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Firms in supporting industries in dire need of skilled workers



Firms in supporting industries in Vietnam are in desperate need of high-qualified and skilled workers in addition to solutions regarding capital and raw materials.

Firms in supporting industries in dire need of skilled workers hinh anh 1Staff at MBT Electrical Equipment JSC (Photo: VNA)

Hanoi – Firms in supporting industries in Vietnam are in
desperate need of high-qualified and skilled workers in addition to solutions
regarding capital and raw materials.

Le Lam, Deputy General Director of the MBT Electrical Equipment JSC in Hanoi’s Dan
Phuong district, said his company faced many difficulties in the past two years
due to the impact of the COVID-19 pandemic and disruption of the global supply
chain, resulting in sharp declines in orders and revenue.

The company, which specialises in manufacturing transformers and medium-voltage
cabinets, had been coping with dependence on imported raw materials as the
quality of domestic products has failed to meet demand. Lam said his firm had
also encountered difficulties in recruiting human resources to meet the
requirements of its factory.

“We seek intermediate-level welding workers all year round, but could only
recruit a few,” Lam told Viet Nam News.

Although the market was facing difficulties, in the future, if exports
increased, his firm would need abundant human resources. Therefore, Lam
suggested the authorities draw up effective training policies for supporting

Nguyen Hong Phong, Managing Director of the An Mi Tools Co in the capital city
agreed. He said his company which is involved in manufacturing high-precision
products and mechanical components for enterprises in automobiles, motorcycles,
aviation, space and moulds needed to recruit workers in the cutting and
processing industries throughout the year.

However, personnel recruitment had caused his firm headaches because it was
difficult for the local workforce to meet the recruitment demand of his

“Currently, we need to recruit between 30 and 50 new employees annually.
But we can only meet about 30-40% of our goal,” Phong told Viet Nam News.

Furthermore, businesses had to spend a lot of time retraining recruited workers
from the concept of operations in production to expertise as most of them
lacked the necessary skills, he said.

“This is costly and time-consuming as it takes six months for workers to master
their work, one year to have related skills and experience and they can be able
to work independently only after two years,” he said.

Meanwhile, his firm has failed to collaborate continuously with educational
facilities to train students or recruited workers.

According to Pham Xuan Khanh, Rector of the College of High Technology (HHT),
HHT has established relationships with large enterprises in Vietnam and in the
world and they are willing to cooperate with HHT to build the training centres.

At these centres, businesses will invest in facilities and equipment, and bring
good experts who can team up with HHT from developing and organising training
programmes to assessing students. Businesses will later use this workforce for
their business and production activities.

However, there are no specific guidelines governing businesses’ investments in
school facilities and the coordination between schools and businesses to build
centres which specialise in training, research, production, and
commercialisation of products, Khanh said.

Khanh said he hoped Hanoi’s authorities and the Ministry of Labour, Invalids
and Social Affairs would soon remove these difficulties so that enterprises
would be offered more favourable conditions in investing in the training area.

Sharing Khanh’s opinion, Nguyen Van, Standing Vice Chairman of the Hanoi Supporting
Industries Business Association (HANSIBA), said it was very important to remove
bottlenecks in institutions and policies governing cooperation between
businesses and universities, colleges and vocational training institutions.
This would help facilitate cooperation between firms in supporting industries
and educational institutions and the ultimate beneficiaries are students.

In the past, HANSIBA organised short-term training courses, bringing affiliates
to visit training facilities. Through specific connection activities, HANSIBA
had listened to both sides – schools and enterprises – thereby building
connection programmes to meet demand and supply labour for each other.

This would be the shortest way in meeting the supply-demand of human resources
for the supporting industries in the short term as well as in the long term, Van

To ensure the quality of human resources served for supporting industries, Van
emphasised the importance of setting up technical standards on occupational
skills according to international standards and focusing on training methods
and certification systems so that Vietnamese labourers can work in regional and
international markets.

Well-structured training plans and roadmaps for personnel resources served for
supporting industries should be also included, he said./.



