2025 Mar 14, 13:29
Vietnam is set to raise the minimum wage in the business sector by 6% from July 2024, following an agreement reached at a recent meeting between labor and business representatives. The Vietnam General Confederation of Labor proposed a wage increase of either 6.48% or 7.3%, citing increased orders for businesses. However, the Vietnam Chamber of Commerce and Industry suggested a lower rate of 4.5-5%, emphasizing the need for sustainable business operations. This meeting was the second in a series of discussions regarding next year's minimum wage raise, as the first meeting in August failed to reach a consensus
After negotiations, all 16 members of the National Wage Council voted in favor of a 6% rate. This means that the minimum wage will increase by VND200,000-280,000 ($8.22-11.50) per month, depending on the region, bringing it to a range of VND3.45-4.96 million monthly. Last year, the minimum wage was raised by 5.88% to VND4.68 million per month. The proposed 6% rate is currently pending government approval
According to Le Van Thanh, the chairman of the council and vice minister of labor, this rate ensures the "harmonious" benefits of both workers and businesses. The wage hike comes at a time when Vietnam has been experiencing an inflation rate of 4.27% and a CPI of 3.22% in the first 11 months of this year. Furthermore, businesses have been facing challenges due to a decline in orders, which has led to waves of layoffs since late 2022. The International Labor Organization in Vietnam has suggested that wage increases should consider inflation and economic growth
It noted that while Vietnam raised the minimum wage by 6% between 2020 and 2022, the actual income of workers only increased by 0.7% when accounting for inflation. A survey conducted by the Vietnam General Confederation of Labor in the first half of this year found that factory workers earned an average of VND7.88 million per month, while their family's expenses amounted to VND11.7 million. The survey also highlighted a 19% increase in living costs from 2022.