Labor market in HCMC goes from 'massive laying off' to ‘bustling hiring’

The labor market in Ho Chi Minh City became bustling again in the last months of the year, when many businesses had orders so they started recruiting workers to serve production and business.

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Moreover, some businesses wishing to expand production have also begun recruiting and training human resources to fill working positions when the factory comes into operation.

Enterprises race to recruit workers

After a day of finding information on labor recruitment at Tan Thuan Export Processing Zone in District 7, worker Nguyen Van Thinh hailing from the Mekong Delta Province of Dong Thap decided to apply for a job in a company of his choice. According to Mr. Thinh, at the end of the year, many businesses need to recruit workers, so he had to carefully choose the company with the best income and benefits.

With nearly 10 years of experience in garment processing, Mr. Thinh lost his job so he worked as a motorbike taxi driver to earn extra income after his old company lacked orders. He eagerly said that at this time, many companies are seeking workers so employees have more opportunities to find jobs. He decided to choose a company near his rental room with a good income.

Over the past several months, Nidec Vietnam Company in the High-Tech Park in Thu Duc City has continuously recruited hundreds of workers each month to fill positions of laid-off workers.

Chairman of the Trade Union of Nidec Vietnam Company Luu Kim Hong informed that the enterprise currently has more than 5,000 employees and skilled people's monthly income is over VND10 million (US$410) while new workers, including allowances and overtime, earn about VND8 million-VND9 million a month. Mr. Luu Kim Hong said that at the end of 2022, due to the company's difficulties, nearly 30 percent of laborers quit their jobs.

By early 2023, the company had stable orders again, so the company has continuously recruited workers again until now. On average each month, this enterprise recruits 600-700 workers.

Similarly, Sonion Vietnam Co., Ltd. is looking to recruit 500 unskilled workers, from 18-35 years old, with an income of VND7 million -VND12 million a month and many attractive benefits such as transportation, attendance allowance, and productivity bonus.

Elsewhere in the city, Furukawa Automotive Company is also looking to recruit 200 official workers to work in shifts. In addition to a clean, air-conditioned working environment, the company also offers an income of VND8 million-VND10 million monthly and benefits such as salary adjustment once a year, lunch and overtime meals. Printing Joint Stock Company No. 7 in Tan Tao Industrial Park in Binh Tan District is in need of recruiting hundreds of workers to prepare resources for the new factory which is going into operation.

Authorities enhance connection and support for workers

Noticeably, many businesses have been lately posting recruitment notices with attractive salaries and benefits in export processing zones, industrial parks, and high-tech parks in Ho Chi Minh City.

Director of the Center for Forecasting Human Resources Needs and Labor Market Information in Ho Chi Minh City (FALMI) Nguyen Hoang Hieu said that to prepare for production and business needs during the Tet holiday, many businesses need to recruit employees. It is expected that human resource demand in the fourth quarter of 2023 will require about 81,172 workers mainly for wholesale and retail, processing and manufacturing industries and real estate businesses.

Specifically, four key industries need 15,081 jobs, accounting for 18.58 percent of the total human resource need in the fourth quarter of 2023. In addition, nine main service industries offer 53,319 employees, accounting for 65.69 percent of the total demand (of which, the trade industry accounts for the highest proportion with 30.19 percent.

According to Ms. Nguyen Hoang Hieu, in the last months of the year, businesses often tend to recruit untrained workers, part-time workers, and seasonal workers so the labor market is more bustling.

Meanwhile, according to Vietnam's leading human resource recruitment service provider Navigos Group’s survey of more than 4,000 candidates working in Vietnam and more than 550 businesses with diverse nationalities such as the US, China, Europe, Korea, Japan, and Vietnam has shown that 59.1 percent of respondents said they will still recruit less than 25 percent more employees next year despite fluctuations in the market.

In particular, businesses prioritize recruiting personnel with good problem-solving skills and 1-3 years of experience, followed by new graduates and department managers. Moreover, the recruitment of personnel for trading, sales, production, communication and marketing departments would be given priority.

According to the Department of Labor, Invalids and Social Affairs of Ho Chi Minh City, in the last months of the year, businesses tend to recruit many workers to serve production and business during the Tet holiday.

The Ho Chi Minh City Department of Labor, Invalids and Social Affairs organizes job exchanges to address employment needs and human resource needs to serve production and business activities. Specifically, in the fourth quarter of 2023, 12 trading floors will be organized, including 2 job trading floors for people with disabilities and 1 online trading floor connecting with 13 Mekong Delta provinces.

The Department also has a plan to strengthen supervision of salary and bonus payments during the 2024 Lunar New Year and stabilize labor, employment, and labor relations at enterprises. Accordingly, the Department of Labor, Invalids and Social Affairs closely coordinate with the Ho Chi Minh City Labor Confederation, departments, agencies and localities to recommend that businesses soon announce plans to pay salaries, bonuses, and employee support payments. In addition, the department and the Ho Chi Minh City Labor Federation planned to spend a total budget of VND71 billion (US$2,917,964) to support about 139,000 workers who had lost their jobs and faced difficulties.

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