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19 December 2024

Vietnam Expands Labor Export Opportunities To European Markets

Efforts accelerate to boost Vietnamese workforce presence and income potential overseas.

Vietnam is venturing beyond its traditional labor export markets, like Japan and South Korea, and is setting its eyes on Europe as new opportunities arise for its workforce. On December 18, 2024, officials discussed strategies to facilitate the export of Vietnamese labor, focusing on nations where there is significant demand and where potential earnings are higher than what workers typically earn at home.

Nguyen Ba Hoan, the Deputy Minister of Labor, Invalids and Social Affairs, outlined the progress during the seminar titled “Enhancing Quality and Efficiency of Vietnamese Workers Going Abroad,” stating, “The government has been negotiating labor cooperation agreements, which include sending up to 1,000 laborers to Australia.” This initiative marks just one of the many efforts to connect Vietnamese workers with new markets, particularly across various European countries such as Germany, Greece, and Hungary.

According to Pham Viet Huong, Deputy Director of the Department of Overseas Labor, there has been strong interest from over 33 companies wanting to participate in the Australian labor market, where selections are underway to determine the most suitable partners based on agreed standards. “Many companies now find it more challenging to secure workers than contracts,” Hoan remarked, indicating a noted shift as demand surges amid traditional markets grappling with their own labor shortages.

Currently, around 450 companies are authorized to send Vietnamese laborers abroad, and this number could soon rise to 500 as new opportunities within international labor markets arise. The Vietnamese government has made strides to not only maximize job openings but streamline the recruitment processes for potential workers.

Further to this, several nations within Europe are also showing interest. Vietnam is negotiating labor export agreements with Greece, France, Finland, Poland, and Spain, among others. These negotiations aim to create legal frameworks within which laborers could seek employment, addressing the ever-growing employment demands outside Vietnam.

Yet, it’s not all smooth sailing; the labor export sector is facing serious challenges, particularly from illegal firms. Hoan highlighted the alarming trend of unauthorized labor agencies taking advantage of situations. “The situation of illegal labor export firms is alarming, creating significant burdens on workers,” he noted during the discussions. Meanwhile, Duong Thi Thu Cuc, the General Director of Saigon Intergco, added, “Currently, many agencies are 'selling' labor, which creates unfair competition and heavy costs for workers,” indicating the need for serious reform and regulation within the industry.

This black market for labor not only complicates the recruitment efforts but places extra financial pressure on the workers themselves. Many are forced to bear burdensome costs even before they leave the country, which can lead to vulnerabilities once they arrive at their destinations.

The Vietnamese government is actively working to mitigate these risks by enhancing oversight of labor agencies, ensuring workers are equipped with the necessary skills, particularly language proficiency. Hoan emphasized the importance of preparing workers properly, stating, “When already equipped with skills, workers must be ensured work environments with full benefits.” This commitment is pivotal as many workers look to work abroad not only for higher pay but also for the chance to learn new skills and experiences.

Expanding labor export initiatives can yield significant benefits for both Vietnamese laborers and the nation itself, creating pathways out of poverty for many families. With reforms aimed at improving market conditions and eliminating unfair practices, the hope is for Vietnamese workers to enter the global workforce with confidence and security, benefitting not only from competitive wages but also enriching their skill sets.

Indeed, as stated at the conclusion of the seminar, efforts must be made more sustainable and worker-centric to avoid the pitfalls associated with unregulated labor exports. The Vietnamese government’s focus on ethical practices, paired with rigorous enforcement against illegal agencies, will be indispensable for safeguarding the interests of its workers abroad and enhancing the overall effectiveness of the labor export program.

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