Workforce shortage prolonged by pandemic, companies struggle
The Bac Giang Garment Corporation (LGG) in northern Vietnam is experiencing a severe labor shortage with only 10 percent of its employees.
CEO Luu Tien Chung said in a recent meeting that most LGG employees are in isolation at home, with the province being the second largest Covid-19 hotspot in the country behind Ho Chi Minh City.
The fact that every employee has to test negative for Covid-19 twice makes recruiting more difficult, he said, adding that the company was struggling to fulfill orders.
Many companies nationwide are in a similar situation. The country recorded nearly 21,300 new cases in the new wave of Covid-19 from the end of April.
Shoe and bag producer Pousung Vietnam in the southern province of Dong Nai has had nearly 3,000 employees, or 12% of their total workforce, isolated at home due to Covid-19.
The company’s union chief Nhat Truong said more workers may need to be quarantined as the province continues to test residents.
“With the isolated employees, the productivity of the plant has dropped. This will hurt the income of the company and therefore the income of the employees,” he told reporters. Thanh Nien newspaper.
Nguyen Quoc Anh, CEO of rubber producer Duc Minh in Ho Chi Minh City, said about 10% of its employees have stayed at home as the city locks in large areas to contain the spread of the new coronavirus.
The company has asked its employees to work overtime and has set up a space for its employees to sleep on site to reduce the risk of contagion.
Le Duy Toan, CEO of HCMC-based food producer Duy Anh Foods, said that although demand for hiring increased by 10% in the first six months, the company had to abandon plans to hire more for fear. that new applicants do not spread the virus. in the factory and force a shutdown.
“We decided to stop taking new orders rather than take risks.”
HCMC-based clothing producer Dony, however, recruited aggressively due to the severe shortage of human resources.
Pham Quang Anh, CEO, said the method of recruiting has changed.
To reduce contact with other employees, applicants will first have a face-to-face interview, and after successfully completing this round, they will be allowed to test their skills in the factory. Before the pandemic, it was the other way around.