HA NOI (VNS)— The economic downturn continued to have negative impacts in Viet Nam, with unemployment remaining high since the beginning of the year, experts have said.
Dr Nguyen Thi Lan Huong, head of the Institute of Labour Science and Social Affairs, told Tien Phong (Vanguard) newspaper that this year, cities had seen an upward trend in unemployment as a result of economic woes and public dependence on unemployment insurance.
The macroeconomics newsletter number seven released by the National Assembly's Economics Committee in October revealed that during the first half of the year, the number of businesses which ceased operations reached over 26,300, an increase of 5.4 per cent against the same period last year.
Among which, the number of businesses which ended up closing completely increased by over 35 per cent.
According to the newsletter, a large number of businesses had to either reduce or delay production or even went bankrupt as they fell short of funding because of increasing inventories.
While the first six months saw an increase in the number of enterprises going out of business, the number of new businesses also decreased by 12.5 per cent against the same period last year.
The impact of the economic downturn in terms of unemployment was markedly seen in Ha Noi, which saw over 730 enterprises close and 1,900 others temporarily halt operations during the past 10 months, according to the Ha Noi People's Committee.
As a result, about 41,000 people had lost their jobs so far this year.
The number of people registering for unemployment benefits in Ha Noi in the first 10 months had risen to 20,638 people, an increase of about 20 per cent against last year, said Nguyen Thi Kim Loan, head of the Unemployment Insurance Section under the Ha Noi Job Employment Centre.
Unemployment insurance has paid VND172 billion (US$13.4 million) for 16,901 cases in Ha Noi during that time, added Loan.
The majority of people to receive unemployment insurance benefits were aged from 25-40 years old. Unemployed college or university degree holders made up 35 per cent of total claims.
In the southern province of Dong Nai, the number of unemployment claims in the first ten months reached 41,000, an increase of 78 per cent against last year's figure, according to Tran Thi Thuy Tram, head of the Employment Insurance Section of Dong Nai Job Promotion Centre.
Dong Nai Province spent over VND200 billion (nearly US$ 10million) on unemployment insurance by the end of October, a figure 2.4 times higher than the amount spent for the whole of last year, said Pham Minh Thanh, deputy director of Dong Nai Social Insurance Department. — VNS