For Your Entertainment (FYE)
Caught between inflation (workers canNOT afford to live on their wages with the actual current cost of living in Viet Nam) and global competition (WTO at work and lack of quality, creativity, improvement and innovation leading to New product Development (NPD) market niches creation put everyone doing and competing for the same pieces of the market)…….
“Despite the high unemployment numbers, many firms still have a great need for workers, especially in major cities like Hanoi, Vinh Phuc, Hai Duong and Ho Chi Minh City.
Vu Trung Chinh, head of an employment center in Hanoi, said the number of laborers, especially manual workers that firms can employ, is much smaller compared to their demand.
The shortage now is common among labor-intensive industries like the garment, footwear, and seafood industries. It is easy to see dozens of firms in many industrial parks in Hanoi announcing new recruitment drives seeking hundreds of employees each.”
“Dang Quang Dieu, deputy head of the policy department under the Vietnam Labor Federation, said firms are not able to employ enough laborers because the salaries and perks they offer are too low.
“Workers are terminating their contracts in the hope of finding new jobs with better incomes, and in the meanwhile, registering to get unemployment allowance,” he said.
Firms should consider raising salaries for employees in order to keep them long term. But even this is difficult because firms are also trying to cut their costs.”