Journal of Stock & Forex Trading

Journal of Stock & Forex Trading
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Review Article - (2016) Volume 5, Issue 2

Determinants Affecting Vietnamese Laborers Decision to Work in Enterprises in Taiwan

Thanh-Tuyen1, Tran1 and Nhu-Ty Nguyen2*
1Scientific Research Office, Lac Hong University No. 10 Huynh Van Nghe, Buu Long ward, Bien Hoa City, Dong Nai, Vietnam
2International Relations Office, Lac Hong University No. 10 Huynh Van Nghe, Buu Long Ward, Bien Hoa city, Dong Nai, Vietnam
*Corresponding Author: Nhu-Ty Nguyen, International Relations Office, Lac Hong University No. 10 Huynh Van Nghe, Buu Long Ward, Bien Hoa City, Dong Nai, Vietnam, Tel: (+84) 613-953-128 Email:

Abstract

The developed countries like South Korea, Japan, Taiwan, and the Middle East have been considered as new emerging labour export markets of Vietnam since the late 20th-century. There are many reasons for Vietnamese citizen to choose and go abroad for working and earn the living. Thus, this study aims to explore factors influence on Vietnamese laborers’ decision of working in Taiwan. To obtain the objectives, the authors have drawn out a theoretical framework, and questionnaire was designed based on the real context of working environment of Vietnamese workers in Taiwanese factories. The data were collected in Taipei and Kaohsiung and carried out by using multiple statistical analyses, including: exploratory factor analysis, reliability analysis, mean point value, and multiple linear regressions. One of the important results shows that the most significant factors affecting Vietnamese migrant’s decision to work in Taiwan were individual capacity, impacts from family, and financial reasons. Through this study, the researchers hopes to provide useful findings for policy makers and government who have responsible for protecting migrant workers’ rights and for anyone who cares about positive and negative sides of working abroad.

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Keywords: Services labor migration, Overseas, Exploratory factor analysis, Career choice decision

Introduction

Labor export has been considered as an important part of Vietnam’s social economic development strategy since the beginning of the renovation era [1]. According to Ministry of Labor and Social Affairs [2], the population of Vietnam reaches 90 million in 2013, with more than 400,000 Vietnamese workers working abroad in 50 countries and territories sent through 150 manpower companies. Taiwan, Korea, Japan and Malaysia are the major destinations for Vietnamese laborer migrants.

Vietnamese workers in Taiwan are mainly working for the sectors of manufacturing, construction, engineering, textiles, agriculture and furniture. According to the Ministry of Labor, 37394 Vietnamese employees were working in Taiwan in 2013, accounting for more than 53.2% of the total Vietnamese workers working abroad and much larger than the number of employees working in other markets (Japan 7,130 employees; Malaysia 6,280; Laos 4,549; Korea 4,219, etc.) so that Vietnam supplies a very large source of labor for this country.

Almost Vietnamese immigrant workers come from various areas in Vietnam such as Nghe An, Hai Phong, Ha Tinh, Thanh Hoa, Bac Giang, Phu Tho, Hanoi, and Ho Chi Minh city [3]. They could return from Taiwan between 2010 and 2013 to save about US$ 6,900 after three years of working.

In Taiwan, Vietnamese workers are provided with good job opportunities and salaries, but some have been reported to be in violation of labor rights [4]. While most immigrants live and work legally, some are reflected of irregular status and breaking contract. To understand the current situation of Vietnamese overseas workers and to protect their labor rights are the major research objectives.

Although Taiwan is one of the leading labors export markets of Vietnam [5], there is very few scholars has examined factors affecting Vietnamese migrant workers’ decision to work in this country. The authors have done this research with the evidence coming most directly from practical management style of Taiwanese businesses by using the tools of interviewing and questionnaire. The research creates an opportunity for Vietnamese overseas workers to speak out their expectation, thoughts and feelings towards their working environment. This research may also contribute to protect the legal right of overseas laborer [6].

A major implication for this research is that the findings may address the factors which determine Vietnamese overseas workers’ decision to work in Taiwan, and may give better understanding on Vietnamese workers’ perception and feelings towards Taiwanese entrepreneurs. The results of this study can also be used as reference for any Taiwanese entrepreneur who is interested to attract laborers from Vietnam and also for any companies which are interested to improve overseas workers’ expectation.

Literature Review

Theory of career choice

The concept of career was differently defined by many authors. Barley and Kunda [7] suggest that career could be identified as sequences of positions held by a typical or ideal candidate. Tharenou [8] defined career as a property of an organization which can be seen as mobility path within a single organization. Career is also stated as the pattern of work related experience that span the course of a person’s life [9].

Lent et al [10] noticed that there are two conditions are required to meet career choice such as: availability of alternative career options and an individual preference between the career options. Also according to Lent et al. [11] numbers of career options available to a certain individual depend upon individual factors. Individual factors consist of education, family background, attitudes etc. while external factors include labour market, state of the economy, etc.

