120,000 laborers in Vietnam's Southern Metropolis unemployed amidst COVID-19 resurgence

The fresh COVID-19 outbreak in Vietnam is devastating the daily life of many people, and causing job insecurity among a large number of laborers in the southern city of Ho Chi Minh.

Jasmine Le

lehang1997hanu@gmail.com August 14, 2020 | 11:11

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If the COVID-19 pandemic is well-controlled in Vietnam, around 100,000 - 120,000 employees are likely to be laid off from now until September (Photo: Bao Thanh Nien)

If the COVID-19 pandemic is well-controlled in Vietnam, around 100,000 - 120,000 employees are likely to be laid off from now until September and roughly 4,000 enterprises will be adversely affected.

In case the pandemic is getting worse, the number of employees and enterprises to bear the brunt of the COVID-19 resurgence are expected to jump to 180,000 and 5,000 respectively, according to Mr. Le Minh Tan, director of Ho Chi Minh Department of Labor, Invalids and Social Affairs, according to VGP.

The majority of these employees work in the tourism and accommodation sectors, construction, transportation and textiles, and footwear companies.

In June and July, 54,000 employees of nearly 2,000 businesses in the city were laid off due to the impacts of the COVID-19 crisis, Tan said. The recent new wave, with 421 COVID-19 infections reported in 14 localities including HCMC since July 25, has been a setback for businesses that were already hit hard by the first outbreak.

Local shoemaker Hue Phong Leather Shoe Co. Ltd., based in HCMC’s Go Vap District, plans to lay off nearly 1,600 workers on August 30, said Pham Van Tai, vice chairman of Go Vap District’s Labor Federation.

The company says the Covid-19 pandemic has forced its major partners in the U.S. and Europe to cancel their orders, inflicting hefty losses.

The company had already laid off around 2,500 workers between May and June to cut costs after the pandemic hit its new orders, VNE reported.

Workers make face masks at a factory in HCMC, April 2020 (Photo: VNE)

Tan also stated on August 13 that those COVID-19 affected enterprises can access the capital of zero interest rates from commercial banks and Vietnam Bank for Social Policies (VBSP) to pay their employees.

Ho Chi Minh Department of Labor, Invalids and Social Affairs is currently working with other Departments and Sectors to support those enterprises affected by the coronavirus, encourage those organizations to extend working hours and rotate working days instead of laying them off, and creating job opportunity for laid-off employees.

The municipal People’s Committee is considering to propose to support around 89,300 self-employed laborers working in COVID-19 affected fields. These laborers will get a monthly financial aid of VND 1 million (US $43.03), along with the support under the Prime Minister's Decision 15/2020 / QD-TTg.