Lifestyle

The Yen’s Plight: A Hardship for Vietnamese Expats in Japan

As Japan's currency continues to depreciate, Vietnamese expatriates are finding themselves in a financial conundrum. The rising cost of living in the East Asian nation is creating a challenging environment for these workers, who are now faced with difficult choices and an uncertain future.

Administrator

6 July, 2024

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As of March, Vietnam’s Ministry of Labor, War Invalids, and Social Affairs reported that nearly 6,300 Vietnamese citizens were employed in Japan. This figure is expected to reach approximately 23,300 by the end of the year.

Financial Challenges due to Yen Depreciation

The depreciation of the Japanese yen has had a significant impact on Vietnamese expatriates in the country. Nguyen The Tai, a 24-year-old worker in Ibaraki Prefecture, laments the increased cost of living, specifically noting that “a carton of eggs now costs ¥400 [US$3.64], up from ¥200 [$1.82] previously.” To cope with the changing economic landscape, Tai has taken on extra shifts and negotiated lower rent with their landlord.

Nguyen Gia Chien, a 29-year-old engineer in Osaka Prefecture, has seen his monthly income nearly halved due to the yen’s decline. The situation is further exacerbated by rising taxes, including personal income and consumption taxes. As a result, Chien had to make the difficult decision to send his wife back to Vietnam after the birth of their child. He now sends a portion of his income to support his wife and their baby each month.

The financial challenges faced by these individuals are not unique. Many Vietnamese in Japan are experiencing similar struggles due to the yen’s depreciation. However, there is a sense of community and mutual support among them.

The yen’s depreciation has impacted various sectors, including service industries. Many workers in these fields are feeling the effects of the weakened yen. Photo: Supplied

Despite the challenges, many Vietnamese remain resolute in their decision to stay in Japan, driven by the prospect of better earning opportunities and the hope of a rebound in the yen’s value, which could lead to an improved quality of life.

Vietnam’s Aspirations for Japan

Despite recent concerns about the yen’s decline, young Vietnamese continue to aspire to work in Japan. They are attracted by the opportunities for learning, improving language skills, career advancement, and the country’s appealing benefits and policies, such as social security and healthcare. Cao Xuan Quyet, a 19-year-old from northern Vietnam, is determined to pursue his dream of working in Japan, despite his family’s financial limitations. Similarly, Nguyen Hong Hanh, a 20-year-old from Hanoi, whose sister has been living in Japan for many years, remains optimistic about the opportunities that Japan offers, even in the face of the yen’s depreciation.

Ishii Chikahisa, First Secretary at the Japanese Embassy in Hanoi, emphasized the significant contribution of Vietnamese workers to Japan’s socio-economic development. With Vietnamese workers comprising one-fourth of the foreign worker population in Japan, Chikahisa assured that Japan remains committed to supporting the Vietnamese community by improving their working and living environments.