Mau [12] mentioned about some factors might influence individuals’ career choice: (1) personal traits (e.g. character, selfreliance, dependability), (2) group and organizational characteristics to influence the focal individual, such as salary and compensation, workload, labour safety, promotion and awards, (3) characteristics of other community members such as colleague attitude and relationship, supervisor or support from top management [13].

After reviewing carefully reference, the author listed out six aspects of career choice that can be summarized into some groups of variables as the followings:

(1) Individual Capacity or intrinsic variables can be described by job experience; skill; job position and characteristic; qualification; physical and demand.

(2) Extrinsic variables can be described by educational opportunities; success stories of friends, family; knowledge about labor market.

(3) Familial variables can be described by lack of acess to other careers; political power; parents/spouses’ expectation, family background.

(4) Financial variables can be described by the cost of labor brokers; the mortgage payments; the policy of bonuses, awards, incentives, overtimes; tax income, insurance, eating and living fee abroad; Salary and compensation.

(5) Religion and customs variables can be describes as personal life and belief.

(6) Labor policy variables can be describes as labor protection and welfare; policies related to foreign workers first aid facilities; help from Vietnamese community in Taiwan.

Theory of job satisfaction

Job satisfaction and career choice have a very close relationship. For a cross-cultural competency, job satisfaction is particularly important because it has a direct influence on company performance. To make employee satisfied with their job and keep them work well with different people from different cultures, it is necessary for the entrepreneurs to determine the factors associated with labourers’ expectation about an ideal career choice [14].

Job satisfaction is a worker’s sense of achievement and success on the work. It is usually found directly related to productivity as well as to personal well-being and implies enthusiasm and happiness with one’s work. Job satisfaction is an important component leading to recognition, income, promotion, and the achievement of other objective that lead to a feeling of accomplishment [15].

Vietnamese oversea workers

Vietnamese international labour migration in recent years has contributed significantly to poverty reduction, construction and development in Vietnam. According to the study of Wang and Chang [16], almost migrant workers come from rural areas; possess limited skills and foreign language abilities that have made them reluctant to participate in social activities in their host countries. Many migrant workers have only a limited understanding of the laws, culture, practices and customs of their host countries because they were not given the necessary pre-departure information and training. Furthermore, their skills often do not meet the requirements of their employers, while some are not familiar with working in an industrial setting in accordance with strict labour regulations [13]. The illusion of a high income abroad, combined with the frustration of the reality of their employment situation in host countries, results in many migrants adopting a negative attitude towards their jobs, and in some cases prompts them to violate their employment contracts [17]. Therefore, carefully attention must been paid to migrant workers before their departures in order to enhancing their awareness and understanding of labour migration laws.

The management of Vietnamese overseas labourers still faces many challenges, because of lacking official representatives based in host countries, as well as high turnover of embassy staff [18]. Besides, Vietnamese officials in these countries are not always prepared to handle cases of Vietnamese migrants who get involved with thieves, robbers, violence, gambling, substance abuse or illegal trading [19]. As a result of these, follow-up of issues linked to Vietnamese labour migrants in host countries is often limited, passive and slow.

In spite of difficulties and limitations mentioned above, the majorities of Vietnamese workers are accepted in overseas labour markets and are respected by their employers for their creativity, productivity and work ethic. The income of Vietnamese workers overseas is relatively stable and is about two to three times higher than domestic income in the same occupations. The average income of Vietnamese workers, after deducting all personal expenses, ranges from VND 15-20million per month in South Korean and Japanese markets [20].

Vietnam sent only about 1000 workers abroad per year at the beginning of 1990s, but the number of Vietnamese migrant workers subsequently steadily increased. Table 1 shows the statistical number of Vietnamese migrant workers working overseas.

Year Korea Japan Taiwan Malaysia Africa and the Other
Middle East
2000 7316 1497 8099 239 34 14315
2001 3910 3249 7782 23 1094 20110
2002 1190 2022 13191 19965 408 9166
2003 4336 2256 9069 38227 750 362
2004 4779 2752 37144 14567 938 7267
2005 12102 2995 22784 24605 1276 6872
2006 10577 5360 14127 37941 5246 5604
2007 12187 5517 23640 26704 6184 10788
2008 18141 6142 31613 7810 11113 12153
2009 7578 5456 21677 2792 16083 19442
2010 8628 4913 28499 11741 10888 20877
Total 90744 42159 217625 184614 54014 126956
Unit: Person; Source: Department of Overseas Labour

Table 1: Number of Migrant Workers by Major Destination, 2000-2013.

Methodology

Research design

This empirical study was conducted by using survey to examine factors affecting Vietnamese migrant workers’ decision to work in Taiwan. A questionnaire was developed to collect information from Vietnamese labourers at Taiwanese factories in Kaohsiung and Taipei cities.

