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VCCI: Proposed minimum wage hike is too high
🇻🇳 Vietnam /Economy & Trade

VCCI: Proposed minimum wage hike is too high

From Thanh Niên · () Vietnamese

Translated from Vietnamese, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • The Vietnam Chamber of Commerce and Industry (VCCI) deems the proposed minimum wage increase of 8-9% too high.
  • VCCI will negotiate with the National Wage Council to find a suitable adjustment for the 2027 regional minimum wage.
  • The organization advocates for wage increases tied to productivity and considers business capacity when setting rates.

The Vietnam Chamber of Commerce and Industry (VCCI) considers the proposed minimum wage increase of 8.5-9.8% by the Labor Confederation to be excessively high. The business sector plans to engage with the National Wage Council to negotiate a suitable adjustment for the 2027 regional minimum wage, aiming for a balanced approach.

We will make a proposal, but at a suitable level that businesses can endure. If the increase is too high, as proposed by the Labor Confederation, it will create significant difficulties for businesses.

— Hoang Quang PhongExplaining VCCI's stance on the proposed minimum wage increase.

Hoang Quang Phong, Vice Chairman of VCCI, stated that the organization will participate in discussions with the National Wage Council to find a solution that improves workers' lives while ensuring business competitiveness and sustainability. VCCI recently held discussions on economic growth targets and the role of businesses, including topics like wage increases, employee retention, and job creation. Phong emphasized that wage adjustments must consider businesses' resilience and payment capabilities.

"We will make a proposal, but at a suitable level that businesses can endure. If the increase is too high, as proposed by the Labor Confederation, it will create significant difficulties for businesses," Phong said. He added that improving workers' income should not solely rely on minimum wage hikes but should be linked to bonuses, other remuneration, and especially labor productivity. "When labor productivity increases, businesses will have the conditions to pay workers better," Phong stressed.

When labor productivity increases, businesses will have the conditions to pay workers better.

— Hoang Quang PhongHighlighting the link between productivity and wages.

VCCI proposes an increase of around 5%. Phong noted that when developing the minimum wage adjustment plan, VCCI will consider factors such as business competitiveness, order situations, the labor market, employment conditions, and geopolitical factors affecting production and business. Regarding the timing of the wage increase, VCCI suggests it should take effect from July 1, 2027. The views of all parties, including workers, will be comprehensively considered by the National Wage Council before a decision is made.

We will have proposals, but at a suitable level that businesses can endure.

— Hoang Quang PhongReiterating VCCI's position on the wage adjustment.
DistantNews Editorial

Originally published by Thanh Niên in Vietnamese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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