Japan’s Rising Inflation: How it Affects Vietnamese Workers

Japan’s consumer price index (CPI) for 2023 is ⁣expected to ⁤reach 3.1%, the highest increase since 1982, driven by rising food costs and ⁤a weaker yen that makes imports more expensive.

The CPI, a measure of inflation that excludes⁣ fresh food, rose 2.7 percent in July from a year earlier, up from a 2.6 percent increase in June, according to data released on ⁣August 23.

However,⁤ the “core of core” inflation index – a measure that excludes both fresh food and energy and is ⁤considered a key gauge of inflation trends – rose 1.9% in July, down from June’s 2.2% increase. This is the⁣ first time ⁤since September 2022 that the index has increased​ by less than 2%.

Ms. Minh Hang, a 37-year-old Vietnamese radio announcer in Takasaki city, ⁤Gunma prefecture, shared her experience: “Current prices are not much different from the beginning of the year. Last year they ⁢increased significantly, ‍with‌ essential goods increasing by about 35-40% compared to the previous year.”

Ms.⁢ Hang and her husband have lived in Japan for ​nearly 20 years and currently have a 5-year-old daughter. The family is not rich, but with reasonable spending, it is basically okay.

Mr. Son in Kanazawa also shared his thoughts: “Where I live is not as​ expensive as Tokyo or Osaka. Plus, I live alone so ⁤it’s generally ⁤easier to breathe.”

Is Japan Still a Promising ⁢Destination for Workers?

Mr. Ngo Ba Quyet, Director of⁤ Nam Chau Study Abroad ‍and Labor Export Company, commented that ⁤the situation of rising⁣ prices‌ in Japan is real, ‍but in reality, it does⁣ not affect workers too much at present.

The Japanese government has taken steps to support workers, increase wages, and create ⁣more jobs, resulting in better income for workers compared​ to before, Mr. Quyet said.

However, Mr.⁣ Quyet pointed out that the⁣ low yen exchange rate ⁣is a significant concern, especially for labor export workers. For ‌example, 10,000 yen before COVID-19 ⁤was equivalent to 2.2 million‍ VND, but now it can only be exchanged for about 1.7 million VND. “Workers are certainly worried and frustrated because the money they send⁣ back to their families in Vietnam is in significant deficit.”

Mr. Quyet noted that the ‌number of ⁤Vietnamese workers going to Japan ‌through his company has ‍decreased⁤ by 50% compared to the period before the COVID-19 pandemic. He attributed this decline to ​various factors, including Japan’s expansion⁢ of its labor market to ‌other countries and workers’ reluctance to accept heavy work. However, he⁤ emphasized that the low yen exchange rate is the primary reason for Japan’s decreased attractiveness to Vietnamese​ workers.

Despite these challenges, Mr. Quyet believes ⁤that Japan will remain a popular destination for workers due to its stable labor market, low risks, good income, and low travel costs. ⁣ “The yen⁣ has actually shown signs of strengthening recently. ⁢When workers ‌feel the ⁢yen is at its expected level, Japan will continue to ‍be a popular market.”

Mr. Quyet also hopes ⁤that the Japanese government ​will continue to increase the base salary to further ​enhance Japan’s ‌attractiveness⁣ to‌ workers. “I ⁤also hope the Japanese government can continue to increase the base salary, to further increase its attractiveness⁣ to ⁣workers.”