Against the backdrop of the weak yen, competition among Japanese companies for foreign workers is intensifying. Rising wages for Vietnamese technical intern trainees and the effects on their return home and remittances have become apparent.
At a matching event held in Tokyo to connect Filipino workers with Japanese companies, participants said the weak yen was reducing Japan’s appeal to foreigners seeking work there. Despite government efforts to accelerate the acceptance of foreign workers, actual attendance is beginning to show signs of weakening.
Nyut, a Vietnamese technical intern trainee, said the weak yen was making it increasingly difficult to send money to his family. The yen has fallen about 19% against the dong since the beginning of this year, increasing the financial burden on households in Vietnam.
Competition for Vietnamese workers is intensifying at construction sites, with companies competing to attract them by offering monthly salaries in the ¥300,000 range. More registered Vietnamese workers are returning home, while the number of new arrivals in Japan has remained at about 40, roughly half the pre-pandemic level.
Overall, an estimated 4.19 million foreign workers will be needed by 2030, but the prolonged weakness of the yen is creating increasing uncertainty over Japanese companies’ ability to secure talent.