Vietnam's electronics companies encounter labour shortage
Ministry of Labour, Invalids and Social Affairs (MOLISA) has recently reported that hundreds of electronics manufacturers in Vietnam are having difficulty recruiting labourers.
Despite forecasts about automation technologies replacing manual labour, manual labourers are still in high demand at electronics manufacturers in Vietnam, especially those with skills and qualifications.
Vietnam are having difficulty recruiting labourers
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The number of electronics labourers has also risen drastically, from about 142,800 in 2009 to 453,200 in 2016, she said at a recent conference on securing jobs for workers at electronics companies in Vietnam.
New technologies are one of the factors leading to the shortage, said Dr Dao Quang Vinh, director of the Institute of Labour Science and Social Affairs.
Meanwhile, since the majority of Vietnamese labourers came from rural areas and did not receive any formal training for technological jobs, they lack flexibility in adapting to technological changes, said Dr Vu Quang Tho, director of MOLISA’s Institute for Workers – Trade Unions.
The harsh working conditions at manufacturing factories also lead some workers to quit their jobs, Tho added.
Nguyen Tien Tung, MOLISA’s chief inspector, said that wrong doings were discovered in 216 electronic companies in 2017 nationwide.
Twenty-seven enterprises made serious violations of the Labour Code and were fined 1.4 billion VND (61,600 USD), Tung added. Most of them did not ensure workers’ rights, he said.
To improve the situation, Dr Chu Thi Lan said electronics companies should shake up their practices, strictly comply with labour regulations, maintain labour standards and offer incentives to recruit labourers.
There are 610 electric and electronic components producers nationwide, accounting for 53.28 per cent of the total electronic sector’s businesses—a disconcertingly low proportion.
Almost all Vietnamese businesses deploy sporadic orders, providing materials and simple components, such as packaging, plastic spare parts, metal, and logistics services such as transportation and sanitation.
They have not been able to manufacture important components with higher added value yet. Almost all electronic products are assembled from imported components.
Bang Hyun Woo, deputy director general of Samsung Vietnam, said that Vietnamese companies produce more sophisticated components rather than just packaging and palletising. The localisation rate of Samsung mobile phones was 57 per cent at the end of 2016. As many as 29 Vietnamese firms are direct suppliers for Samsung now.
Samsung has been doing their utmost to seek out and support Vietnamese firms to take part in its supply chain. However, Vietnamese businesses have to raise their knowledge by inviting experts who have long experience working with Korean and Japanese firms.
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