Recently, when the US market opened to receive its first Vietnamese guest workers, Vietnam’s labour export service received a major boost. However, it is still difficult for Vietnam to exploit major markets. In the 2001-2005 period, Vietnam annually sent 58,000 guest workers to foreign countries. The figure, compared to the State’s requirement of one million guest workers means the demand for Vietnamese workers remains extremely low.
Open markets
At present, some Asian markets, including Japan, the Republic of Korea, Taiwan, Malaysia and Laos have many Vietnamese guest workers. These markets are still capable of receiving more Vietnamese guest workers. The Middle East and Africa need guest workers for their construction projects. Other markets in Europe and the Americas lack workers, so they have a huge demand for guest workers. However, the EU countries take high quality guest workers only. As a result, it is difficult for Vietnam to gain access to such markets. To open such potential markets, Vietnam should conduct research and learn more about signing contracts on sending guest workers to other markets.
According to a report by the Ministry of Labour, War Invalids and Social Affairs, among the 141 labour export enterprises, only 18 enterprises operate with due professionalism. Many enterprises are small in scale. Of this figure, up to 89 enterprises send less than 200 guest workers to foreign countries. These enterprises are incapable of investing and building training establishments for their guest workers, let alone getting access to markets. Many of the enterprises have not fully observed regulations on labour recruitment as they use intermediary services, resulting in high costs for guest workers. Some enterprises sell their guest workers to other enterprises or act as intermediaries, or sell their licences to other enterprises. This has made the market more complicated, creating favourable conditions for illegal practices to develop.
Losses for workers only
Unfair competition among enterprises has resulted in reduced interests of workers with increased fees. In foreign countries, enterprises increase their intermediary fees and commissions, reduce salaries of guest workers to win contracts to supply guest workers. In Vietnam in the past, workers did not have to pay any fees when they were recruited in communes and districts. Enterprises paid communes and districts between VND 300,000 and 500,000 to recruit a worker. The fees are now put at between VND 700,000 and 1.2 million, or even 1.5 million to recruit a worker. This has resulted in increased fees for workers, according to a director of a labour export enterprise.
In some localities, guest workers have to pay unofficial fees when they are recruited to work in high-income markets, including the Republic of Korea, Japan and Taiwan.
According to the Ministry of Labour, War Invalid and Social Affairs, these factors have hampered Vietnam in entering potential markets. Vietnam is renewing its labour export. Accordingly, apart from renewing its policies, Vietnam is rearranging its labour export enterprises and developing long-run strategies to improve high-value labour exports.
The Government should also comprehensively review labour export activities to build a Law on Labour Export in order to settle the above mentioned difficulties.
Luu Huong
Vietnamese
