, supra note 9 at 42. 



458 | Impact of Economic Downturn on Child Labor in Vietnam 

 

Working environment   Total   % 

Dust, rubbish, smoke 286,253 27.7 
Gases, flammable and explosive substances 26,069 2.5 
High level of vibration and strong movement 119,363 11.5 
Extreme temperatures 111,927 10.8 
Working underground/in caves/ tunnels 3,097 0.3 
Working in high places (over 3 meters) 25,554 2.5 
Working underwater (ponds, lakes) diving and offshore fishing 33,373 3.2 
Too dark and too narrow workplaces 10,642 1.0 
Contact with chemical substances (Pesticides, glue) 82,860 8.0 
Addictive substances (drug) 749 0.1 
Working on construction sites 33,702 3.3 
Working in smithies, medical metal casting workshops 6,765 0.7 
Working in production workshops or running businesses on 
beverage/cigarettes 

4,024 0.4 

Others 10,266 1.0 

Table 2: Child labor by the working environment37 

 

The economic recession increased child labor doing hazardous jobs for a 
living. Many children have to accept working even in conditions that 
adversely affect their health to get a job in difficult times. According to the 
result of the research, out of 519,805 children doing heavy, hazardous, and 
dangerous work, up to 47% are child labor receiving wages and salaries;38 
43% are household child labor.39 Although children who do these jobs are 
mainly in the age group from 15 to 17 years old with relatively good 
physical strength, the number is worth considering (519.805 children), 
accounting for 50.4 percent of the total number of child labor and account 
for 2.7 percent of the country's population of children between 5 and 17 

 
37  Ibid at 37. 
38  Ibid at 46. 
39  Ibid. 



459 | LENTERA HUKUM 

 

years old.40 40.6 percent of child laborers do heavy, hazardous, and 
dangerous work with 40 working hours or more per week.41  

This data is worth pondering and needs an appropriate way to reduce child 
laborers doing heavy, hazardous, and dangerous work in the household. For 
example, the Program on Prevention and Elimination of Child Labor in 
Agriculture and Fishing in a Raft Village (Ma Da Commune, Vinh Cuu 
District, Dong Nai Province) have helped at least 250 children under 18 
years of age laborers or at risk of heavy and hazardous, dangerous labor in 
the fields of agriculture and fishing and these children's families are the 
beneficiaries of direct support from the program to help them to prevent, 
protect, or removed from heavy, hazardous, or dangerous work.42 Besides, 
due to the difficulties caused by the economic recession, it is also difficult 
for production facilities to invest in machinery and improve working 
conditions, especially for small and micro-production units.  

 

D. Economic Downturn and the Risk of Forced Labor 

The economic downturn makes children involved in work will face the risk 
of forced labor. According to statistics, for every 1000 children in the 
world, 4.4 children are victims of modern slavery,43 and more than 1 
million victims of forced sexual exploitation–21 percent of all victims–were 
children under 18.44 In Vietnam, there are no official survey data on forced 
labor against children. However, in reality, many children work to earn 
their living in remote places without the protection of their parents. Some 
children are forced to work at the request of their employers, are not agreed 
and guaranteed in terms of wages, working hours, rest time, or are 
physically and mentally abused.  

 
40  Ibid at 45.  
41  Ibid at 51. 
42  Ministry of Labour, Invalids and Social Affairs – International Labor Organization -

ILO (2013) “Prevention and Elimination of Child Labor in Agriculture and Fishing in a 
Raft Village – Potential Model Document” Capacity in Ma Da Commune, Vinh Cuu 
District, Dong Nai Province" at 4. 

43  ILO & Walk Free Foundation, Global estimates of modern slavery: forced labor and 
forced marriage (Geneva: ILO, 2017) at 24. 

