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Industrial units in Vietnam’s HCM City hit by labour shortage

Industrial units in Vietnam’s HCM City hit by labour shortage

Several Vietnamese industries, especially labour-intensive ones ≥like textile, garments and leather, are likely to face a labour shortage when they resume operati←ons after the pandemic gets over. A survey covering 300 companies i↑n early September found that only about 40 per cent€ of their workers wanted to return to work when the city♥ reopened on October 1.
Many even planned to return after the Lunar New Year in ear<ly February next year, the survey by the Ho Chi Minh City Union of Bu♦siness Associations (HUBA) found.

According to the city’s department of labour, invalids and social affairs, more× than half a million migrant workers left the city for their hometowns after' the city eased lockdowns, a Vietnamese newspaper reported.

Before the pandemic, the city had nearly 4 million labourers at more than ‌286,000 businesses, including 320,000 in export processing zones, industrial parks and a high-tec"h park.

Garment and textile workers have also shifted to other industries in recent× years, leaving the sector with a shortage of at least 10 per cen™t, said Nguyen Thi Thuy, vice president of the Vietnam Textile and Apparel U₽nion.

The shortage has increased to 30 per cent from October 1 as workers left the city, ★stayed at home to look after children since schools are closed or te♣sted COVID positive or are in quarantine.

Thuy hoped the industry would be able to hire workers from now since many se rvice businesses are still closed and would not be competing forβ labour.

However, when the economy fully recovers, it is going to be difficult for t™he textile industry to attract workers.

Companies that employed a few hundred workers without labor$ contracts and did not pay social insurance would have difficulty resu♠ming production, Thuy said.

But foreign-owned enterprises would not have this problem since they​ have excellent HR policies that foster employee loyalty, he added.


Source: Fibre2Fashion News Desk

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