Sign up | Log in



Home  >>   Daily News  >>   Vietnam News  >>   Labor  >>   Vietnam to raise minimum wage
NEWS UPDATES Asean Affairs                       25  August 2011

Vietnam to raise minimum wage

Related Stories

August 16,2011
Vietnam discouraging unskilled labor

July 7, 2011
Skilled labor an issue in Vietnam

June 27, 2011
Vietnam provides Laos with financial training

June 6,2011

Severe labor shortage in Vietnam

February 10, 2011
Vietnamese firms have labor shortage

January  25, 2011
Unemployment to remain high

August  23, 2010
Philippine employment outlook high

Vietnam will increase minimum wages by up to almost half in its major cities from October 1 in a bid to help workers cope with one of the world’s highest levels of inflation.

In a statement late Monday the government said businesses in Hanoi and the southern economic hub of Ho Chi Minh City will have to pay at least 2 million dong a month (US$95).

The rate will, for the first time, apply to both foreign-owned and Vietnamese firms, it said, boosting the basic wage by 29 percent at overseas companies and 48 percent at domestic firms.

Pay levels outside the major cities will be lower, although they are also to rise substantially.

But there are doubts about whether the higher wages will be enough to help workers cope with inflation that accelerated in July for the 11th straight month.

The consumer price index rose 22 percent last month compared with July 2010, according to official estimates in the communist country.

The state-controlled Vietnam General Confederation of Labour found that workers in Hanoi and Ho Chi Minh City were already earning between 1.8 million and 2.5 million dong per month but this was ‘quite low’ in relation to soaring prices, the official Vietnam News Agency reported last month.

The labour union has also said the number of strikes was soaring along with prices. At the same time, businesses say wage increases will compound the challenges they face in a troubled economy.

VNA quoted Dang Phuong Dung, vice-chairwoman of the Vietnam Textile and Apparel Association, which represents a key sector of the economy, as saying higher wages would be a burden on firms already struggling with rising input costs.

Dung said unemployment will increase as a result.

Wage pressures will add to high import taxes and other factors making foreign investors have second thoughts about Vietnam, said an Asian diplomat who declined to be named.

‘The top 10 investors in Vietnam are all thinking twice,’ he said recently.

Long focused on growth, the government this year shifted towards economic stabilisation of numerous imbalances that include a large trade deficit, high current account and budget deficits, and inefficient state spending as well as inflation.

The government aims to keep inflation at about 15 percent this year.


Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    25  August  2011 Subsribe Now !
• Cambodian drug law advances Subcribe: Asean Affairs Global Magazine
• Indonesia should receive more capital Asean Affairs Premium
• Maybank concerned about Indo bank ruling
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Suu Kyi sees hope of “real change”
• Flexi work policy for Singapore
• Google opens in Thailand
• Thai central bank raises interest rate

• Vietnam to raise minimum wage

Asean Analysis    25  August  2011

Advertise Your Brand
• Some Asians escape poverty Sponsor Our Events

Asean Stock Watch   25  August  2011

• Asean Stock Watch-August 25 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand