Businesses are struggling to restore full operations in Vietnam due to a labor shortage in the wake of the mass exodus of hundreds of thousands of workers from industrial hubs in October when Covid-19 curbs were lifted.

Employees work at a smartphone factory in Hai Phong City, northern Vietnam.

"The fourth wave of Covid-19 infections have seriously affected the labor market, with a high unemployment rate," Pham Minh Chinh told lawmakers.

Chinh said the departure en masse of laborers from industrial hubs to their home towns when travel curbs were removed has posed problems for businesses and complicated virus containment efforts.

This week, Taiwan's Pou Chen Corp (9904.TW), the world's largest manufacturer of branded sports footwear said about 6% of its Ho Chi Minh City staff had quit and it was facing manufacturing disruption.

Vietnam is a major garment maker, supplying brands that include Zara, Ralph Lauren(RL.N), North Face, Lacoste and Nike(NKE.N). It is also a production center for electronics firms such as Samsung(005930.KS).

"Local authorities will cooperate with businesses and laborers to work out all necessary measures to ensure sufficient laborer supplies by the end of this year or early next year," Chinh said.

Authorities will offer financial support for laborers' travel and accommodation and press ahead with vaccinations.

Chinh said the government was seeking to restore supply chains and increase public investment to spur growth.

"Public investment has not met target," Chinh said. "The government has determined that speeding up public investment will be a key task to restore economic growth."

Earlier Friday, the investment minister said a raising of the public debt ceiling from the current level of 60% of gross domestic product was being considered to boost the economy, which contracted 6.17% in the third quarter.

Lang Giang creates job to more than 3,600 labours

(BGO) – Amid many difficulties caused by Covid-19 pandemic, the competent agencies in Lang Giang district (Bac Giang province) has created many jobs to local labours for the first nine months of this year.

VND30 trillion from unemployment insurance fund to be given to pandemic-hit labourers, employers

National Assembly (NA) Chairman Vuong Dinh Hue has signed a resolution on the provision of support to labourers and employers affected by Covid-19 using the unemployment insurance fund.

Over 3,000 labours employed at job transaction sessions

(BGO) – More than 3,000 labours have been employed to work at businesses via 52 job transaction sessions launched by the Bac Giang provincial Center of Job Service since early this year.

Labours at Bac Giang’s industrial parks sharply increase

(BGO) – Because most of the production businesses have resumed operation, the number of labours in the industrial parks in Bac Giang province have sharply increased.

About 422,800 labours, business households and enterprises affected by Covid-19 pandemic receive aid

(BGO) – The statistic from the Department of Labour, Invalids and Social Affairs (DoLISA) in Bac Giang province showed that the province decided to support nearly 422,800 labours, business households and enterprises as of September 13 with total approved amount of about 506 billion VND (22.2 million USD).

Source: VnExpress