ASEAN KEY DESTINATIONS
Proposed wage increase troubles electronic firms
The government has proposed raising wages by 21 percent.
The industry claims it is already paying more than the minimum wage and faces a labor shortage. Thus, workers are often paid a higher wage.
For some product categories such as sub-assembly parts, employment and labour costs are already a high percentage of companies' total expenditure.
The industry has stepped up its demands for the government to allow the use of foreign workers as local workers are not available in sufficient numbers, the executive said.
Currently, wages in Thailand are slightly higher than in China and much higher than in Vietnam. Employers have also said that Vietnamese workers have better English skills and have shown an ability to improve quickly in terms of manufacturing efficiency.
These factors were making Vietnam increasingly attractive in the eyes of electronics companies.
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