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Labour Export to Taiwan: Open Opportunities

20/11/2013 - 21:59:43
Labour Export to Taiwan: Open Opportunities
Taiwan is currently the leading labour export market of Vietnam. Recently, Taiwan has loosened its policies for foreign workers, opening up opportunities for Vietnam to increase labour exports to this market in the near future.
 
Taiwan labour market is mainly based on labour supply from Indonesia and Vietnam, in which, Indonesia dominates the labour supply for the service sector, while Vietnam is the main supplier for the manufacturing sector. According to the Department of Management of Overseas Labour, Ministry of Labour, Invalids and Social Affairs, as of October 2013, 37,394 Vietnamese employees were working in Taiwan, accounting for more than 53.2 percent of the total Vietnamese workers working abroad and much larger than the number of employees working in other markets: Japan 7,130 employees; Malaysia 6,280; Laos 4,549; Korea 4,219, etc. The figure shows that Taiwan remains by far the largest labour export market of Vietnam.
 
Vietnamese workers in Taiwan work mainly in the fields of manufacturing, construction, engineering, textiles, agriculture and furniture. Basic salary is about VND8-9 million a month. For factory workers, for an extra 2 hours a day, they are paid an additional 33 percent of salary for each hour, the next hour overtime is paid 66 percent of salary for each hour, overtime on Sundays and public holidays is paid twice as much as a regular working day.
 
Recently, Taiwan issued a new policy regarding foreign workers in Taiwan. Most of these provisions create favourable conditions for foreign workers in Taiwan, as well as encourage Taiwan businesses to hire foreign workers to meet the labour demand in the booming economic development, reducing rates of labourers quitting and decreasing unauthorised labour. Most notable is the extension of the adjustment of reception conditions for foreign workers to supply manpower for some sectors. Accordingly, 3 new sectors will receive foreign labourers, namely production of plastic safety caps, toilet cleaning and cosmetics, and 6 sectors will have their foreign labourer quota increased by 5 percent, namely garment, suitcase production, bags, frozen meat, bicycle components, printed circuit boards, measuring and semiconductor packaging.
 
To prevent the labour brokerage fees from being pushed up too high, since January 7th 2013, Taiwan has officially implemented the provisions on not renewing license or not allowing the establishment of branches of brokerage firms in Taiwan and not to renew the license for the labour export company from the countries having high rates of labourers quitting in the first 3 months after immigration. The preferential regulations on quotas of foreign workers stipulate that newly invested businesses in Taiwan can demand more foreign labour, 5-10 percent of the allowed rate, and that Taiwanese enterprises returning from abroad can add 15-20 percent of the foreign workers rate. Taiwan Labour Commission also issued revised procedures and support for foreigners voluntarily returning to their home countries to retrieve their passports, cash and property that their owners or broker retain from June 11th 2013.
 
Also starting from April 1st, Taiwan has implemented an adjusted base salary, accordingly, the base salary is increased to VND13.4 million per month. This wage is applied to all employees (including the last entry before April 1st). In addition, insurance policies for workers are also adjusted. This is considered a positive sign, bringing opportunities to increase Vietnam's labour exports to Taiwan in the future.
 
However, Mr Nguyen Ngoc Ngoan, Director of Gaet Vocational Education & Labour Export, said that since September 2013, Taiwan has opened its doors to receive Filipino workers to get back to work so sending Vietnamese workers to Taiwan will no longer be as advantageous as in the early months, especially the recruitment of female workers will more rigorous. To keep its market share in this potential market, companies should be careful in selecting, training and giving orientation for employees to minimize the early return rate.
 
Thanh Thao
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