Job cuts, reduced hours hit nearly 510,000 Vietnamese workers

By Huong Dung
Tue, June 6, 2023 | 1:48 pm GMT+7

Over half a million employees in Vietnam lost their jobs or had their work hours cut in the first five months of this year, said Minister of Labor, Invalids and Social Affairs Dao Ngoc Dung on Monday.

Of the total, 280,000 people quit their jobs or were laid off, accounting for 54.79%, he told legislators during the ongoing session of the National Assembly.

They were mainly working in localities with large industrial parks and economic zones, such as Binh Duong, Dong Nai and Ho Chi Minh City in the south, and Bac Giang, Bac Ninh, Hai Duong and Hanoi in the north.

The textile and garment industry saw the largest numbers of workers laid off or having their hours cut, with 70,000 and 66,600, respectively. It was followed by leather and footwear, with 31,600 and 66,000; and manufacturing of electronic components and products, with 45,000 and 24,800.

Minister of Labor, Invalids and Social Affairs Dao Ngoc Dung speaks at the ongoing session of the legislature on June 5, 2023. Photo courtesy of Dan Tri (People's Knowledge) newspaper.

Minister of Labor, Invalids and Social Affairs Dao Ngoc Dung speaks at the ongoing session of the legislature on June 5, 2023. Photo courtesy of Dan Tri (People's Knowledge) newspaper.

The number of unpaid workers reached 17,000, with the textile and garment industry again taking the lead with nearly 5,000.

More than 8,600 businesses had to cut staff, of which 27% were foreign-invested enterprises while the rest were domestic private companies. The most affected region was the southeast, accounting for nearly two thirds of the total, while 12% of the enterprises were based in the Red River Delta region.

Untrained workers made up the largest proportion of job cuts at 68%.

Minister Dung attributed the cuts to a lack of orders, difficulties in foreign economies, high inflation, and tightened monetary policy that has resulted in declining purchasing power, especially for clothing, shoes and personal electronic devices.

Many businesses had reported huge inventories while there were no new orders, he added.

According to Dung, the Ministry of Labor, Invalids and Social Affairs has implemented policies to support workers who had lost their jobs or had their hours cut like free recruitment consultancy, vocational training support, preferential credit, and expanding beneficiaries of the National Employment Fund.

To assist laid-off workers, Dung said his ministry will consider amending the unemployment insurance policy and effectively support them to access preferential loans from the Vietnam Bank for Social Policies.

Earlier, Dang Xuan Phuong, deputy head of the National Assembly’s Committee for Culture, Education, Adolescents and Children, said that as the Vietnamese economy is forecast to continue facing difficulties, the government should ask businesses to limit production expansion and avoid mass layoffs.

"The government needs to guide enterprises to allow employees to work in rotation and limit sudden layoffs that negatively affect workers' lives," he said.

Comments (0)
  • Read More
HCMC's international financial center development to be phased out: city leader

HCMC's international financial center development to be phased out: city leader

Ho Chi Minh City aims to become an international financial center, with related development plan divided into three phases, said Vo Van Hoan, its Vice Chairman.

Economy - Thu, March 27, 2025 | 11:11 pm GMT+7

Car producers in Thailand postpone export models

Car producers in Thailand postpone export models

Car manufacturers in Thailand have decided to delay making some models for export due to U.S. President Donald Trump's new tariff policy.

Southeast Asia - Thu, March 27, 2025 | 10:17 pm GMT+7

Indonesia approves $7 bln budget for food security in 2025

Indonesia approves $7 bln budget for food security in 2025

Indonesia’s Ministry of Finance on Wednesday announced that the government has approved a budget of IRD118 trillion ($7.1 billion) for food security programs in 2025.

Southeast Asia - Thu, March 27, 2025 | 10:14 pm GMT+7

Honda Vietnam rolls out first domestically produced electric scooter

Honda Vietnam rolls out first domestically produced electric scooter

Honda Vietnam has officially launched its first domestically produced electric scooter, the ICON e:, marking a significant step in the company’s electrification and sustainable mobility strategy in Vietnam.

Southeast Asia - Thu, March 27, 2025 | 10:09 pm GMT+7

Vietnam's Quang Ngai seaport system requires over $420 mln investment by 2030

Vietnam's Quang Ngai seaport system requires over $420 mln investment by 2030

The seaport system in the central Vietnam province of Quang Ngai will need about VND10.83 trillion ($423.54 million) in investment by 2030, according to the detailed 2021-2030 development plan for local seaport land and water areas, with a vision to 2050.