Development of Vietnamese brands in CPTPP member markets under discussion



Solutions to promote the development of Vietnamese brands in member countries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) agreement were discussed at a seminar hosted by the Cong Thuong (Industry and Trade) magazine in Hanoi on September 27.

Development of Vietnamese brands in CPTPP member markets under discussion hinh anh 1At the event (Photo: VNA)

Hanoi – Solutions to promote the development of Vietnamese brands
in member countries of the Comprehensive and
Progressive Agreement for Trans-Pacific Partnership (CPTPP) agreement were discussed at a seminar hosted by the Cong Thuong (Industry and Trade) magazine in Hanoi on September

Ngo Chung Khanh, Deputy Director of the Multilateral Trade Policy
Department under the Ministry of Industry and Trade (MoIT), said Vietnam has enjoyed stable
growth in its exports to Canada and Mexico since the CPTPP agreement took effect in January 2019, even during the
COVID-19 pandemic or amidst geopolitical fluctuations in the world.

Additionally, Vietnam’s trade surplus with the two markets usually accounts for
one-third to half of the combined trade surplus with countries, Khanh stressed.

Khanh pointed out ample room to promote exports to Canada,
Mexico and Peru, but noting that the image of Vietnamese brands in these
markets still remains modest.

to Trade Counselor Tran Thu Quynh from the Vietnam Trade Office in Canada, the
North American country is now one of Vietnam’s 10 most important trading
partners globally.

According to data from the Canadian government, including
transshipment through the US, Vietnam’s exports to Canada in 2022 increased by
26.4% in trade value compared to 2021.

Notably, five years after the implementation of the CPTPP,
Vietnam’s exports to Canada rose to 9.9 billion USD in 2022 from 4.1
billion USD in 2018.

The data from Vietnam Customs indicates that Vietnam’s export
value to Canada increased by a remarkable 110% over five years, meaning that Canada
is one of the billion-USD markets with the highest export growth among the
CPTPP member countries.

Quynh said CPTPP serves as a lever to encourage businesses from
both countries to pay more attention to each other’s product structures and
markets. It also helps promote the further development of supply chains, and transportation
and logistics services between Vietnam and Canada.

However, the utilisation of preferential tariffs under
the CPTPP still remains low. Up to over 60% of Vietnam’s exports to the country are products from foreign-invested
firms with their own brands, while Vietnamese businesses primarily export raw
materials or processed products.

Quynh advised domestic exporters to promote connection in production,
investment and development of technology and brand with Canadian partners, towards
effectively exploiting the CPTPP agreement.

According to Quynh, apart from supporting businesses in trade
promotion activities, participating in trade fairs and exhibitions, and seeking
orders, the Vietnam Trade Office in Canada always pays heed to raising awareness of how to utilise the CPTPP in Canada, and benefits and opportunities
provided by the trade agreement.

It also collaborated with Canadian ministries and sectors to hold
seminars, thus helping local firms understand more about opportunities to
partner with Vietnamese companies, she added./.


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HSBC says Vietnam remains an appealing destination for global enterprises

The HSBC Global Connections survey found that Vietnam’s economic resilience and competitive wages rank foremost in attracting international firms.



According to the study, 27 percent of respondents ranked Vietnam’s trained labor as one of the most appealing features for foreign enterprises, highlighting the country’s desirability as a manufacturing base. 

The same percentage is drawn to Vietnam’s expanding consumer market, emphasizing the allure of rising consumer income. Meanwhile, 23% believe that the country’s rising digital economy is a crucial selling factor for foreign corporate expansion. 

Many respondents stated they were drawn to the country because of its high smartphone penetration rate and thriving start-up scene. 

According to Tim Evans, CEO of HSBC Vietnam, the country, which has become known for its quick economic growth, also stands out as one of the best performers in the ASEAN area due to its excellent economic resilience during and after the COVID-19 pandemic. 

