Lack of labor to restore production

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Production activities at Phuc Thinh Packaging Co., Ltd., Ho Chi Minh City. Photo: provided by the company

Lack of labor

After Ho Chi Minh City reopened, about 150,000 workers returned to work, bringing the total number of workers to 230,000, concentrated in export processing zones, industrial parks, and high-tech parks. However, the number of employees working in industrial parks and export processing zones in Ho Chi Minh City is only 46% compared to previously.

Mr. Mai Huu Tin, Chairman of Binh Duong Business Federation, said that many workers have returned to their hometowns, plus the number of workers who are returning and want to return, leaving factories with only about 50% of workers. This means that the production capacity of enterprises is reduced by half.

According to information from the Department of Labor, War Invalids and Social Affairs of Dong Nai province, up to now, the province's functional forces have organized to send more than 30,000 workers and laborers back to their hometowns in central and southern provinces and cities. The fact that workers return to their hometowns makes many businesses worry about labor shortages when they return to normal production.

Ms. Do Thi Thuy Kieu, Chairman of the Trade Union of Advanced Multitech Co., Ltd (Nhon Trach district, Dong Nai province), said that the enterprise has over 1,700 employees. To maintain production, over the past months, enterprises implemented the "3 on-site" model with 200 employees. The remaining employees have to temporarily stop working. More than 1,500 remaining workers have either returned to their hometowns or are in locked down areas.

According to a representative of Phuong Nam Garment Joint Stock Company, the biggest impact of Covid-19 on the garment industry is the situation of job abandonment and serious labor shortage. Therefore, when enterprises restart production, they must invite old workers to work, increase recruitment of new employees to boost production and meet export orders. Currently, what businesses are most afraid of is the shortage of labor, and a failure to produce orders in time will be penalized by the partner.

Mr. Nguyen Liem, Vice Chairman of Binh Duong Wood Association, Director of Lam Viet Wood Company, said that because many workers returned to their hometowns, in the near future, the demand for human resources for wood production, processing and export will be huge, with a risk of shortage if enterprises speed up production. Mr. Liem said that at his company, currently only about 40% of employees remain out of about 1,000 people, while orders are quite abundant, but a lack of human resources forces businesses to refuse some partners.

Efforts to resume the labor chain

To make up for the shortage of labor, many businesses have posted to recruit workers. Mr. Nguyen Viet Xiem, Chairman of the grassroots Trade Union of Uchiyama Co., Ltd., said that to return to the "new normal" state, businesses need to recruit about 400 workers. In addition to compensating for the number of workers who have returned home, the company needs more workers to speed up the progress of orders.

C.P Vietnam Livestock Joint Stock Company said that the company is urgently recruiting about 100 people to work immediately to fill the vacant positions. Workers can earn up to VND18 million/month, depending on the position.

The Youth Employment Service Center of the Ho Chi Minh City Youth Union said that the center currently has a "3-in-1 job combo" program that will run from October 1 to November 30. When looking for a job, workers are given free motel, free Covid-19 rapid test and immediate job placement. Currently, the center has also connected with 21 districts, district unions and Thu Duc city to fully update free motels and free hostels in the first month. In addition, the number of motels registered to reduce money from 30-40% for workers returning to Ho Chi Minh City.

Currently, key southern provinces and cities have also actively coordinated with businesses and localities to have a plan to welcome workers back. These localities have been transporting workers by road, rail, and waterway according to QR codes of vehicles and enterprises' shuttles. Employees can travel by personal means when they comply with local regulations. In addition, these provinces and cities also set up temporary shelters for foreign workers to return to work at locations close to the working enterprises.

Recently, Binh Duong Provincial People's Committee has planned to coordinate to attract and welcome workers from provinces and cities who want to return to work in Binh Duong province. Accordingly, workers from provinces and cities returning to Binh Duong province to work are given priority to receive Covid-19 vaccines if they have not received the 1st dose, and Binh Duong also prioritizes speeding up the 2nd quick and safe injection schedule to ensure eligibility when returning to work.