44  Ibid at 40. 



460 | Impact of Economic Downturn on Child Labor in Vietnam 

 

From the above analysis, the economic downturn substantially impacts the 
increase in child labor. In other studies, the experts also prove how putting 
resources into eradicating child labor can add to inclusive economic 
development, advance global prosperity, and handle extreme poverty.45 
Thus, the relationship between the economy and child labor is dialectical, 
the economic recession increases child labor, and the elimination of child 
labor is a way to help the economy grow. For the cancelation of child labor 
to promote human resources improvement, a vital driver of economic 
development,46 and the abolition of child labor to promote decent work.47 
In addition, to participate more deeply in global trade, Vietnamese 
businesses need to ensure that their supply chains do not use child labor.48 

 

IV. ALTERNATIVES TO LIMIT NEGATIVE IMPACTS OF THE 
ECONOMIC DOWNTURN ON CHILD LABOR 

Disadvantaged people facing difficulties due to economic decline should be 
supported on time. It is to minimize negative impacts on children in 
general and child labor in particular. Hoop and Rosati showed that cash 
transfers to helpless families lessen child labor.49 These transfers particularly 
significant in assisting families with adapting to economic shocks, by 
referring to an experience of Mexico and Zambia.50 In Vietnam, the ways 
to directly support poor children to go to school through supporting books, 
school supplies, and expenses; household livelihood development, and 

 
45  Paola Pereznieto, et al., supra note 5 at 16. 
46  Ibid. 
47  Ibid at 19. 
48  DTQ Trang & NTL Anh, Preventing and Eliminating Child Labor in Vietnam’s 

Businesses in the Context of COVID-19 Epidemic, online <https://shapesea.com/wp-
content/uploads/2021/05/preventing-and-eliminating-child-labor-in-vietnam-
trang_lan-anh.pdf>. 

49  Jacobus De Hoop & Furio C. Rosati, “Cash Transfers and Child Labor” (2014) 29:2 
World Bank Research Observer 202–234. 

50  Alain de Javry, et al., “Can Conditional Cash Transfer Programs Serve as Safety Nets in 
Keeping Children at School and from Working When Exposed to Shocks?” (2006) 79:2 
Journal of Development Economics 349–373. Solomon Asfaw, et al., “Cash Transfer 
Programmes, Weather Shocks and Household Welfare: Evidence from A Randomised 
Experiment in Zambia” (2017) 9:4 Journal of Development Effectiveness 419–442. 



461 | LENTERA HUKUM 

 

vocational training for parents of benefits children have also been effectively 
implemented in the rafting51 and handicraft villages.52 In the Indonesian 
context, it also works in spite of several critiques on its effective measures to 
improve school access.53 

In Vietnam, social security policies like paying unemployment insurance, 
supporting workers who are briefly suspended from work, subsidizing poor 
people, and the individuals who have lost their pay because of the impact of 
the COVID-19 pandemic–implementation of social distancing–was 
promptly and effectively implemented. The number of unemployed 
decided to receive unemployment benefits from the social insurance agency 
to organize payment in 2020 was 1.019 million people, an increase of 
141.290 people (16.1 percent) compared to 2019.54 The amount of 
unemployment insurance payment was 16.219 billion VND, an increase of 
4.043 billion VND (33.2 percent) over the same period in 2019.55 The 
increase in the number of recepients receiving unemployment benefits is 
caused by the suspension of business or bankruptcy due to pandemic and 
economic recession.  

Workers in the informal sector need more attention as this group accounts 
for a large proportion, is vulnerable and suffers the most. This group is 
outside the scope of benefits of the current policy. The Vietnamese 
Government has implemented a support package of 62 trillion VND (the 

 
51  Ministry of Labour, Invalids and Social Affairs – International Labor Organization 

(2013), “Prevention and Elimination of Child Labor in Agriculture and Fishing 
Sectors in a Raft Village. Documenting Potential Modeling in Ma Da Commune, 
Vinh Cuu District, Dong Nai Province” International Program on Elimination of 
Child Labor (IPEC), ILO Office in Vietnam. – Hanoi, 2013 at 21. 