Tim Evans noted that the country’s resiliency, together with its hardworking, competent workforce and attractive cost structures, continues to attract significant foreign direct investment (FDI). 

However, Vietnam is more than an “FDI in, export out” story. The country’s rapidly increasing middle class is also a great potential for multinational corporations eager to get into the consumer story that will see Viet Nam become the world’s tenth largest consumer market by 2030, he observed. 

“Despite some short-term headwinds, Vietnam remains an attractive destination for foreign businesses, and we continue to see very strong interest in the Viet Nam story from customers across the HSBC network,” said the CEO of HSBC Viet Nam. According to new research commissioned by HSBC, international businesses from nine major economies are becoming more enthusiastic about their growth prospects in Southeast Asia. 

They anticipate 23.2 percent growth in the region’s sales over the next 12 months, compared to 20.1 percent in the previous year’s survey, and 4-5 times the pace of GDP development in Southeast Asia. This demonstrates foreign firms’ growing trust in the region. 

HSBC commissioned an online survey of 3,509 enterprises from nine markets: mainland China, India, the United Kingdom, France, Germany, the United States, Australia, Hong Kong, and GCC countries (United Arab Emirates, Saudi Arabia, Bahrain, Qatar, Oman, and Kuwait). 

Respondents to the survey were key decision-makers from companies with an annual revenue of at least $5 million that are already doing business in Southeast Asia or are considering doing so. The survey was open from July 25 through August 2, 2023.


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Interest rates for social housing developers and buyers proposed to be cut

Property market specialists advocated lowering interest rates on loans for investing in or purchasing social housing items to 4.5-6% per year, down from the current 8.2-8.7%.



Vietnam Real Estate Association (VNREA) polls show that social housing investors and buyers must take out high-interest loans. Investors pay 8.7% and homebuyers 8.2% annually. Buyers and investors are struggling with these interest rates.

The loan package of VND 120 trillion, according to Le Hoang Chau, Chairman of the HCM City Real Estate Association (HoREA), does not match the conditions of a preferential credit package for social housing. A preferred financing package for social housing projects must meet two critical criteria: a low-interest rate and a long repayment period.

Chau claims that when compared to low-income people’s financial capabilities, the average interest rate commercial banks charge buyers is still too high. 

According to Nguyen Chi Thanh, Deputy Chairman of the Vietnam Real Estate Brokers Association, interest rates for qualified buyers of social housing projects remain high. At the same time, buyers of social housing have substantially lower incomes than real estate prices.

As a result, Thanh believes that interest rates for homebuyers must be reduced.

Many studies show that workers’ earnings are frequently quite low. According to the Vietnam General Confederation of Labour, 75% of them must borrow money to cover their living expenses. They are unable to purchase social housing since the loan interest rate is 8.2% per year.

Someone with a steady monthly salary of VND 12 million must repay the loan at a high-interest rate over a period of up to 37 years.

He claims that if they can borrow at a lower interest rate of approximately 4.5% per year, the payment term will be reduced to about 19 years.

VNREA has recommended a 6% annual interest rate for social housing developers and a 4.5% annual interest rate for homebuyers, which is lower than the current rates of 8.7% and 8.2%.

In addition, VNREA suggests that the state implement appealing policies for investors, such as land plots, investor selection, and land allocation. The time required to complete investment procedures should be reduced from 24-36 months to 12 months.

VNREA advises real estate companies to rearrange their goods and select housing categories based on buyer income and market demand. They must also strengthen their corporate governance capabilities and re-determine the selling price.

At the same time, they must strictly adhere to investor agreements.

According to the Ministry of Construction, around 108 social housing projects are now being invested in and built.

Based on reports from 11 provinces and centrally-run cities, the ministry has issued a list of 24 eligible projects to participate in the 120 trillion VND credit package. These projects have a total investment capital of 31.67 trillion VND. The borrowing need for the projects is 12.44 trillion VND.

Ten projects of social housing and housing for industrial park workers began development in the first seven months of this year, totaling 19,853 units.

Source: Vietnamplus


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