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Maintaining production and guaranteeing the labors’ income

Facing difficulties of the nation, enterprises have to restructure businesses, innovate technology and save energy to stabilize the production and the income of labors.

In 2011, global and domestic economy has faced many challenges, such as increases in the prices of raw materials and foods, lack of energy... Responding to those economic difficulties, the central government promulgated the Resolution No. 11/NQ-CP on solutions mainly focusing on containing inflation, stabilizing the macro economy, guaranteeing the social security. Particularly for enterprises, to do business in the period of difficulty, there is no other way better than deploying solutions to maintain production and guarantee income of labors.

 

Restructuring businesses to maintain production.

According to Dr. Vu Thanh Tu Anh, director of Fulbright Program in Vietnam, restructuring may sound abstract, but it simply means that enterprises implement solutions to promote business efficiency, such as diversifying products and markets, reducing production costs and losses, reorganizing production and human resource reasonably... Moreover, the government needs to strengthen links with the local market, develop subsidiary industries, use domestic materials to limit imports and connect manufacturers with distributors tightly to expand local market and stabilize production.

The fact is that, in recent years, the Export Processing Zones (EPZs) and Industrial Parks (IPs) of Ho Chi Minh City have a trade surplus, but not significantly. Enterprises use too much imported materials instead of using domestic materials. To connect the enterprises closely, the important and urgent solutions as well as the role of the government in organizing and administration are required. The government need to supply more information to enterprises in the same industries or relating industries, strengthen and promote the role of professional associations in mobilizing members to share information and support each other. Besides, the government needs to have policies on attracting investment projects that are related together or have satellite projects manufacturing subsidiary products... Most importantly, enterprises must actively participate in professional associations to create linkages with each other.

 

Drastic energy saving

Especially, in the coming months, enterprises need the strong support of the electricity industry to stabilize production. In previous years, the power cut during the dry season effected badly to manufacturing of enterprises. Many enterprises suffered heavy losses due to sudden power cuts, such as product damages, poor product quality, and break of commodity delivery schedules... While not be able to improve the power shortage, the electricity industry must co-ordinate with customers to have a more reasonable electricity distribution plan, in which electricity for production is priority, to use the power most effectively and economically.

In the long time, enterprises need to be innovative in technology to reduce energy consumption and increase product quality and labor productivity. Facing the increases in production expenses and power shortage, enterprises are aware of the importance of technological innovation. However, in the present circumstances, enterprises can not conduct technological innovation by themselves. They need the help from the government through loans, information about prestigious suppliers, consultancy on technological innovation and human resource training in accordance with new technology.

 

Guaranteeing the labors’ income

In addition to capital and knowledge, labor is also the important resource that helps enterprises be stable. Therefore, to survive, enterprises need to care for the lives of workers to "keep" them working to overcome difficulties of the business. Many enterprises put much effort into improving working environment, renewing labor policy, enhancing assistance to workers. Currently, many enterprises in the EPZs – IPs, such as Toyo Precision, Masuoka, Hansae ..., increased fuel allowance, house rent, meal quality, wages... for workers to keep them working. Furthermore, HEPZA is also implementing solutions to construct dormitory, medical centers, cultural centers, supermarkets for workers.

Besides, the government should have policies to assist enterprises in training workers to master modern technology. If so, the income of workers will be improved. This is a long term solution, taking a long time, but it is needed to be conducted positively.

 

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