Measurement instrument

The questionnaire composed of three sections: (1) Section one collects the demographic information of respondents; (2) Section two collects the response on the six sub-scales of making a career choice, including individual capacity, extrinsic factors, familial factors, financial factors, cross-cultural competency, and labour policy; (3) Section three contains one additional question asking Vietnamese overseas workers’ general evaluation towards six determinants that impact on Vietnamese labourers’ decision to work in enterprises in Taiwan.

These items were in the form of five-point Likert scale. Options were ordered as; “Strongly dissatisfied”, “dissatisfied”, “Undecided”, “satisfied” and “Strongly satisfied”. The answers were ordered from “Strongly dissatisfied” to “Strongly satisfied” by grading them from 1 to 5.

Data collection

Data set was collected by the author from May 2014to October 2014, a study period of 6 months. The authors visited Taiwanese factories to survey the Vietnamese in Kaohsiung and Taipei areas. There were totally 240 questionnaires delivered; however, there were only 214 pieces collected with only 200 valid observations with the ratio of 83.33%.

Method of data analysis

Descriptive statistic: Descriptive statistic is defined as a set of brief descriptive coefficients that summarizes a given data set, which can either be a representation of the entire population or a sample [21]. Measures of central tendency include the mean, median and mode, while measures of variability include the standard deviation (or variance), the minimum and maximum variables. Descriptive statistics provides a useful description of the basic features of a collection of the data in a study. Together with simple graphics analysis, they form the basis of virtually every quantitative analysis of data. In this study, the researcher uses percentage and frequency to present the demographic characteristic of respondents.

Questionnaire reliability: Reliability indicates degrees of consistency between multiple measurements of a variable.

Firstly, we consider consistency of the entire scale, which Cronbach’s alpha being the most widely used measure. The lower limit for Cornbrash’s alpha is 0.70, although it may decrease to 0.60 in exploratory research. The present study adopts [22] suggestions with the value 0.6 deemed the lower limit of acceptability (Table 2). Next, to measure item reliability, we regard on the item-to-total correlation (the correlation of the item to the summated scale score). It is suggested that the item-to-total correlations should exceed 0.3.

Cronbach’s Alpha Internal Consistency
0.90 = a Excellent
0.70 = a <0.90 Good
0.60= a <0.70 Accepteable
0.50= a <0.60 Poor
a <0.50 Unacceptable

Table 2: Cronbach’s Alpha-Rule of thumb.

Exploratory factor analysis (EFA): In multivariate statistics, exploratory factor analysis (EFA) is a statistical method used to uncover the underlying structure of a relatively large set of variables. According to Thompson [23], EFA is a technique within factor analysis whose overarching goal is to identify the underlying relationships between measured variables. It is commonly used by researchers when developing a scale (a scale is a collection of questions used to measure a particular research topic) and serves to identify a set of latent constructs underlying a battery of measured variables. It should be used when the researcher has no a priori hypothesis about factors or patterns of measured variables. Measured variables are any one of several attributes of people that may be observed and measured. An example of a measured variable would be one item on a scale. Researchers must carefully consider the number of measured variables to include in the analysis. EFA procedures are more accurate when each factor is represented by multiple measured variables in the analysis. There should be at least 3 to 5 measured variables per factor. Our study applied EFA as a highly useful and powerful multivariate statistical technique for effectively extracting information from large bodies of interrelated data. When variables are correlated, we manage these variables by grouping highly correlated variables together, labeling or naming the groups (Table 3).

No. Parameters Values
1 Kaiser-Meyer-Olkin (KMO) = 0.50
2 Bartlett's Test of Sphericity significance < 0.05
3 Eigenvalue > 1.00
4 Total variance explained = 50%
5 Factor loading = 0.40

Table 3: Summary of criteria of EFA used in this study.

Multiple regression analysis: Regression analysis is a statistical tool for getting to know the relationships between variables.

The basic formulation of regression analysis is as the following:

image

Where y: dependent variable

- x1, x2,…, xn: independent variables.

- a0:intercept

- a1, a2,…, an: Regression coefficients

The regression coefficient represents the estimated change in the dependent variable for a unit change of a relevant independent variable while others are kept unchanged. The regression coefficients can be achieved through least squares (LS) method.

The term “least squares” is usually used to solve over-determined or inexactly specified systems of equations in an approximate sense. Instead of finding an exact solution for an equation, it is only necessary to minimize the sum of the squares of the residuals. Nowadays, the least square method is widely used to estimate the numerical values of the parameters to fit a function to a set of data and to characterize the statistical properties of estimates [24]. There are several variations of least squares; such as, its simple version is called ordinary least squares (OLS), a more advanced version is called weighted least squares (WLS), which often outperforms OLS because it can modulate the importance of each observation in the final solution. Recent variations of the least square method are alternating least squares (ALS) and partial least squares (PLS).

