Updated  
December, 10 2012 10:49:52

State firms owe workers millions

HA NOI (VNS)— Enterprises in several sectors are reportedly in arrears with workers' salaries and bonuses.

The 17 companies under the Ministry of Construction currently owe employees a total wage of over VND256 billion (US$12.19 million) and a social insurance premium of around VND270 billion ($12.86 million).

Stagnant debts in infrastructure construction and a slower than expected check-upon-delivery process were the main culprits, according to the ministry.

A human resource report published by recruitment website vietnamworks.com showed that employment had fallen by half in both real estate and construction areas since the beginning of this year.

According to the Ministry of Transport, businesses in this sector were experiencing total salary arrears of nearly VND166.5 billion ($7.93 million), not including shipbuilder Vinashin and shipping firm Vinalines, which recently defaulted on their loans.

Slow State budget disbursement for capital construction during the first months of the year and stagnant debts in many localities left countless building projects unfinished.

As a result, many investors could not afford to pay contractors, who in turn could not afford to pay wages. Many even went bankrupt or dissolved.

Financial news portal cafef.vn reported that the banking and finance sectors were also facing a gloomy situation, with many employees losing their jobs.

At a recent National Assembly session, State Bank of Viet Nam Governor Nguyen Van Binh said banks would be prohibited from increasing salaries or distributing bonuses if they failed to establish large enough risk provisional funds or did not set aside portions of their profits for resolving bad debts.

The website forecast that next year would continue to be a tough period for workers, as 29 per cent of local enterprises would not recruit new employees and 3 per cent would cut their existing workforce. Only 68 per cent was expected to recruit more staff, a decline of 7 per cent compared with this year's figure. — VNS

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