Industrial Workers: A Surplus Outside, Yet a Scarcity Within

The labor shortage in Phu Tho was addressed at a conference connecting labor supply and demand between job centers, labor supply enterprises, and the Korean Business Association, organized by the Phu Tho Department of Home Affairs on the afternoon of August 28.

At the conference, Mr. Tran Viet Cuong, Director of the Phu Tho Department of Home Affairs, stated that the province currently has approximately 575,000 workers employed in over 23,000 businesses. Among these, foreign-invested enterprises account for the majority, employing over 559,000 laborers.

“However, the labor market in Phu Tho still faces certain limitations. Job-hopping is a prevalent issue, and many enterprises primarily recruit unskilled workers, lacking a high-quality workforce. Labor supply and connection activities are not well-coordinated. Meanwhile, there is a tendency for laborers to migrate to neighboring provinces and cities,” Mr. Cuong added.

The shortage of laborers in industrial parks and the prevalence of job-hopping are concerning issues. Phu Tho province, including Vinh Phuc – a hub for industrial development, the former Phu Tho, and Hoa Binh, holds great potential for the growth of industrial parks and clusters. Notably, the new Phu Tho province has recently announced its vision to establish 58 industrial parks by 2050, aiming to become one of the country’s leading industrial centers. Naturally, this ambitious goal must be accompanied by significant growth in the quantity and quality of human resources within these industrial zones.

During the conference, many South Korean businesses expressed their desire for the provincial leaders of Phu Tho to address the fundamental challenges in recruiting laborers and ensuring a stable labor supply. Presently, enterprises are facing a labor shortage, and workers are reluctant to sign long-term contracts. Some businesses even presented a worst-case scenario, stating that they might go bankrupt if their labor demands are not met.

Conversely, labor recruitment and supply enterprises in Phu Tho asserted that the province does not lack laborers. The main issue lies in the disconnect between recruitment agencies and enterprises. Additionally, another reason is that businesses have not implemented attractive salary and welfare policies to retain workers.

Speaking at the conference, Mr. Nguyen Khac Hieu, Vice Chairman of the Phu Tho Provincial People’s Committee, affirmed that the province has no shortage of laborers. The number of people of working age in Phu Tho exceeds 1,860, far surpassing the current demand of the industrial parks.

Mr. Hieu instructed the Department of Home Affairs to continue supporting enterprises in recruitment, monitoring the implementation of labor laws, and advising the Provincial People’s Committee on human resource development projects. He also requested that the Industrial Park Management Board and the Investment Promotion Center closely collaborate on recruitment efforts to ensure labor quality. Job centers and labor supply enterprises were urged to proactively tap into the local labor force and strictly comply with legal regulations. Mr. Hieu emphasized the need for the Korean Business Association to establish long-term recruitment plans and adjust their employee benefits to attract and retain workers.

At the conference, labor supply enterprises in Phu Tho province and the Korean Business Association signed a Memorandum of Understanding for cooperation, strengthening the connection between labor supply and demand. Both parties pledged to abide by labor laws and enhance employee benefits and working conditions. The memorandum, effective until 2030, lays the foundation for sustainable cooperation, contributing to the development of the labor market and the socio-economic growth of Phu Tho province.