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Vietnam
This Week in AsiaEconomics

Vietnam pays the price at home for sending workers abroad

Between 130,000 and 150,000 Vietnamese go abroad to work annually, leaving seafood and garment sectors scrabbling for labourers

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Workers stitch clothes at a garment factory in Vietnam’s Thai Nguyen province last year. Photo: AFP
Vincent Tan
Vietnam’s seafood and garment sectors are facing a labour shortfall even with raised wages, as Hanoi expands a drive to send more workers overseas for higher-paying jobs.

The contradiction reflects a broader challenge for the Southeast Asian country as it pushes to move up the value chain while banking on labour migration to generate remittance revenue, analysts say.

According to the home ministry, between 130,000 and 150,000 Vietnamese go abroad to work annually. The overseas labour market totalled nearly 900,000 by the end of last year.

This May alone, 1,948 Vietnamese went abroad to work in places such as China, Japan, South Korea, Singapore and Europe, according to a Department of Overseas Labour report on June 3.

Vietnamese abroad remit between US$6 billion and US$7 billion a year, contributing significantly to the national economy.

This exodus has led to a labour shortage at home.

A report submitted in late June by the Vietnam Association of Seafood Exporters and Producers to the Ministry of Finance highlighted worker shortages as a major shortcoming the industry is facing in key hubs such as the Mekong Delta and Ho Chi Minh City. Even salary increases of 25 to 30 per cent did not help with recruitment and retaining labour.

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