Illustrative image (Photo: VNA) A month ago, she and nearly 1,200 workers received notice that the company hasbeen facing a shortage of orders so it had to downsize production and cutstaff. The decision was made only two months before the Tet (LunarNew Year) holiday.
While waiting for the procedures for unemployment allowance, Hienhas taken several part-time jobs as a helper at a street vendor, a domesticworker and a babysitter for a family. The small amount from these jobs helpsher make ends meet and stay in the city for a few weeks until she can receiveher severance allowance.
“Young workers can find new jobs. I’m over 45 years old, so it’s difficult toget a job in another company during this difficult time,” she said.
“I hope the support is enough for me to start a small business in my hometownin An Giang province,” she said.
Hien is among thousands of workers in HCM City who have lost their jobs thisDecember. Tens of thousands of others are facing the risk of losing their jobsor having their working hours cut, reported the Tintuc (News) newspaper.
A quick survey of nearly 100 enterprises in the textile, footwear and electronicindustries in HCM City, Binh Duong and Dong Nai provinces by the VietnamChamber of Commerce and Industry (VCCI) shows that 40.5% of enterprises havereduced their workforces and 54% said they would reduce working hours.
Most predict a gloomy future as up to 68% said orders would definitely decreasein the coming time, 23% couldn’t give any prediction and only 9% affirmed theywould receive more orders than they currently do.
Footgearmex Footwear Co. Ltd, a Taiwan shoemaker in Binh Tan district, hasannounced layoffs of nearly 1,200 workers since early December.
Pham Thi Ut, the company’s representative, said that due to a slump in globaldemand, import partners have not signed new orders and the company could notmaintain operations as before.
Other leather footwear companies are in the same situation. More than 1,400workers at Vietnam Samho Company in Cu Chi district have been laid off whileabout 20,000 workers at PouYuem Vietnam Company Limited in Binh Tan districthave been rotated to have 14 days off.
Textile and garment processing enterprises started well in the first months ofthis year when key export markets in the US and Europe reopened after theCOVID-19 pandemic. However, the positive indicators did not last long as therewere major conflicts in the world, leading to inflation spreading globally.
Viet Thang Jean Company Limited currently operates about 80% of the factory'sdesigned capacity. Increasing inventory leads to the risk that customers maycancel orders unexpectedly leaving the company with unsold products.
Pham Van Viet, General Director of the company, said the number of orders fromthe European market has decreased by 60% and those from the US market are down30-40% since June.
Goods exported to these markets are being consumed slowly and more than 50% arestill in stock and cannot be sold, he said.
Deputy Director of the city’s Department of Labour, Invalids andSocial Affairs Nguyen Van Lam said that as of this December, more than 50,000workers from over 150 enterprises have lost their jobs or had their incomesreduced.
Rising prices of raw materials and fuel in European countries and the US haveled to the cutting of non-essential goods. That’s why many Vietnameseenterprises lack orders for exports.
Many businesses have searched for new markets to ensure the jobsof workers, the newspaper reported.
Viet Thang Jean Company Limited is trying to shift to the Canadianand Australian markets in order to maintain production and keep jobs foremployees, but new markets have not yet been able to offset the decline fromthe US and European markets.
PouYuem Vietnam Company Limited is maintaining a payment of 180,000 VND forthose who take turns having two weeks off.
Nguyen Chi Trung, Chairman of the Board of Directors of Gia Dinh Group JointStock Company, said orders have decreased by 30-40% compared to the same periodin 2021 and will likely continue to have a strong downward trend in the comingmonths.
The company is trying to divide shifts so workers can still have some hours.
However, he admitted the firm would consider a plan to reduce staff in the nearfuture if things do not improve.
The HCM City’s Confederation of Labour has directed trade unions at all levelsto closely monitor the operation of enterprises to ensure the payment ofsalaries and allowances for employees who quit jobs.
It plans to spend 140 billion VND (5.9 million USD) giving gifts to workers indifficult circumstances, take care of migrant workers staying in the city tocelebrate Tet, and support those whoreturn to their hometowns.
Deputy Secretary of the HCM City Party Committee Nguyen Ho Hai has asked alllevels and sectors to mobilise businesses to help employees who have workedless than 12 months and are ineligible for unemployment allowances and committo not dismiss pregnant workers, workers raising children and people indifficult circumstances.
Businesses are required to pay social insurance, health insurance and Tet bonuses for employees./.
VNA
