The Vietnam General Confederation of Labor (VGCL) has proposed the minimum wage be increased by between VND250,000 ($11.21) and VND400,000 ($17.93) in 2017, while the Vietnam Chamber of Commerce and Industry (VCCI) has called for an increase of between VND100,000 ($4.48) and VND180,000 ($8.07), a conference on the minimum wage increase in Hai Phong city on July 20 heard.

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The VGCL proposal is equal to an increase of about 11.11 per cent while VCCI’s proposal is equal to an increase of 4-5 per cent. Mr. Vu Quang Tho, Director of the Institute of Workers and Trade Unions, said that the 2017 minimum wage increase must be equal to the 2016 increase. Moreover, he added, the proposal from VGCL is almost the same as the plan from the National Wage Council.

Three plans were proposed at the conference by the National Wage Council. Under the first the minimum wage would increase by between VND250,000 ($11.21) and VND350,000 ($15.69) compared to 2016, or 9.7 to 10.4 per cent. Under the second it would increase by between VND200,000 ($8.96) and VND300,000 ($13.45), or 8.6 per cent. In the third plan, it would increase by between VND200,0000 ($8.96) and VND250,000 ($11.21), or 7.1 to 8.3 per cent.

According to Mr. Mai Duc Chinh, Deputy Chairman of the National Wage Council, if the 2017 minimum salary can cover 90 per cent of workers’ minimum living standards then the increase in 2018 could potentially cover 100 per cent. The current minimum salary only covers 85 per cent of minimum living standards.

He added that the 12.4 per cent increase this year did not satisfy the expectations of workers and ensure their minimum living standards. If they don’t earn overtime they cannot have enough to cover their minimum living standards or save money.

VCCI, meanwhile, proposed the minimum wage in Region I be VND3.68 million ($165), a VND180,000 ($8.07) increase, VND3.25 million ($145.7) in Region II, a VND150,000 ($6.72) increase, VND2.82 million ($126.4) in Region III, a VND120,000 ($5.38) increase, and VND2.5 million ($112) in Region IV, a VND100,000 ($4.48) increase.

It said that the minimum wage increase in recent years has been too high, at two to three times higher than GDP growth, or inflation, or labor productivity growth. The increase has affected to the competitive capacity of enterprises, so VCCI requested that increases be in line with these indicators.

Inflation forecasts, on which minimum wage claims are largely based, have proven to be unreliable. In 2014 it was forecast at 7 per cent but came in at 4 per cent, while in 2015 the forecast was 5 per cent but it increased just 0.63 per cent. Overly high forecasts have resulted in many enterprises paying higher wage increases than turned out to be necessary, according to Mr. Truong Van Cam, General Secretary of the Vietnam Textile and Apparel Association (Vitas).

Region I:

Districts in:

- Hanoi: Gia Lam, Dong Anh, Soc Son, Thanh Tri, Thuong Tin, Hoai Duc, Thach That, Quoc Oai, Me Linh, Chuong My and Son Tay Town.

- Hai Phong City: Thuy Nguyen, An Duong, An Lao, and Vinh Bao.

- Ho Chi Minh City: All numbered districts, Cu Chi, Hoc Mon, Binh Chanh and Nha Be.

Cities and towns in:

- Dong Nai Province: Nhon Trach, Long Thanh, Vinh Cuu, and Trang Bom.

- Binh Duong Province: Thu Dau Mot, Thuan An, Di An, Ben Cat, Tan Uyen, Bau Bang, and Bac Tan Uyen.

- Ba Ria Vung Tau Province: Vung Tau.

Region II  

- Remaining areas of Hanoi, Hai Phong, and Binh Duong Province.

- Hai Duong Province: Hai Duong City.

- Hung Yen Province: Hung Yen City, My Hao, Van Lam, Van Giang and Yen My Districts.

- Vinh Phuc Province: Vinh Yen City, Phuc Yen Town, Binh Xuyen and Yen Lac Districts.

- Bac Ninh Province: Bac Ninh City, Tu Son Town, Que Vo, Tien Du, Yen Phong, and Thuan Thanh Districts.

- Quang Ninh Province: Ha Long, Cam Pha, Uong Bi, and Mong Cai Cities.

- Cities in: Thai Nguyen, Lao Cai, and Ninh Binh, and Hue.

- Nam Dinh Province: Nam Dinh City and My Loc District.

