World Bank'S Vietnam Executive Director Martin La Ma: Vietnam Has No Financial And Economic Crisis.

In June, "Vietnam financial crisis" and "Vietnam economic crisis" became the hot topic of China's mainstream "media" and mainstream "economists". Mainstream portals have launched "Vietnam financial crisis" or "Vietnam economic crisis" topic.

He was exhausted by the Chinese media's "Vietnam crisis", and Martin, Lama, executive director of the world bank in Vietnam. He had to deal with Chinese journalists pouring into Vietnam almost every day. He spent a lot of time and energy explaining to Chinese reporters: Vietnam did not have gold and financial crisis.

The Vietnamese workers' income level, Vietnam's reform and opening up, follows the socialist road of happiness for the majority.

According to the data provided by the world bank, the Gini coefficient of Vietnam in 2007 is 0.3705, which is a relatively reasonable distribution of income.

According to statistics provided by the Ministry of labor and social affairs of Vietnam, the average monthly wage of Vietnamese enterprises in 2007 was 2 million 200 thousand shields (about 1100 yuan).

Among them, the average monthly salary of the employees in state-owned enterprises is about 2 million 600 thousand shields (about 1300 yuan); the monthly average wage of the workers in special industries and group enterprises is about 3 million 950 thousand shields; the average monthly wage of the employees in the private enterprises is about 1 million 850 thousand shields (about 925 yuan); the average monthly wage of the foreign-funded enterprises employing most workers is about 2 million 500 thousand shields (about 1250 yuan).

According to this data, the wage level of Vietnamese State owned and monopolized enterprises was much lower than that of China in 2007, but the wage level of migrant workers was only slightly lower than that of China's Yangtze River Delta, Pearl River Delta and China's national average.

At the end of last year, the first production base of Vietnam, which was invested by Taiwan Investment Hong Hai Foxconn, was 5 billion yuan, and the first production base in Vietnam was completed in North Vietnam's North Ning Province. The basic salary was 100 dollars, with 170 dollars from other electronics factories.

In the same period, the wages of Foxconn production workers in Shenzhen production base were: the basic wage was 810 yuan to 1200 yuan (excluding the accommodation meals), a day off every day, and ten hours a day, the monthly salary was 1200 to 1600 yuan.

In the second half of last year to this year, a large number of foreign processing enterprises have left China and pferred to Vietnam.

Why did foreign capital processing enterprises leave China for Vietnam?

Although the mainstream media in China and the mainstream economists who speak for industrial capital speak in unanimous terms: Vietnamese labor costs are lower than those in China, and the new labor contract law has increased the labor cost of the foundry and processing industry.

But from the comparison of labor costs between China and Vietnam, we can see that this is not the case.

Perhaps the Vietnamese authorities have also made clear the reason: there is no need to compete with China for labor costs, and a large number of industrial capital inflows have led to labour shortages. This has brought opportunities for Vietnam to raise the income and living standards of farmers and migrant workers in the vast majority of the population.

The goal set by the Vietnamese government is that in 2020, the average income of the whole country will reach the world average level. In order to achieve this goal, Vietnam must seize every opportunity.

The opportunity appeared in 2008: in agriculture, the price of rice in the international market rose sharply from January 2008, and the B grade rice was 385 US dollars per ton in January, and more than 900 US dollars per ton in June. Vietnam is the second largest rice exporter in the world. In the first half of 2008, Vietnam took 31 billion 600 million dollars in foreign direct investment, and the total foreign direct investment in the half year exceeded the sum of the previous three years.

To seize these two opportunities, the so-called "Vietnam crisis" has emerged.

Releasing grain prices causes inflation and food prices and farmers' income are closely related. In China, Vietnam and other developing countries, the marginal revenue of agriculture will directly affect the wage demands of migrant workers.

For many years, the low price of grain and agricultural products in the international market has been restricting the increase of farmers' income.

At the beginning of this year, when the international rice prices skyrocketed, the Vietnamese government's original strategy was to control the speed of domestic grain price increase and curb inflation.

But at the twelfth session of the third session of the Vietnamese National Assembly in May, members of the Congress representing the interests of farmers strongly attacked the Vietnamese government's attention only to industry and foreign investment, sacrificing agriculture and farmers, and making great contributions to the export and economic development of the country.

