A commune in Gia Lam District, Hanoi, has left more than 1,000 workers jobless because of a local authority decision to suspend business operations.
Unemployed locals have gathered together to set up labour markets to seek jobs. Pham Thi Thanh Mai in Dinh Xuyen Commune, said she had waited at a regular meeting place for casual workers since the early morning, however, she had not yet found to be employed.
People in Dinh Xuyen Commune asking for the help about their plight
She said that she had previously worked for a wood processing workshop near her house with a monthly income of VND4-5 million (USD190.4-238.9) per month, however, the workshop suddenly stopped operations, leaving thousands of labourers unemployed.
Some other locals said, several months ago, dozens of ice cream, plywood and candle companies had halted operations due to accusations that they had caused environmental problems.
Nguyen Khac Quyen said, “My family of six people who all worked for a wood processing establishment earning VND3-4 million (USD142.8-190.4) per month each. Now, we’ve all lost our jobs and can’t find employment.”
Another local Nguyen Duy Ba, 65 years old, worked for a match production company since 1994, but, recently, all match firms in the commune have closed, pushing many households into financial difficulties.
Difficulties
Nguyen Thi Luu, Director of Long Luu Company, one of the companies that has suspended operations, said, “In the current context of economic difficulties with the bad performance or bankruptcy of many companies, in late 2011, Chairman of Gia Lam District People’s Committee signed a decision to suspend the operations of plywood businesses in Dinh Xuyen, saying that they violate land use and environment regulations.”
The local authorities said that the businesses hired low-land agricultural land without seeking their approval, forcing many match companies and around ten plywood firms to close, making more than 1,000 locals unemployed.
Thach Tho Ly, owner of another plywood business, said, his company had provided plywood products for Hoa Phat Group and Xuan Hoa Company, ensuring a stable income for its labourers. Every year, it spends VND45-50 billion (USD2.14-2.38 million) for salary payment.
“We can move our production to industrial parks, but thousands of local workers have lost their jobs. Will local authorities offer them new jobs?” Tho noted.
“We pay 200 kg per 360 square metres per crop for farmers; meanwhile, after deducting costs, they only make a profit equal to around 50kg for the same area. Farmers who sell land to us will be prioritised to work for our companies,” an owner of local production workshop said.
Nguyen Duy Thich, Chairman of Dinh Xuyen Commune said, the commune has proposed the district People’s Committee to build an industrial complex in the commune.
The committee has approved the project which will cover 20ha, however, to date, the project has not yet been kicked off, so the businesses had to lease land from local farmers.
Regarding the environmental problems, according to the Hanoi Department for Prevention and Control of Environmental Crimes, tests of air samples taken around the production areas and 20 glue samples from the local businesses showed that they are still under the limited level.
Work had continued in Dinh Xuyen for many years; therefore, the district authorities should not have decided to close the businesses while their proposed industrial complex remained only on paper, Thich said.
Mr. Thach Tho Ly, director of a plywood firm in Dinh Xuyen Commune
