VietNamNet Bridge – Vietnam General Confederation of Labour has put forward three proposals for minimum salary hikes for the nation's wage zones in 2016.

Vietnam General Confederation of Labour has put forward three proposals for minimum salary hikes for the nation's wage zones in 2016. Accordingly, the maximum pay hike will be VND600,000 (US$27.5) a month. — VNA/VNS Photo Vu Sinh

Accordingly, the maximum and minimum pay hike will be VND600,000 (US$27,5) and VND420,000 ($19.3) a month, respectively. In other words, the four wage zones will see a pay rise between 16 and 17.5 per cent

Zone 1 covers urban Ha Noi and HCM City; Zone 2 covers rural Ha Noi and HCM City along with urban Can Tho, Da Nang and Hai Phong cities; Zone 3 applies to provincial cities and the districts of Bac Ninh Province, Bac Giang, Hai Duong, and Vinh Phuc provinces; and Zone 4 takes care of the remaining localities.

A representative from the enterprise community, the Vietnam Chamber of Commerce and Industry chairman, Vu Tien Loc, said the proposals are impractical and unsuitable in view of the state of the country's economy at present.

"The increase in minimum wage must take into account the general benefits accruing to the entire economy as also the competitiveness and job generation capacity rather than just the salary issue," said Loc.

"The minimum wage must contribute to boosting manufacturing and trading activities, creating jobs for the society."

"Inadequate rise in minimum wage will narrow production, decrease production capacity and will be unable to generate new jobs.

"It may even make current employees become unemployed. This is a really big question.

"That will lead to a burden, and it will be a shock for the economy to deal with lack of job generation, growth and budget revenues in a matrix of fierce competition as can be currently seen. Therefore, it is essential to hike salaries in the common interest of the economy, rather than the subjective will of any party," Loc said.

VNS