The number of markets that regularly and consistently receive Vietnamese workers does not exceed ten.
Many experienced industry insiders believe that 2011 will be an even more difficult year for labor export.
According to statistics from the Ministry of Labour, Invalids and Social Affairs, in 2010 Vietnam sent 85,546 workers abroad, reaching 100.64% of the annual target and increasing by 16.4% compared to 2009.
Although the result exceeded the planned target, many observers believe that the figure is, in some respects, only “good on paper.” In reality, labor export activities continue to face numerous challenges. This view is also shared by many labor export enterprises.
Enterprises Struggling
From an overall perspective, Mr. Nguyen Xuan Vui, Chairman of the Board and General Director of Air Service and Trading Joint Stock Company (Airserco), stated that many labor export enterprises are facing difficulties.
Some companies have recruitment orders but cannot find enough workers. Meanwhile, many others are unable to secure orders at all, not to mention the risks associated with numerous contracts.
Mr. Vui cited Malaysia as an example. At the beginning of 2010, the labor export industry predicted that Malaysia would recover and become Vietnam’s major labor market due to its large demand, low labor costs, and relatively modest skill requirements.
However, by the end of 2010, nearly 100 Vietnamese enterprises operating in this market had managed to send only about 11,000 workers to Malaysia, most of whom came from poor districts under a government-supported program.
The difficulties in the Middle East market provide another example.
Since 2009, the Ministry of Labour, Invalids and Social Affairs had identified the Middle East as a key labor market, targeting the deployment of approximately 25,000 workers per year. However, in 2010, enterprises managed to send only slightly more than 5,000 workers to the region.
Statistics from the Department of Overseas Labor Management also indicate significant shifts in labor markets.
In 2010:
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Taiwan remained the leading destination with 28,449 workers.
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Malaysia reached 11,741 workers despite considerable effort.
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South Korea: 8,628 workers.
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Japan: 4,913 workers.
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Macau: 3,124 workers.
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Libya: 5,242 workers.
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United Arab Emirates (UAE): 5,241 workers.
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Laos: 5,903 workers, representing one of the year's notable breakthroughs.
However, many industry experts argue that these statistics do not fully reflect the difficulties faced in reality.
One of the clearest indicators is that if labor export operations were truly smooth and profitable, enterprises would not be considering shifting to other industries.
In fact, many companies have returned their labor export licenses and withdrawn from overseas recruitment activities. Others have diversified into tourism, construction, real estate, and other sectors.
Few Optimistic Signals
According to the Ministry of Labour, Invalids and Social Affairs, Vietnam has sent workers to more than 40 countries and territories. However, in reality, the number of markets that consistently and regularly receive Vietnamese workers does not exceed ten.
Among these destinations, many experts see few positive signals for 2011.
A recruitment officer for a company sending workers to Taiwan explained that although Taiwan remains Vietnam’s largest labor market, it is becoming increasingly difficult to recruit workers due to excessively high brokerage fees.
Many workers are reluctant to spend USD 6,000–7,000 to secure jobs that offer monthly incomes of only VND 6–7 million. In addition, the number of Vietnamese workers absconding from their contracts in Taiwan has increased, causing Taiwanese employers to become less enthusiastic about hiring Vietnamese workers. This trend could become a significant obstacle for the market in 2011.
Similarly, in Malaysia, although there are many factory jobs available in electronics, garment manufacturing, and related industries offering reasonable wages and stable working conditions, workers continue to reject these opportunities.
By the end of 2010, only around 11,000 workers had gone to Malaysia, compared with the market’s peak years when Vietnamese enterprises sent as many as 35,000 workers annually.
Japan and South Korea remain attractive because of their relatively high incomes, but demand remains limited.
Japan has shown little growth, accepting only about 4,000 workers annually.
Meanwhile, South Korea continues to impose increasingly strict requirements regarding vocational skills and Korean language proficiency. As a result, not every worker can easily qualify for employment there.
New Markets Offer Limited Hope
In 2010, labor export saw one positive development when several enterprises successfully sent workers to Israel, where monthly incomes could reach USD 1,000.
However, industry experts believe that Israel has limited capacity for expansion and cannot be relied upon as a major growth market in 2011 because its annual demand for foreign labor remains relatively small.
Given this reality, many enterprises believe that any markets that may emerge in 2011 are destinations that previously would not even have been considered significant enough to contribute meaningfully to labor export targets.
“In previous years, when labor export was booming, markets such as Laos and Cambodia were hardly mentioned at all,” commented the executive of one labor export company.
Mr. Nguyen Xuan An, Vice Chairman and Secretary General of the Vietnam Association of Manpower Supply, shared a similar view.
“At present, we do not see any major breakthrough for labor export in 2011, nor do we see strong prospects from any new market. Therefore, if we can simply maintain our existing markets, that would already be considered a success,” he said.
Source: http://vneconomy.vn/