The impacts of Covid-19 on the Vietnamese workforce


In March 2021, Vietnam skilled 3 phases of the Covid-19 pandemic (section 1: from March to April 2020; section 2: from July to September 2020; section 3: from January to March 2021), with 2,575 contaminated circumstances , 302 circumstances underneath therapy, 2,234 circumstances recovered and 35 deaths. Like many different international locations on the planet, Vietnam has suffered severe penalties from the Covid-19 pandemic in all areas: economic system, politics, tradition, social life, however essentially the most direct influences have been on the Vietnamese workforce.

The principle impacts of the Covid-19 epidemic on the Vietnamese workforce might be summarized as follows:

First, the influences on the worker work

This was one of many elementary and direct dominant impacts on others. Based on the report of the Normal Statistical Workplace of Vietnam (GSO), as a result of sudden drop within the labor power within the 2nd quarter, the final variety of workers (aged 15 and over) within the economic system in 2020 has fallen sharply in comparison with that of 2019. The variety of energetic workers aged 15 and over was 53.4 million folks (a lower of 1.3 million folks in comparison with that of 2019 – a lower respectively of two.36%). A comparability of the lower within the variety of labor power between 2019 and 2020 is offered in Determine (1). This demonstrated an apparent drop within the variety of jobs for the Vietnamese workforce underneath the results of the Covid-19 pandemic.

Determine 1: Progress / Lower within the Labor Drive fee


(Supply: GSO)

The Covid-19 pandemic has not solely disadvantaged many employees of formal employment alternatives, however has additionally left them unemployed. To be exact: typically in 2020, the variety of underemployed employees was round 1.2 million, a rise of 456,700 folks in comparison with 2019. The speed of underemployment within the working age group is 2.51%. (Determine 2).

Determine 2: Variety of folks and underemployment fee per quarter, 2019-2020

(Supply: GSO)

Due to the development of multilateral diplomacy and the growth of worldwide relations, Vietnam now maintains diplomatic relations with 189 international locations and territories all over the world, maintains shut relations with greater than 30 international locations and three main international locations (China , Russia, India) are international strategic companions. Financial and commerce relations play a key position in Vietnam’s worldwide relations, and the nation is at present thought-about a beautiful vacation spot for funding and worldwide cooperation in Southeast Asia. In consequence, the Covid pandemic has influenced Vietnam’s financial relations with its worldwide companions in each instructions. A few third of firms suffered from a scarcity of uncooked supplies; the bigger the enterprises, the extra extreme the scarcity; home and international client markets have shrunk, export orders have declined and the motion of products has confronted varied difficulties … As a result of low monetary potential and liquidity within the company sector, the actual fact because the COVID-19 pandemic spreads with difficult progress has resulted in manufacturing delays, manufacturing capital difficulties, with 52.8% of firms recording decrease annual firm income4 in 2020. Thus, firms had been pressured to resort to layoffs, unpaid work holidays, shortened working hours… as momentary options to take care of their operation and stability.

Nonetheless, by means of proactive and inventive countermeasures in any respect ranges and decisive insurance policies to keep away from the financial downturn, the Vietnamese economic system has developed its personal resilience, progressively resumed functioning underneath new regular situations, turning into the one of many three Asian international locations with optimistic development in 2020. The variety of unemployed and underemployed within the fourth quarter of 2020 has fallen sharply in comparison with earlier quarters and has progressively stabilized.

Second, the Covid-19 pandemic has affected workers Earnings

The lack of employment alternatives, discount of working hours, layoffs, unemployment have direct results on the earnings of workers. Based on the report of the Normal Statistics Workplace, in comparison with that of 2019, the typical month-to-month earnings of Vietnamese workers in 2020 decreased in all three financial sectors. Extra exactly: in 2020, the typical earnings of workers was 5.5 million VND, a lower of two.3% in comparison with that of 2019 (or 128 thousand VND much less). The earnings of workers within the service sector noticed the sharpest drop at 215,000 VND; adopted by these of agriculture, forestry and fishing, with 156,000 VND. Workers in trade and building suffered the smallest drop, with 100,000 VND / individual / month. This influence has been clearly illustrated in Determine 3 beneath:

Determine 3: Common earnings of employees by financial sector, 2019-2020

Unit: million dong

(Supply: GSO)

Third, the Covid-19 pandemic instantly affected workerspsychological elements

When employment and earnings are affected, the psychological well being of employees may even be instantly influenced. To be particular, workers can regularly expertise nervousness, pessimism, insecurity, and temper swings. The outcomes of a scientific survey confirmed that: solely 8% of workplace employees and managers endure from stress and stress throughout a pandemic, however as much as 86.9% of employees have emotions of hysteria, pessimism, insecurity and temper swings. This influence was most evident amongst employees with kids (together with married or single dad and mom), feminine employees and particularly migrant employees with kids.

