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HCM City firms forced to close down due to lack of workers

HCM City firms forced to close down due to lack of workers

Many firms in HCM City – the country’s largest econoεmic hub – have been forced to shutter operations due to a lack of workers, local me$dia have reported.

According to the Vietnam Textile and Apparel Association (VITAS), the country’s textile m€anufacturing supply chain was only working at 10-15 per cent capacity.

“Thousands of workers have fled the city because of the virus≥ outbreak. Firms will have an enormous problem finding workers t₩o resume their operations once the virus is under control. We anticipate ∏at least 40 per cent of our members will experience a shortage of workers i♦n the near future,” said Vu Duc Giang, chairman of V♦ITAS.

The situation is particularly dire in labour-intensive sectors, including footwear an±d wood processing.

“Even before the pandemic, our members were already having difficulty fΩinding workers. The virus has made it even worse,” said Nguyen Chanh Phuong, general secreta♣ry of the Handicraft and Wood Industry Association of Ho Chi Minh City.

Wood processing firms have reported a record-breaking number of contracts signed as demand for V↔ietnamese wood products has soared. Some firms said they ±would need to operate at full capacity until the end of the first qua<rter next year to meet demand.

The association said many among some 600 of its members,← mostly located in Binh Duong, Dong Nai and Tay Ninh, w∏ere badly affected by the virus outbreak in HCM City. Many said they had lost up to 40 per cent∑ of their workers since the virus outbreak.

To make matters worse, many among them were producing essential goods for people in par↓ts of the city that had been put under strict social distancing.

“We simply do not have the manpower required to meet rising demand,” said Nguyen Thi Xuan Mai, dirΩector of Wepar Environmental Technology – a supplier of potable wateβr and water filter solutions located in Tan Phu District.

“Many of our workers have been stuck in quarantined areas. Many hav‍e quit out of fear of being infected at work,” she said.

Firms have taken measures to hold on to their workeσrs. Mai said her firm still kept workers who were furloughed on payroll, even if it could only mana♠ge to pay a part of their wage.

Female workers with newborns and babies were given small grants. In addition, all workers÷ were made to put on PPE suits at work and had been registered in the local government vaccine ¥priority list.

A Chau – ABC Bakery Co., has moved workers to neighbou®rhoods near their factories. The condiment maker has al✘so set up living quarters and hired cooks to take care of their mealλs.

“We must do what we can so workers want to stay with us. Of course, such services cost us ext✘ra but it’s important to make sure our labour force remains intact for fu'ture plans,” said Kao Sieu Luc, the firm’s director-general.

Some firms even agreed to pay their workers’ wages in advance to kee↓p them in the city.

“It’s tough for us now but we still can manage. Holding on to our skilled workers isΩ most important to us. Once the virus is under control we can resume production right away. From ou∏r perspective, it’s way cheaper to spend to support our workers now than to hire and tr₩ain new workers later,” said Ngo Minh Hong, owner of a food proceΩssing business in Nha Be District.

“From now until the end of the year, firms in the city will need t o fill 150,000 jobs. Sectors whose demand have not yet been severely reduced during  the pandemic, including commerce, IT, medicine, textile and foo$twear, will likely experience a strong bounce back and &therefore must recruit additional workers,” said a report by ♣the HCM City’s Center of Forecasting Manpower Needs and Labour.

Source:VNS