Low-wage workers rush to buy cheap goodsBy Thanh Thuong - The Saigon Times DailyHCMC – Low-income employees in HCMC have flocked to traditional markets or roadside sales points to buy inexpensive commodities as gifts for their relatives on the occasion of the traditional Lunar New Year, or Tet.“Workers only choose cheap products because of modest incomes. We cannot sell anything higher than the price,” said a vendor.The Hanh Thong Tay Market in Go Vap District has been crowded with female workers over the past days due to low-priced garments. The market stays open until after 9:00 p.m. every night.Meanwhile, the confectionary market for workers is rather quiet this year. “Packaged cookies and jams were favorite products of workers last year but do not sell well now,” said Hoai, a vendor at Hoang Hoa Tham Market in Tan Binh District.Many food hygiene and safety violations have been uncovered that have deeply hurt consumer confidence, especially workers who … [Read more...] about Low-wage workers rush to buy cheap goods
Wage workers
Vietnam’s minimum wage non-coowest among Asian apparel exporting countries
The rate indicates that for every 100 wage employees in the sectors, 6.6% earn less than the minimum wage set to protect wage earners from unduly low pay, the report says. It is far better than 25.6% for Cambodia as the second lowest country in the list and almost nine times lower than the highest of 53.3% for the Philippines.While minimum wage compliance is weak throughout Asia’s garment industries, the depth of non-compliance varies among countries. But Vietnam stands out in this dimension.The rate of extreme non-compliance which means wage workers are paid less than four-fifths of the minimum wage in the country is 3.8% and moderate non-compliance (workers paid between 80% and less than 100% of the minimum wage) at 2.8%.On the contrary, the Philippines, India, Thailand, Pakistan, and Indonesia each has a large proportion of garment sector workers who are paid far below the minimum wage. The extreme non-compliance rate in the Philippines and India is 38.8% and 34.9% … [Read more...] about Vietnam’s minimum wage non-coowest among Asian apparel exporting countries
Wage workers represent one-third of Vietnam’s total employment
Vietnam’s wage setting policies and institutions need to continue to adapt to meet the demands of its changing labour market and ensure that deeper integration into the regional and global economy benefits workers, enterprises and the Vietnamese economy broadly. This was a key message at the national conference on “Vietnam wage policy in the context of a market economy and economic integration” organized in Hanoi on 25-26 November. Co-hosted by the Ministry of Labour, Invalids and Social Affairs (MoLISA) and the International Labour Organization (ILO), the event emphasized the necessity of a good balance between promoting enterprise development and providing workers with a fair share of enterprise productivity gains. “Vietnam has been conducting a strong reform to improve its mechanisms and policies, including those that cover wage issues, to meet the demands of the market economy and deeper integration into the regional and global … [Read more...] about Wage workers represent one-third of Vietnam’s total employment
ILO report: Most Vietnamese wage earners are young
Illustrative image Young and dynamic women and men make up the biggest group among Vietnam’s wage workers, who are willing to migrate within the country to find work, according to a latest brief report issued by the International Labour Organisation (ILO). The report said wage workers are those who hold an employment contract and often have better working conditions and socio-economic status. Of all the wage workers in Vietnam, around 47 percent are young, between 15 and 24 of age. Approximately 38 percent of wage workers have migrated internally with the rate of women working outside their home province accounts for 48 percent, while that of men is 32 percent.In terms of marital status, seven in ten wage workers are married. The situation shows the importance of family-friendly policies including parental leaves and flexible working arrangements to attract and retain the pool of talents, the report said. ILO estimated that wage employees in Vietnam will total 25 million, or 44 … [Read more...] about ILO report: Most Vietnamese wage earners are young
86% of textile workers at risk from automation
“Estimates indicate that a significant share of the TCF sector’s wage workers are at high risk from automation, ranging from 64% in Indonesia and 86% in Vietnam to 88% in Cambodia,” the report noted.TCF is not only the vulnerable sector but it faces the highest risk compared to other manufacturing sectors.“The TCF sector predominantly consists of repetitive and mundane jobs that are replaceable by programmed machinery and engineering advancements,” the report stated.It explained that when technology is introduced and workers become redundant in ASEAN’s TCF factories they are absorbed and retrained in other departments because technology upgrades in ASEAN have thus far been incremental and small-scale and re-skilling and redeploying workers has been a common practice.“When technologies such as additive printing, the IoT, big data analytics and automation (sewbots) improve and become integrated with one another, ASEAN’s TCF sector will look … [Read more...] about 86% of textile workers at risk from automation