The ordinary least square (OLS) method defines the estimate of these parameters as the values which minimize the sum of the squares between the measurements and the model. Let image & image be respectively the measurement and model values of entry ith; the residuals of this model is defined as:

image

The OLS method is expressed as:

image

Nowadays, with the great advances in computer technology and software, the parameters a0, a1, a2,…, an in the regression models are easily obtained. After the parameters are determined, it is of great importance to test the significance of the overall model and of each regression coefficients. With the outputs from computer-programs, the significance of the overall model is determined by comparing the significance of F-statistics (F-sig.) in ANOVA statistics with a given significance. If the F-sig. is higher than the given significance, the model is not good enough; or it can be said that the model is not fit to actual data set in the real phenomena. If it is concluded that the model is statistically significant, the model is confidently said to be not specific to just this sample but would be expected to be significant in multiple samples from this population. The given significance level is usually chosen at 0.05 (or 5%). Whereas, a variable is said to be statistically significant if the T-statistics significance is not greater than a given significance. The given significance level is actually the probability that a decision to reject a certain hypothesis will be made when it is in fact true and should not have been rejected. If a variable in the regression model is said not to be statistically significant, it should be dropped out from the model.

The parameters a0, a1, a2,…, an are often referred to as the metric regression coefficients. It is often difficult to say which of the independent variables has the most influence in determining the value of the dependent variable, because the value of the regression coefficients depends on the choice of units to measure the variable itself. When there is a need to figure out which of the independent variables with different units of measurement has greater impact on the dependent variable, the regression coefficients must be standardized. The standardized regression coefficient represents the change in dependent variable for a change of one standard deviation in an independent variable. The standardized coefficients can be easily recognized from the coefficient output window of SPSS.

Based on the above-mentioned basics on regression analysis, it is therefore strongly suggested to apply regression analysis to this study to find out the importance role of each factor to the overall satisfaction level.

Data Analysis and Results

Description of the sample

Table 4 shows the description of the sample.

  Category Frequency Percentage
Gender Female 83 28.7
  Male 206 71.3
Education College’s 47 16.3
  Bachelor’s 137 47.4
  Master’s 69 23.9
  Ph.D. 36 12.5
Age <20 88 3.04
  21~35 152 52.6
  36~45 28 9.7
  46~55 9 3.1
  Above 55 12 4.2
Income $300USD-$50USD 67 23.2
  $50USD-$1000USD 88 30.4
  Above $1000USD 21 73
Have you ever gone to shopping online? 1 to 3 times per year 9 3.1
  3 to 5 times per year 219 75.8
  Every month 61 21.1
Products/Merchants Clothes 100 33.3
  Electronics Applicants 94 31.3
  Cosmetic Products 24 8.3
  Food 64 22.1
  Others 7 2.3
Amount of online time per day 1 hour – 2 hour per day 25 8.3
  5 hour – 6 hour per day 132 44
  All day 143 47.7
Total   300 100%

Table 4: Statistics of the sampled respondents’ characteristics.

Explore factor analysis for the measurement scales

In this section, exploratory factor analysis (EFA) was carried out to identify the underlying relationships between measured variables. In the current research, the author uses the method of principal axis factoring with varimax rotation. This method helps to reflect data structure more exactly. The measurement in this current study includes 06 determinants with 30 variables: (1) Individual Capacity determinants, (2) Extrinsic determinants, (3) Familial determinants, (4) Financial Reasons determinants, (5) Cross-cultural Competency determinants, and (6) Labour Policy determinants. As shown in Table 5, the KMO is 0.907 and the significance of Bartlett’s Test of Sphericity is lower than 0.000. Therefore, based on the criteria in Table 3, it can be said that using EFA in this study is appropriate.

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.907
Bartlett’s Test of Sphericity Approx. Chi-Square 3455.251
df 253
Sig. 0

Table 5: KMO and Bartlett’s test.

After doing factor reduction, we have 23 variables remained in measurement scale (Table 6). The EFA divided 23 items into 6 significant underlying determinants:

Component 1 2 3 4 5 6
X1 0.651 -- -- -- -- --
X2 0.828 -- -- -- -- --
X3 0.731 -- -- -- -- --
X4 0.701 -- -- -- -- --
X5 0.738 -- -- -- -- --
X7 -- 0.871 -- -- -- --
X8 -- 0.868 -- -- -- --
X9 -- 0.997 -- -- -- --
X10 -- -- 0.8 -- -- --
X11 -- -- 0.6 -- -- --
X12 -- -- 0.7 -- -- --
X14 -- -- 0.7 -- -- --
X15 -- -- -- 0.866 -- --
X16 -- -- -- 0.886 -- --
X17 -- -- -- 0.837 -- --
X18       0.865    
X20 -- -- -- -- 0.7 --
X21 -- -- -- -- 0.6 --
X23 -- -- -- -- 0.8 --
X24 -- -- -- -- 0.8 --
X26 -- -- -- -- -- 0.9
X27 -- -- -- -- -- 1
X28 -- -- -- -- -- 0.9
X29 -- -- -- -- -- 1
Extraction Method: Principal component analysis. Rotation Method: Varimax with kaiser normalization. Note: Rotation converged in six iterations

Table 6: Pattern matrix.

