Vietnam Textile Industry: A Minimum Wage Of 12.4% Has Been Reached.

In 2014, Vietnam's textile and garment industry's export turnover amounted to about US $24 billion, with a forecast of 2015 growth in the fiscal year to US $27 billion 500 million.

However, the Vietnamese textile and clothing industry also expressed concern about the rate of increase in the agreement. The Vietnamese textile and clothing association has given the industry a 2 million 500 thousand lower rate of 6-7% due to its "labor intensity" requirement.

And the ready-made garment industry has called for a minimum wage increase. A consensus of 12.4% has been reached and will take effect from January (2016).

According to the International Labour Organization (ILO), during the third meeting of the Vietnam National Wage Commission held in September 3rd (2015), the employers, trade unions and governments agreed to raise the 250 thousand to 400 thousand 11- 17.5.

This action lasted for a few months, and the new minimum wage was raised by 15 votes and 14 votes.

The minimum monthly wage is currently between 2 million 150 thousand to 3 million 100 thousand Vietnamese shield ($96-138).

A spokesman for ILO said in Vietnam.

It will be reported to the Vietnamese Prime Minister, the chamber of Commerce and the industry.

However, the Vietnamese textile and clothing industry also expressed concern about the rate of increase in the agreement. The Vietnamese textile and clothing association has given the industry a 2 million 500 thousand lower rate of 6-7% due to its "labor intensity" requirement.

In 2014, the industry's export turnover amounted to about US $24 billion, with an estimated 2015 growth in the fiscal year to US $27 billion 500 million.

The Association believes that a 10% rise in the minimum wage will increase total labour costs by more than $23 million 200 thousand, while insurance premiums will rise by $8 million 700 thousand, and union costs will reach $530 million, thereby reducing corporate profits.

Figures show that from 2010 to now, the minimum wage standard of foreign direct investment has increased from 2.15 times to 2.3 times; in 2014, domestic enterprises increased from 2.95 times to 3.16 times in 2010; employers' insurance increased from 18% in 2010 to 22% in 2014.

The association has sent a letter to the Prime Minister of Vietnam, suggesting that the government reduce the proportion of insurance premiums and reduce 10% of union funds, giving enterprises more energy to take care of workers, such as housing support and child care services.

Some

Tran Phuong, President of the textile and Garment Association of the Phu Tho, said that wage growth should be "voluntary" and that enterprises should not lose their ability to compete and reinvest.