52  Ministry of Labour, Invalids and Social Affairs – International Labor Organization 
(2013), “Prevention and Elimination of Child Labor in Traditional Craft Villages 
Wood and Stone Crafts. Documenting the Potential Model in Hien Giang 
Commune, Thuong Tin District, Hanoi City". International Program on the 
Elimination of Child Labor (IPEC), ILO Viet Nam Office. – Hanoi, 2013 at 10. 

53  Muhammad Bahrul Ulum & Dina Tsalist Wildana, “Promoting the Right to 
Education through A Card: A Paradox of Indonesia’s Educational Policy?” (2019) 4:1 
Journal of Indonesian Legal Studies 143–160 at 150. 

54  Vietnam Social Insurance (2021), Report on the results of leadership and 
management in 2020 and directions and tasks in 2021, January 11, 2021. 

55  Ibid. 



462 | Impact of Economic Downturn on Child Labor in Vietnam 

 

first time),56 for both employees and self-employed people across the 
country, so it is difficult to determine the beneficiaries. It is the reason that 
this support is difficult to quickly and promptly reach those who need help. 
While the Government timely supports employees and self-employed 
people to overcome difficulties due to the impact of COVID-19, it will 
limit children's participation in labor. Thus, the Government should assign 
local authorities to identify the self-employed to receive timely support to 
solve this situation. When workers affected by the economic downturn 
receive timely help, it will help their families' lives be less disturbed, help 
them have the opportunity to find suitable jobs, adapt to new situations, 
and not fall into unnecessary tragedies. This policy is the basis for reducing 
child labor in Vietnam. In July 2021, with the recent outbreak of COVID-
19, the Government of Vietnam enacted a social security support package 
with 26 trillion VND (the second time)57 and overcome procedural 
limitations so that people in need can receive support in time. 

The Government and business should issue and implement comprehensive 
solutions to promote economic recovery. They are essential to minimize the 
negative impacts of the economic downturn, particularly against child 
labor. First, the Government needs to accelerate the implementation of 
public investment to help the economy recover from the COVID-19 
recession and create more direct jobs in the short term and other indirect 
jobs in a long time. The Fiscal Monitor of the International Monetary 
Fund (IMF) estimates that a 1 percent GDP increase in public investment 
in advanced economies and developing markets can move GDP up by 2.7 
percent and private investment by 10 percent. Above all, they, directly and 
indirectly, make somewhere in the range of 20 and 33 million jobs.58 In 
Vietnam, the General Statistics Office (GSO) estimates that for every one 

 
56  The Government Resolution No 42/2020/NQ-CP, April 09, 2020, on measures to 

support people affected by the COVID-19 epidemic. 
57  The Vietnam Government Resolution No 68/2021/NQ-CP, July 01, 2021, on 

policies to support COVID-19-hit employees and employers. 
58  International Monetary Fund, Fiscal Monitor: Policies for the Recovery (International 

Monetary Fund, 2020) at x. 



463 | LENTERA HUKUM 

 

percentage point increase in public investment, GDP will rise by 0.06 
percentage points.59  

In addition, the Government also needs to issue policies to help businesses 
overcome the economic downturn; some guidelines have been published 
and implemented by the Vietnamese Government, such as (1) reducing 
15% of the land rent to be paid in 2020 for enterprises, organizations, 
households, and individuals that are directly leased land by the State 
according to Decision and/or contract of competent State agency in the 
form of annual rent payment, who has to stop production and business due 
to the effect of Covid-19 pandemic;60 (2)  exempting the guarantee charge 
arising in 2020 for government-guaranteed loans to aviation businesses 
with outstanding loans until December 31, 2019;61 (3) reducing by 50% the 
price takeoff, landing ships flying and operating services prices fly away, 
come for flights flying inland from March to the end of September 2020;62 
(4)  reducing 2% interest rates for direct loans, indirect loans for small and 
medium enterprises from the Small and Medium Enterprises Development 
Fund;63 (5) reducing 30% of the corporate income tax payable for 2020 for 
small and micro enterprises to support in the context of the COVID-19 
pandemic.64 However, according to experts, reducing tax and land rent does 
not help businesses overcome difficulties.65 The Government needs a 
comprehensive solution to support enterprises to recover from the influence 
of COVID-19. When the economy is restored, and more workers have 
jobs and incomes, their lives and that of their families will be improved, 

