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Applying technology to reduce labor force

​According to the province's statistics data, the average size of employment per enterprise is getting smaller and smaller. Enterprises in Dong Nai increasingly focus on investing in modern machinery and technology to reduce labor, but the output of goods is still increasing.

 

cee598e3233bc078469434166d929839-2022-08-19.10-53-05.jpgA start-up business in the automation industry

 

The growth rate of the number of enterprises is higher than the rate of labor attraction, which proves that more and more small and medium enterprises and new enterprises have entered the market, and the business environment has become more dynamic. Besides, this is also consistent with the current investment attraction strategy of the province, which prioritizes high technology, is environmentally friendly and uses less labor.

​The number of employees per enterprise decreases

According to the statistics of the Economic Survey in 2021 conducted by the Dong Nai Statistics Office, the number of enterprises in the period 2016-2020 increased quite quickly about 10.5%/year, but the growth rate attracted labor slowed down, increasing only 2%/year. That shows that the average size of labor recruitment per enterprise is decreasing, the number of new enterprises, small and medium enterprises entering the market is increasing, about 5,000 enterprises per year, but the average labor in an enterprise is increasing from 62 people/enterprise in 2016 to 44 people/enterprise in 2020. Over the past time, private enterprises have entered the market more and more when the business environment is improved and business owners realize the potential and opportunities.

Director of Astek Co., Ltd. (start-up company in the field of mechanics and automation in Bien Hoa City) Le Xuan Thoi said that his company was born while the Covid-19 epidemic was still complicated. When businesses find it harder to recruit workers, technology and techniques help them free up labor, and automation solutions and machines can help solve that problem. "We are a start-up company, applying modern machinery and technology, so the number of workers is not much, but we can still manufacture and develop machines to meet the needs of customers" - Mr. Thoi shared.

Labor in each enterprise decreased, but the industrial production index of Dong Nai still maintained a growth rate of over 7%/year. At the same time, the export turnover of goods next year is 8-12% higher than the previous year. The above results are achieved because the province has a selective investment attraction policy, giving priority to high-tech, environmentally friendly projects that use less labor.

In line with the province's attraction investment trend

Newly established enterprises or enterprises with a long history of operation in the province are aiming for a lean apparatus by applying science and technology to many stages from production to business. Accordingly, every year enterprises in Dong Nai spend over USD 1 billion to import modern machines to replace old production lines and open new production lines. Many stages in production of enterprises have been automated, requiring only 1-2 workers instead of 5-6 workers. Besides, the labor source for enterprises also requires high skills to master technology. This is in line with the province's requirements for industrial development.

 Previously, to develop industry and create jobs for workers, like many other localities, Dong Nai has attracted a large number of businesses, especially foreign investors in the fields of simple industry, attracting a lot of labor but the added value is not high, even affecting the environment. In recent years, Dong Nai has implemented the policy of selectively attracting FDI, resolutely rejecting projects that cause pollution, use a lot of labor, and outdated technology such as tanning, textile dyeing, plating, etc. The next phase's goal is to attract high-tech, environmentally friendly projects, supporting industries and small capital projects with high added value, having spillover effects, connecting production and supply chains. global response; At the same time, ask enterprises to come up with a roadmap for science and technology transfer.

High-tech industrial parks and projects are being promoted to welcome investors in the high-tech and supporting industries. Many foreign investors have come, contacted and worked with the locality to propose the construction of high-tech industrial parks, so the province is also rushing to expand and add many new industrial parks to meet the above trend and needs.


 


Author: Nam Vu

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