▪ 5-item scale of Individual Capacity determinant: X1, X2, X3, X4, X5

▪ 3-items scale of Extrinsic determinant: X7, X8, X9

▪ 4-item scales of Familial determinant : X10, X11, X12, X14

▪ 4-item scales of Financial Reason determinant: X15, X16, X17, X18

▪ 4-item scales of Cross-Cultural Competency determinant: X20, X21, X23, X24

 4-item scales of Labour Policy determinants: X26, X27, X28, X29

As shown in Table 7, the eigenvalues for the first five components are all greater than 1 and these factors account for more than 71% of the total variance. This suggests that the scale items are one-dimensional.

Component Initial Eigen Values % of Variance Cumulative % Extraction Sums of Squared Loadings % of Variance Cumulative % Rotation Sums of Squared Loadings % of Variance Cumulative %
Total     Total     Total    
1 10.361 45.048 45.048 10.361 45.048 45.048 6.94 30.173 30.173
2 2.333 10.144 55.193 2.333 10.144 55.144 3.781 16.44 46.613
3 1.431 6.146 61.338 1.413 6.146 61.338 2.897 12.597 59.132
4 1.254 5.45 66.789 1.254 5.45 66.789 1.466 6.374 65.506
5 1.032 4.488 71.277 1.032 4.488 71.277 1.327 5.771 71.277
6 0.871 3.787 75.605            
7 0.746 3.244 78.39            
8 0.665 2.891 81.199            
9 0.563 2.446 83.645            
10 0.546 2.374 86.02            
11 0.495 2.154 88.173            
12 0.417 1.813 89.986            
13 0.332 1.445 91.431            
14 0.323 1.401 92.835            
15 0.3 1.303 94.183            
16 0.266 1.156 95.294            
17 0.242 1.053 96.347            
18 0.222 0.964 97.311            
19 0.169 0.736 98.047            
20 0.146 0.635 98.682            
21 0.117 0.507 99.189            
22 0.114 0.497 99.685            
23 0.072 0.315 100            

Table 7: Total variance explained.

Reliability analysis

One of the most important usages of reliability is to test the internal consistency which applies to the consistency among variables in a summated scale. Its rationale is that the individual items or indicators of the scale should all be measured under the same construct for its high inter-correlation. Besides the above rule of thumb, it is also required that the corrected item-total correlation of each item be at least 0.3 so that the items are capable to measure the construct. As shown in Table 8, reliability test was carried on 06 determinants that effect on Vietnamese labors’ decision of choosing working in Taiwan. Cronbach’s alpha for the variables related to 06 determinants were larger than 0.6 which indicates acceptable internal consistency reliability. No item of this subscale was removed based on the item total correlation (>0.30).

Item Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total  Correlation Cronbach’s Alpha if Item Deleted
Individual Capacity Determinant: Alpha=.876
X1 18.4 11.402 0.76 0.84
X2 18.28 12.906 0.748 0.841
X3 18.1 13.618 0.652 0.857
X4 17.88 13.527 0.706 0.849
X5 17.81 12.989 0.649 0.859
Extrinsic Determinant: Alpha=.713
X7 3.83 0.691 0.554 0.632
X8 4.73 0.821 0.654 0.607
X9 3.93 0.691 0.554 0.657
Familial Determinant: Alpha=.710
X10 13.08 6.47 0.522 0.628
X11 13.06 6.388 0.514 0.629
X12 12.64 6.974 0.406 0.671
X14 13.66 6.535 0.567 0.682
Financial  Reason Determinant: Alpha= .808
X15 6.16 2.346 0.644 0.738
X16 5.89 2.705 0.653 0.74
X17 5.63 2.427 0.662 0.727
X18 5.65 2.545 0.654 0.789
Cross- cultural Competency Determinant: Alpha=.767
X20 10.22 3.693 0.568 0.706
X21 10.14 3.512 0.644 0.666
X23 10.42 3.732 0.544 0.719
X24 10.22 3.529 0.51 0.742
Labour Policy Determinant: Alpha=.903
X 26 6.99 3.09 0.841 0.831
X27 6.88 3.145 0.801 0.864
X28 6.81 3.13 0.777 0.885
X29 6.54 3.547 0.745 0.877

Table 8: Cronbach’s Alpha.

