Overview and background

In 2024, Transparentem interviewed 22 Vietnamese migrant workers employed by four suppliers operating in Taiwan’s textile, electronics, and appliance manufacturing sectors. Workers consistently reported paying high recruitment fees, often requiring loans, which placed them at risk of debt bondage—an indicator of forced labour recognised by the International Labour Organization. Additional labour abuses were found at one supplier.

Between June and September 2024, Transparentem submitted findings to the four manufacturers and 21 possible connected buyers. All four manufacturers and several buyers took steps to address the issues, including planning reimbursements of recruitment fees. One buyer reimbursed an estimated USD 1.5 million to workers, and further repayments were expected.

This brief follows a broader investigation published in February 2025, Following the Thread, which identified high recruitment fees and other abuses among more than 110 migrant workers from Vietnam, the Philippines, Indonesia, and Thailand in Taiwan’s textile sector. Many companies reported planned corrective action, including repayment of fees.

Together, the investigations highlight pervasive recruitment fee risks among migrant workers in Taiwan and the responsibility of businesses and industry associations to provide remedy and influence wider industry reform.

As of October 2024, more than 800,000 migrant workers from Vietnam, the Philippines, Indonesia, and Thailand were employed in Taiwan, nearly two-thirds in manufacturing. A 2021 ILO study found Vietnamese workers returning from Taiwan had paid an average of USD 5,760 in recruitment costs—equivalent to about two and a half years of Vietnam’s minimum wage.

Findings and company responses

Johnson Controls-Hitachi Air Conditioning

Interviewed workers paid recruitment fees of around USD 5,500 and monthly broker fees of USD 50–60. Several required loans, and some took up to 18 months to repay debts. Johnson Controls and Hitachi responded by reimbursing all current and some former workers, using the highest reported fee level irrespective of documentation. Monthly service fees were also reimbursed and discontinued. Workers reported receiving USD 8,300–12,000.

Hantic Precision Technology

Two workers reported recruitment fees above USD 5,000, plus USD 500 deposits and monthly broker fees. Several buyers verified links to Hantic. In response, the company adopted a zero-fee recruitment policy in September 2024 and committed to reimbursing fees and costs from mid-2025.

GFUN Industrial Corporation

Workers reported recruitment fees of around USD 5,000, deposits, and monthly broker fees of USD 50–60. Singtex Group and several buyers responded immediately. Monthly broker fees were stopped, and reimbursement processes were underway but incomplete as of January 2025. GFUN had been transitioning to a zero-fee recruitment approach since becoming a Singtex subsidiary in 2022.

Gianta Co. Ltd

Workers reported recruitment fees of USD 5,000–6,600, debts, and monthly broker fees. Additional abuses included passport retention, restrictions on movement, crowded and unsanitary dormitories, compulsory “savings” deductions equal to 12% of base wages, and fines for mistakes or dorm rule breaches. Gianta acknowledged some issues and implemented several changes, including lifting movement restrictions, allowing workers to hold their passports, renovating dormitories, and enabling free withdrawal from savings accounts. Following further engagement, a zero-fee policy and reimbursement commitments were agreed.

Recommendations to buyers

Transparentem urges buyers to adopt, implement, and verify no-fee recruitment policies across their supply chains. Companies should reimburse recruitment fees and related costs for all workers and advocate for legislative and regulatory reforms in Taiwan and workers’ home countries.