The Vietnamese Government Has Raised The Basic Salary Of The Region In Successive Years.

According to Vietnam

According to the VITAS, the basic salary of the Vietnamese domestic enterprises and foreign enterprises in the period from 2008 to 2016 increased by an average of 26.4% and 18.1% annually, while the annual price index (CPI) and labour productivity increased by 10.7% and 3.9% respectively.

The Vietnamese government has announced that every year the basic salary of the enterprises should be increased. In addition to increasing the burden of employers' production costs, employers still need to increase their basic social insurance premiums and trade union fees by increasing the basic salaries. For example, employers will have to pay wages and salaries allowances from the employers in January 1, 2016, and from January 1, 2018, employers will still have to pay the social security premiums paid to the workers. Besides, the insurance premium paid by Vietnamese textile and garment enterprises to the above workers has surpassed the production costs of the companies in Bangladesh, India, Burma, Kampuchea, Indonesia, Philippines, Peru and Mexico.

The Vietnamese government has raised the basic salary of the region continuously for several years, which will increase the labor cost and reduce the labor cost.

Competitiveness will also affect the investment ability of manufacturers to increase their production capacity. VITAS suggested that the Vietnamese government should extend the basic salary level of the highland area, that is, the government does not need to increase the basic salary of the region in 2017, so that the manufacturers can stabilize production and enhance the competitiveness of enterprises. Rationally pfer the labor structure of the industry, agriculture, forestry, fisheries and service industries, and effectively use Vietnam's 55 million age workers, so as to enhance the Vietnamese labor productivity.

In addition, VITAS also suggested that the Vietnamese government consider that the employers and employees could resume the proportion of social insurance premiums paid before 2010, that is, employers should pay 18% premiums (15% social security fees, 2% medical expenses and 1% unemployment insurance premiums) on behalf of employees, and workers could pay 7% premiums (5% social security, 1% medical expenses and 1% unemployment insurance premiums) to replace the current employer and workers' insurance premium provisions for 22% and 10.5%.

Vietnam Federation of trade unions also recommended that the Vietnamese Federation of trade unions consider abolishing the 35% level of trade union fees paid by the grass-roots trade unions to 35% of the total 2% of the total labor wages, and pferring them to the higher level trade union regulations, or downgrading the percentage of the paid 35% to 10% for enterprises to increase their labor benefits.