AusCham has received the following from the VBF, today, 28 August 2015 and now shares with our members.
Dear VBF Board Members,
As you might be aware, the National Wages Council met on Tuesday this week in Hanoi to determine the regional minimum wages in 2016.
However, the meeting failed to reach an agreement between the Vietnam Chamber of Commerce and Industry (“VCCI”) representing local employers and the Vietnam General Confederation of Labor (“VGCL”) representing employees.
VGCL proposed an increase of regional minimum wages up to 16.8%, while VCCI targets a smaller rate of around 9-10%. (Please click HERE to see VCCI President’s statement regarding this issue – kindly note that the statement is only available in Vietnamese).
The final meeting between the National Wages Council, VCCI and VGCL is being scheduled for September 3 to agree on the percentage increase. We understand that if the two sides still have conflicting ideas, the Council’s Chairman will make the final decision and submit it to the Government for approval.
If the 16.8% increase is approved, the regional minimum wages for 2016 will increase by US$15.5-22.2 per month. This will definitely have a very negative impact on businesses’ competitiveness and performance.
To voice our concerns in this regards, VBF Investment and Trade WG and HR Sub-WG have helped draft an opinion letter addressed to the Prime Minister for his consideration. The draft letter, (click to download – Letter to PM – Minimum Wage Increase – ENG – Clean -v2 ) is for your review and endorsement by 11AM, Monday next week, August 31, 2015. If we have not heard from you by the deadline, we assume that you have no objection of sending the letter and we will get it dispatched immediately to the Office of the Government.
Furthermore, it is suggested that VBF Chambers/Business Associations should use other channels to voice their opinion. This is to strengthen our voice so that it can be well heard by the Government. We believe our joint efforts will have positive impact on the decision making process of the regional minimum wages in 2016.
Thank you very much for your attention and we look forward to hearing from you in advance.
With our best regards,
Vietnam Business Forum (“VBF”) Secretariat
T: (844) 3715 2223 F: (844) 3715 2218
Add: G/F, Sofitel Plaza Hanoi, No. 1 Thanh Nien Road, Ba Dinh Dist., Hanoi, Vietnam