As well as, the Covid-19 disaster has had an inconsistent influence on relationships inside worker households. Specifically, for among the workers, household relationships had been drastically improved when members stayed at house and spent extra time collectively; then again, a big half had the alternative expertise (extra conflicts, verbal or home behavioral violence), particularly for immigrant employees and migrant employees with kids. It was a preventable consequence once they fearful about their well being and their future. The Covid-19 pandemic has additionally elevated the danger of gender-based violence. Statistics from the Central Vietnam Ladies’s Union confirmed that, through the social distancing of Covid-19, the variety of calls from abused ladies to the Affiliation’s hotline elevated by 50%; the variety of victims receiving rescue help and accepted by the Maison de la Paix additionally elevated by 80% in comparison with the identical interval final yr.

Some authorities and enterprise options to assist overcome the influence of the Covid 19 pandemic on Vietnamese labor

Solutions from the federal government of Vietnam

Confronted with the extreme impacts of the COVID-19 pandemic on the economic system for 3 consecutive phases, the federal government of Vietnam has actively centered on administration and supply of strategies in addition to decisive motion with the motto: “Fight the pandemic like combating enemies ”,“ Go to every alley, knock on every door and examine every individual ”; and “twin goal” (stopping and combating pandemics whereas selling socio-economic improvement), “lightning-fast monitoring, zoning”, “4 on-site pointers” (on-site orders, on-site forces, on-site autos and tools, on-site logistics), with explicit emphasis on the energetic position of native communities. These orientations had been supported by all administrative ranges, branches, localities and residents. The Authorities and its organizations have referred to as on and mobilized all social assets for the prevention of the pandemic; residents and companies have actively joined forces to struggle the epidemic regardless of quite a few difficulties. (For instance, when the physician ran out of espiratory machines, Vingroup instantly made theirs to assist the nation).

Additionally since then, the federal government has swiftly put in place financial, fiscal and social safety insurance policies to assist companies and other people throughout essentially the most troublesome time of the COVID-19 shock. Extra exactly: a monetary envelope of 180 billion VND to assist companies; zero curiosity loans to pay employees’ wages; Social Safety Package deal of VND 61.580 billion (for workers who’ve been left behind, delayed or misplaced their jobs as a result of post-pandemic impacts); 11,000 million VND discount on the electrical energy invoice; discount of rates of interest on financial institution loans; 285 trillion in loans for business banks … These pointers and sensible measures have helped firms overcome difficulties, improved their perseverance, normalized or progressively adjusted their manufacturing and enterprise plans, strengthening digital transformation and business promotion … These actions have had optimistic results on the stabilization of employment, earnings, each day requirements and the psychological well being of the workforce.

Second, resolutions firms and unions

In response to the Covid-19 pandemic, the enterprise group shortly got here up with new instructions and options to maintain working throughout robust instances. About two thirds of the businesses utilized at the very least one of many above options, making an attempt to adapt their manufacturing actions to the brand new regular situations.

Demonstrating the motto of ‘love and assist’, many firms used completely different mixed metrics, resembling deferred fee for items (utilized by 33.3% of firms), break up orders (used 7.9% of firms), barter (utilized by 3.8% of firms), buyer loans (utilized by 2.8% of firms)…

As well as, as a way to accomplice with firms to assist workers, authorities organizations, particularly commerce unions, continually stand out to assist employees overcome their difficulties (for instance: The Ho Chi Processing Industrial Zone Union Minh-Ville organized varied actions resembling visiting, sending presents, supporting funding and persuading landlords to scale back the hire of homes, particularly for pregnant employees or those that breastfeed a baby underneath 12 months …)

Generally, the Covid-19 pandemic has had nice impacts on all facets of life in Vietnam, particularly the workforce – essentially the most weak group dealing with many hardships so far. Nonetheless, the Vietnamese authorities and individuals are decided and strictly comply with these insurance policies: “Unite to guard the pursuits and rights of employees, encourage employees to beat difficulties collectively”; goal “two aims” to ensure jobs and steady incomes for workers, supporting the resumption of exercise after Covid-19. Within the spirit of “Workers First”, authorities and enterprise are unanimously decided to beat the inevitable challenges of the Covid-19 pandemic, to make Vietnam a highlight within the area and on the planet to forestall Covid -19 on the whole and shield the legit rights of workers particularly.

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