Labor shortage at residential housing construction sites

ĐBP - Many residential house construction projects across Điện Biên province are facing labor shortages, directly affecting construction schedules and progress. While small contractors struggle to hire workers, the majority of local labor has shifted to major key projects, inter-level boarding school constructions, or out-of-province employment. This movement makes resolving the workforce equation in residential construction increasingly difficult.

Currently, alongside rapid urbanization and infrastructure expansion, demand for individual private home construction has surged, especially in urban wards, commune centers established after administrative boundary adjustments, and infrastructure-developing areas. However, contrary to burgeoning demand, the construction workforce is increasingly scarce. Surveys across numerous residential construction sites show that available labor meets only about 50% to 70% of actual demand. Shortages span nearly all trades - bricklayers, ironworkers, formwork carpenters, and finishing craftsmen - forcing many sites to work at a minimum pace or extend completion timelines.

As a contractor undertaking residential housing projects in the province, Nguyễn Văn Toàn shared that he is currently managing two private home projects in Điện Biên Phủ and Mường Thanh wards with a team of over 20 workers. However, since early 2026, an average of only 5 to 7 workers report to the sites daily, while the rest frequently request leave or transfer to other employers. He noted that work has stalled at times with several work packages forced to delay schedules, adding that recruiting replacements is extremely hard given the limited pool of skilled labor.

Currently, many residential housing construction sites face labor shortages. Numerous private home construction projects operate with only a few workers.

Labor shortages not only challenge contractors, but also directly impact homeowners. Many projects suffer prolonged construction timelines, incurred cost overruns, and disrupted family living arrangements.

The family of Hoàng Văn Bình in Mường Thanh ward began house construction in early 2026, yet the building remains behind schedule because the construction unit continually lacks workers. At times only a few workers were on site, leaving various construction items paused until sufficient crews arrived. He explained that the contractor originally estimated completion in about four months, but progress has stretched past projections, generating extra expenses.

Contractors report that labor scarcity emerged in early 2026 and intensified as a series of large-scale projects broke ground concurrently across the province. Projects within the Vingroup ecosystem alone have recruitment demands for approximately 7,000 workers offering monthly incomes ranging from VND 14 million to VND 33 million, with team leader positions earning over VND 40 million per month. Alongside competitive wages, the corporation provides free vocational training, apprentice salaries, on-site housing, and welfare benefits. These policies have attracted large numbers of local laborers.

The simultaneous execution of 15 multi-level boarding school projects across border communes in the province has also heightened construction labor demand. These are large-scale projects requiring substantial workloads with strict completion deadlines before the 2026-2027 school year (for 9 projects commenced in 2025). Tight deadlines have compelled contractors to mobilize maximum labor forces and reassign crews from other sites, further constricting labor availability for residential housing.

As a major construction firm in the province, Trade and Construction Company Limited No.6 currently employs about 850 workers, mostly local laborers. To retain personnel, the company raised wages by roughly 10% since the beginning of the year. Nevertheless, recruitment remains competitive. To secure its workforce proactively, the company has recruited unskilled laborers, organizing on-site, hands-on training before placing them into suitable roles.

To retain workers, Trade and Construction Company Limited No.6 has adjusted wages upward by approximately 10% since early this year.

Official data shows that in the first six months of 2026, the province provided job consultation and placement recommendations for 9,627 people and created new jobs for 5,580 workers. However, over 60% of trained laborers were supplied to major corporations and large enterprises. The Employment and National Contributors Center under the Department of Home Affairs received recruitment demands from 318 enterprises for over 1,300 job positions, representing a total demand exceeding 26,000 workers. This indicates a clear shift among freelance laborers toward larger enterprises and corporate groups offering greater stability.

Lò Văn Tình from Mường Ảng commune shared that he previously worked mainly for small civil building contractors. However, when Vingroup projects began recruiting with attractive compensation packages, he switched to working at the corporation’s construction sites, noting that many local workers made the same transition due to higher pay and professional work environments.

To retain workers, many small residential contractors have been forced to increase daily wages, provide fuel allowances and meals, offer attendance bonuses, or rotate personnel between sites. However, these represent temporary fixes, as income at small residential builds struggles to compete with large, well-capitalized capital projects. Resolving the labor deficit in residential construction fundamentally requires coordinated action among functional departments, vocational training facilities, and businesses. On the contractor side, alongside pay adjustments, building safe, professional work environments and offering upskilling opportunities will be essential.

With Điện Biên implementing numerous mega-projects simultaneously, labor competition pressures will persist. Without prompt solutions to balance and develop the construction workforce, the shortage of builders at residential housing sites will linger.

Thu Phương
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