Some 7.8 million workers in Vietnam have lost their jobs or put on furlough, Kinhtedothi.vn quoted Vu Trong Binh, director of the Employment Department under the Ministry of Labor, War Invalids and Social Affairs (MoLISA), as saying at a meeting on June 29.

At the meeting. Photo: Kinhtedothi.vn

Binh said that as of June 2020, 30.8 million people aged 15 and older have been negatively affected by the Covid-19 pandemic. In particular, 57.3% have seen their income reduced.

Millions of workers are at risk of losing their jobs in the coming months, Binh noted.

For instances, PouYuen Vietnam Co., Ltd., the largest contractor of Nike and Adidas, has expected that from now until the end of August, they will terminate labor contracts of 2,786 people, due to no oders.

Meanwhile, Hue Phong Textile Company lay off over 2,000 employees, Woodworth Wooden Company (in Ho Chi Minh City) is expected to reduce more than 2,000 employees due to a 50% reduction in orders.

In the first quarter of 2020 alone, 35,000 businesses withdrew from the market, 75% of businesses have to downsize their payrolls.

Deputy Minister of the MoLISA Le Van Thanh said although Vietnam has initially contained the Covid-19 epidemic, the crisis is still hitting many countries, and consequently taking its toll on the Vietnamese economy.

For the first time in decades, the number of Vietnamese enterprises ceasing operations is larger than the number of newly-established ones, Thanh cited.

He emphasized that the number of businesses hit by the Covid-19 pandemic has increased to a record high. Many factories have to temporarily stop working because of the absence of orders and input materials.

To support enterprises and employees, the MoLISA has put forth some solutions. One of them is proposing the Vietnamese government to devise immediate policies and strategies to draw more foreign investment into Vietnam. Another solution is creating a transparent business environment, simplifying business procedures and conditions to make businesses more confident of long-term investment, among others.