Record Japanese Yen Devaluation, Many Workers Worried

Van Truong• DNUM_ABZBBZCACC 16:27

(Baonghean.vn) - Vietnamese workers in general and Nghe An workers in particular in Japan are facing many difficulties as the Yen has recently depreciated, causing their income to decrease significantly. Therefore, many people are no longer interested in working in Japan.

A Japanese class in Nghe An. Photo: Contributor

Income decline

Yen Thanh district has many workers in Japan who are facing difficulties due to the devaluation of the Yen.

Contacted via Zalo, Mr. Nguyen Luan in Nam Thanh commune, who is working in the field of car painting in Kyoto, shared: In 2021, an exported worker had an income of 25 million VND, now the Yen has fallen in value, he only receives 18.5 million VND (converted to Vietnamese currency). I have been working abroad for several years and have saved some money, but I have to keep Yen in my account, waiting for the exchange rate to increase to convert to USD, and send it back to Vietnam for my family.

Nghe An workers harvest vegetables in Japan. Photo: Contributor

Through research, it is known that although the Yen has depreciated, some Vietnamese workers in Japan still have to send money back home to pay off loans for labor export costs.

Mr. Nguyen Tho Tuan in Nam Thanh commune, Yen Thanh, who is working in Japan, confided: Before that, my family had to borrow 150 million VND to invest in me to go work abroad. The Yen has depreciated, with my current income, the loss is 5-7 million VND/month, but I still accept to send money back to pay off the debt, to ease the burden on my family.

According to a report by Agribank Yen Thanh, due to the depreciation of the Yen, the amount of remittances sent by children working abroad, mainly in Japan and Taiwan, has decreased sharply. From the beginning of the year to November 1, 2022, the whole district sent back 3 million USD, a decrease of 4 million USD compared to the same period.

In addition, due to the fluctuation of Yen price, many people go online to find out and choose to exchange to Vietnamese currency for safe storage; many cases are trapped by high-tech scams. Some experienced workers advise new workers in Japan to be careful when choosing to transfer or exchange money, especially when exchanging through a "three-way" form, and not to be gullible in the invitation to "buy Yen at a high price".

Worried about changing job market?

Ms. Nguyen Thi Nhung in Nghi Van commune, Nghi Loc district, who works in Niigata and has just quit her job for nearly a month, shared: I have been in Japan for 6 years, working in a food processing factory. Previously, my income was quite stable at more than 22 million VND/month, but recently the Yen has depreciated, to only more than 16 million VND (previously 1 Yen was 220 VND, now it is down to 168 VND). While the cost of food and accommodation is increasing, the income is shrinking, making the life of Vietnamese workers very difficult.

Currently, Ms. Nhung is returning to her hometown to give birth, however, with the sharp fall in the Yen and rising costs, she is planning to stay in her hometown to find a job.

Workers of Nghi Van commune, Nghi Loc in Japan. Photo: Contributor

Not only Ms. Nhung, many other workers in Yen Thanh are also wondering whether to export labor to Japan or not. The salary ranges from 15-25 million VND depending on the industry, which is relatively good compared to working as a worker in Vietnam. However, many workers are worried because the cost of going to Japan is quite high, the training period usually lasts 5-6 months, not to mention the Yen is still continuing to decline.

Mr. Vu Van Quyen, Deputy Head of the Department of Labor, War Invalids and Social Affairs of Yen Thanh district, said: Yen Thanh district currently has over 3,200 workers in Japan, due to the sharp decline in the Yen, workers have chosen to go to Japan less. Every year, the district has 250-300 workers going to Japan, but in 2022, there will be less than 200 workers going to this market.

Currently, Yen Thanh district has many factories springing up, recruiting many workers, with stable salaries, many workers choose to work near home to have conditions to take care of their families.

Workers from Nam Thanh commune, Yen Thanh working at a Japanese mechanical workshop. Photo: Contributor.

Ms. Dang Thi Phuong Thuy, Deputy Head of the Department of Labor, Employment and Occupational Safety, Department of Labor, War Invalids and Social Affairs, said: Nghe An currently has over 40,000 workers in Japan, with 7,000-8,000 workers going to the Japanese market to work every year. Japan is the main market for Nghe An workers, so there needs to be mechanisms and policies to support and increase income so that workers have more motivation to work with peace of mind.