After four hours of heated discussions, representatives of the Vietnam National Wage Council yesterday voted to raise the country's regional minimum wage by 5.5% in 2020.Accordingly, minimum wage for workers in Region I, which covers Hanoi and Ho Chi Minh City, is set to rise to VND4.42 million (US$190.5) while workers in Region II – covering rural Hanoi and Ho Chi Minh City, along with major cities like Can Tho, Da Nang, and Hai Phong, will earn VND3.92 million (US$168.56).
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Chairman of the Vietnam National Wage Council Doan Mau Diep said the current minimum wage has met 95% of the labor force’s minimum living standards so the raise would make their lives a bit more comfortable.
Diep noted that before discussing, the Vietnam General Confederation of Labor - Vietnam’s only trade union - proposed a 6.7% increase while the Vietnam Chamber of Commerce and Industry Industry (VCCI) - representing the employers - put forth 4%. Although there was a difference in the minimum wage proposals, but through the discussions, they reached the acceptable raise of 5.5%.
According to the Technical Department under the Vietnam National Wage Council, a rise of 5.5% would ensure minimum living standards of workers, so the agreed increase of 5.5% not only meets the expectation but exceeds it by 0.3 %.
The Vietnamese government also sets the goal that by 2020, the country’s regional minimum wage will ensure the minimum living standard of workers and their families.
In comparison with regional countries, labor wage in Vietnam remains low and part of foreign capital inflows come to the country for low labor cost. Meanwhile, a large number of Vietnamese laborers have cried for low income, saying that the rate is somehow able to cover fundamental expenses only.
