return icon Vietnamnet.vn

Minimum wages likely to grow 10% next year

 VietNamNet Bridge – The average minimum wage by region is projected to rise by just over 10% in 2016 thanks to projections of low inflation and lingering challenges for enterprises,

VietNamNet Bridge – The average minimum wage by region is projected to rise by just over 10% in 2016 thanks to projections of low inflation and lingering challenges for enterprises, according to the chairman of the Vietnam Chamber of Commerce and Industry (VCCI).

Vu Tien Loc told reporters about the projection of regional minimum wage rises on the sidelines of a dialogue on labor and wage policies in Hanoi last Friday. The event was organized by the Ministry of Labor, Invalids and Social Affairs and VCCI.

Loc said Vietnam’s economy has been back to high growth this year but labor productivity has not improved and many enterprises are still struggling with difficulties. So, employers want an average salary rise of just over 10% for 2016, the same as in 2015.

Deputy Minister of Labor, Invalids and Social Affairs Pham Manh Huan, chairman of the National Wage Council, said many participants at the dialogue agreed that the minimum wage by region should not spike strongly due to slow improvements in labor productivity and the low consumer price index.  

“Increases of minimum wages by region will help improve the living standards of workers but push up production costs. We should carefully calculate wage rises next year as social insurance premiums are up,” Huan said.

He added next year enterprises will have to pay additional fees for female employees and labor safety and hygiene. Employers must bear all these fees.  

Loc said regional minimum wage adjustments are an important yet sensitive issue for both the employer and the employee and will impact on the country’s economic growth.

The region-based minimum wage rises should ensure higher incomes for workers as well as the competitiveness of the corporate sector and the nation’s economic growth, Loc stressed.

Loc said strong wage increases would dampen corporate competitiveness and economic growth and that it is laborers who would take a hit. But low salary rises make life tough for employees, which will in turn affect productivity and economic growth.   

Loc said reasonable wage rises should be based on the fall of Vietnam dong against the U.S. dollar, labor productivity and incomes for the basic needs of laborers. Annual minimum wage adjustments are still a controversial issue.

Enterprises bemoaned that the minimum wage rise by two to three times higher the growth rates of gross domestic product and CPI in recent years have made it hard for their operations and affected their capability to fulfill obligations for social, health and unemployment insurance payments and labor union fees for their employees.

Deputy Minister Huan said the National Wage Council is working with experts, administrators and scientists over surveys on minimum living standards to decide minimum wages and other issues for both the employer and the employee.

The National Wage Council plans to convene a meeting at the end of this month to review regional minimum wage adjustment plans next year before submitting its proposal to the Government for consideration this October.

Members of the council are officials from the Ministry of Labor, Invalids and Social Affairs, VCCI and the Vietnam General Federation of Labor.    

SGT

MORE NEWS

Industry in need of strategic links

With not everyone in Vietnam’s industrial landscape yet recovering from 2021’s troubles, many groups have no choice but to move from low-cost production to manufacturing higher-value products.

Cherry blossoms attract tourists to Sapa

Cherry blossoms have been in full bloom in the tourist town of Sapa, attracting lots of visitors.

President to pay State visit to RoK next week

President Nguyen Xuan Phuc and his spouse will pay a state visit to the Republic of Korea from December 4-6.

Fansipan among five top destinations for mountain trekking at year-end

Renowned tourism website Women's Weekly of Singapore has named Fansipan among the leading five destinations to visit for mountain trekking at the end of the year, with the website noting the Vietnamese mountain’s impressive views.

Dortmund chiefs predict bright future for VN football

Although this was only a friendly game with many of the German stars absent from the starting eleven due to the Qatar World Cup, the victory gave the Bundesliga team food for thought about Vietnamese players.

International designers dazzle fashion fans in Hanoi

International designers left a deep impression on fans of fashion in Hanoi with hundreds of fascinating designs presented at the Aquafina VN International Fashion Week (AVIFW) Fall/Winter 2022.

Monthly Government meeting focuses on year-end key tasks

The Government has established working groups on liquidity and currency, the real estate market and corporate bonds led by deputy prime ministers to stabilise these markets.

Vietnam to reduce environmental impact of textile-garment industry by 2030

The Vietnam Textile and Apparel Association (VITAS) has set a goal of helping Vietnam's textile and garment industry be more environmentally friendly by 2030.

Property brokers no longer manipulate prices as buyers become more cautious

As buyers have become more aware and careful about shady practices, real estate brokers have not been able to sell properties at prices much higher than their real value.

Hanoi to turn middle alluvium ground into park

One more park has been designed for Hanoians. However, it is still unclear when the project will appear, as a number of other projects are still on paper or pending.

Asian investors eye more M&A opportunities in Vietnam

Investors from Japan, the Republic of Korea (RoK), and Singapore are looking for more potential merger and acquisition (M&A) opportunities in Vietnam, pinning high hopes on the long-term growth prospects of the market.

Vietnam's fishery exports exceed 10 billion USD in 11 months

Fishery exports reeled in 10.14 billion USD as of November this year, up 27% annually, said the Ministry of Agriculture and Rural Development.

HCM City want foreign doctors to be fluent in Vietnamese

The HCM City Department of Health has just proposed that foreign doctors should be fluent in Vietnamese if they want to work in the country.

Use of toxic e-cigarettes among students on the rise

After a trial smoke, T lost consciousness, was foaming at the mouth, and his limbs were curled up. Two days later, T regained consciousness at the hospital, but was still in the status of extreme fear.

Vietnam spends US$7.74 billion importing petroleum products

Vietnam imported over 7.5 million tonnes of oil and petrol worth around US$7.74 billion as of mid-November, up 24.1% in volume and 122% in value year on year, according to the General Department of Vietnam Customs.
back_to_top