Range of hazards hurt firms

Wang Ming Hui, an executive at Linh Trung 1 Export Processing Zone (EPZ) Taiwan-backed Freetrend Industrial Vietnam Company Limited, said around 10 per cent of its workers of around 18,000 quit their jobs after the 2011 Lunar New Year holidays.

He said this would make it almost impossible to fulfill orders on the back of 15 per cent upsurge in 2011 export orders and amid difficulties associated with recruiting new labourers.

Japan-backed Nissei Electric Vietnam Company Limited, in Linh Trung 1 EPZ, is also filled with concerns.

With a glut of orders from early in the year, the company intends to expand production factories and employ additionally 2,000 new labourers. Its executives, however, worry whether their plans would come with success.

Ho Chi Minh City Export Processing and Industrial Zones Authority's(Hepza) Job Promotion Centre forecasted that Hepza’s businesses would need around 30,000 new labourers in 2011. However, they could employ at most 70-75 per cent of this figure.

Besides labour shortages, businesses are capital strapped. The director of a Tan Binh Industrial Zone’s steel and welding rod manufacturer said businesses had to source loans with high lending rates at banks to keep running.

The escalating Vietnam dong-US dollar exchange rate and rising input cost have made local importers suffer ‘double’ losses.

Hepza chief Vu Van Hoa said since February 2011 the authority joined hands with businesses based in Ho Chi Minh City EPZs and IZs to help them disentangle.

Accordingly, for companies that need to enlarge production Hepza will help them find or introduce them new space and for those short of workers it will help them seek new labour sources.