Southeast Asia - Thu, March 27, 2025 | 10:06 pm GMT+7

Leading steelmaker Hoa Phat targets record revenue on partial operation of central Vietnam plant

Leading steelmaker Hoa Phat targets record revenue on partial operation of central Vietnam plant

Hoa Phat Group, Vietnam’s top steelmaker, targets a record-high revenue in 2025, driven by the expected partial operation of a steel and iron complex in the central region this year.

Companies - Thu, March 27, 2025 | 8:10 pm GMT+7

Offshore wind power developer CIP seeks long-term cooperation with Vietnam

Offshore wind power developer CIP seeks long-term cooperation with Vietnam

Copenhagen Infrastructure Partners (CIP), a major Danish renewable energy developer, is seeking to reach long-term cooperation with Vietnamese businesses in the offshore wind power sector.

Energy - Thu, March 27, 2025 | 4:16 pm GMT+7

Vietnam giant VinFast moves to expand EV service in Philippines

Vietnam giant VinFast moves to expand EV service in Philippines

VinFast, Vietnam’s largest electric vehicle (EV) manufacturer, has partnered with MGA.414 Corporation, the operator of the JIGA automotive service chain, to expand its EV service network in the Philippines.

Southeast Asia - Thu, March 27, 2025 | 3:48 pm GMT+7

Vietnam's MobiFone officially launches 5G services

Vietnam's MobiFone officially launches 5G services

MobiFone, one of Vietnam’s leading telecommunications providers, has officially commercialized its 5G services, becoming the third network operator in the country to do so.

Southeast Asia - Thu, March 27, 2025 | 3:45 pm GMT+7

Thanh Cong Group inaugurates first automobile manufacturing plant in Vietnam's Quang Ninh province

Thanh Cong Group inaugurates first automobile manufacturing plant in Vietnam's Quang Ninh province

Vietnamese automaker Thanh Cong Group officially inaugurated its Thanh Cong Viet Hung automobile manufacturing plant on Wednesday at the Viet Hung Industrial Park in the northern province of Quang Ninh.

Southeast Asia - Thu, March 27, 2025 | 3:32 pm GMT+7

Vietnam willing to open doors to US agricultural products: minister

Vietnam willing to open doors to US agricultural products: minister

Vietnam is actively preparing to open its market to U.S. agricultural products such as tangerine, plum, and lemon, Vietnamese Minister of Agriculture and Environment Do Duc Duy said on Wednesday.

Economy - Thu, March 27, 2025 | 3:08 pm GMT+7

S Korea chaebol Lotte eyes hypermarket in northern Vietnam

S Korea chaebol Lotte eyes hypermarket in northern Vietnam

South Korean conglomerate Lotte is eyeing projects in Thai Nguyen province, an industrial hub in northern Vietnam, firstly a hypermarket.

Industries - Thu, March 27, 2025 | 12:15 pm GMT+7

Dubai-based PDSI eyes $2.6 bln investment in tourism-golf course project in central Vietnam

Dubai-based PDSI eyes $2.6 bln investment in tourism-golf course project in central Vietnam

PDSI Group, a Dubai-based real estate and consulting firm, has expressed interest in developing a $2.6 billion commercial, tourism, and golf course complex in Binh Thuan, a south-central coastal province of Vietnam.

Real Estate - Thu, March 27, 2025 | 11:38 am GMT+7

S Korea's SK set to divest from Vietnam's giant Vingroup

S Korea's SK set to divest from Vietnam's giant Vingroup

South Korean chaebol SK Group is set to divest from Vietnamese conglomerate Vingroup, according to the former’s annual report 2024.

Companies - Thu, March 27, 2025 | 11:30 am GMT+7

StanChart adjusts USD/VND exchange rate forecast amid changing economic trends

StanChart adjusts USD/VND exchange rate forecast amid changing economic trends

Standard Chartered Bank has adjusted its USD/VND exchange rate forecast, reflecting shifts in global and regional economic conditions.

Economy - Thu, March 27, 2025 | 9:29 am GMT+7

Fund inflows help stabilize Vietnam's stock market: analyst

Fund inflows help stabilize Vietnam's stock market: analyst

As fund inflows are typically long-term investments, they play a key role in stabilizing Vietnam's stock market and preventing sharp fluctuations, according to Nguyen Duy Anh, Chartered Financial Analyst (CFA) at Vietcombank Fund Management Co., Ltd. (VCBF).

Finance - Thu, March 27, 2025 | 8:30 am GMT+7