Want to be in the loop?
subscribe to
our notification
Business News
MINIMUM REGIONAL WAGE HIKE FOR 2020 SET AT 5.5%
The National Wage Council today, July 11, finalized a 5.5% minimum regional wage hike for 2020, following two meetings to discuss the matter.
Specifically, the minimum wage in Region 1 comprising more developed localities rose by VND240,000 to VND4.42 million per month, while that in Region 2 was hiked by VND210,000. The lowest wages in Regions 3 and 4 picked up by VND180,000 and VND150,000, respectively, according to Nguoi Lao Dong newspaper.
Doan Mau Diep, deputy minister of Labor, Invalids and Social Affairs and chairman of the National Wage Council, noted that the increase was established after the council considered the proposals of 6.7% by the Vietnam General Confederation of Labor and 4% by the Vietnam Chamber of Commerce and Industry (VCCI).
Le Dinh Quang, deputy head of the Labor Relations Department, under the Vietnam General Confederation of Labor, explained that the minimum regional wage hike will put pressure on employers but encourage laborers to contribute to enterprises’ development.
The hike of 5.5% is expected to meet laborers’ basic needs, Quang added.
At the first meeting to discuss the minimum regional wage hike for 2020, the Vietnam General Confederation of Labor proposed three solutions, with a minimum wage hike of 6.52%-8.18% for next year. Meanwhile, VCCI representing employers suggested a rate of less than 3%.
VCCI Vice Chairman Hoang Quang Phong stated that even though the Government had earlier finalized a 5.3% minimum regional wage hike for 2019, 72.5% of enterprises have applied a hike of over 6%.
Therefore, the minimum regional wages cannot be increased to levels as high as those proposed by the confederation as they are beyond the capacity of most enterprises.
Prior to the second meeting of the National Wage Council, Pham Minh Huan, former deputy minister of Labor, Invalids and Social Affairs, told Thanh Nien Online newspaper that laborers expected higher wages but employers, especially owners of small enterprises and firms that need many employees, raised concerns over the possibility of an increase in extra working time being approved by the National Assembly amid unchanged labor productivity and stronger competition among enterprises.
Source: The Saigon Times
Related News
DIGITAL TRANSFORMATION IN LOGISTICS – A KEY TO UNLOCKING SUSTAINABLE E-COMMERCE AND ECONOMIC DEVELOPMENT
Accelerating digital transformation in logistics is critical in order to promote the sustainable development of e-commerce, a conference on applying technology held by the Ministry of Industry and Trade heard on Thursday, as well as accelerating overall economic growth.
SOILBUILD EXTENDS ITS HORIZONS INTO VIETNAM INDUSTRIAL REAL ESTATE
Soilbuild Group, an integrated real estate group, has broadened its investment in industrial real estate to Vietnam through its Soilbuild International division. The official launch of Soilbuild International (Vietnam) took place in Hanoi on May 9th, 2024, and was attended by esteemed guests, including domestic and international partners.
SEMINAR: BUSINESS SPOTLIGHT - THE HONG KONG-INSPIRED PRESENCE NESTLED IN THE HEART OF HANOI'S EAST
16h00 - 18h00, Wednesday (May 22nd, 2024)Almaz Convention Center - Hanoi (GG map: https://maps.app.goo.gl/YtWyGgkiTwWvFnfX6)
VIETNAM SECURES REMARKABLE ECONOMIC SUCCESSES SINCE NATIONAL REUNIFICATION
Since the national reunification on April 30, 1975, Vietnam has obtained admirable economic achievements and is now on its way to become the 20th largest economy in the world. Back to 1975, Vietnam, torn by two major wars, was a backward economy dependent on agriculture and foreign assistance. Foreign loans and aid accounted for over 63 percent of its budget.
350 EXHIBITORS TO TAKE PART IN HCM CITY PAPER, COATINGS, RUBBER, PLASTIC EXPOS
They will have a total display area of 10,000sq.m, 30 per cent more than last year, and the participation of over 350 local and international exhibitors who will showcase thousands of products and technologies.
INT’L INVESTORS EYE VIETNAM’S DATA CENTER MARKET – REPORT
Vietnam’s data center market is increasingly attractive to foreign investors, driven by the country’s expanding digital economy, rising data consumption, and supportive government policies, said a new report by JLL. While Vietnam’s data center sector has traditionally been dominated by local telecommunications companies, global players are now entering the market.