The city of Ho Chi Minh is suffering from a shortage of workers after cuts to the Covid-19 implementation plan, which threatens efforts to restart overseas economy after a third of the domestic economy fell.
Companies located in the southern company, a sales Executive of clothing, textiles, footwear, furniture and other international brands from Ikea and Walmart to Nike and Adidas, had the problem of resuming work because so many people have left, businessmen and inspectors said.
During the crisis, which was instituted by communist officials in Ho Chi Minh City and its suburbs as the center of the Covid-19 riots, many migrants were forced to work in banned factories and to move between provinces to form the capital.
Sometimes they just sit in their own factories “Three on a page” rules that companies not only pay employees but also feed and maintain them. The plot became costly for employers and difficult for co-workers.
“Obviously there were serious challenges facing businesses and long-term employees,” said Mary Tarnowka, head of AmCham Vietnam in Ho Chi Minh City. “And there was pain and hardship for low-income people who had no rent or food.”
As soon as the workers return home, tens of thousands did, they sometimes travel hundreds of miles on motorbikes because government buses and other modes of transportation do not work.
“At the end of September, when the city was uplifted, most of the workers went home,” said Linh Le, who recently resigned from a clothing company that works less because more workers have left.
Some companies are now struggling to recruit partners because many do not have the money, transportation or paperwork for the Covid-19 vaccine required to return.
“It’s difficult to build a company,” said Linh Nguyen, an expert on Southeast Asia and Control Risks. “On the one hand they are in high demand from overseas now, but unemployment.”
This is the bad news for global companies that manufacture goods from southern Vietnam. It also indicates that the financially driven global financial system could take a turn for the worse this year from the epidemic and closure, which was exacerbated by the government’s delay in getting vaccines.
Vietnam, one of Asia’s least growing economies last year, also reported a 6% decline in GDP, the worst in history, in the third quarter of 2021, which is linked to the closure. Ho Chi Minh’s GDP fell by 24%, according to regional statistics.
Prior to the Ho Chi Minh City epidemic, migrant workers exceeded 2m, in a city of about 10m.
The Vietnamese government is now “focusing on the issue of refugee labor,” said Tarnowka, whose AmCham receptionist urged Hanoi to “monitor vaccinations and transport for people in remote areas and return to work”. From Wednesday, officials allowed bus operations between Ho Chi Minh City and other states to resume flight.
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