Stabilising Workforce

Vietnam has an abundant young labour force, which is very attractive to FDI companies, but they seem to hesitate because of go-slow strikes. Mr Chao Wen Shiang (Jack), General Director of Vietnam Precision Industrial No. 1 Co., Ltd (VPIC1), said that in an interview granted to the Vietnam Business Forum. Luu Hiep reports.

 

Vietnam Precision Industrial No. 1 Co., Ltd (VPIC1), a member of the Eurocharm group, is located in Khai Quang Industrial Park, Vinh Yen town, Vinh Phuc province. In our 10 years in Vietnam, we have experienced the ups and downs of the Vietnamese and world economy. As the economic cycle moves in sinusoidal shape; thus, now it is about at the bottom and will tend to recover. From March to August 2012, our company received fewer orders, but customers in Vietnam and foreign countries placed more orders from August. Recovery signals of the market make me believe that VPIC 1 and other companies will resume full operation soon.

 

It is undeniable that 2012 has been a very tough year for businesses. VPIC1 is seeing a rise in revenue but a drop in profit because of increased input costs and higher salary.

 

In 10 years in Vietnam, VIPC1 always upholds its sustainable development goal. In recent years, VIPC1 has invested over US$6 million yearly in Vietnam, and we still plan to expand our business scale in the future. Additional investment has powered up motivations in production and business activities. But, this also needs a greater effort of employees. The company constantly improves the quality of working environment, and enhance social responsibility by paying wages and applying social welfare as stipulated by Vietnamese laws. The company’s pay for workers is stable and higher than other companies in the industrial park. To increase income for employees, the company focuses on cutting costs and applies innovations to production, thus raising awareness of environmental protection and conserving electric and water. Besides, we also change their perception of products they make and strengthen their devotion to their jobs.

 

With people-centred business strategy plus expansive investment and production promotion, VPIC1 constantly takes care of its workers, maintains information exchange, creates two-way communication for mutual understanding, and provides the most favourable conditions for workers to take part in the company’s construction and development. This business strategy, together with the 5S methodology (sorting, straightening, shining, standardising, and sustaining the practice), 3D (định vị, định tính, định lượng  which means positioning, qualification and quantification) and eradication of waste in production, has helped VPIC1 have sustainable strides and development.

In the coming time, VPIC1’s biggest plans and objectives are to increase investment, expand production, boost export, and gradually increase incomes and welfares for workers in order to create the "synergy of the company" to generate the highest production and business efficiency because "taken from society and used for the benefit of society is VPIC1’s duty and social responsibility.”

 

Despite fewer orders, we have still maintained production and focused on training. Our policy is to keep the entire workforce because human resources are the driving force for sustainable corporate development. Training a skilled worker requires a lot of time. Therefore, the company concentrated on training employees, improving their workmanship, and raising labour productivity and product quality. Besides, workers are trained in foreign languages to work better.

 

Active and industrious workers will have opportunities at VPIC1. To date, many young people are promoted to production managers.

 

Currently, VPIC1 has over 3,200 employees. In August, we began recruiting more workers.

 

I am certain that the governments of Vietnam and Vinh Phuc province have created the best conditions to support enterprises’ investment and production activities. The coordination of State agencies in Vinh Phuc province is rated “very good” by businesses. For our part, we have been present in Vinh Phuc province for 10 years, increased investment capital, ensured good welfare for workers and contributed much to the State Budget. If existing enterprises are profitable, more will come.

 

The big problems for my company are power supply and Internet system. Unstable power supply has troubled our manufacturing operations. Each uninformed power failure breaks our machines. Therefore, we expect the electricity industry to pay more attention to power supply.

 

Internet services in the industrial park are flickering, poor or interrupted. As we often host videoconferences, reliable transmission signals are very important. So, we hope managers and service providers can end these difficulties for us.

 

My friends in Taiwan are very interested in the investment environment in Vietnam and they often ask me for advice about Vietnam investment because they see a lot of big Taiwanese corporations operating very well here. But, their concerns are about worker strikes. They will only invest when the workforce is stable.

 

Vietnam has an abundant young labour force, which is very attractive to FDI companies, but they seem to hesitate because of go-slow strikes.

 

Repeated strikes in recent times are staining the view of foreign investors regarding Vietnam. If Vietnam can control strikes, it will clear obstacles for its investment environment. Investors comply with Vietnamese investment and labour laws, but they do hope that the Vietnamese government can better manage illegal strikes. Relevant authorities should take a look into enterprises to find out whether they exercise the rights and obligations to employees or not. If they comply and strikes still go on, such strikes are unlawful. The government must intervene. This is very important to enhance the image of Vietnamese investment environment and the confidence of investors looking to enter Vietnam.