Around 700 Vietnamese workers have returned home from Malaysia since February after losing their steel production and construction jobs, the Vietnamese government said today.

The workers, who were sent to Malaysia by Vietnamese labour-export companies, were made redundant because of a downturn in the two industries, according to the Vietnam's Ministry of Labour, War Invalids and Social Affairs.

"Due to the financial difficulties surrounding large construction projects in Malaysia we have only sent around 4,000 workers there in the first quarter, far less than in the same period of 2003," said an official from the ministry's overseas workers management department.

In March, Hanoi ordered local labour-export companies to stop sending workers to Malaysia because of the lack of job opportunities. Nearly 73,000 Vietnamese are currently working there.

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