Vietnam’s migrant workers return home as downturn bites

March 6, 2009
A worker constructs reinforced concrete support tubes near Ho Chi Minh City. Many Vietnamese migrant workers are returning to their homes in the countryside as the cities have become too expensive and jobs are disappearing.

Nguyen Van Ha’s temporary lodgings are no bigger than a prison cell, his bed consists of wooden planks balanced on a few broken bricks and there is no electricity or running water.

Yet he and perhaps millions of others, experts say, have returned to this style of living in rural Vietnam rather than stay in urban centers such as Ho Chi Minh City or Hanoi, because the cities are too expensive and jobs are disappearing.

“The economic difficulties in the world have affected Vietnam,” said the gruff Ha, 28, as he smoked a cigarette on his day off from a wood-processing factory where he ekes out a living for his young family.

“Many of my friends lost jobs in HCMC. They came back home and are still looking for proper jobs here,” the father of a five-month-old baby said in his home in central Quang Ngai Province, one of the poorest regions in Vietnam.

“I think life will become more difficult this year. The price of everything has gone up so high, while jobs are more difficult to find,” he said, adding he left HCMC, formerly Saigon, because of the increased costs.

While inflation has settled down after rampant consumer price rises last year, food costs were still up 22.16 percent year-on-year in February, according to the latest figures from Vietnam’s General Statistics Office.

Ha said he and his wife now earn a total of VND3 million (US$170) a month, just enough to live on and slightly more than the average monthly pay for workers at state-owned enterprises.

He and a dozen others living in sparse rented shacks say that while the pay is more in HCMC, Vietnam’s financial center 850 kilometers (500 miles) to the south, they have less disposable income there.

In the southern metropolis, a Louis Vuitton boutique sits close to the city’s opera house, where foreign bankers sip cocktails on an outdoor patio, and Vietnam’s first Porsche showroom recently opened for business.

But for many in Vietnam, all that is a world away.

Nguyen Van Minh, 47, who lets shacks for VND200,000 a month for two people, said there was an influx of workers coming back to the central province before Tet, or Lunar New Year, in late January.

“Earning VND2 million a month in HCMC is the same as earning a bit more than VND1 million here because the living costs here are lower,” he said, proudly surveying his moderate domain.

“I have been in this business for about six or seven years but have never seen that many workers returning to Quang Ngai as before this Tet.

“They came back because they were sacked in HCMC as companies went bankrupt, or they could not stand the high living costs there.”

No official figures are available for how many workers have returned to their home provinces, but it is a trend which has been noted by the business community in HCMC and the capital Hanoi.

It also echoes the situation, albeit on a smaller scale, in neighboring China where migrant workers have been returning to the countryside in droves.

“We did a survey and there were some who went back to their home provinces, but the ratio was not that big,” said Lam Van Tiep, deputy head of HCMC’s export processing zone authority, without providing figures.

Tiep said a total of 240,000 workers were currently employed in the industrial zones dotted around the city, meaning 8,000 had lost their jobs since December, mainly at Japanese and South Korean firms.

The global economic crisis was to blame, Tiep added, with Vietnam’s economy cooling to 6.2 percent in 2008 after almost a decade of blistering growth that saw the country rapidly develop, dragging millions out of poverty.

Nguyen Lan Huong, head of the Vietnamese Academy of Social Sciences under the Ministry of Labor, Invalids and Social Affairs, told the local newswire VietnamNet in December 2008, that the trend of migrant workers returning to their homes in the countryside is simply “temporary.”

And that in the future, she said that the workers will “consider going back to the city since the countryside does not provide a sufficient number of jobs.”

Jonathan Pincus, of the Fulbright Economics Teaching Program in Vietnam, said it was impossible to pinpoint how many workers returned to the countryside because “the numbers range from a few thousand to millions depending on who you ask.”

“The loss of jobs in shoes and garments is certainly serious already,” he added.

“We have heard that some big shoe companies have cut employment in half. Whether these people have gone home or are searching for work in HCMC and its suburbs is not clear to us yet.”

Nguyen Thi Kim Ngan, Minister of Labor, Invalids and Social Affairs, told local media at a labor conference held earlier this week in Hanoi that it would be “very difficult” to achieve the goal of adding 1.7 million jobs this year.

“The ministry established that goal based on the situation in September, October of last year,” she was quoted as saying. “At that time, it was the number we believed was close to the real picture.”

Source: AFP

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

One Response to Vietnam’s migrant workers return home as downturn bites

  1. skyler on March 17, 2009 at 9:57 pm

    this info is great and all but it doesn’t say anything about how life was when the american soldiers was returning back to the united states.

Feature

Vietnam, Cuba foreign ministries to bolster ties

By

Vietnam’s top diplomat has affirmed that the Foreign Ministry will closely cooperate with its Cuban counterpart to implement the agreements reached by the two...