 
59  Nhan Dan, "Public investment is a major driver of Vietnam's economic growth in 2020,” 

online: <https://en.nhandan.vn/business/tem/9450202-public-investment-is-major-
driver-of-vietnam%E2%80%99s-economic-growth-in-2020.html>. 

60  Resolution No 84/2020/NQ-CP of the Government on May 29, 2020, Regarding 
the tasks and solutions to continue to remove difficulties in production and business, 
accelerate the disbursement of public investment and ensure social order and safety in 
the context of Covid-19 pandemic. 

61  Ibid. 
62  Ibid. 
63  Ibid. 
64  Ibid. 
65  National Economic University (NEU) & Japan International Cooperation Agency, 

Assessment of Policies to Cope with COVID-19 and Recommendation NEU-JICA Report 
(Hanoi, Vietnam: NEU & JICA, 2020) at 4. 



464 | Impact of Economic Downturn on Child Labor in Vietnam 

 

and it will have a positive impact on the reduction and elimination of child 
labor. 

Nevertheless, perfect legal regulations prevent and eliminate child labor. In 
addition to specific legal provisions aimed at recovering the economy and 
helping businesses overcome the recession caused by the COVID-19 
pandemic, the law also needs to clearly define the content of the concept of 
“child labor” to the prevention and elimination of child labor is made easier 
in practice. It is important to reiterate that child labor is the use of children 
to work contrary to the provisions of the law. Many experts believe that it is 
appropriate for Vietnamese law to stipulate that children are under 16 years 
old.66 However, in Vietnam, children aged 16 to under 18 suffer from many 
disadvantages and unfortunate influences, such as being exploited, 
trafficked, kidnapped, abused, neglected, and abandoned. Meanwhile, 
Vietnam's current policies and legal regulations on the protection, care, and 
education of children mainly focus on the group of under 16 years old 
without due attention to the group of children - young people from 16 to 
under 18 years old.67 Therefore, the author recommends that Vietnamese 
law stipulate that children should be understood as persons under the age 
of 18 as regulated in the United Nations Convention on the Rights of the 
Child to protect children better, including the prevention and elimination 
of child labor. 

For jobs children can participate in, Vietnam's labor law only stipulates a 
list of light jobs that people from full 13 to fewer than 15 years old can 
do.68 According to Vietnam Labor Code 2019, employers may not recruit 
and employ persons under 13 years, except for arts and physical training 
and sports. Those jobs are regarded as not harmful to these persons' 

 
66  LTK Van & VC Giao, Legal Age of Children Under Vietnamese Law Debates and 

Perspectives (Hanoi, Vietnam, 2019). 
67  Bảo Yến, “It is necessary to improve the law on the protection of children from full 16 to 

under 18 years old according to the international convention on the rights of the child,” 
online: <https://quochoi.vn/UserControls/Publishing/News/BinhLuan/pFormPrint 
.aspx?UrlListProcess=/content/tintuc/Lists/News&ItemID=44693>. 

68  Appendix II, Circular No. 09/2020/TT-BLDTBXH on November 12, 2020, of The 
Ministry of Labor, Invalids and Social Affairs, Detailing and guiding the 
implementation of some articles of the Labor Code on minor workers. 



