New regional minimum wage increase to compensate for inflation

The increase in regional minimum wages will be implemented from July 1, 2024, at the same time as the reform of public sector wages.

Ms. Cu Thi Thoi, from Son La, who is working at Bac Thang Long Industrial Park, Hanoi, said: "This year the economy is difficult, workers are not allowed to work overtime, and even have to take turns off. By the end of this year, the situation will be better, with a monthly income of about 8-9 million VND. With this amount of money, it is only enough for us to pay for accommodation, food, and personal items. Therefore, the increase in regional minimum wage is good news for us, but what we workers fear most is that the increase in wages will lead to an increase in prices."

Mr. Nguyen Van Thuan also said: "Increasing the regional minimum wage, low-income workers like us will have an additional income, which means both husband and wife will increase by about 500,000 VND, helping to improve our living standards."

Mr. Nguyen Dinh Thang, Chairman of the Hanoi Industrial Park - Export Processing Zone Trade Union, said: For workers, the increase in regional minimum wages is very valuable because in many places, employers only pay wages higher than the regional minimum wage plus overtime and additional wages. However, the biggest concern for workers is the increase in consumer prices. Therefore, the involvement of state management agencies is needed.

Regarding the 6% increase from the perspective of workers' representatives, Vice President of the Vietnam General Confederation of Labor Ngo Duy Hieu acknowledged that the 6% increase is appropriate in the context of workers' sympathy with businesses.

According to Mr. Ngo Duy Hieu, the situation in 2024 is still very difficult to predict. However, with the spirit of sharing and acting together, in addition to proposing to increase the regional minimum wage in 2024, the Trade Union will continue to promote and encourage workers to improve productivity together with businesses to overcome difficulties. The Trade Union also hopes that in the coming time, businesses will continue to expand their markets to increase orders and create jobs for workers.

“The 6% minimum wage increase basically ensures the minimum living standard of workers. However, in the context of rising prices, especially near Tet for essential goods, workers continue to face difficulties. However, in the context of businesses still lacking many orders, we are also willing to share and are sure that workers across the country will do the same, so that together we can achieve better results next year,” said Mr. Ngo Duy Hieu.

Clip of Mr. Nguyen Duc Thuan, Chairman of the Vietnam Leather, Footwear and Handbag Association sharing about the increase in regional minimum wage:

From a business perspective, Chairman of the Vietnam Leather, Footwear and Handbag Association Nguyen Duc Thuan acknowledged that the 6% increase was carefully considered in many aspects, while also considering the short term, medium term and about 2 years later.

“The 6% increase is appropriate to the general situation of both advantages and disadvantages of the business community. Particularly for the leather and footwear industry, a 6% minimum wage increase is acceptable,” Mr. Nguyen Duc Thuan informed.

Mr. Hoang Quang Phong, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI), said: “The increase in regional minimum wage is also a way to share difficulties with workers. Therefore, businesses must also strive to innovate technology, improve management capacity, and save production costs. At the same time, we hope that next year the economic situation will be brighter, with more orders.

Deputy Minister of Labor, War Invalids and Social Affairs Le Van Thanh, Chairman of the National Wage Council, also affirmed that the 6% increase was considered based on the economic difficulties in 2023 and forecasts for the situation in 2024.

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