Want to be in the loop?
subscribe to
our notification
Business News
MINIMUM WAGE TO INCREASE 5.3%
An increase in the minimum wage moved a step closer yesterday after the National Wage Council agreed to increase basic salaries. The committee confirmed they will look at a rise of more than 5 per cent compared to last year.
The raise is equal to an increase of VNĐ160,000-200,000 (US$6.8-8.6) each month per labourer.
It is believed to be the lowest increase of the regional minimum wage so far.
The increase will be submitted to the Government for final approval.
The increase of the regional minimum wage was 7.3 per cent in 2017, equal to an increase of VNĐ180,000-250,000($7.7-10.7) and 6.5 per cent in 2018, equal to an increase of VNĐ180,000-230,000 ($7.7-9.9).
The decision was made after the third meeting of the council held in northern Hải Phòng City yesterday and chaired by Deputy Minister of Labour, Invalids and Social Affairs cum President of the National Wage Council Doãn Mậu Diệp.
Representatives from the Việt Nam Chamber of Commerce and Industry (VCCI), on behalf of employers and the Việt Nam General Confederation of Labour (VGCL), on behalf of employees, were also at the meeting.
They decided the monthly minimum wage for four different regions in Việt Nam to be Region I: VNĐ4.18 million (US$180); Region II: VNĐ3.71 million ($160); Region III: VNĐ3.25 million ($140) and Region IV:VNĐ 2.92 million ($126).
Region I covers urban Hà Nội and HCM City, II covers rural Hà Nội and HCM City along with urban Cần Thơ, Đà Nẵng and Hải Phòng cities, III applies to provincial cities and the districts of Bắc Ninh, Bắc Giang, Hải Dương and Vĩnh Phúc provinces and Regional IV takes care of the remaining localities.
Diệp said the increase was selected at 5.3 per cent after many discussions and was thought to be reasonable.
“It is the level that could cover a price slippage of 4 per cent each year and still ensure a small actual pay rise for labourers,” he said.
Additionally, the level was also affordable for employers to pay, he added.
Mai Đức Chính, vice president of VGCL, also said the increase was acceptable.
Chính said the 2018 regional minimum wage actually met about 92-94 per cent of the minimum living standards.
However, if fully calculated, it was necessary to increase the regional minimum wage by 7 per cent each year to both offset inflation and ensure a steady actual pay rise for the labourers, he said.
The increase for 2019 was only 5.3 per cent, it meant the pressure of adjusting the regional minimum wage for 2020 would not be small, he said.
Source: VNS
Related News
VIETNAM’S GDP TO GROW 5.5% THIS YEAR – WB
This forecast is based on the assumption of a moderate recovery in manufacturing exports in 2024, fueled by rebound growth of 8.5% year-on-year in the fourth quarter of 2023 and 17.2% year-on-year in the first quarter of 2024, reflecting strengthening global demand, said Dorsati Madani, senior country economist at the WB in Vietnam.
FARE REFUND FOR VISA REJECTION
Cathay Pacific will offer full refunds for cases of visa rejection to provide you with the confidence to explore the world with ease. If you are planning to fly to a destination that requires an entry visa, you can now book with greater peace of mind.
FOUR COMMODITIES POST Q1 EXPORT VALUE OF OVER 5 BILLION USD
The total export turnover of agricultural, forestry, and fisheries products in the first three months of 2024 is estimated to reach 13.53 billion USD, an increase of 21.8% compared to the same period of 2023.
MOIT PROPOSES SCHEME TO BOOST RENEWABLE ENERGY PROCUREMENT
The proposed Direct Power Purchase Agreement (DDPA) mechanism, outlined in the draft decree, targets organisations and individuals consuming electricity from the 22kV power grid or higher, with a monthly consumption averaging 500,000kWh. However, residential households are excluded from direct procurement.
REAL ESTATE BONDS PLACE PRESSURE ON ISSUING FIRMS
The ministry’s recent report underscores concerns within Vietnam’s corporate bond market for 2023 and 2024. It emphasizes the critical need to address hindrances to the real estate sector in line with the objectives provided in Government Resolution No. 33/NQ-CP, which aims to stabilize the industry.
DA NANG CUSTOMS FOCUSES ON DEVELOPING CUSTOMS-BUSINESS PARTNERSHIPS
Da Nang Customs Department issued an action plan for developing customs-business partnership in 2024. One of the new events this year is the workshop on “Settlement reports for enterprises engaged in outsourcing, export production and export processing” held in Da Nang Customs Department on April 16, 2024.