The heavy cost burden of Vietnamese workers going to Japan

The cost is too high

According to a survey by Japanese authorities, the average amount of money paid and the debt of Vietnamese technical interns when working in Japan is 670,000 yen (about 120 million VND). Based on this reality, Vietnam and Japan are actively coordinating to reduce the cost that workers have to pay and move towards the goal of "zero fee".

Mr. Ise Hiroaki, Japan International Friendship Association (JIFA) said that currently, up to 56% of trainees in Japan are Vietnamese. The average debt of Vietnamese workers to go to Japan is 670,000 yen.

This is the highest rate among the 15 countries sending workers to Japan, notably 4 times higher than the Philippines. The reason why trainees have to bear high costs and large debts is due to a lot of false information, and acts of non-compliance with regulations prohibiting the collection of mortgages, guarantees, and fees for brokers that have been banned but are still not complied with in many places. The lack of local educational and training facilities causes workers to bear the costs of travel, accommodation at Japanese language schools in Hanoi, Ho Chi Minh City, etc.

According to Mr. Ise Hiroaki, it is noteworthy that most trainees come from poor areas and the poorer the area, the larger the debt. The reason is that workers in poor areas often do not have access to accurate information, brokerage fees are high, and accommodation and travel expenses are also higher. The survey shows that Ha Tinh is an area where trainees and international students have to bear high costs and have large debts.

This is also one of the reasons leading to the high rate of Vietnamese workers running away and violating the law.

Meanwhile, Ms. Ingrid Christensen, Director of ILO Vietnam, also pointed out that a recent study by the General Statistics Office of Vietnam with the support of ILO titled “Measuring the Sustainable Development Goals Index on the Cost of Hiring Vietnamese Workers Abroad” showed that in reality, a Vietnamese worker going to work abroad has to pay up to 192 million VND (equivalent to 8,000 USD) to be recruited for the first job in Japan.

“This contradicts international standards on labour migration which state that ‘no recruitment fees or related costs should be charged or borne by workers or jobseekers’,” said Ingrid Christensen.

The reason, according to experts, is due to non-compliance with regulations prohibiting the collection of mortgages, guarantees, and high brokerage fees. Along with a number of other costs. These reasons show that Vietnamese workers are having to pay fees that are not in accordance with the provisions of the Law on Sending Workers Abroad to Work Under Contract (amended), which took effect from January 1, 2022.

According to the law, technical interns and caregivers when working in Japan will not have to pay brokerage fees, deposit fees, or orientation education fees. Workers will only have to pay a maximum of 1 month's salary according to the contract for 1 year of work, not exceeding 3 months' salary, and will be deducted from the management fee and service fee paid by the receiving party. For vocational training and foreign language training to meet the requirements of the Japanese side, workers will only pay a portion according to regulations, for specific workers, the receiving party will support the entire amount.

Find solutions to reduce cost burden

Due to the fact that many workers have to bear debt due to the high cost of working in Japan, all levels, sectors and localities in Vietnam are implementing solutions to overcome this situation.

Mr. Pham Viet Huong, Deputy Director of the Department of Overseas Labor Management (Ministry of Labor - Invalids and Social Affairs) said: In Vietnam, the Law on Vietnamese Workers Working Abroad (Law No. 69 of 2020) with new regulations on costs is a new legal corridor to protect the rights of workers. According to the new regulations, technical interns, caregivers, and specific workers when working in Japan will not have to pay brokerage fees, deposits, or orientation education fees.

The employee will only have to pay a maximum of 1 month's salary according to the contract/1 year of work, not exceeding 3 months' salary and deducted the management fee and service fee paid by the receiving party. For vocational training and foreign language training to meet the requirements of the Japanese side, the employee will only pay a portion according to regulations, for specific workers, the receiving party will support the entire amount.

To realize the dream of not having to borrow money for trainees to go to Japan, JIFA has cooperated with the Vietnam - Japan Human Resources Training Organization to pilot a zero-cost project in Ha Tinh since 2014. Up to now, this project has supported about 600 trainees in difficult circumstances in Ha Tinh. This could be a model in supporting workers to go to Japan to work, reducing difficulties for Vietnamese workers. However, it is not easy to replicate.

From a business perspective, Mr. Nguyen Van Hoang, Director of Hoang Hai Import-Export and Human Resources Supply Company Limited, said that the story of reducing costs for workers depends largely on Japanese partners.

“The zero-cost project was implemented because the Japanese side placed the order and supported it. I think that Vietnamese enterprises are willing to participate in projects and programs that reduce fees or do not collect fees from workers. However, the big question here is whether the Japanese partner is willing to pay for costs such as training, support, and labor management. This requires the Japanese government to issue a synchronous policy that applies to all foreign workers. If it is only applied to Vietnam, Japanese enterprises will go to Indonesia, Myanmar, etc. to recruit workers because the cost is cheaper. At that time, it will be very difficult for Vietnam to compete in this largest market. The story of reducing costs before going is just one issue, in addition, it is necessary to take into account the working conditions of workers, the treatment regime such as income, and other benefits abroad,” Mr. Nguyen Van Hoang analyzed.

Chairman of the Vietnam Association of Manpower Supply Doan Mau Diep also said that the story of reducing labor costs depends largely on the Japanese partner. According to Mr. Diep, for recruitment and labor export businesses, whether they can survive or not depends on service fees. Service fees ensure compensation for costs from contract exploitation, labor recruitment, and labor support management during their time working abroad.

“The cost of going to Japan is currently very high, higher than China, and many times higher than Indonesia and the Philippines, and this issue needs to be improved. Recruitment agencies, businesses, and authorities must join in and make efforts so that workers do not suffer from the high cost. However, another important issue that needs to be resolved is the need for discussion with the Japanese side. Some fees that should have been paid by employers are instead pushed onto workers. Therefore, it is necessary to discuss with the Japanese side how many businesses are willing to reduce or not charge fees for Vietnamese workers and how the salary of workers who go without fees or with fees will be balanced,” said Mr. Doan Mau Diep.

According to News