Labour scarcity in HCM city takes toll on RMG export orders

15 Sep '10

2 min read

Firms in export processing and industrial zones of HCM City, faced with the labour scarcity issue, are striving to meet the rising orders.

Textile, footwear, electronic assembly and seafood processing firms, are some of the sectors which particularly draw more orders in the last part of the year.

Nguyen Thanh Tung, Director of the Job Opportunity Centre under the HCM City Export Processing Zones Authority (HEPZA), stated that the firms now require a labour force of around 49,000 workers who will continue working till close of the year, but presently the Centre is able to fulfil just 70 percent of this demand.

Over 300 textile, footwear and electronic assembly enterprises are now experiencing acute labour scarcity. The Tan Thuan export processing zone, alone is in dire need for 10,000 workers.

Apart from the unskilled labour, the enterprises are even finding it difficult to get right persons to fill up the middle management vacancies existing in their organizations.

Employee shortage in the middle level management level represents 10 percent of the total workforce dearth.

According to experts, enterprises require to alter their wage policies and to provide better working conditions while implementing technological innovations.

It is believed that, as the City intends to construct seven new IZs while expanding the existing ones to bring another 3,000 hectares within its ambit, this would generate demand for additional workforce.

Neighbouring provinces are also extending tough competition to the City, as they too have launched new IZs. There are three export processing zones and 10 industrial zones in the HCM City right now, which all in all has 1,200 projects on hand and provides employment to around 252,000 workers.

Fibre2fashion News Desk - India

More Apparel/Garments News - Vietnam...