Report Vietnam's Overseas Workers Burdened by Crushing Debt

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Photo courtesy of VN Express

 

Across rural Vietnam, families increasingly rely on relative abroad, like Hoa and Tuan in Japan, to send money home. These young men and women endure enormous upfront costs, often plunging their families into debt for the chance at a better life.

 

In 2018, siblings Hoa and Tuan signed contracts to work abroad in Japan, each paying recruitment agencies between VND 140 and 200 million (approximately 220,000 to 316,000 Thai Baht). These fees covered essentials like health checks, language courses, and airfare, but left their family borrowing from banks and, at worst, loan sharks.

 

For a stark comparison, the average monthly income in their hometown is a mere VND 4.5 million. The financial burden for these overseas opportunities is thus a formidable hurdle.

 

A significant study by Vietnam's General Statistics Office and the International Labour Organization highlighted that Vietnamese workers paid freights up to VND 192 million to secure jobs in Japan. As a result, they often must work nearly a year simply to cover their initial costs. The Japan International Friendly Association notes that Vietnamese workers arrive with an average debt of 670,000 yen (approximately 114,000 Thai Baht), outpacing other nationalities.

 

In 2021, Vietnam's Government Inspectorate critiqued the inflated costs for workers heading to Japan and pointed fingers at lax regulatory oversight. It found that authorities failed to regulate recruitment fees in six provinces, including Nghe An and Ha Tinh, enabling companies to demand excessive charges.

 

Moreover, by 2023, over 12,000 Vietnamese workers had overstayed their contracts in South Korea, with substantial numbers also in Taiwan and Japan. Many attribute this not to a lack of responsibility but to the crushing pressure of debt repayment.

 

The 2022 Law on Vietnamese Workers Working Abroad attempted to counter this by capping fees at one month's salary for a one-year contract. Contracts similar to Hoa and Tuan's now range from VND 100 to 120 million, but the cost remains high compared to actual earnings after deductions. Tuan's monthly salary of VND 35 million dwindles to VND 17–20 million after taxes and living expenses, compelling him to rely on instant noodles to stretch his budget.

 

Vietnamese recruitment agencies also garner management fees from Japanese employers, which can offset workers' costs. Yet, this knowledge seldom reaches workers, who continue paying hefty service fees, unaware of their rights or alternative financial structures.

 

Local laws still permit agencies to bear the brokerage fees, although these are often charged to the workers. Despite clear fee regulations under Circulars 21/2021 and 02/2024, concealed charges persist, allowing a few exploitative agencies to thrive unchecked. Thankfully, authorities have begun prosecuting those responsible.

 

Vietnamese workers constitute half of Japan's foreign interns, valued for their reliability but burdened by "bottom-up competition." Japanese recruiters sometimes expect luxury treatment, perpetuating a cycle whereby workers indirectly fund lavish perks.

 

To remedy this, Vietnamese authorities must rigorously enforce fee regulations, audit suspiciously expensive agencies, and strengthen collaborations like South Korea's EPS program that limit worker costs.

 

Labour isn't a commodity; it's the hope of a brighter future. Strengthening oversight and prioritising workers' rights over exorbitant profits is a crucial step. Until then, many like Hoa and Tuan carry a heavy burden, trapped in a system that profits from their aspirations.

 

  Adapted by ASEAN Now from VN Express 2025-07-24