Thousands of businesses in Ho Chi Minh City 'don't know what will happen' in the third quarter of 2023

Slow growth in trade and services

According to the Department of Labor, Invalids and Social Affairs of Ho Chi Minh City, in the first 4 months of 2023, Ho Chi Minh City will continue to promote agricultural extension activities, shifting towards urban agriculture , applying high technology.

The industrial production situation in April improved, however, businesses still faced many difficulties due to lack of production orders and lack of jobs for workers. In the first 4 months of 2023, compared to the same period last year, the industrial production index (IIP) in Ho Chi Minh City increased by 1.4%; the labor index decreased by 2.2%.

At the same time, the growth of trade and service activities is still slow because the number of international visitors to Ho Chi Minh City is not large, and real estate, food and beverage, and entertainment activities have not recovered as strongly as before the pandemic.

Regarding business activities, from the beginning of the year to April 20, Ho Chi Minh City has granted licenses to 14,752 enterprises with registered capital of more than VND144,568 billion, a decrease of 24.8% in capital compared to the same period last year.

Of which, related to 9 main service industries, Ho Chi Minh City has 10,879 established enterprises, up 10.4% over the same period; registered capital reached 84,505 billion VND, down 41.2%.

Industrial production in April improved, however businesses still faced many difficulties due to lack of production orders and unemployment among workers.

In the third quarter of 2023, thousands of businesses 'don't know what will happen'

In 2022, the labor force working in economic sectors in Ho Chi Minh City is more than 4.4 million people. It is expected that with the target of GRDP (gross product in the area) growth of Ho Chi Minh City in 2023 reaching 7.5%, this number will be more than 4.5 million people.

Currently, Ho Chi Minh City has nearly 2.5 million people participating in social insurance, down 3% compared to the end of 2022; the number of unemployed workers increased by 3.4% over the same period last year.

Ho Chi Minh City surveyed 3,795 businesses in March, the results showed that 30.75% of businesses reported a decrease in labor; 50.65% of businesses had the same number of employees and 18.6% of businesses had an increase in labor.

The group of labor cuts is mainly in the fields of footwear - textiles, construction, food processing and foodstuffs.

It is expected that in the second quarter of 2023, about 71.78% of enterprises will maintain production and business activities as usual; 20.95% are expected to increase and 7.27% are expected to decrease.

At the same time, when evaluating the third quarter of 2023, 57.57% of businesses do not know which direction their labor situation will go; 32.14% will remain the same; 8.72% expect an increase and 1.55% expect a decrease.

In the immediate future, PouYuen Vietnam Co., Ltd. (Binh Tan District) plans to terminate labor contracts with 5,744 employees by agreement.

What recommendations does Ho Chi Minh City have?

Ho Chi Minh City recommends that the National Assembly and the Government in the coming time, when issuing support policies related to workers, need to study the direction of issuing one-time support with a specific amount of money so that businesses and workers do not have to complete documents every month like the policy of supporting house rent. This also helps to optimize management work.

In addition, the Department of Labor, Invalids and Social Affairs of Ho Chi Minh City recommends that the Ministry of Labor, Invalids and Social Affairs review the regulations under the Ministry's authority to amend and supplement the regulations on reporting the situation of labor use. Because currently, many enterprises (including the state sector) do not report the situation of labor fluctuations to the Employment Service Center and the National Public Service Portal. This leads to many difficulties in monitoring the situation of labor and employment.

The unit also recommends that businesses need to develop annual human resource plans based on business plans; comply with labor laws such as participating in social insurance, supporting vocational training, etc.

Source link: https://thanhnien.vn/hang-ngan-doanh-nghiep-o-tphcm-chua-biet-se-the-nao-trong-quy-3-2023-185230518100231618.htm