Employees’ accommodation: New tendency in competition between investors

Let’s tell about Vietnam Formosa project which is the biggest one in Dong Nai. Up to now, it capitalized at US$ 482.250 millions. Formosa hired the whole of Nhon Trach Industrial Zone 3 with its area nearly 300 hectares.

Formosa apartment building for employees

* Employees to be esteemed as treasures

Let’s tell about Vietnam Formosa project which is the biggest one in Dong Nai. Up to now, it capitalized at US$ 482.250 millions. Formosa hired the whole of Nhon Trach Industrial Zone 3 with its area nearly 300 hectares. It has built its own plants in this place as follows thermoelectric plant, polyester and textile factories and so on. Besides, other investors were also called for investing here by Formosa . It can be said that Formosa  has considered carefully its decision as investing in Nhon Trach Industrial Zone 3. This place is in a favorable position where has many advantages on both of road and waterway transport.

As soon as the investment license was granted to Formosa by the authorities, they have promoted rapidly construction of their internal infrastructure in order to put their main plants into operation. At the same time, they have paid attention to build not only their factories and other facilities but also apartment building for their employees. The 9-floor building is located in the residential district in Hiep Phuoc commune and opposite to Vietnam Formosa company Ltd. Up to now, the building is the most comfortable for employees with its largest amount of rooms in comparison with another ones in the province that are still very few.

“With our determination of doing business for a long term in Vietnam , we have not only equiped our plants with automatic and advanced technology machines but also looked after living standards of our employees as soon as we can. We think that the employees should be esteemed as treasures” said General Director Ven Jiao Wong.

The company employees enjoyed free accommodation, an employee of Formosa told.

* Scarce worforce supplies

In fact, many investors have asked permmision of the local authorities for signing short term labor contracts with their employees (lasting from 1 to 3 years). According to their opinions, the employees will not try their best to work hard due to not worry about getting the sack if they enjoy long-term labor contracts. In some respects, as signing short term labor contracts with employees, some investors will ward off social security that should be paid for their employees. Furthermore, they can employ young labour force in replace of older employees who will be dismissed if they want. For this reason, disputes have been arisen between owners and their employees during last time.

FDI projects, however, are increasing in which included many projects in need of hundreds or thousands of employees. Although workforce demands of investors show an upward tendency, the situation appears a manpower shortage. Despite efforts of many investors in providing favorable conditions for employees such as paying allowance of house rent and transportation, bonus for industriousness etc., the situation is not improved better than before. Even though they have to go to other provinces or rural areas for finding out workforce supplies, these are still not enough to meet their demands. Accordingly, projects in need of too much employees or large areas being hired should be restricted; others with their requirements of brains and technology will be encouraged. If not follow this way, Dong Nai will remain passive in workforce supplies. Whereas, manpower is being called for coming back their native places in the Northern and Central regions where have built industrial zones, they donot like jobs away from their home with great expense.

* Looking after living standards of employees: New tendency in competition between investors

“ Vietnam can be competitive with other countries in attracting FDI due to low cost of labour and employees’ accommodation not be obliged to investor’s duty by Vietnamese laws. Thus, foreign investors come Vietnam increasingly. Consequently, the situation appears scarce workforce supplies, it requires investors to look after better living standards of their employees if they want to attract workforce to work for their enterprises” said a Japanese investment consultant.

At present, many foreign investors are paying attention to social welfare of their employees. Particularly, they provide accommodation for their employees by building apartment blocks such as Vedan Vietnam and TPC plastic company Ltd. located in Phuoc Thai, Long Thanh district, Choong Nam Textile and Dyeing company Ltd. and so forth. The investors, however, take inititative in providing accommodation for their employees that are still very few against 400 FDI projects in the local. Taiwan Feng Tay group has invested in Song May, Trang Bom district with their own footwear companies. They are going to capitalize at US$ 10 millions for building an apartment block including park, playing-field, kindergarten, medical station etc.

Hope that not only Formosa , Feng Tay etc. but also other investors will take care better living conditions of their employees in the near future. The housing problem for employees should be settled soonest by foreign investors in order to reach their target of doing their businesses for a long term in Vietnam .

Kim Loan