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Minimum wage in Vietnam may increase by 6.5% in 2018
Aug '17
Vietnam’s National Wage Council has announced that the regional minimum wage may rise by 6.5 per cent in 2018 to VND180,000-230,000 ($8-10) a month following a consensus reached between employer and labour representatives. The rate will be submitted to the government for approval. Minimum wage in the nation is determined regionally and on a per month basis.

Vietnam increases the regional minimum wage every year to meet the minimum standard of living for domestic labourers. It ranks its four regions according to their socio-economic development.

The urban parts of Hanoi and Ho Chi Minh City come under Region I, while Region II covers rural areas of these two cities along with the urban zones of Can Tho City, Da Nang City and Hai Phong City. Region III consists of provincial cities and the districts in the provinces of Bac Ninh, Bac Giang, Hai Duong and Vinh Phuc. The rest of the areas come under Region IV.

The 2018 regional minimum wage will increase from the current VND 3.75 million ($165) to VND 3.98 million ($175) for Region I, from VND3.32 million ($146) to VND 3.53 million ($155) for Region II, from VND 2.9 million ($127) to VND 3.09 million ($136) for Region III and VND2.58 million ($113) to VND2.76 million ($121) for the Region IV, according to a news agency report.

The unsatisfied Vietnam General Confederation of Labour (VGCL) feels this rate will fail to achieve the minimum standard of living by 2020 as envisaged by the government. The Vietnam Chamber of Commerce and Industry (VCCI), which represents employers’ interests, also criticised the proposed increase, saying the rate could go beyond companies’ ability to pay and affect their growth.

Initially, the VGCL had proposed an increase of 13.3 per cent and the VCCI had proposed no increase. (DS)

Fibre2Fashion News Desk – India

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