Slow growth in trade and services.
According to the Ho Chi Minh City Department of Labor, War Invalids and Social Affairs, in the first four months of 2023, Ho Chi Minh City continued to promote agricultural extension activities, shifting towards urban agriculture and applying high technology.
Industrial production showed some improvement in April; however, businesses still faced many difficulties due to a lack of production orders and unemployment among workers. In the first four months of 2023, compared to the same period last year, the industrial production index (IIP) in Ho Chi Minh City increased by 1.4%; while the labor index decreased by 2.2%.
At the same time, the growth rate of trade and services remains slow due to the low number of international tourists visiting Ho Chi Minh City, and the real estate, food and beverage, and entertainment sectors have not yet recovered strongly to pre-pandemic levels.
Regarding business activities, from the beginning of the year until April 20th, Ho Chi Minh City has granted licenses to 14,752 businesses with a registered capital of over 144,568 billion VND, a decrease of 24.8% in capital compared to the same period last year.
Specifically, across 9 key service sectors, Ho Chi Minh City saw the establishment of 10,879 businesses, an increase of 10.4% compared to the same period last year; registered capital reached VND 84,505 billion, a decrease of 41.2%.
Industrial production showed some improvement in April; however, businesses still faced many difficulties due to a lack of production orders and unemployment among workers.
In Q3 2023, thousands of businesses were "uncertain about what the future held."
In 2022, the number of people employed in economic sectors in Ho Chi Minh City was over 4.4 million. With the target of achieving a 7.5% GRDP (Gross Regional Domestic Product) growth for Ho Chi Minh City in 2023, this number is projected to exceed 4.5 million.
Currently, Ho Chi Minh City has nearly 2.5 million people participating in social insurance, a decrease of 3% compared to the end of 2022; the number of unemployed workers increased by 3.4% compared to the same period last year.
Ho Chi Minh City surveyed 3,795 businesses in March, and the results showed that 30.75% reported a decrease in workforce; 50.65% reported an unchanged workforce, and 18.6% reported an increase in workforce.
The sectors most affected by job cuts are footwear and textiles, construction, and food processing.
In the second quarter of 2023, approximately 71.78% of businesses are expected to maintain their production and business operations as before; 20.95% are expected to increase, and 7.27% are expected to decrease.
At the same time, when assessing the third quarter of 2023, 57.57% of businesses were unsure about the direction of their labor situation; 32.14% expected it to remain the same; 8.72% expected an increase, and 1.55% expected a decrease.
Initially, PouYuen Vietnam Co., Ltd. (Binh Tan District) plans to terminate the employment contracts of 5,744 workers based on mutual agreement.
What recommendations does Ho Chi Minh City have?
Ho Chi Minh City proposes that in the future, when issuing policies to support workers, the National Assembly and the Government should consider providing a one-time payment with a specific amount so that businesses and workers do not have to file applications monthly, as is the case with housing allowance policies. This would also help optimize management.
Furthermore, the Ho Chi Minh City Department of Labor, War Invalids and Social Affairs has requested the Ministry of Labor, War Invalids and Social Affairs to review regulations under its authority to amend and supplement regulations on reporting labor usage. Currently, many businesses (including those in the state sector) do not report changes in labor to the Employment Service Center or the National Public Service Portal. This leads to difficulties in monitoring the labor and employment situation.
The unit also recommended that businesses should develop annual human resource plans based on their business plans; and comply with labor laws such as participating in social insurance and supporting vocational training.
Source link
Comment (0)