Minimum Wage Setting to Give Employers and Workers a Voice
Vietnam’s National Wage Council was launched August 6, marking a transformation from a solely Government-led minimum wage fixing mechanism into a new tripartite body which recognizes the importance of worker and employer participation. The Council includes 15 members and is equally represented by the Ministry of Labour, Invalids and Social Affairs (MoLISA), workers’ and employers’ organizations. They meet regularly and can gather for urgent cases upon decision by the Council’s chairman, who is now MoLISA Vice Minister Pham Minh Huan. According to Mr Pham Minh Huan, the Council, as a consultancy body for the Government in setting regional minimum wages, will replace the previous indirect and separate consultation between the Government and different parties in industrial relations with direct consultation within the Council in order to share the information and improve consensus in a proposal for regional minimum wage adjustment. Addressing the … [Read more...] about Minimum Wage Setting to Give Employers and Workers a Voice
Labour Code backs wage increase
(VNS)Wages will rise under a revised Labour Code. Bui Sy Loi, vice-chairman of the National Assembly Committee on Social Affairs, told Thoi bao Kinh te Viet Nam (Vietnam Economics Times) how living standards will improve. The revised Labour Code will take effect next May, but what are your thoughts on the existing minimum wage? I have to say with the existing minimum wage, a worker can only afford to cover 60 per cent of their daily expenses. Despite the meagre wage, workers still have to pay part of their income to cover social insurance. If such a system continues, sooner or later our social security system will go bankrupt. That's why it is high time for us to raise the miminum wage and to dispel the myth that anything above the "nominative" salary is a "bonus". Under the revised Labour Code, the minimum wage earner will be able to cover the daily living requirements of themselves and their family members. The minimum wage will be decided by a three party panel comprised of the … [Read more...] about Labour Code backs wage increase
New tax laws provide a helping hand for low income wage earners
As of July 1, a new law saw almost 85 per cent of workers become exempt from paying income tax, Dinh Van Nha, vice chair of the NA's Financial and Budgetary Committee, told Thoi bao Kinh te Viet Nam (VN Economic Review).How do you think the law will impact on people in general?Under the law, only 15 per cent of wage earners now have to pay personal income tax (PIT). Even so, this group still benefits from this law, as the sum deducted for their dependents has been increased to VND 3.6 million (US$171) from VND 1.6 million ($76).As from July 1, any individual with one dependent who earns VND 10 million ($475) a month will be exempt from paying PIT. If that individual earns VND 15 million and has one dependent, he has to pay VND 120,000 or $6 a month. In other words, the deduction for dependents in the new law has increased 2.25 times. This demonstrates the Government's willingness to share the current economic difficulties with the people.According to figures released by the Ministry of … [Read more...] about New tax laws provide a helping hand for low income wage earners
Financial, banking workers command highest salaries
A client conducts a banking transaction at Maritime Bank. Workers in the finance, banking and insurance sectors receive the highest salaries in the country, the ministry said. — VNA/VNS Photo Tran Viet HA NOI — Workers in the finance, banking and insurance receive the highest average salaries in the country, according to the latest survey by the Ministry of Labour, Invalids and Social Affairs. Employees of these industries receive VND4.9 million (US$230) per month, whereas workers from agricultural and forestry sectors receive VND3.5 million ($160) per month, the lowest average salary according to the study. Carried out in July of last year, the ministry's survey included 1,660 enterprises with at least 10 workers in 17 central cities and provinces across the … [Read more...] about Financial, banking workers command highest salaries
Civil servant wages should reflect job title, performance
A proposal has been made to raise the monthly minimum wage for State employees from the current $40. The newspaper Thoi bao Tai chinh Viet Nam (Viet Nam Financial Times) spoke to experts about the issue. Dr Thang Van Phuc, former Deputy Minister of Home Affairs Salary policy needs to be adjusted as the current salary of civil servants does not properly reflect their labour value. It is crucial to re-design payroll, minimum wage levels and allowances because they are insufficient and result in low efficiency of civil servants and workers. This in turn complicates the evaluation process. As a key part of administrative reform, salary policy must be adjusted so that payment is suited to work performance, acting as a kind of investment in human resource development. Dr Nguyen Huu Dung, former director of Institute of Labour Science and Social Affairs Salary reform for State officers and employees during 2013-20 needs to avoid the vicious cycle of previous ones, where people could not … [Read more...] about Civil servant wages should reflect job title, performance