Southern firms face worker shortages

Many firms in southern industrial zones in HCM City, Binh Duong, and Dong Nai are facing labour shortages despite offering higher salaries.

"Despite having financial difficulties, we've still tried to ensure average monthly salaries of VND 8 million (USD 348) for workers," she said. "We've announced vacancies on various channels, even going to neighbouring areas to look for new employees but it seems difficult."

Gilimex Garment Company in HCM City's Binh Thanh District is having orders from Europe and the US. After the Covid-19 pandemic was brought under control, the company built sites in some neighbouring provinces of Dong Thap and Dong Nai. The company is planning to employ more workers with a monthly salary of between VND8-13 million. However, they also have received few applications.

In Binh Duong Company, many firms in local industrial zones have also tried employing new staff.

Director of Binh Duong Production and Trade Company, Nguyen Lam, said that they have raised monthly salaries by 30-40 percent to between VND 10-12 million this year but still lack some 300 workers.

The Apparel Far Eastern Company has also found it difficult to attract 1,000 more workers to expand production.

According to the HCM City Department of Labour, Invalids and Social Affairs, some 37,000 local enterprises now need to employ over 83,000 workers. It is estimated that local firms would need between 135,000 - 150,000 new workers by the end of this year, yet there seems little interest.

The neighbouring province of Binh Duong would also face shortages of 70,000 new workers during the final months of this year according to the local Department of Labours, Invalids and Social Affairs.

Deputy director of Dong Nai Industrial Zones Management Board, Nguyen Van Danh, predicted that worker shortages would last until the end of this year.

Explaining the lack of workers, some firms in Binh Duong said that many workers left for their home towns during the Covid-19 outbreaks last year and had not returned.

"After the pandemic, most of our workers from the northern and central regions have decided to stay home and work for local firms, or go to work abroad," director of Khang Gia Production Company, Nguyen Thanh Binh, said.

To attract workers back, local authorities in Dong Nai Province are co-operating with some neighbouring provinces to implement housing and school projects for workers and their children so that they can have a more stable life when returning to work.

"There is large demand for housing and we'll try to help workers access affordable housing in the coming time," said vice-chairman of Dong Nai Provincial People's Committee Vo Tan Duc.