Paradox of labor supply and demand in Nghe An
(Baonghean.vn) - While workers in the textile and garment industry are facing difficulties due to reduced orders, other industries such as electronics, construction materials, components... are finding it very difficult to recruit.
Textile industry facing difficulties
In 2022, the Vietnamese textile and garment industry will face unpredictable fluctuations. At the beginning of the year, the industry grew strongly, but by the end of the year, the textile and garment industry faced difficulties due to the impact of the Russia-Ukraine conflict and the tightening of spending due to inflation in the US and Europe. In addition, traditional import and export markets such as China, Japan, Taiwan (China) ... are still applying strict anti-epidemic measures, significantly affecting the supply chain of raw materials, accessories and product consumption.
Nghe An currently has about 65 garment factories and establishments operating throughout districts, cities and towns in the province. In the first 9 months of 2022, textile and garment export turnover in Nghe An reached 331.8 million USD, an increase of 12% over the same period last year.
However, at this time, like other textile centers in the country, textile enterprises in Nghe An are facing many difficulties. Mr. Nguyen Dinh Sinh - General Director of Minh Anh Garment Company said that for the past few months, orders have decreased, so the company has had to cut the 7th working day. The company's board of directors is also trying to arrange for workers to have jobs, receive basic salaries, and not to lay off or cut workers because they are afraid that when they recover and develop again, they will have difficulty recruiting workers.
In Dien Truong commune, Dien Chau district, Mr. Pham Van Luong, representative of Nam Thuan Garment Company, said: The company's orders have been cut by 8 parts out of 10. The company is trying to maintain production but is always facing the risk of closing down. Previously, the company planned to invest in an additional production line to attract 3,000 workers, but the situation of orders being cut means the company may not invest anymore.
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Workers at Minh Anh - Tan Ky Garment Company. Photo: Tran Chau |
At the end of October, a garment company in Bac Vinh Industrial Park also announced the termination of labor contracts with hundreds of workers, retaining only 31 people. The reason was that the company had no orders.
Many businesses are "thirsty" for labor
According to the report of the Southeast Economic Zone Management Board, from now until 2025, the total number of workers in the industrial park in Nghe An will reach 60,000 people, of which about 45,000 workers will need to be recruited. In 2022, 1,500 workers will be needed, in 2023, about 10,000 workers will be needed; in 2024, about 14,000 workers will be needed, and in 2025, about 20,000 workers will be needed.
Some industrial parks that need to recruit a lot of workers include: Industrial Zone Nghe An 1 needs about 30,000 people (by 2025); Luxshare- ICT Nghe An Company in VSIP Industrial Park currently has more than 7,000 workers and is expected to recruit 7,000 workers next year.
At WHA Industrial Zone Nghe An 1, the Japanese garment factory Nakano Vietnam in WHA Industrial Zone Nghe An 1, which was inaugurated in mid-November, is currently recruiting 300 skilled workers but has only recruited 80 workers. Ms. Tran Mai, the company's administrative manager, said that the recruitment process for workers at the factory is quite thorough, with the lowest salary at the company being 5.8 million VND/person. In the coming time, the company will continue to recruit skilled workers.
Some other large-scale companies with high demand for labor recruitment include: Merry&Luxshare Limited Liability Company (Vietnam); SangWoo Vietnam Co., Ltd.; Innovative Manufacturing Solutions Viet Nam Co., Ltd. (IMS); An Nam Matsuoka Garment Co., Ltd.; Woosin Vina Co., Ltd., companies in Hoang Thinh Dat Industrial Park (Hoang Mai town)...
Enterprises in industrial zones basically recruit unskilled labor at a rate of about 80%, of which female labor accounts for more than 70%. The main industries are electronics, vehicle components, food, construction materials, etc.
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VSIP Nghe An Industrial Park. Photo: PV |
VSIP Industrial Park representative said: Enterprises recruit workers with degrees and skills but the foreign language requirements, especially Chinese, are mostly not met by Nghe An workers. Enterprises in the electronics industry have a need to recruit many unskilled workers but mainly recruit female workers so it is still very difficult to recruit.
In addition to the imbalance between labor supply and demand, the shortage of high-quality labor and laborers who know foreign languages, labor recruitment in Nghe An also faces many difficulties due to many other reasons such as: Institutions serving workers are not guaranteed; wages, incomes, living conditions, accommodation, and transportation in Nghe An are not equal to other economic regions, and the cost of renting a room is quite high...
Currently, the Management Board of the Southeast Economic Zone and relevant agencies are updating the latest information on labor demand in enterprises to find solutions to the situation of both surplus and shortage of labor in Nghe An.
