Want to be in the loop?
subscribe to
our notification
Business News
MINIMUM WAGE INCREASE PROPOSALS STILL MIXED
No consensus
To set the minimum wage increase of 12.4 percent in 2016, the National Wages Council had to call three meetings and recorded 90 percent of ayes. But, on October 5, the Vietnam General Confederation of Labour sent the Official Letter No. 1567/TLD to the Prime Minister, asking for the revision of the rate to at least 14.4 percent in 2016, the same amount as in 2015.
Earlier, business associations asked the Prime Minister to adjust the minimum wage rise in 2016 to 6-7 percent. The Vietnam Textile and Apparel Association (Vitas) disagreed with the 12.4 percent hike because they claimed such increase was too high and this would engender enormous challenges for garment and textile businesses, particularly when they have to pay for employee insurances (social insurance, unemployment insurance, union dues and other costs, etc.)
based on total incomes rather than the minimum wage as now. Vitas did not reveal its suggested hike.
Arguments by the Vietnam General Confederation of Labour are quite familiar. In its official letter submitted to the Prime Minister, it pointed out four reasons for the proposed 14.4 percent: Seriously implementing the Labour Code and the roadmap that the minimum wage is a living wage for workers in 2017 and preparing for the implementation of Article 89 of the Social Insurance Law in 2018; 19.9 percent of workers live in poverty with their wages; 72 percent of workers have to spend very frugally and thriftily to afford their life; and only 8 percent of workers have accumulative savings.
While some argued that the labour productivity was low and the hike should be made accordingly, the Vietnam General Confederation of Labour rejected it, explaining that labour productivity depended on a variety of factors, with the most important factors being technological level and business administration.
The Vietnam General Confederation of Labour said that wages should be increased at the right time. It suggested the salary hike announcement should be made when the 9th National Emulation Congress, just before the opening of the 12th Party Congress because this event honoured workers with outstanding productivity and working innovation.
The representative of the labour force also said that the economy prospered in the first nine months 2015, with GDP expanding 6.5 percent. In 2016, the economy is forecast to outperform that in 2015, with GDP climbing 6.8 percent.
Impartiality, transparency needed
After many votes for the proposed hike, the National Wages Council has failed to please all stakeholders. To avoid useless meetings, many specialists suggested the Vietnam General Confederation of Labour and the Vietnam Chamber of Commerce and Industry (VCCI) - the representative of employers - sit down to seek a consensus. If VCCI is an official representative of employers, business associations and businesses must share the viewpoint with VCCI.
Likewise, trade unions, professional unions and other stakeholders must agree with the Vietnam General Confederation of Labour on a common value. Once the National Wages Council has agreed, all must respect its result and deem it as final and unarguable.
For its part, the Government will check the results proposed by both sides by looking at minimum livelihood, living salary, labour productivity among other things.
Source: VCCI
Related News
PHONE AND COMPONENT EXPORTS HIT $18.4 BILLION IN FIRST FOUR MONTHS
In terms of markets, the United States has become Vietnam's largest customer instead of China (in the first quarter of last year). Specifically, in the first quarter of this year, the US spent more than $3.05 billion importing all types of phones and components from Vietnam, an increase of 30.4 per cent on-year. The Chinese market ranked second with more than $2.5 billion, down 28 per cent on-year.
BA RIA-VUNG TAU PROVINCE RANKS FIRST IN FOREIGN INVESTMENT CAPITAL
Statistics published by the Foreign Investment Agency under the Ministry of Planning and Investment showed that between January and April, Ba Ria-Vung Tau lured $1.52 billion in overseas funding, equalling 16.4 per cent of the total foreign investment in the whole country.
INFOGRAPHIC SOCIAL-ECONOMIC SITUATION IN THE APRIL AND FOUR MONTHS OF 2024
The monthly statistical data presents current economic and social statistics on a variety of subjects illustrating crucial economic trends and developments, including production of agriculture, forestry and fishery, business registration situation, investment, government revenues and expenditures, trade, prices, transport and tourism and so on.
KEY DRIVER GAINS A MUST FOR GROWTH
Only slight order number improvements and enterprise confidence sentiment mean it may be difficult for the country to hit its desired growth goals this year.According to the World Bank’s biannual economic update report released last week, it is expected that the Vietnamese economy may grow by 5.5 per cent this year and 6 per cent next year, making it among top growth leaders in the world.
ADDED VALUE OF INDUSTRIAL SECTOR UP 6.18 PER CENT IN Q1
Vietnam’s industrial sector posted significant growth in the first quarter of 2024, of an estimated 6.18 per cent compared to the first quarter of 2023. In particular, manufacturing and processing saw robust growth of 6.98 per cent.
TEXTILE AND GARMENT BUSINESSES FACE DIFFICULTIES DUE TO LACK OF DOMESTIC SUPPLY
Infrastructure for weaving, dyeing and fabric production is still limited, and there is no spatial planning for development and centralised wastewater treatment, said Nguyễn Thị Tuyết Mai, Deputy General Secretary of the Việt Nam Textile and Apparel Association (Vitas).