465 | LENTERA HUKUM 

 

physical, intellectual, and personality development. They shall get the 
consent of specialized agencies in charge of labor under provincial-level 
People’s Committees.69 In addition, the labor law also stipulates a list of 
jobs that harm the physical, intellectual, and personality development of 
minors;70 the list of workplaces that harm the physical, mental, and 
personality development of minors.71 Therefore, any entity that employs 
minors to do prohibited jobs or work in such prohibited places will be 
handled by the law. However, the regulations on handling administrative 
violations for violations against the rules on minor labor only sanction the 
employer–the entity that hires or employs the employee to do the job for 
themselves under the agreement) to commit this violation.72  

The criminal handling of crimes against regulations on employees under 16 
years old is also difficult. It has been a prevalent challenge in many 
developing countries, which includes Indonesia. The Indonesian 
Government included child labor as a criminal act for employers, but its 
implementation remains arduous to enforce.73 One of the cases for unlawful 
handling is that the violation has been sanctioned for administrative 
violations of this behavior. When children do prohibited jobs and 
workplaces for their own families, Decree 28/2020/ND-CP cannot be 
applied to administrative sanctions and also faces difficulties when dealing 
with children's criminal prosecution in this case. Besides, Decree No. 
143/2013/NĐ-CP stipulates that anyone who forces a child subject to 
social protection (children under 16 years old with no source of support) to 
do hard, hazardous, dangerous labor shall be subject to a fine of from 

 
69  Clause 3, Article 145 Vietnam Labor Code 2019. 
70  Appendix III, Circular No. 09/2020/TT-BLDTBXH on November 12, 2020, of 

The Ministry of Labor, Invalids and Social Affairs, Detailing and guiding the 
implementation of several articles of the Labor Code on minor workers. 

71  Ibid. 
72  Article 28, Decree No. 28/2020/ND-CP, March 01, 2020, of Government, 

Providing penalties for administrative violations in the fields of labor, social 
insurance, and overseas workforce supply under contract. 

73  Vience Ratna Multiwijaya, “Perlindungan dan Sanksi Pidana bagi Pemberi Kerja Anak” 
(2018) 1:1 Hukum Pidana dan Pembangunan Hukum 6 at 5. 



466 | Impact of Economic Downturn on Child Labor in Vietnam 

 

5,000,000 VND to 10,000,000 VND.74 Thus, this regulation only protects 
children subject to social protection, not all children. The omission in the 
two Decrees mentioned above has led to using child labor for the family or 
business household has not yet been prevented. To prevent and eliminate 
child labor, these legal obstacles need to be amended.  

Finally, raising awareness in preventing and eliminating child labor. There 
is a need to strengthen propaganda to raise awareness of people and 
businesses about the prohibition of using child labor, especially using child 
labor to do terrible jobs. Families, schools, and employers need to be 
acutely aware of the long-term harmful effects of child labor on children 
and their families and society as a whole. 

 

V. CONCLUSION 

The economic recession impacts all socio-economic aspects, especially an 
increase in child labor. The economic downturn is why children have to 
leave school early to earn a living or join the labor force to help support the 
family economy. When participating in child labor, they face many risks 
such as not ensuring working hours, not ensuring occupational safety and 
workplace hygiene, or being forced to work. The study suggests different 
solutions to prevent and eliminate child labor. It is necessary to have 
appropriate welfare policies to support workers and their families through 
the difficulties of the economic downturn. At the same time, the guidelines 
to restore and promote economic development need to be effectively built 
and implemented because it will create more jobs and better working 
conditions and income for workers. In addition, legal policies on the 
prevention and abolition of child labor also need to be completed and 
effectively implemented. These solutions are a sustainable basis for children 
to study and not work to earn a living. 

 

 
74 Article 5, Point c, Clause 2 Decree No. 143/2013/NĐ-CP October 29, 2013, of 

Government, Regulations on sanctioning administrative violations in social 
protection and children's and the safety of children. 

 



467 | LENTERA HUKUM 

 

ACKNOWLEDGMENTS 

None. 

 

COMPETING INTEREST 

The author declared that she has no competing interests. 

 

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