Taiwanese firms in Vietnam plagued by labour strikes
08-AUG-2008 Intellasia | Cens
Aug 8, 2008 - 7:00:00 AM
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Many Taiwanese enterprises in Vietnam are striving to cope with the thorny problem of labour strike, as Vietnamese labourers suspended their works seeking better pays, in order to compensate soaring commodity prices.
The most serious spot is Don Nai province, where 44 foreign enterprises, including 27 Taiwanese-invested ones, in a major industrial zone were paralysed by labour strikes at the end of July, over 10 of which are still mired in the problem now.
Don Nai boasts the largest amount of foreign investment in Vietnam and the said industrial zone is the third largest spot where foreign investors cluster, trailing HCM City and Hanoi.
The labour strike problem is not confined to Don Nai Province. In fact, over 100 Taiwanese enterprises have been hit by illegal strikes so far this year. The Department of Investment Services, the Ministry of Economic Affairs, reported that in the first five months in southern Vietnam alone, over 280 strikes broke out, of which 55 involved Taiwanese enterprises. Even hi-tech enterprises boasting better pays and fringe benefits were not immune from the problem.
Insiders explained that many Vietnamese labourers have resorted to strike seeking better pays so as to help them cope with the problem of unbridled inflation. Consumer price index in Vietnam in May, for instance, jumped 25.2%. Intervention of Vietnamese officials often further complicated the problem, let alone solving the problem, as many of them were biased towards the demands of local workers.
Taiwanese enterprises reported that they have raised the pays for local workers by 2.5 times since early 2006 but still cannot satisfy the demands of workers, noting that the problem, if remaining unsolved, will deter foreign investments.
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