Mean value comparison

For the purpose of getting to know the importance level of six determinants affect Vietnamese workers’ decision of working in Taiwan, the mean values of the 06 factors is calculated under the reliability analysis and briefly demonstrated in Table 9. Among 06 determinants of decision-making in choosing to work in Taiwan, financial reason determinant was valued with the highest score (3.782with 1-5 Likert scale).

Determinants Importance Level
Familial Determinant 3.613
Financial  Reason Determinant 3.782
Labour Policy Determinant 3.275
Cross-cultural Competency Determinant 2.945
Extrinsic Determinant 3.417
Individual Capacity Determinant 3.445

Table 9: Summary statistic means value of six determinants.

According to the direct interview and the highest mean scores as shown in Table 10, the items X15 and X16, the cost of labour brokers (4.963) and the mortgage payments (3.521) showed the difficulties of financial problem that Vietnamese workers encountered before their departures. In addition, because of lacking real experience about labor market, some are cheated by labor brokers or unreal companies. It is warning for the Vietnamese workers to carefully prepare forthe real situation of labour export unless they would lose their time and money and to exactly know the real working condition in the factory, the salary paid, the chance of working overtimes, the bonus, insurance and even the eating and living fee, so they would easily to adapt and avoid disappointment.

Item Determinants Importance level
Individual Capacity Determinants
X1 My job skills are suitable with the job characteristics in Taiwan. 3.698
X2 My personality attributes are suitable with job characteristics in Taiwan. 3.898
X3 My knowledge is suitable with the job characteristics in Taiwan. 3.212
X4 My working experience is suitable with the job characteristics in Taiwan. 3.265
X5 The job characteristic in Taiwan meets my mental and physical demands. 3.012
Extrinsic Determinants
X7 My decision to work in enterprises in Taiwan comes from educational opportunities. 3.012
X8 My decision comes from success stories of friends and relatives in Taiwan. 3.523
X9 My decision to work overseas comes from real knowledge of labor market in Taiwan. 3.707
Familial Determinants
X10 Because of family financial situation,I am lack of access to other careers. 4.258
X11 I am influenced by siblings’ career choice. 2.654
X12 I want to meet my spouse/parents’ expeactation. 3.789
X14 I want to support my family. 3.751
Financial Reasons Determinants
X15 The cost of labor brokers influence to my decision. 4.963
X16 The mortgage payments influence to my decision. 3.521
X17 The policy of bonuses and overtimes influences to my decision. 3.144
X18 Policy of tax income, insurance, living fee influences to my decision. 3.5
Cross-cultural Competency Determinants
X20 I can work well in different cultures. 2.694
X21 I can work well in different religions. 3.158
X23 I can work well with different people from diferent background. 2.142
X24 Taiwanese people respect my personal life and belief. 3.786
Labour Policy Determinants
X27 I carefully noticed about help of Vietnamese community in Taiwan. 3.123
X28 I carefully noticed about policy related to tax income and welfare. 2.999
X29 I carefully noticed about policy related to labor protection 3.703

Table 10: Summary statistic mean value of six determinants.

Familial determinant is valued just behind financial reason element with the second highest mean score (3.613 with 1-5 Likert scale). According to the average mean value shown in Table 10, we have to carefully notice the item X10 (Because of family background and situation;I amlack of access to other career) because of its highest mean score. To consider this item, Vietnam Ministry of Labor noticed that millions of young people in the urban area in Vietnam are unemployed and the employed time of rural young people is less than 75% in a year. Less than 15% of young workers receive technical training, and very few have high skills. Many well-trained and capable young people are not properly employed. Also Vietnam has an abundance of low-wage labour. Locals’ wages typically average less than 100 USD per month, but that’s in part because about half of the country’s labour force works in agriculture. The two above elements demonstrate why Vietnamese labours are lack of access to other career and rush to abroad to work. Money is one of the necessary conditions for us to survive, thus lack of money and poor living conditions increase their hope of getting better life outside. When they go abroad to work, they have good opportunity to earn better salary and it would be easier for them to support their parents, wife/husband and children. Therefore, the rest items parents’/pouse/partner’s expectation play a very important role in motivating them to find a job overseas.

Because of their high mean value, extrinsic factors (3.417) and individual capacity factors (3.445) are two determinants that must be carefully considered by Vietnamese workers before making a career choice abroad. Our study has found that three items: (X2) My personality attributes are suitable with job characteristics in Taiwan; (X3) My knowledge is suitable with the job characteristics in Taiwan; and(X5) The job characteristic in Taiwan meets my mental and physical demands have their average mean scores above 3.500 with 1-5 Likert scale, which impress that extrinsic and Individual Capacity factors play a very important role in making a decision to work in Taiwan. In addition, previous studies have confirmed the evidence of the effect of these factors on making a career choice [25,26].

