Labor break the contract, which causes enterprises to lose the market

VCN - According to estimates by the Ministry of Labor, Invalids and Social Affairs, Vietnam currently has about 500,000 employees working in more than 40 countries and territories. And now they face many risks on making a living.
tin nhap 20191121153111 Vietnam’s business climate highlighted at forum in Singapore
tin nhap 20191121153111 VN hopes for more int’l cooperation to combat hi-tech crimes: Deputy Minister
tin nhap 20191121153111 Vietnam honors its FTA commitments by joining ILO Convention 98

The percentage of employees breaking contracts is still high

Ms. Tran Thi Van Ha, Head of Information and Communication Division (Bureau of Overseas Labor Management) said that according to estimates by the Ministry of Labor, Invalids and Social Affairs, Vietnam currently has about 500,000 employees working in more than 40 countries and territories. Each year, they send about US$2 to US$2.5 billionto their country.

According to the Law on Vietnamese workers going to work abroad, there are four forms of Vietnamese people working abroad, including: Working abroad through contracts of service companies; individual contracts; enterprises winning projects abroad and enterprises sending laborers away; and workers abroad under vocational training.

Every year, more than 100,000 workers go to work abroad in these four forms. In 2018 alone, there were more than 146,000 people. Currently Taiwan (China) is still considered one of the markets with the highest Vietnamese workers. However, in recent years, the number of workers in Japan has increased significantly, surpassing workers to Taiwan (China) by65,000.

Some markets have bright spots recently in Europe, like Romania and Poland where middle-class workers can participate. Although the number of workers is only a few thousand, they are choosing to pilot with these markets. In particular, we are very cautiousto avoid breaking contracts to affect this potential labor market.

Although the number of overseas workers has increased rapidly, the proportion of Vietnamese workers breaking contracts remains high. For example, the Taiwan market (China) currently has over 22,000 illegal workers, while in South Korea, there are about 15,000.

“The reason is related to high fees; working conditions, many centers recruit people through intermediaries, so they do not announce specific information, details about the environment and working conditions. Therefore, workers feel frustratedwhen working and try to escape. Besides,the workers had the opportunity to find another job with better income, so theyescape. Many cases were arrested and deported,”Ms. Ha added.

For the Japanese market, according to Ms. Tran Thi Van Ha, the number of workersescaping also increased. In 2016, more than 2,000 workers escaped, nearly 5,500 workersleft and violated the lawin 2018.

The cause of workers escaping is that there are many strict regulations in Japan. Besides, our international students go to school butactually go to work through many other forms.

tin nhap 20191121153111
Currently Vietnam has about 500,000 employees working in more than 40 countries and territories around the world. Photo: Internet.

Implement cost reduction measures

From the perspective of an enterprise operating in the field of labor export, Mr. Le Nhat Tan, Deputy General Director of LOD Company, emphasized that many people believed that Vietnamese workers broketheir contracts towork outside because of highcosts, but from an enterprise perspective, he thought that there were programs without high fees, such as programs implemented by the Ministry of Labor, Invalids and Social Affairs.In addition,the escaping labor rate was high because workers believed that could not come back when they were familiar withthe working environment in that country, familiar with culture, customs, climate and high income. And they could not work with such a high income when they came back. Although there was a percentage of breaking the labor contract because of the high service cost, but it was not so with LOD.

Speakingabout the consequences enterprises suffer due to the workers escaping, Mr. Le Nhat Tan said that escaping labor caused loss of reputation forenterprises and enterprises violated contracts with partners. Meanwhile, the prevention of escaped labor is the highest provision that enterprises must assure partners.This is also what makes the enterprises concerned,because both their reputation and financial results would be impacted.

“Because of the escapes, our market will not be sustainable. Because it is very difficult for enterprises to sign contracts to send workers abroad, but it is very difficultfor the people who come after, even the enterprises lose the entire contract, close the market such as Taiwan and South Koreawhen the labor escaped the contract,”said Mr. Le Nhat Tan.

In order to minimize escaping workers, the Bureau of Overseas Labor Management has asked enterprises to tighten the training and selection process. In the future, in the Law on sending Vietnamese workers to work abroad (amended), the Bureau allows labor export enterprises to associate with vocational schools to recruit skilled workers. In addition, specific notice will be given to each enterprise, the units with a high rate of illegal labor will be subject to stronger sanctions.

tin nhap 20191121153111 Vietnam realizes international labor standards

Ratifying and following international labor standards has become increasingly important to improving Vietnam’s competitive edge.

At the same time, it will tighten the tasks, selection process, training of sending enterprises, minimize administrative procedures forenterprisesin accordance with the laws of Vietnam,the laws of the host country and international conventions.Thereby, efforts will be made to reduce the cost of servicesby strengthening the legal framework to ensure the benefits for workers and the sending enterprises. This law is expected to be passed by the National Assembly in 2020.

By Xuan Thao/ BInh Minh

Related News

Proactive in dealing with exchange rate pressure

Proactive in dealing with exchange rate pressure

VCN - Recently, the State of Bank (SBV) withdrew VND 30,000 billion through the T-bills channel, contributing to reducing exchange rate pressure. This is just one of the moves of the monetary policy management agency to stabilize the foreign exchange market, contributing to supporting the macro economy as well as import-export business activities of enterprises.
Meets standards to attract FDI into supporting industries

Meets standards to attract FDI into supporting industries

VCN - When choosing Vietnam as an attractive investment destination in the supporting industry, foreign investors not only expect a vibrant market but also desire a favorable investment environment and smooth administrative procedures.
Bright spots at the beginning of the year

Bright spots at the beginning of the year

VCN - Production and business activities of enterprises have been vibrant since the first days of the year, thanks to which, many economic indicators in the first 2 months of 2024 are positive and positive. This is the fulcrum of trust and motivation for businesses to continue to develop.
Without resolving three significant bottlenecks, real estate market

Without resolving three significant bottlenecks, real estate market's revival will face numerous challenges

VCN - Economic expert Vu Dinh Anh shares insights on the real estate market's recovery trajectory in 2024.

