VietNamNet Bridge – Although companies located in industrial parks (IP) and export processing zones (EPZ) in HCM City have increased wages and allowances, workers still find it difficult to make ends meet, according to a recent report by the city Party Committee.

More than 60 per cent of companies at IPs and EPZs have increased wages and allowances and improved the quality of meals for workers.

However, rising monthly salaries ranging from VND2.8 -3.2 million (US$136-156) paid by foreign-invested enterprises and salaries of VND2.7-3.05 million ($131-147) at domestic enterprises have failed to catch up with skyrocketing prices, according to the report.

Most companies pay food providers between VND12,000 and VND18,000 for each meal, but a few enterprises pay as low as VND10,000 each, which is not enough to provide a good meal for workers.

Only 7 per cent of workers at IPs and EPZs live in apartments built on IP and EPZ sites, while others have to live in lodging rooms, resulting in a higher cost of living. Migrant workers are especially affected.

"Low wages and hikes in prices of necessary products are the major causes for the doubling in number of labour disputes over last year," said Nguyen Thi Thanh Kieu, deputy head of the city Party Committee's Publicity and Education Commission.

A recent survey conducted by the commission showed that 90.6 per cent of workers at IPs and EPZs expressed concerns over rising prices of food and foodstuff, and rented houses with high electricity and clean water fees.

More than 81 per cent of polled workers described their wages as low and 64.7 per cent of workers said they needed nurseries to take care of their children.

Hua Ngoc Thuan, deputy chairman of the city People's Committee, said that a project to build kindergartens at IPs and EPZs was being implemented by the city Export Processing and Industrial Zones Authority.

The authority had allotted land to build kindergartens at Linh Trung 2 Export Processing Zone and Vinh Loc Industrial Park, Thuan said.

It planned to build two other kindergartens in Tan Thuan Export Processing Zone and Linh Trung 1 Export Processing Zone, he said.

HCM City's industrial and export processing zones require thousands of workers, especially in the engineering, electronics, garment and textile, and some other sectors, but can fill only a fifth of their vacancies.

Nguyen Thanh Tung, director of the HCM City Export Processing and Industrial Zones Authority's Job Promotion Centre, confirming this figure, says most job applicants do not meet their employers' requirements.

The HCM City Centre for Vocational Guidance, Training and Job Promotion for Young People says it offers 2,000 jobs a day but receives only 400 applications.

Many jobs that require high levels of skill are not being filled, it says.

According to statistics from the HCM City Centre for Forecasting Manpower Needs and Labour Market Information, companies based in the city need around 95,000 additional workers in the last quarter of the year.

Of that number, only 20,000 are seasonal jobs. Some 60 per cent require graduates from universities, colleges and vocational schools. The remaining 18,000 are permanent manual jobs.

Many firms, especially small- and medium-sized companies in the textile and garment sector, face a chronic labour shortage.

VietNamNet/Viet Nam News