As shown in Table 9, our research study has found that labour policy determinant was valued with pretty high mean score (3.275 with 1-5 Likert scale). Labour policy is very important for migrant foreign workers because it protects their right and priority. Taiwan attracts a lot of Vietnamese labour migrants, especially in the industries of manufacturing and fisheries. Recently, Taiwan issued a new policy system regarding foreign workers working in this country which create favourable conditions for foreign workers in Taiwan, reduce rates of labourers quitting and decreasing unauthorized labour. To prevent the labour brokerage fees from being pushed up too high, since January 7th 2013, Taiwan has officially implemented the provisions on not renewing license or not allowing the establishment of branches of brokerage firms in Taiwan and not to renew the license for the labour export company from the countries having high rates of labourers quitting in the first 3 months after immigration [20]. Also starting from April 1st, Taiwan has implemented an adjusted base salary and the insurance policies for workers are also adjusted. This is considered a positive sign for Vietnam’s labour exports to Taiwan in the near future period.

The determinant of cross-cultural competency has lowest mean score (2.945 with 1-5 Likert scale). However, we cannot deny the influence of this factor during the work and life abroad because it would help the worker easily survive in strange environment. Crosscultural competence refers to the knowledge, skills, and motivation that enable individuals to adapt effectively in cross-cultural environments. Deciding to work abroad is also deciding to be thrust into a new culture and complete with a new language and new customs. Worker must practice self-control in new country. As mentioned above, things are going to be different, while most of the time it will be fun and exciting, it will also be frustrating. If worker decided to work abroad in Taiwan, they are about to live in the new land of opportunity. It’s no secret that Taiwan’s economy has been exploding and shows no signs of stopping. Table 10 clearly shows summary statistic of each item in six factors.

Regression analysis

With the above average mean value level of each determinant, now, it becomes critical to know which determinants have much influence on the decision making of taking a job in Taiwan so that both two countries would decide the priority of its strategies in improving workers’ expectation. To do this, regression analysis is applied.

In this analysis, the importance level (DV) is considered as the dependent variable and the six determinants Individual Capacity, Family, Extrinsic factor, Cross-Cultural Competency, Labour Policy and Financial Reason are independent variables.

The first table of interest is the Model Summary table (Table 11). This table provides the R and R2 value. The R value is 0.881, which represents the simple correlation and, therefore, indicates a high degree of correlation. The R2 value indicates how much of the dependent variable, the satisfaction of employees can be explained by 06 independent variables: Individual Capacity, Extrinsic factor, Family, Financial Reason, Cross-cultural Competency, and Labour Policy.

Model R R Square Adjusted R Square Std. Error of the Estimate Change Statistics
R Square Change F Change df1 df2 Sig. F Change
1 .811a 0.658 0.651 0.487 0.658 93.807 4 195 0

Table 11: Model summary.

In this case 65, 1% can be explained, which is very large.

a. Predictors: (Constant),

b. Dependent Variable: Importance Level (DV)

The next table is the ANOVA table (Table 12). This table indicates that the regression model predicts the outcome variable significantly well. Sig. column (P=0.000) which is less than 0.05 and indicates that, overall, the model applied is significantly good enough in predicting the outcome variable.

Model Sum of Squares df Mean Square F Sig.
Regression 89.094 4 22.274 93.807 .000a
Residual 46.301 195 0.237    
Total 135.395 199      
a.    Predictors: (Constant),
b.   Dependent Variable: Importance Level (DV)        

Table 12: Anova.

The regression output, reproduced in Table 13 shows that Extrinsic factor, Cross-Cultural Competency, Labour Policy are not significant (sig >5%). These variables barely fail to reach significance and drop out of the regression model. They are one by one removed from the regression model.

Model Un-standardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta
  Constant 0.457 0.28 -- 1.631 0.104
Individual Capacity 0.141 0.009 0.733 15.567 0
Extrinsic factor 0.055 0.025 0.103 2.19 0.052
Family 0.028 0.012 0.103 2.395 0.018
  Financial Reason 0.032 0.014 0.102 2.336 0.021
  Cross-Cultural Competency 0.01 0.018 0.027 0.536 0.06
  Labour Policy 0.22 0.016 0.01 2.564 0.065

Table 13: Predictors.

Then, the final results from regression analysis are as in Table 14.

Model Un-standardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta
  Constant 0.457 0.28 -- 1.631 0.104
Individual Capacity 0.141 0.009 0.733 15.567 0
Family 0.028 0.012 0.103 2.395 0.018
  Financial Reason 0.032 0.014 0.102 2.336 0.021

Table 14: Predictors.

Dependent Variable: Importance Level

The unstandardized regression equation: Importance Level=0.457+0.141 Individual Capacity+0.028Family+0.032 Financial Reason)

Thus, the regression model demonstrated that among six determinants, only three determinants: Individual Capacity, Family and Financial Reason have strongest impact on laborers’ decision of working in Taiwanese enterprises.

