Many companies in Vietnam have been deferring payment to their staff, forcing many of the employees to look for part-time work elsewhere.
Le Thi Ngan, a recent university graduate, thought herself lucky to find a job at a furniture company in Dong Da District. However, just a few months after she started at the firm she noticed that payment was coming late. To date, it has been nearly one year since the company last paid its employees.
Many companies in Vietnam have been deferring payment to their staff
Continuing work without receiving her salary, Ngan has had to dip into her savings and cut expenses in any way she could find, now taking the bus to work instead of a motorbike. She has even been forced to ask her landlord to delay her rent several times.
She has thought about leaving the company, but is afraid that she will lose all of the money the company owed her, and to make matters worse, the company is in possession of her university degree.
Nguyen Van Thanh, who works at a construction business in Hoang Mai District, said his total monthly income for him and his wife is over VND15 million (USD714,285), a relatively modest sum, but one that would be sufficient for their family. But he has not been paid by his company for the last four months. Now the family depends wholly on the wife's salary for daily expenses and are forced to live on just VND6 million (USD285.7) per month.
"At first I borrowed from friends, but at this point I feel too ashamed. We've even had to send our two-year old son to his grandparents' house until things improve here," he said.
Finding other options
Nguyen Van Nam, a worker at a metal wares company in Thanh Tri District, Hanoi, commented that late payment at his company has become par for the course, often coming five, six or even eight months late. He, like many others, have had to take additional jobs, such as porters or working at the nearby fertaliser factory, which can earn them VND70,000 (USD3.33) per day.
Le Thi Ngan has found extra employment at a clothes store in the evenings, where she earns VND2.5 million (USD119) per month. This at least covers her daily expenses. She is also a sometimes tutor.
Nguyen Van Thanh has also returned to tutoring, a job he did as a student, where he can earn VND150,000 (USD7.14) in an evening. He said that many of his coworkers have had to do the same thing, some of them even moonlighting as xe om (motorbike) drivers.