More manual labourers are moving out of HCM City and returning to their home provinces as the cost of living soars and salaries remain stagnant, according to experts.

In recent years, HCM City has lost about five to 10 percent of migrant manual labourers each year, said Le Van Thanh, head of the HCM City Economic Development Research Institute's Management Studies Department.

During the first four months of the year, more than 700 labourers shifted their unemployment pension status to 13 Mekong Delta provinces, according to the HCM City Job Service Centre.

Figures on unemployment insurance in HCM City for the first four months of this year showed that more than 2,000 labourers quit their jobs.

The labour transfer from the city back to other provinces, especially after the workers returned to their hometowns to celebrate Tet (the Lunar New Year), has caused a serious manual labour shortage in the city. It has affected production, resulting in a decrease in GDP, city budget coffers and jobs.

The labour transfer is expected to rise significantly in the future, resulting in a sharp drop in migrant workers in the city, according to a study conducted by HCM City 's Economic Development Research Institute.

A majority of migrant labourers who work for Foreign Direct Investment (FDI) businesses, especially in the areas of garments and footwear, have quit their jobs and returned to the countryside for work due to extremely low salaries in the city.

The average income of a manual worker in HCM City is between 2.5 million VND and 3 million VND (130 USD – 160 USD), which is about 10,000 VND per hour.

Workers need at least 1.5 – 2 million VND each month for basic needs, but many of them only spend 700,000 VND – 800,000 VND (38-45 USD) per month to keep expenses as low as possible, according to the HCM City Economic Development Research Institute.

In general, the salaries in vietnam are low compared to other countries in the region, the institute said.

Thanh of the HCM City Economic Development Research Institute suggested that Vietnam conduct research on salary modification and proposed that the Government shorten the time to adjust salaries, with an increase of at least 20 percent each time.

Thanh said that raising salaries for workers was important as the Consumer Price Index has been soaring in recent years.

He said the city should set up an organisation to help businesses look for labourers./.