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IZA Discussion Paper No. 18845
August 2026
Industrial Automation and Jobs in an Emerging Economy: Evidence from Viet Nam
Omar Arias, Andrés César, Daisuke Fukuzawa, Duong Trung Le

We examine the labor market effects of industrial robot adoption in Viet Nam. Using differences between districts in their initial industrial structure and exposure to global robotization trends, we find that robot adoption between 2014 and 2020 increased employment, wages, and the inflow of skilled workers. More exposed districts also experienced faster growth in value added, labor productivity, and trade flows. Employment and wage gains were concentrated among middle and high-skilled workers, while low-skilled workers were driven into informal employment or out-migration. We also find positive spillovers to neighboring districts, consistent with production linkages and higher demand for non-tradable goods.

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