Vietnamese labour market looking up

The number of jobs created last quarter was higher than expected; due to the Governments policies to bolster certain sectors, said Dang Quang Dieu, Director of Vietnam General Confederation of Labour's Institute of Workers and Trade Union.

 

The job market is expected to see a rebound in the third quarter

Dieu predicted that the second quarter will be difficult for many enterprises. “However, because the Government has made certain essential adjustments in economic policy, such as reducing interest rates, extending categories of loans and seeking ways to help the real estate market, more businesses have access to credit. This, in  turn, helps production. By the third quarter we should see a rebound in the job market," he said.

Statistics released by the Ministry of Labor, Invalids and Social Affairs showed that some 12,000 enterprises, most of which operated in industrial and processing zones, were forced to stop production, many even going bankrupt in the first quarter, leaving about 240,000 workers unemployed or underemployed.

Meanwhile, though food price over the last months has remained stable, the cost of living is still high due to significant increase in prices of petrol and other essential goods.

Dieu pointed out the differences between the labour markets in the north and the south of Vietnam.

“While losing a job may not be as big a problem for workers in the south, it is normally considered catastrophic for northerners. The reason is that in the south there are many more opportunities in the industrial zones of HCM City and surrounding provinces," he said.

Dieu also emphasised the importance of support for the unemployed, as well as the importance of people who are out of work to understand current policies such as unemployment insurance and other available benefits.