Unemployment on the rise in Vietnam

Thousands in Vietnam have lost their jobs this year due to the massive closure of companies, creating a rise in unemployment that is expected to continue for some time.

Each day, the Hanoi Employment Introduction Centre (HEIC) receives hundreds of people registering for unemployment insurance. The people run the gamut in terms of age and professions.

 

Hundreds of people registering for unemployment insurance at Hanoi Employment Introduction Centre

Mr. Duc said he worked at Big C supermarket with a salary of VND4 million (USD190.4) per moth. However, in April the the firm started to scale down, leaving him to be unemployed. Now he is living on the unemployment benefits of VND2 million (USD95.23) per month.

He said that despite having experience, it is not easy for him to find a job as Tet nears because Vietnamese companies usually recruit at the beginning of the year.

Mrs. Thuy, who worked for Duoc Khoa Company in Hanoi, said she has been living on unemployment since September. In the meantime she has had to take a job as a housekeeper.

Nguyen Toan Phong, director of HEIC, said in the first ten months of this year, 27,665 people came to the centre to register for unemployment insurance, up 5,837 from the same period of last year.

In the ten-month period, the centre spent VND178.8 billion (USD8.5 billion) on unemployment benefits. Mr. Phong added that the majority of people registering work in the areas of processing, electronics and garments and textiles. A high rate is seen at companies located at industrial parks and export processing zones as well as foreign-invested firms.

According to the Ministry of Labour, Invalids and Social Affairs, up to 30-40% of people who register unemployment have graduated from colleges and universities.

Nguyen Thi Kim Loan, head of HEIC’s Unemployment Insurance Board, said that economic difficulties are the main cause of the rise in unemployment. Meanwhile, according to Mr. Phong, the passivisation of state-owned companies has also contributed to the problem.

So far this year, the number of unemployed in Vietnam grew by 20% against last year, Phong added.