Main Findings

In this paper, we have discussed the most important determinants of job mobility and the manner in which they affect migrant Vietnamese labor’s decision of working in Taiwan. Overall, we hope that the this paper provides a useful agenda for understanding job mobility of migrant workers, especially the Vietnamese. To sum up, the author would like to state again the research’s results as follow:

The results extracted from exploratory factor analysis and reliability analysis drawn on the final research model for the current study. These steps on the analysis pointed out that six factors (1) Individual Capacity, (2) Extrinsic factor, (3) Family, (4) Financial Reason, (5) Cross-Cultural Competency, and (6) Labour Policy are necessary to build on the research model to measure Vietnamese laborers’ decision to work in Taiwan.

Through multiple linear regressions, the author concluded that only three factors (1) Individual Capacity, (2) Family and (3) Financial Reason have strong impact on laborers’ decision.

Suggestion

Making effective career choice decision is important in a person’s life, as it relates to both individual career development and organizational goal achievement. The study concludes that “Individual Capacity”, “Family” and “Financial Reason” are the most influential factors that influence on career choice decision of working abroad among Vietnamese workers.

One of the strategies we suggest is that the Vietnamese labor market in domestic must work well to prevent brain drain or human capital flight. The job and workers must be matched efficiently so that efficiency and productivity can be increased significantly. Barriers that prevent the brightest people from gaining skills or knowledge must be removed in order to retain the gifted people to stay in domestic. It even touches on the education whereby the education system has to be improved so that it produces quality professionals and skilled workers that fit to the society and demand. This creates suitable and reasonable conditions for Vietnamese worker to have their prior choice of working domestic.

The Vietnamese labour export policy also has its own limitations, including the need of increasing the competitiveness, work opportunities for the workforce, protecting migrant workers’ rights, and improving their welfare. The following recommendations are for the government.

(1) There must be noticed more information about the risks and difficulties of working abroad, particularly announcing to local government and schools in areas of high numbers of migrant workers.

(2) The government and related companies should be concentrating to the pre-departure training. The training should focus more on increasing the efficiency of language skills, vocational training, and providing information relating to protections such as labour laws.

(3) The government should support the workers by decreasing the cost of recruitment fees, increasing income, ensuring good working conditions and good environments. The Vietnamese ambassador should work well to support the immigrants in Taiwan.

Contributions

Making effective career choice decision is important in many aspects, as it leads to ensure both individual career development and organizational goal achievement. The paper attempted to identify the significant factor that influence on career choice decision among migrant Vietnamese workers. The study concludes that three factors (1) Individual Capacity, (2) Family and (3) Financial Reason has strong impact on laborers’ decision. During the study, the research indicates the backlog that exists in the migrant workforce and how to exploit this resource. This decisional perspective, then, provides a framework for researchers to understand and predict individuals’ decisions to pursue a particular type of job mobility. The empirical result of this research may contribute towards exploring determinants that affects job mobility and job decision making of migrant Vietnamese workers in Taiwan enterprises. The study also contributed to other future researches in this field and carried practical significance.

These research findings also have particularly significant for the policy-maker of Taiwanese-owned factories. It reminds the management supporting policies for the labour, who are directly working in the industrial zone. This result may help the owner aware the difficulty of the labour and deal with this emergency. For instance, to enhance the level of satisfaction, the policy-makers should consider worker’s expectation of paying carefully.

Limitation and Future Researches

Due to the limitation of time and simple size, the findings of the study focus only on migrant Vietnamese workers in Taiwan enterprises. Further studies may broaden sample size by interviewing various nationalities. It recommended for future research to do with a larger sample. Secondly, all of the suggested determinants in the survey are subjective questions of researcher, in some cases it may not suitable. Thirdly, there are some factors of company are not mentioned in this study, for instance, work place harassment, dispute resolution, workplace relation, child labour, etc. Finally reason is the researcher lack of some experience and knowledge in this field. However, the findings of this research are the foundation for further study.

Based on the findings, further studies may update the law on labor export by comparing the law with the real situation of Vietnamese irregular migration, including channels of movement, problems, working conditions and quality of life. Target groups of the study could include males, females and children. Moreover, in dealing with return and reintegration, other authors could look at problems and difficulties after returning from working abroad, or compare the labor law of destination countries, in terms of strengths and weaknesses, implementation, problems of the workers while working abroad. Particularly, further studies may look at the main destination countries and new markets working conditions, quality of life, social welfare, and problems then pass the information and knowledge on so workers will be aware.

Acknowledgements

We would like to thank Lac Hong University very much for supporting us to finish researching and editing this study.

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Citation: Thanh-Tuyen, Tran, Nguyen NT (2016) Determinants Affecting Vietnamese Laborers’ Decision to Work in Enterprises in Taiwan. J Stock Forex Trad 5:173.

Copyright: © 2016 Thanh-Tuyen, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
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