Binh Dinh wood sector facing labour shortage due to COVID-19

Exporting wood products is always a leading economic sector in terms of turnover in the central province of Binh Dinh. In 2020, despite difficulties caused by the COVID-19 pandemic, Binh Dinh gained US$ 540 million from exporting wood products, accounting for 51% of the province’s total export turnover.

Since April this year, the COVID-19 pandemic has developed complicated in the province.

However, according to Binh Dinh Provincial Department of Statistics, in the first eight months of 2021, the province's export of wood and furniture products still reached about $470.7 million, accounting for about 53.9% of the total export turnover.

Le Minh Thien, president of Binh Dinh Forest Products Association, said that until August 2021, the association had 89 members that were operating in nine out of 11 districts, towns and cities in the province, creating stable jobs for more than 25,000 people and contributing to the local socio-economic development.

However, in the last few months, almost all the wood processing companies in the province suffered from stagnant production due to a serious shortage of labour – a result of strict and inflexible measures in human management during the pandemic.

Only companies in Quy Nhon City could maintain production with 60-70 per cent of the labour force while those in Phu Cat District had to suspended production because of labour shortage.

Although communes and towns in Phu Cat District stopped social distancing measures under Government’s Directive 16, local authorities still imposed a travel ban that prevented workers from going to work.

A similar situation is seen in An Nhon Town and other parts of Binh Dinh Province.

Binh Dinh Forest Products Association discussed with local authorities in areas where Directive 15 with loosened social distancing measures is implemented over the workers’ backing to work, Thien said.

“However, until now, the problem has not been solved,” he said.

“Almost all localities are concentrated too much on COVID-19 prevention and control. They seemingly forget the twin goals – COVID-19 prevention and control and economic development,” Thien said, adding that when people had no jobs, no incomes for a long time, it was likely for social instability to appear.

From now to early next year, wood processing companies had export contracts to complete. If they failed to deliver products as committed, they would have to compensate their partners, Thien said.

Due to labour shortage, in the last two months, the volume of wood products for exports declined sharply, Thien said, adding that if the labour problems could not be solved soon, the export volume would continue to fall seriously.

Meanwhile, US and European markets have been recovering from the pandemic, possibly having a higher demand for wood products.

Nguyen Phi Long, chairman of Binh Dinh Province People’s Committee has asked the province’s Health Department and other relevant agencies to review and together solve the labour problem for wood processing companies.

“The problem must be solved as soon as possible to help the wood sector ensure production and catch trade opportunities at this time,” Long said.

President of Binh Dinh Forest Products Association Thien said that companies complained over the SARS-CoV-2 testing for workers.

“Companies have to pay much for the testing but it is unreasonable and inefficient,” Thien said.

According to the local health authority, companies in COVID-19-free areas had to have at least 20-25 per cent of their total workers tested while they applied the three-on-site model in which workers did not leave workplaces after work.

“The testing regulation is not suitable in the current situation. Now, companies should be allowed to decide specific groups of workers to test instead of mass testing,” Thien said.