Workers face uncertain future over relocation of Vietnam's oldest industrial park

Le Dang Quynh Anh, who has spent almost 20 years at the Dielac milk factory, travels 20 km back and forth every day to support his wife and three children, one of which has Down syndrome.

Ever since Anh's wife had their firstborn, she has had to stay home without work. His monthly salary of VND20 million (US$810) is the sole source of income for the entire family.

"I’ve never thought about ever losing my job," said Anh, 44.

Le Dang Quynh Anh stands outside the Dielac milk factory at Bien Hoa 1 industrial park in Dong Nai Province. Photo by VnExpress/Le Tuyet

Anh, with a bachelor's degree in food technology, now pours powdered milk into cans as part of his job. When he heard that the Bien Hoa 1 industrial park was becoming a commercial urban project, he couldn't help but worry.

"I cannot follow the factory if it moves too far away, as I have to help my wife and children. And if I stay, it would be difficult to find a stable job with a monthly salary of VND20 million to keep my family afloat," the worker said.

The Bien Hoa 1 industrial park spans 324 ha and was established in 1963. It is considered Vietnam’s first industrial park. Today the site displays several limitations, including the risk of environmental pollution to Dong Nai river. The province has decided to convert the site into a commercial urban area.

The Bien Hoa 1 industrial park by the Dong Nai River in Dong Nai Province. Photo by VnExpress/Phuoc Tuan

Phan Van Giang, 54, a camera operator at a food factory at the industrial park, has been working there since 1976. He said the relocation would also affect his wife and two children.

Giang and his wife work in the same company, with a total monthly income at VND25 million, enough to send their eldest son to college, as well as taking care of their 10th-grade daughter and elderly mother.

"I don’t dare to think of the scenario when we both lose our jobs," said Giang, adding that if the factory is relocated, he will be the one to follow it in order to secure at least one source of income. His wife, 52, would need to stay home as it would be difficult for her to find a new job.

"My family would find it tougher to get by when I’m not here. Our family’s income will be cut in half. My wife alone will have to take care of our children and mother," Giang said.

Giang’s firm has 283 workers, with 70% of them living in Bien Hoa. Their average age is around 45, with 100 people already above 50. The company said that if the site is relocated, the oldest workers who have been with the company the longest would face many difficulties.

Workers have already settled down in Bien Hoa, meaning they cannot bring their entire family with them if the factory is relocated. Workers who have been with the company for many years also get higher pay thanks to their years of experience, and having to quit their job means starting all over again.

Pham Cao Thanh Trieu, vice director of Dong Nai Rubber Corporation, said the firm’s workshop that needs to be relocated currently employs 265 workers. 90% have houses in Bien Hoa and neighboring areas. The majority of them are male workers aged 35-45.

"Workers at this age range need stable jobs and incomes to raise their families. They are also experienced, ensuring high productivity. Losing a job at over age 40 would mean difficulties at getting a new job, as factories would prefer younger, stronger workers with lower costs," Trieu said.

Luong Thanh Loc, 48, a worker at the rubber company, said he hopes to be able to work in peace until his retirement. When he heard that Bien Hoa 1 industrial park is to be relocated, he couldn’t help but worry.

"Having spent over 28 years making tires, I do not know what else I can do if I leave the factory," Loc said.

While he does have a vocational degree in car reparation, he has not used it in 30 years. "At my age, the chance of ever stepping foot into another factory is near-zero. If I lose my job, the burden of family income would fall onto my wife, who is a textile worker," Loc added.

Luong Thanh Loc at work at Dong Nai Rubber Corporation at Bien Hoa 1 industrial park in Dong Nai Province. Photo by VnExpress/Le Tuyet

An estimated 21,000 workers at 76 businesses would be affected by the relocation of Bien Hoa 1 industrial park. Dong Nai authorities said that since the park has been around for a very long time, most of its workers have already settled lives in either Bien Hoa or surrounding areas.

As such, a relocation would mean the majority of workers cannot continue their jobs. Dong Nai People’s Committee expects to spend VND1.27 trillion to support workers’ lives and aid with worker training costs for businesses.

Doan Sy Loi, former director of Truong Loi company, said he once had to leave Binh Chieu industrial park in HCMC's Thu Duc City, even when business was going well. All the workshops and machines that came with them had to be sold for scrap as they could not be relocated elsewhere.

"The new factory got moved to Binh Duong, which was only 10 km away from the original site, but only 30% of the workers decided to follow it. Several experienced workers already had their families in HCMC, so they decided to quit. It took years for the company to recover the numbers of workers," Loi said.

While relocated businesses would pay workers with support packages, in the long run local authorities need to find ways to help them secure new jobs with decent incomes, Loi added.