Vietnam: What are the regulations on hastening the process of submitting to the Government for promulgation a Decree on the region-based minimum wages for employees working under employment contracts.
Labor shortage after the Covid-19 pandemic in Vietnam
After the difficult period of the Covid-19 pandemic, the country is recovering and developing economy. Labor resources are always considered a strong point of Vietnam.
However, there is still labor shortage in some localities with many industrial parks and export processing zones at present, focusing on from late February and early March 2022.
There are many reasons, the COVID-19 epidemic is the main reason. Employees have to temporarily take time off work to treat, isolate and take care of their relatives. The settlement of the labor shortage must be conducted overall on the basis of immediate and long-term solutions.
On the afternoon of April 20, 2022, at the Government Headquarters, Deputy Prime Minister Vu Duc Dam chaired a meeting with ministries and branches on the situation and solutions to overcome the labor shortage.
The meeting include representatives of leaders of ministries and agencies: Labor - Invalids and Social Affairs, Planning and Investment, Finance, Construction, Vietnam General Confederation of Labor, Social Committee of Vietnam. National Assembly, Government Office, Vietnam Federation of Trade and Industry, Bank for Social Policies.
After listening to the report of the Ministry of Labour, Invalids and Social Affairs, the Vietnam General Confederation of Labor, and the opinions of the delegates, Deputy Prime Minister Vu Duc Dam concluded on solutions to overcome the labor shortage in Notice 128/TB-VPCP dated April 27, 2022.
What are the immediate solutions for overcoming labor shortage in Vietnam?
Pursuant to the conclusion of Deputy Prime Minister Vu Duc Dam in Notice 128/TB-VPCP dated April 27, 2022, the immediate solutions to overcome labor shortage are as follows:
- In the short term, in order to limit labor shortage, ministries and branches need to focus on implementing the following tasks:
+ Focus on directing the organization to well implement the tasks and solutions assigned in Resolution No. 11/NQ-CP dated January 30, 2022 of the Government on the program on socio-economic recovery and development and implement Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the Program; Decision No. 08/2022/QD-TTg dated March 28, 2022 of the Prime Minister on implementation of rent support policies for employees; Directive No. 16/CT-TTg dated June 14, 2021 of the Prime Minister on ensuring job security, improving working conditions, and enhancing living standards for workers.
+ The Ministry of Labor, War Invalids and Social Affairs shall take charge for, and coordinate with concerned ministries, branches and agencies to urgently submit to the Government for promulgation a Decree on the region-based minimum wages for employees working under employment contracts.
+ The Ministry of Planning and Investment studies and completes the regulations to create favorable conditions for businesses to participate in planning and development of housing for employees in the content of amendments and supplements to Decree No. 82 /2018/ND-CP dated August 22, 2015 of the Government on management of industrial parks and economic zones.
+ The Ministry of Construction shall take charge for, and coordinate with concerned ministries, branches and agencies to urgently implement effectively policies to support social housing and housing for workers; renovate and rebuild old apartment buildings according to the provisions of Resolution No. 11/NQ-CP dated January 30, 2022 of the Government on the program of socio-economic recovery and development and implementation of Resolution No. 43 2022/QH15 of the National Assembly on fiscal and monetary policies to support the Program.
+ The People's Committees of the provinces and centrally-run cities shall take measures to help enterprises in the area maintain and attract laborers to work, support workers to return to the labor market, organize information activities, connect labor supply - demand on the basis of regional linkage and cooperation (including within regions, regions) and the whole country in general.
Accordingly, the Deputy Prime Minister asked the Ministry of Labor, War Invalids and Social Affairs to take charge for, and coordinate with concerned ministries, branches and agencies to urgently submit to the Government for promulgation a Decree stipulating the region-based minimum wages for employees working under employment contracts to improve wages and overcome immediate difficulties for employees in the post-Covid-19 epidemic period.
What are the long-term solutions for preventing labor shortage in Vietnam?
Pursuant to the conclusion of Deputy Prime Minister Vu Duc Dam under Notice 128/TB-VPCP dated April 27, 2022, in order to implement long-term solutions to overcome the labor shortage, the Deputy Prime Minister proposed:
- Within the ambit of their assigned functions and tasks, the Ministry of Planning and Investment, relevant ministries, branches and agencies shall conduct research to ensure the suitability and effective use of favorable factors of the labor market in implement the planning according to the provisions of the Law on Planning.
- The Ministry of Labor, War Invalids and Social Affairs focuses on implementing:
+ The vocational education development strategy for the period 2021 - 2030, with a vision to 2045, ensures the set progress and quality, especially paying attention to closely coordinating with businesses with appropriate programs to open more new majors related to the industrial revolution 4.0.
+ Coordinate with the Ministry of Agriculture and Rural Development to review and improve the quality of vocational training for rural workers.
+ Urgently implement digital transformation to strengthen the connection between labor supply and demand through the digital platform.
+ Take charge for, and coordinate with Vietnam Social Security and relevant ministries, branches and agencies in studying and perfecting policies to support employees with difficulties, ensuring to limit the situation of employees withdrawing social insurance once for the immediate benefit in the process of amending and supplementing the Law on Social Insurance.
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