VIETNAM'S MINIMUM WAGES TO INCREASE BY 6.5 PER CENT IN 2018
The minimum wage will be officially increased from January 1, 2018 by an extra VND180,000-230,000 ($8.07-10.13), depending on the region. The government has issued Decree No.141/2017/ND-CP, amending regional minimum wages for workers employed under a labour contract. Accordingly, the increase stands at an average of 6.5 per cent (See chart below).
GARMENT AND TEXTILE ENTERPRISES’ QUALMS OVER NEW WAGE AND SOCIAL INSURANCE POLICIES
The minimum wage increase, coupled with the increase for social insurance and union fees, is putting financial burdens on enterprises operating in labour-intensive sectors, such as the garment and textile sector.
MINIMUM WAGE HIKES SEEN SENDING PRODUCTION COSTS SOARING
The forthcoming spikes in the region-based minimum wages are expected to improve workers' incomes but production costs in labor-intensive industries will certainly pick up.
MINIMUM WAGE INCREASE INEFFECTIVE IN RAISING LIVING STANDARDS
Increasing the regional minimum wage has raised concerns over a potential trade-off with social allowances that would block the new wages from increasing employees' real income.
REGIONAL MINIMUM WAGE TO SURGE 6.5% IN 2018
The regional minimum wage will increase by 6.5% in 2018, representing the lowest rise, according to the National Wage Council. The Council convened the third meeting on August 7 in Ha Noi to make the final decision on the proposal on salary hike in 2018 before submitting it to the PM.
IT FIRMS ANXIOUS ABOUT LOSING WORKERS
The Ministry of Information and Communication (MIC) estimates that Vietnam would need 600,000 workers in the IT industry by 2020, but training establishments can provide only 400,000.
MINIMUM WAGE INCREASES CONTINUE TO FALL FAR SHORT
Viet Nam has posted the highest regional increase in minimum wages over the last three years, more than Indonesia and China, but workers still struggle to make ends meet.
COMPULSORY SOCIAL INSURANCE REQUIRED OF FOREIGN WORKERS IN VIỆT NAM STARTING FROM 2018
Social insurance authorities in Việt Nam are developing a compulsory social insurance scheme for foreign workers in the country, citing the need to follow international practices as the country deepens integration.
