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Labour shortage looms as year-end approaches

A labour shortage is being reported in major cities across the country, putting more pressure on businesses to respond to the increasing volume of contracts as the year-end period approaches.
Labour shortage looms as year-end approaches ảnh 1Job seekers at the service counter of Hanoi Centre for Employment Services (HCES).(Photo baotintuc.vn)
Hanoi (VNS/VNA) - A labour shortage is being reportedin major cities across the country, putting more pressure on businesses torespond to the increasing volume of contracts as the year-end periodapproaches.

During this time of the year, businesses often recruit more seasonal workers,but many companies are saying they struggle to find skilled workers.

Huynh Kim Ngoc, deputy HR manager of Dong Anh Steel Tower Co. Ltd., said thathis firm has 10 open positions for technicians. The monthly salary ranges from 10-15million VND (400-600 USD) with benefits.

However, recruiting people with the right skills around the end of the year isquite difficult, he said.

Le Thi Hai Van, HR manager of AEON Vietnam Co. Ltd., said that until theyear-end, the firm is looking to hire full-time or part-time workers for itssupermarkets’ food, fashion, and household appliance sections.

She said: “We are searching for applicants from multiple sources, from ourFacebook page, internal network and employment platforms.

“The end of the year is when shopping demands are expected to increase,therefore the need for labour is also rising, especially for skilled youngpeople.”

In HCM City and nearby provinces of Binh Duong, Dong Nai and Long An, manycompanies are going to employment centres on a weekly basis, but reported thatit is not easy to find suitable applicants.

Duy Anh Foods, a food export company based in HCM City, needs to recruit up to300 workers in 2022. It has only achieved around 60% of this goal.

A representative said that the business has been in a rush to recruit enoughworkers in the new normal period post-COVID, saying that: “If we have enoughpeople in our workforce, export output could increase up to 30 to 40%, insteadof just three or four tonnes of goods per day as currently.”

According to vice chairman of HCM City Union of Business Associations Tran VietAnh, there is a lack of balance in training in Vietnam’s labour market, as theeducation does not match the actual requirements.

One of the examples is how the packaging industry has a huge demand for labour,and Foreign direct investment (FDI) firms are putting significant investmentinto this sector. And yet schools offering this major could be “counted on onehand”.

Another example is how the recycling industry is part of the circular economy,and every importer needs recycled goods. However, Vietnam does not have aninstitution that offers training in this field.

This means if businesses need labourers with those skills, they will have toface an extended period of time and high costs to come up with their owntraining programme, he said.

According to the Centre of Forecasting Manpower Needs and Labour MarketInformation of HCM City (FALMI), the business labour demands will translate toaround 77,000 job openings, especially around the year-end to accommodate Tet (Lunar New Year) holiday orders.

Demands are high in the sector of trade and services at 66%, followed byindustries and construction at 33%.

Around 15% of businesses are also hiring part-time employees to meet theincreasing demands for the Tet holiday.

Vu Quang Thanh, deputy director of the Hanoi Centre for Employment Services,said that data from recruiters on the platform also shows high labour demandsfor the sector of trade and services, especially for seasonal workers.

It is followed by food processing, e-commerce, logistics, informationtechnology, finance and banking. There is less demand in the manufacturing sector,but the quality of recruits is expected to be higher as these firms aim forskilled workers with high commitment.

To connect stakeholders in the labour market, the Hanoi Department of Labour,Invalids and Social Affairs is planning to hold a seminar that connects thehuman resources under training in the city’s vocational schools to businesses,in addition to its current mobile job fairs.

According to Minister of Labour, Invalids and Social Affairs Dao Ngoc Dung, thelabour market is reviving fast thanks to support policies that offer rentpayment and welfare services to workers.

The market sees around 51.9 million people, an increase of 2.8 million comparedto the same period last year.

The rate of active labourers reaches 68.7%, while the current unemployment rateis 2.28%./.

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