SteelGuru.com 1 November 2008
Vietnam News Agency reported that the rising cost of raw materials for small and medium sized enterprises has caused companies to cut back on employee recruitment. Mr Nguyen Thi Minh Tam director of marketing & communications at Navigos Group has forecast that the workforce demand would not increase in the last months of the year because of high inflation. Big companies, however, are still in need of workers.
According to the Viet Nam Association of Textile & Apparel, its small and medium sized enterprises this year did not expand production because of rising input material costs.
By the end of June 2008, the Viet Nam Automobile Industry Corporation had dropped its production to 1,400 units, a drop of 600 compared with the first half of 2005. The decline in auto production has led to a redundant workforce as the corporation was forced to reduce staff. Several of its affiliate companies including the May 1 Automobile Factory have suspended signing contracts for seasonal workers.
Mr Le Hoang Chau chairman of the HCM City’s Real Estate Association said that in recent months property transactions had dropped by 80 per cent. The slump in the real estate market has led to dozens of cuts of salespersons, clerks and translators. This has occurred in securities and insurance companies as well.
According to Vietnamworks.com, an online job recruiter, the number of recruitment request has also declined but demand for highly skilled staff remains high, the latter accounting for 67% of the total recruitment in the last two quarters.
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