Latest News

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN member states and the Republic of Korea (RoK) have reached a consensus on the transposition of ASEAN-RoK Free Trade Agreement (AKFTA) Product Specific Rules from the Harmonised System Codes HS 2017 to HS 2022.
Opportunities for digital technology businesses to go global

Opportunities for digital technology businesses to go global

Finding solutions and directions to promote and develop Vietnamese digital technology enterprises is an important task, which will promote the stability and sustainability of the country's economy, heard a recent conference.
Vietnam, China eye stronger border trade

Vietnam, China eye stronger border trade

Border provinces of Vietnam and China should continue close coordination and enhance trade promotion between the two sides, stressed the recent talks between the management boards of the economic zone of the northern province of Ha Giang and the Malypo border economic cooperation zone of China’s Yunnan province.
Improve competitiveness and sustainable development of the seafood industry

Improve competitiveness and sustainable development of the seafood industry

VCN - In early 2024, seafood exports have prospered. This is the driving force that helps seafood businesses hope for a stronger recovery this year. Ms. Nguyen Thi Thu Sac, Chairwoman of the Vietnam Association of Seafood Exporters and Producers (VASEP) shared with Customs Magazine.

More News

Business environment reform needs further promotion: expert

Business environment reform needs further promotion: expert

Resolution 02 issued by the Government creates pressure for the ministries, sectors and localities to make changes for the business community as well as the socio-economic development.
Singapore is the largest foreign investor in VN in Q1

Singapore is the largest foreign investor in VN in Q1

The disbursed FDI rose by 7.1 per cent in the first quarter to reach $4.63 billion, a signal that the disbursement will continue the positive trend, the agency said.
Thai Binh boosts investment, trade cooperation with Germany

Thai Binh boosts investment, trade cooperation with Germany

A delegation from the northern province of Thai Binh, led by Deputy Secretary of the provincial Party Committee Nguyen Khac Than, visited several localities and business organisations in Germany from March 25 to 27, in a bid to enhance trade cooperation with and attract direct investment from the European nation.
Lifting obstacles to develop industrial parks

Lifting obstacles to develop industrial parks

VCN - Attracting investment and developing industrial zones (IZs) and economic zones (EZs) is one of the important contents to implement the policy of developing a multi-component, open, attract investment and resources from all economic sectors to develop the country. In addition to the results achieved, there still limitations that need to be removed to draw investments to develop industrial parks and economic zones, including financial problems for industrial parks.
Unlock capital flows and create favorable conditions for investors

Unlock capital flows and create favorable conditions for investors

VCN - Talking with the press, Dr. Ngo Cong Thanh (Photo), Provisional Executive Committee member of the Vietnam Industrial Park Finance Association (VIPFA), said that it is necessary to open up capital flows and create conditions for investors to access key factors. Facilitate production and business factors and innovate investment promotion activities to more effectively develop industrial parks.
More than 300 businesses, manufacturers to attend VGMF 2024

More than 300 businesses, manufacturers to attend VGMF 2024

More than 300 domestic and foreign businesses and manufacturers will attend the Vietnam Global Manufacturing Forum 2024 (VGMF2024) to explore investment and business cooperation opportunities.
Connecting with FDI firms helps boost wood exports: insiders

Connecting with FDI firms helps boost wood exports: insiders

Strengthening linkages and cooperation between foreign-invested and domestic enterprises will contribute to promoting the sustainable development of the Vietnamese wood industry, according to insiders.
Doosan Vina exports nearly 2,000 tonnes of modules to US

Doosan Vina exports nearly 2,000 tonnes of modules to US

The Doosan Enerbility Vietnam (Doosan Vina) specialising in heavy industries announced on March 26 that it has just exported a batch of nine modules weighing nearly 2,000 tonnes to the Golden Triangle Polymers company in Texas, the US.
Wood processing enterprises strive to increase the proportion of individually designed goods

Wood processing enterprises strive to increase the proportion of individually designed goods

VCN - Many wood and furniture processing enterprises are promoting investment in design activities, helping to increase the proportion of individually designed products (ODM) in exports, thereby affirming the industry's capacity Vietnamese wood in segments with higher added value.
Read More

Your care

Latest Most read
ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN member states and the Republic of Korea (RoK) have reached a consensus on the transposition of ASEAN-RoK Free Trade Agreement (AKFTA) Product Specific Rules from the Harmonised System Codes HS 2017 to HS 2022.
Opportunities for digital technology businesses to go global

Opportunities for digital technology businesses to go global

Finding solutions and directions to promote and develop Vietnamese digital technology enterprises is an important task, which will promote the stability and sustainability of the country's economy, heard a recent conference.
Vietnam, China eye stronger border trade

Vietnam, China eye stronger border trade

Border provinces of Vietnam and China should continue close coordination and enhance trade promotion between the two sides, stressed the recent talks between the management boards of the economic zone of the northern province of Ha Giang and the Malypo border economic cooperation zone of China’s Yunnan province.
Improve competitiveness and sustainable development of the seafood industry

Improve competitiveness and sustainable development of the seafood industry

In early 2024, seafood exports have prospered. This is the driving force that helps seafood businesses hope for a stronger recovery this year.
Business environment reform needs further promotion: expert

Business environment reform needs further promotion: expert

Resolution 02 issued by the Government creates pressure for the ministries, sectors and localities to make changes for the business community as well as the socio-economic development.
Mobile Version