Skilled labor shortages disrupt factory operations in Vietnam
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Skilled labor shortages disrupt factory operations in Vietnam
February 24, 2023
A shortage of skilled laborers is making it difficult for factories to hire and retain specialized or experienced staff. Due to short supply, recruiting is very difficult with many job postings going unfilled. Firms that do successfully hire then face stiff competition to retain the employees that have opportunities to secure higher wages at other companies that have roles to fill. This is a symptom of insufficient vocational training and education resources in the market. While Vietnam benefits from low labor costs in a general sense, skilled labor and qualified professional resources are in shortage which drives high cost and market inefficiencies. Removing obstacles to investment into training and professional education businesses would be a positive step towards addressing the skills gap and resulting labor shortage in the longer term.
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