Showing posts with label labour. Show all posts
Showing posts with label labour. Show all posts

Friday, October 22, 2010

Firms fail to meet export orders due to labour shortage

shrimp

Enterprises in HCMC's export processing and industrial zones are struggling to complete increasing orders because they are short of workers.

Textile, footwear, electronic assembly and seafood processing establishments typically receive more orders towards the end of the year.


Nguyen Thanh Tung, director of the Job Opportunity Centre under the HCMC Export Processing Zones Authority (HEPZA), said enterprises needed 49,000 workers from now until the end of the year, but the centre can only meet 70 percent of this demand.


Around 300 enterprises in textile, footwear and electronic assembly are facing severe labour shortages. The Tan Thuan export processing zone alone needs 10,000 workers badly.


Besides non-skilled labour, enterprises are also having difficulties in finding suitable candidates for middle management positions, from commercial to production ones.


"The middle management force accounts for 10 percent of recruitment needs and despite the low level of scarcity; there is aggressive competition between enterprises," Tung said.


Tung said that to improve the situation that has been a constant headache for enterprises in recent years, Hepza will only accept new projects that deploy high technology, especially in mechanical, electrical and electronics.


Experts have said that enterprises need to effect changes in their salary policies, improve other working conditions and apply technological innovations.


The demand for labour is expected to rise with the city planning to build seven new IZs and expand existing IZs to cover an additional area of 3,000ha.


Furthermore, the city also faces stiff competition from neighbouring provinces which have also opened new IZs. HCMC now has three export processing zones and 10 industrial zones with 1,200 projects that employ 252,000 workers.

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Vietnam employment manual released

electronics

Vietnam’s leading recruiting firm Navigos Group and US law firm Russin & Vecchi jointly released the Vietnam Employment Manual Wednesday.

The manual is provided free of charge to help employers, especially those of foreign-invested businesses, to understand and apply the complex and often confusing labour regulations.

“We believe it’s an essential guide for any company operating in Vietnam or planning to start a business in Vietnam,” said Navigos Group Managing Director Nguyen Thi Van Anh and Russin & Vecchi Managing Lawyer Sesto Vecchi.

“Vietnamese labour law continues to develop,” said Anh, adding that however, some labour law regulations remain ambiguous. Understanding labour regulations and applying them correctly can help to avoid disputes and improve employee retention, she added.

According to a recent survey conducted by Navigos Group, almost 80 percent of more than 14,000 surveyed people asserted that they would not join a company if they know that company violates the labour law.


Another survey revealed that 87 percent of over 8,000 surveyed people believe their company does not properly apply 100 percent labour laws. These findings indicate that compliance with labour laws should be taken into account in developing talent retention strategies.

Businesses failing to abide by labour laws, especially working hours and wages, have caused labour disputes and rising strikes.

The Ministry of Labour, War Invalids and Social Affairs reported that there were 216 strikes nationwide last year and more than 200 cases in the first seven months of this year.

 

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Wednesday, October 20, 2010

Firms fail to meet export orders due to labour shortage

Enterprises in HCM City's export processing and industrial zones are struggling to complete increasing orders because they are short of workers.


Textile, footwear, electronic assembly and seafood processing establishments typically receive more orders towards the end of the year.   


Nguyen Thanh Tung, director of the Job Opportunity Centre under the HCM City Export Processing Zones Authority (HEPZA), said enterprises needed 49,000 workers from now until the end of the year, but the centre can only meet 70 percent of this demand.   


Around 300 enterprises in textile, footwear and electronic assembly are facing severe labour shortages. The Tan Thuan export processing zone alone needs 10,000 workers badly.   


Besides non-skilled labour, enterprises are also having difficulties in finding suitable candidates for middle management positions, from commercial to production ones.   


"The middle management force accounts for 10 percent of recruitment needs and despite the low level of scarcity; there is aggressive competition between enterprises," Tung said.   


Tung said that to improve the situation that has been a constant headache for enterprises in recent years, Hepza will only accept new projects that deploy high technology, especially in mechanical, electrical and electronics.   


Experts have said that enterprises need to effect changes in their salary policies, improve other working conditions and apply technological innovations.   


The demand for labour is expected to rise with the city planning to build seven new IZs and expand existing IZs to cover an additional area of 3,000ha.   


Furthermore, the city also faces stiff competition from neighbouring provinces which have also opened new IZs.   HCM   City   now has three export processing zones and 10 industrial zones with 1,200 projects that employ 252,000 workers./.

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