HANOI: The National Wage Council of Vietnam has voted increase of minimum wage by 12.4% in the next year, according to HR in Asia. The vote came after a meeting held between the Vietnam General Confederation of Labour (VGCL), and the Vietnam Chamber of Commerce and Industry (VCCI) failed to reach an agreement after their second meeting.
With 14 out of 15 votes in support of the 12.4% increase. Workers across the country will receive a monthly increase of VND 250,000-400,000 (USD $11-17.5) next year, depending on where they live. The current minimum wage varies by location. With the highest minimum wage per month in Hanoi and Ho Chi Minh City (VND 3.1 million/ USD 137), while wages are lowest in rural areas ( VND 2.15 million/ USD 96).
VGCL had proposed an increase of 14.3%, down from their previous demand of 16.8%, citing this year’s growth in GDP, exports and FDI as justification for the increase. Mai Duc Chinh, Vice President of the VGCL, said this would amount to an extra VND 300,000-450,000 (USD 13.15-20) a month. This was reasonable as it was only slightly higher than the wage adjustment made last year he believed.
Hoang Quang Phong, Vice President of VCCI, who originally proposed a 10.7% increase, said that the 12.4% rise will place a significant strain on the country’s business sector. He noted that it will also further incentivise businesses to improve productivity.
