Vietnam labor export firms expand to new markets

Labor export companies are shifting their focus to new markets such as Poland and Australia to find job opportunities for workers.Eastern Sea Labor Export, Services, and Trade (Estrala) in HCMC has been partnering with businesses in Poland and Germany in the last several months to connect them with Vietnamese laborers.

The company is in the process of sending 100 workers to Poland with an average monthly income of US$1,000, including insurances.

They will work in the fruits and food packaging industry. Healthy individuals who are in the age of 20-50 with a high school diploma are eligible.

Workers get weekends off and provision of accommodation, transportation, and meals. They have the option to extend their contracts after two years.

Estrala offers free English language training and assist workers in acquiring low-interest bank loans.

It is also transporting workers to Germany for short- and long-term contracts in the food industry.

“We are expanding to new markets to offer more choices for workers and reduce our dependency a single market,” said Nguyen The Dai, deputy CEO of the company.

While Estrala has been sending workers to Japan for years, recently it has been facing challenges in this market due to the decline of the yen and increasing competition with other labor exporters.

Dai said that Europe has a strong demand for labor and countries in the continent offer competitive salaries with robust welfare benefits.

Germany is an attractive destination for Vietnamese workers as the food packaging industry offers a monthly base salary of EUR2,700 (US$2,761).

Workers can even bring their spouse and children to the country where they can enjoy free healthcare and education along with an opportunity for long-term residency.

Another new labor market is Australia, where the Vietnamese government has selected six companies to implement a labor export program in the agriculture sector.

“This is an opportunity for Vietnamese workers in a new market,” said Nguyen Duc Nam, chairman of the International Manpower Supply and Trading Jsc (Sona), one of the six selected firms.

The company was approved by Australian authorities thanks to its capabilities, extensive experience in agricultural labor markets, recruitment strategies, overseas worker management plans, and a commitment to not charging service fees to workers.

Nam said that the Department of Overseas Labor is developing standard contract templates for companies to negotiate with Australian partners, and Sona is studying Vietnamese workers’ demand to build a strong supply for this market.

Starting this year, Australia will accept around 1,000 Vietnamese workers annually, with basic monthly salaries ranging from AUD3,200 to 4,000 (US$1,960-2,450), before living expenses are deducted.

Pham Viet Huong, deputy head of the Department of Overseas Labor, said that alongside traditional markets such as Taiwan, Japan, and South Korea, Vietnam is actively expanding into new markets.

Labor cooperation has been a key agenda item in high-level meetings. Vietnam has already signed agreements – or is in the process of doing so – with countries like Germany, Greece, Finland, Poland and several Nordic nations, he said.

Other potential markets are France, Denmark, and Spain, where Vietnamese companies are actively seeking partnerships before government-level agreements are achieved, he added.

Over 650,000 Vietnamese workers are employed in more than 40 countries and territories, sending home an estimated US$3.5-4 billion in remittances annually, official data show.

Taiwan, Japan, and South Korea remain the top three destinations, with Japan leading for five consecutive years in terms of Vietnamese worker intake.

South Korea offers the highest earnings, with monthly salaries ranging from US$1,600 to 2,000, followed by Japan (US$1,200-1,500) and Taiwan (US$800-1,200), according to the 2023 Vietnam Migration Profile, released by the Ministry of Foreign Affairs’ Consular Department in late October last year.

Some European countries offer similar income levels.

Middle Eastern countries and Malaysia report lower wages: around US$600-1,000 for skilled workers and US$400-600 per month for unskilled workers.