HANOI - Over 300 Vietnamese workers have returned home from Malaysia since February after losing their steel production and construction jobs and more are expected to follow suit, the government said today.

Around 700 workers were made redundant because of a downturn in the two industries, according to Vietnam's Ministry of Labour, War Invalids and Social Affairs.

"It is not the fault of the Vietnamese workers because some construction companies in Malaysia are experiencing financial difficulties," said an official from the ministry's overseas workers management department.

She said Prime Minister Phan Van Khai had asked the ministry to ensure the speedy repatriation of those unemployed workers still in Malaysia.

Recruitment halted

Last month, the government ordered local labour-export companies to stop sending workers to Malaysia because of the lack of job opportunities.

More than 72,000 Vietnamese are currently working there after the Malaysian government granted official permission to 46 companies to send workers in February 2002.

But only 1,040 Vietnamese workers were sent to Malaysia in the first two months of this year, compared with 6,700 of the same period last year.

Sudden deaths, outbreaks of violence and strikes due to job shortages, low salaries and problems of morale and professional standards of the Vietnamese employees are the main reasons for the decline, according to the ministry.

Vietnam actively encourage workers to move to neighbouring countries. In all, the country "exports" its labour to 40 countries. - AFP