Vietnam pursuing to dose labour shortage rapidly – PM

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Vietnam’s government hopes to resolve a coronavirus-related labour shortage by the end of this year or early in 2022, according to the country’s prime minister, as it tries to recover from the sharpest quarterly decline on record.

Businesses in Vietnam are struggling to reopen due to a labour shortage following the unprecedented evacuation of hundreds of thousands of workers from industrial hubs in October after COVID-19 restrictions were released.

“The fourth wave of COVID-19 infections have seriously affected the labour market, with a high unemployment rate,” Pham Minh Chinh told lawmakers.

When travel limitations were removed, Chinh added, a large exodus of workers from industrial centers to their home towns created issues for businesses and hindered viral control efforts.

Pou Chen Corp, the world’s largest manufacturer of branded sports footwear, announced this week that roughly 6% of its Ho Chi Minh City employees have departed, causing a manufacturing disruption.

Vietnam is a major garment producer, providing Zara, Ralph Lauren (NYSE: RL), North Face, Lacoste, and Nike, among others (NYSE: NKE). It’s also a manufacturing hub for electronics companies like Samsung (KS:005930).

“Local authorities will cooperate with businesses and labourers to work out all necessary measures to ensure sufficient labourer supplies by the end of this year or early next year,” Chinh said.

Authorities will provide financial assistance for labourers’ travel and lodging, as well as continue vaccines. To boost growth, Chinh said the government was working to repair supply networks and enhance public investment.

“Public investment has not met target,” Chinh said. “The government has determined that speeding up public investment will be a key task to restore economic growth.”

The investment minister said on Friday that lifting the public debt cap from its present level of 60% of GDP was being studied as a way to revive the economy, which fell 6.17 percent in the third quarter.

Story by : Norvisi Mawunyegah