Job losses on the way as firms look to downsize

Many businesses are planning to reduce the number of employees on their payroll in the next few months.

job losses on the way as firms look to downsize hinh 0
Many businesses are planning to reduce workforce due to COVID-19. (Photo: VNA)
Although the COVID-19 pandemic has been controlled in Vietnam, its long-term effects will continue to be felt.

Many businesses are planning to decrease their workforce by 60-70 %.

The Vietnam General Confederation of Labour (VGCL) and the Ministry of Labour, Invalids and Social Affairs (MOLISA) are consulting businesses and workers for a plan of support.

The confederation reported that 5,600 enterprises and more than 1,300 non-business units had to be dissolved, stopped working or scaled down production, which affected more than 461,000 workers by the end of April.

Nguyen Dinh Khang, chairman of the confederation, said its activities in the beginning months of the year mainly focused on working with agencies, organisations and enterprises to deploy solutions to prevent and combat the pandemic at work.

It has accompanied businesses in restoring production and business, stabilising jobs, ensuring income for workers during and after social distancing.

The Department of Employment under the MOLISA said that if the pandemic is controlled well, it is estimated at least 70,000 to 80,000 workers would lose their jobs, 3 to 3.5 million workers would have to stop working and about 70-75 % of businesses would be affected.

To help enterprises and workers overcome difficulties, the MOLISA is summarising the recommendations by enterprises and workers about problems in the implementation of the VND62 trillion (US$2.67 billion) bailout package.

Le Van Thanh, MOLISA Deputy Minister, proposed loosening the conditions for easier borrowings.

For businesses borrowing loans to pay their employees, almost no businesses had access to this package up to now, he said.

VNA

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