return icon

Wage reforms make sense

The draft law on minimum wage is being penned by the Ministry of Labour, Invalids and Social Affairs and slated for completion to submit to the government and the National Assembly for approval in May.

Proposed wage reforms have got businesses thinking.

The draft law on minimum wage is being penned by the Ministry of Labour, Invalids and Social Affairs (MoLISA) and slated for completion to submit to the government and the National Assembly for approval in May.



The draft law has been circulated to gather comments from state agencies and experts.

According to MoLISA’s Legislation Department, the law’s major target was to have in place a wage policy based on market rules and gradually stamp out the low minimum wage scheme.

“The draft law encompasses two important changes. It is proposed to cover labour relations in the public and private sectors and more importantly, it separates wages paid to state employees and to people in the armed force from the minimum wage law,” said head of MoLISA’s Labour-Wage Department Tong Thi Minh.

Besides, the draft law seeks to regulate minimum wages per day and hour.

“Separating state employees’ wages from the minimum wage law is a smart move. Only when this regulation gets the nod, can the wage be adjusted following market rules, not badly affecting state budget,” Minh said.

International Labour Organization expert Sangheon Lee assumed it was important to split state budget funded sector wage from the minimum wage law since most countries have developed a specific wage policy for the state sector.

Head of Ministry of Home Affairs’ Wage Department Doan Cuong, while advocating wage separation, voiced concerns over how state employees’ wage be calculated to ensure fairness.

Cuong said state employees also wanted their wage to be set based on market rules.
“If state sector wage is no set based on market rules, the ‘brain drain’ may happen more aggressively and talents would shift to work for private enterprises or foreign entities,” Cuong argued.

In this respect, former member of prime minister’s research department Vu Quoc Tuan said while separating wages of the administrative non-productive sector from the minimum wage law Singapore and other countries have developed minimum and maximum wage schemes to ensure state employees have decent incomes with certain accumulations depending on their specific jobs.

The employees, however, when working in the state sector should not require equal wage levels like those applied to the corporate sector since businesses pay wage based on target profits whereas the state sector was not a service sector, according to Tuan.

Source: VIR


Achilles heel in tourism

Vietnam’s tourism industry has made only meager strides in diversifying its products despite years of growth.

The most addictive dish on Ha Giang plateau

Ha Giang attracts tourists not only for its majestic natural landscape and honest ethnic people but also for its bold, regional specialties that cannot be found anywhere else.

Liquidity needs to be ensured: Central bank

The Governor of the State Bank of Vietnam (SBV) sent important messages about monetary policies at a meeting with businesses held by SBV and HCM City People’s Committee late last week.

Firms hesitate to access loans due to weak consumption demand

The State Bank of Vietnam last week cut its policy rates for the third time this year to prop up economic growth.

Banks experience significant increases in non-performing loans

Given the challenging economic environment, the performance of numerous banks is rather bleak, particularly due to the mounting bad debt levels.


Work on Cat Bi Airport’s Terminal T2 to start in Q4

Vietnam should consider announcing the end of COVID-19: NA deputy

At the ongoing fifth session of the 15th National Assembly (NA) held on May 29, Nguyen Lan Hieu of the NA Delegation of Binh Dinh province suggested that the end of COVID-19 should be announced.

Cut on automobile registration fees to facilitate auto industry

The Ministry of Industry and Trade supporting the reduction of automobile registration fees is considered a positive effect to the auto industry in the context of the automobile market facing many difficulties.


Vietnam leaves good impressions at multi-ethnic festival in Czech Republic

Vietnam to build center for search and rescue in Spratly Islands

Deputy Prime Minister Tran Luu Quang has approved a project to improve the capacity of incident and natural disaster response and search and rescue to 2030, with a vision to 2045.

Male model finishes as third runner-up at World Fitness Supermodel

Ngo Hoang Linh, the Vietnamese representative at World Fitness Supermodel 2023, was awarded the third runner-up title during the male pageant’s grand final held on May 27 in Thailand.

Old Vietnamese publications in romanised script on display in Paris

An exhibition showcasing old Vietnamese publications in Chu Quoc ngu (romanised Vietnamese script) is underway in Paris, France.

HCMC police raze black-credit companies with illicit profits of over US$176mln

The Ho Chi Minh City Department of Public Security yesterday prosecuted nine people for usury in civil transactions.

Entertainment and cultural events of the week (May 29-June 4/2023)

Upcoming entertainment and cultural events in Vietnam's major cities on May 29-June 4.

More cooperation needed to develop rare earth industry in Vietnam

The applications for rare-earth element products have developed strongly in recent decades, especially in the field of agriculture in which they are used to create clean, safe, and effective agricultural products.