The national assembly of Vietnam is elected directly by the national people. The government is elected by the Congressional balance. The largest number of representatives of farmers and workers in the Congress are 70% of the population.

Under pressure from members of Congress, the Vietnamese government released grain prices in late May.

After opening grain prices, the price of food and rice in Vietnam increased by 65% over the same period in May. The inflation index rose to 25% when food, oil and raw materials, housing prices (Vietnam's housing prices were also included in inflation).

Although opening up domestic grain prices has intensified the already high inflation rate, the Vietnamese farmers of the second largest rice exporters in the world are actually letting farmers share the fruits of this round of global food price inflation, so that farmers can raise their income and quality of life under the high price of oil and fertilizer.

The "labor turmoil", the rise in grain prices and inflation, broke the balance between the marginal benefits of farming and migrant workers. Following the rise in grain prices and inflation, workers demanded immediate wage increases.

It is a normal reaction for the management to appeal to the workers to raise their wages.

For this reason, Vietnamese workers are offering weapons to strike.

In Vietnam, with the increase of economic income, strikes are becoming more and more frequent. In recent years, there are hundreds of strikes on scale.

This is what the Chinese media call the "internal labor disturbance".

Vietnamese law stipulates that workers can strike workers for 5 days, but they need to be dismissed.

In the process of implementation, the Vietnamese authorities agreed that it was unusual for the management to dismiss the strike workers.

The Vietnamese authorities are basically laissez faire about the strike. When the government asks the authorities for help, both local governments, police and labor departments will turn to support strikers and pressure employers to meet the demands of workers for raising wages.

This year inflation is high and strikes are more frequent. Most Taiwanese funded factories have gone through at least two strikes.

Hu Zhiming, a Taiwanese businessman Huafeng shoe factory, encountered 2 major strikes before May this year.

In March, a total of 6000 employees in the whole factory went on strike for 5 days and a half. In April 10th, the employees went on strike in tandem. After ten days, not only did they ask for a salary increase of 30%, but they also asked for a reduction in the standard of performance bonus.

The management did not want to start a strike allowance precedent. The striker led the crowd to destroy the factory's computers, the production line, and the management to report to the police.

With the Vietnamese authorities indulging in connivance, most of the strike appeals ended in financial compromise, and last year, a large number of foreign investment began to cause labor shortages. The wages of Vietnamese workers increased by 40% to 60% this year, and some of them had a full turn.

Foreign companies have been hardest hit. This year, global oil prices, raw materials and grain prices have triggered a global impact. Most countries have failed to escape high inflation and economic turmoil.

In Vietnam's high inflation and economic turmoil, farmers and migrant workers, who account for 70% of the population, benefited a lot, and foreign companies lost the most.

Despite the devaluation of the Vietnamese shield, the pressure on the cost of export products and the competitiveness of Vietnam will be reduced after the sharp increase in labour wages.

However, the loss of exchange rate and the increase of wage increase have made the traditional processing industry of foreign investment under great pressure.

With its 75 million population and GDP of 71 billion 200 million US dollars, Vietnam is unable to bear foreign investment of only 31 billion 600 million in the first half of this year. With the global high inflation and economic turmoil, the lifting of oil and grain prices in the domestic and international markets is still threatening many developing countries' swords, raising the national salary growth, and allowing foreign enterprises to eliminate foreign capital processing enterprises that can not provide income growth for the nationals in the fight for wage increases.

It must be said that Vietnam's approach is very clever.

Just as the mainstream economists and media in China quarrelled over the "financial crisis in Vietnam", in June 27th, the consumer confidence survey conducted by MasterCard Inc in half a year on 13 markets in the Asia Pacific region showed that the consumer confidence index of Vietnam was second only to the new people in the Asia Pacific region, ranking second in the Asia Pacific region, and optimistic about the prospects. Hongkong, mainland China and Taiwan ranked behind Vietnam.

In the absence of financial crisis, Vietnam has seized a good opportunity to respond to Vietnam's stock market.

In the early June, when China's mainstream economists and media heated up the "financial crisis in Vietnam", Vietnam's stock market began to bottom.

However, from 6 to 20 to July 3rd, the Vietnamese stock market got rid of the decline and even rose 11 trading days. The Hu Zhiming index rose from 366.02 to 430.05, or 17.49%.

All the facts show that Vietnam's economy is experiencing some turbulence rather than financial crisis in the process of adapting to the sudden huge amount of foreign capital.