Global Markets
Home›Global Markets›Emerging Markets›Vietnam’s seafood and garment sectors face labor short…
Vietnam’s seafood and garment sectors face labor shortages despite wage hikes
Vietnam sends 130,000 to 150,000 workers abroad annually, while analysts say remittances of about US$6 billion to US$7 billion a year have not offset domestic staffing gaps for key industries.
Vietnam’s seafood and garment industries are running into labor shortages even after pay increases, as the government expands efforts to send Vietnamese workers overseas for higher-paying jobs, according to SCMP Economy.
The home ministry says between 130,000 and 150,000 Vietnamese go abroad to work each year, with the overseas labor market totaling nearly 900,000 by the end of last year, the outlet reported. Vietnamese workers abroad remit between US$6 billion and US$7 billion annually, a figure analysts say plays a significant role in the national economy.
A report submitted in late June by the Vietnam Association of Seafood Exporters and Producers to the Ministry of Finance flagged worker shortages as a major shortcoming, especially in hubs such as the Mekong Delta and Ho Chi Minh City.
Even salary increases of 25.0% to 30.0% did not improve recruitment or retention, highlighting the difficulty Vietnam faces as it tries to move up the value chain while relying on labor migration for remittance revenue, the outlet said.