A decline in orders has forced numerous enterprises to cut production and their workforce, but retaining employees is an important factor in businesses developing in the post-pandemic recovery stage.

This was one of the key issues raised at a workshop entitled “Inflation control, employment stability. Policies target enterprises and workers” held by Vietnam Economic Times / VnEconomy.

“In the second quarter of 2022, the labor market recovered so quickly that many businesses faced a serious shortage of human resources,” Deputy Head of the Department of Employment at the Ministry of Labor, Invalids and Social Affairs Tao Bang Huy told the gathering. “However, in the third quarter, increased material prices and reduced orders, among other matters, made many employers cut production and business operations, reduce working hours and overtime, and cut employee numbers.”

Reports from Vietnam’s 63 cities and provinces show that 528 enterprises have reduced production and business activities and cut jobs since the third quarter of this year, affecting more than 600,000 workers. Of these, over 50,000 lost their jobs while the remainder saw their labor contract suspended or worked reduced hours with little or no overtime.

Reduced working hours or job losses mainly affect unskilled workers in labor-intensive industries such as garments and textiles, leather and footwear, and wood processing in industrial parks in Ho Chi Minh City and nearby Binh Duong province.

A survey by the Vietnam General Confederation of Labor also found that up to 70 per cent of enterprises suffer from falling orders that affect workers, in Ho Chi Minh City and Binh Duong as well as southern Dong Nai province and the Mekong Delta’s An Giang province.