Borrowing 180 Million VND for Japan Labor Export, Sending Back 9 Million VND to Repay Debt

10 years ago, my friends working in Japan earned 20-30 million VND per month as the norm, but now my cousin sends less than 10 million VND back to pay off his debts.

"Last year, my cousin worked in an industrial park with a monthly salary of 12 million VND. He was persuaded by a recruiter to go to Japan, with an initial cost of 180 million VND. After arriving, the yen dropped in value, and after deducting living expenses, he could only send back 9 million VND a month to pay off the debt.

Ten years ago, five of my friends went to Japan, some for labor export and others for studying abroad. Back then, hearing about their monthly salaries of 20-30 million VND was normal. Today, of the five, only one engineer remains in Japan. The others have gone to different countries: one to the UK, another to South Korea, and one to Germany. My friend, who went to Japan to study and later worked as a restaurant manager, eventually returned to Vietnam, now earning just 6 million VND per month.

According to a director of a Japanese language center for labor export, it's not just the recruiters causing confusion; the labor market is also affected by various external factors, including a shortage of workers influenced by economic cycles. "A decade ago, workers who went to Japan could send 15-20 million VND back, which was considered a lot. But now, it's insignificant due to rapidly rising domestic costs. In the past, someone could go for three years, save enough money to buy land and build a house. Now, people even hesitate to take out a loan to pay for an apartment."

A reader with the nickname ldovan.bn shared the following insights, which have caused many to reconsider working in Japan:

"Currently, many people working as construction workers at home are earning almost 500,000 VND a day (8 hours). If they take one day off each week, their monthly income is nearly 13 million VND, and it's closer to home. So, in order to work in Japan, the after-tax income needs to be at least double or triple what they earn at home for it to be worthwhile.

The broker fees are too high, meaning workers spend the first year or two just paying off this amount.

I wonder, if Japan really has a high demand for labor, why not open offices in Vietnam? These offices could provide clear information about job positions, requirements, and vacancies. Workers could apply directly, cutting out the middlemen and ensuring their rights."

A reader with the nickname skywards88 commented:

"In 2011, I earned money working in Japan because the yen was strong. But now, if the goal is just to make money, it's just as easy to stay and work for a company in Vietnam with shift work and earn the same. The weak yen means that despite working hard in Japan, workers can only save about 10 million VND per month.

Moreover, the initial costs paid to the recruiting agency range from 5,000 to 6,000 USD. The promises made by recruiting agencies back home sound like 'pie in the sky,' but upon arrival in Japan, workers often realize they were misled."

Although both Japanese and Vietnamese laws have reduced many fees, companies still pass these costs onto the workers, diverting them to the middlemen who find the labor force. Due to the high initial fees, reduced salaries after exchange rate changes, and the need to pay off debts, workers are less interested and instead look for other opportunities in different countries.

"Working in Japan is no longer attractive, especially when there are many other markets, such as Taiwan or Indonesia (for construction, where the initial cost is about 1,500 USD to leave)."

This commentary is about a cousin who quit a 12-million-VND-per-month job in Vietnam, investing almost 200 million VND to work in Japan. The post was made amidst a broader discussion on difficulties in finding laborers for Japan.

A reader named linhhnhcm suggested:

"The relevant departments and related agencies should publicly disclose a list of centers authorized to train and send workers abroad. That way, workers can approach these centers directly and avoid submitting their applications through unauthorized middlemen, reducing risks and costs.

Currently, many people want to work abroad but don't know which companies are authorized to send workers. They are forced to go through costly middlemen, and in many cases, even after completing Japanese language courses, they are still unable to go because the company fails to meet its commitments."

Japan has been a traditional labor market for Vietnam for many years. As of June, of the 70,000 Vietnamese workers going abroad, Japan accounted for 58%. Vietnam leads among 15 countries sending trainees and workers to Japan. There are currently about 520,000 Vietnamese workers living and working in Japan, an eight-fold increase in the last decade. The average income of Vietnamese workers in Japan is 1,200-1,500 USD per month.

Summary:
The labor export market to Japan, once a lucrative opportunity for Vietnamese workers, is now facing challenges due to rising costs and a weak yen. While many workers who previously went to Japan earned significant amounts, today, the high initial costs, weak currency, and difficulties in sending money back home have made the prospects less appealing. The changing dynamics have led many to seek alternatives in other countries, including Taiwan and Indonesia. The need for more transparency and better regulations in the labor export sector is becoming increasingly evident, as workers seek clearer, more cost-effective pathways abroad. Vietnam Manpower continues to play a vital role in shaping these opportunities, though workers are now more cautious and demanding more from agencies and employers.