- Phu Tho Province: Viet Tri.

- Da Nang: City and all Districts.

- Khanh Hoa Province: Nha Trang and Cam Ranh City.

- Lam Dong Province: Da Lat and Bao Loc City.

- Binh Thuan Province: Phan Thiet City.

- Ho Chi Minh City: Can Gio District.

- Tay Ninh Province: Tay Ninh City, Trang Bang and Go Dau Districts.

- Dong Nai Province: Long Khanh Town, Dinh Quan and Xuan Loc Districts.

- Binh Phuoc Province: Dong Xoai Town and Chon Thanh District.

- Ba Ria Vung Tau Province: Ba Ria City and Tan Thanh District.

- Long An Province: Tan An City and Duc Hoa, Ben Luc, Can Duoc and Can Giuoc Districts.

- Tien Giang Province: My Tho City.

- Can Tho City: All urban districts.

- Kien Giang Province: Rach Gia City, Ha Tien Town and Phu Quoc District.

- An Giang Province: Long Xuyen City.

- Ca Mau Province: Ca Mau City.

Region III

- Remaining provincial cities.

- Remaining districts of Hung Yen, Nam Dinh, Tay Ninh and Dong Nai Provinces.

- Hai Duong Province: Chi Linh Town, Cam Giang, Nam Sach, Kinh Thanh, Kinh Mon, Gia Loc, Binh Giang, and Tu Ky Districts.

- Thai Nguyen Province: Song Cong, Pho Yen, Phu Binh, Phu Luong, Dong Hy, Dai Tu Town.

- An Giang Province: Tan Chau Town.

- Ninh Binh Province: Tam Diep Town, Gia Vien, Yen Khanh, and Hoa Lu Districts.

- Thanh Hoa Province: Bim Son Town and Tinh Gia District.

- Thua Thien Hue Province: Huong Thuy and Huong Tra Towns, Phu Loc, Phong Dien, Quang Dien and Phu Vang Districts.

- Phu Yen Province: Song Cau and Dong Hoa Districts.

- Khanh Hoa Province: Ninh Hoa Town, Cam Lam, Dien Khanh and Van Ninh Districts.

- Binh Thuan Province: La Gi Town, Ham Thuan Bac and Ham Thuan Nam Districts.

- Binh Phuoc Province: Phuoc Long and Binh Long Towns, Dong Phu and Hon Quan Districts.

- Long An Province: Kien Tuong, Thu Thua, Duc Hue, Chau Thanh, Tan Tru, and Thanh Hoa Districts.

- Tien Giang Province: Go Cong and Chau Thanh Towns.

- Vinh Long Province: Binh Minh Town and Long Ho District.

- Hau Giang Province: Nga Bay, Chau Thanh and Chau Thanh A Towns.

Districts in:

- Vinh Phuc Province: Vinh Tuong, Tam Dao, Tam Duong, Lap Thach, and Song Lo.

- Phu Tho Province: Phu Tho Town, Phu Ninh, Lam Thao, Thanh Ba and Tam Nong.

- Bac Ninh Province: Gia Binh and Luong Tai.

- Bac Giang Province: Viet Yen, Yen Dung, Hiep Hoa, Tan Yen, and Lang Giang.

- Quang Ninh Province: Hoanh Bo and Dong Trieu.

- Lao Cai Province: Bao Thang and Sapa.

- Ha Nam Province: Duy Tien and Kim Bang.

- Hoa Binh Province: Luong Son.

- Ha Tinh Province: Ky Anh.

- Quang Nam Province: Dien Ban, Dai Loc, Duy Xuyen and Nui Thanh.

- Quang Ngai Province: Binh Son and Son Tinh.

- Ninh Thuan Province: Ninh Hai and Thuan Bac.

- Kon Tom Province: Dak.

- Lam Dong Province: Duc Trong and Di Linh.

- Ba Ria Vung Tau Province: Long Dien, Dat Do, Xuyen Moc, Chau Duc and Con Dao.

- Ben Tre Province: Chau Thanh.

- Can Tho City: All rural districts

- Kien Giang Province: Kien Luong, Kien Hai, Giang Thanh, and Chau Thanh.

- Ca Mau Province: Nam Can, Cai Nuoc, U Minh, and Tran Van Thoi.

Region IV   

All remaining areas
VN Economic Times