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BUSINESS IN BRIEF 29/8
Prime
Minister Nguyen Tan Dung has approved a project to develop regional markets
in the 2015-2020 period with a vision for 2030.
Accordingly,
It is
destined to ensure a stable trade balance by 2020 and a sustainable trade
surplus in the following years.
Regarding
market development orientations, Vietnam plans to expand its market share in
traditional markets like Japan, the Republic of Korea, China, Australia, the
US, EU, Russia, East European nations, Canada, and India.
The
focus will be also on diversifying export markets and broadening new outlets
in Africa, Latin America, the Middle East and
According
to the Foreign Investment Agency (FIA) under the Ministry of Planning and
Investment (MPI), as of June 2015,
Indian
investors have invested in 13 out of 21
The
oil and gas sector takes the lead in attracting foreign investment projects.
The
food, fruit and vegetable project of Viet Hung Food Industry Co, Ltd valued
at US$47.6 million is the biggest one run by
More
appropriate measures should be taken to lure more Indian investment in
advantageous fields such as information technology and mineral exploration to
produce environmentally friendly products as a contribution to boosting the
nation’s economic development.
Foreign
suppliers may have to build seed factories in Vietnam
Vietnam's
agriculture ministry is drafting a circular on genetically modified
organisms, requiring foreign suppliers of the plants for local farmers to
build seed factories within four to five years since getting their licenses,
news website Saigon Times Online recently reported.
The
rule is meant to prevent Vietnamese farmers from relying on imported seeds
and allow the government to manage GMO issues better, the website quoted an
unnamed source as saying.
Over
the past year, the ministry licensed at least four genetically-modified corn
varieties to be commercially cultivated in
Three
of them which are engineered for animal feeding processing are imported by
Swiss agribusiness Syngenta, and the other brought in by Delkab
Commenting
on the ministry's rule, Pham Duc Tuan, Syngenta's manager of legal affairs,
said in the website that his company is not worried about investing into a
seed factory.
What
matters is that the ministry needs to set up necessary policy allowing
businesses to rent enough land for seed production activities, Tuan said.
Squid,
octopus exports to US surge high
According
to the General Department of Vietnam Customs, the
The
Global Agricultural Trade System (GATS) reported that in the first four
months of this year, the
Vietnam
Airlines drops plan to buy superjumbo jets Airbus A380
National
flag carrier Vietnam Airlines has announced that it will no longer consider
adding Airbus A380, the world's largest commercial aircraft, to its fleet as
part of an expansion plan for the next five years.
The
airline has scaled down the plan, which was first approved by Prime Minister
Nguyen Tan Dung in 2008. As a result, its fleet will have 122 aircraft, not
150 as initially planned, by 2020.
In the
initial plan, the carrier mentioned the purchase of Airbus A380s but now it
has changed its mind.
It
said there are some reasons, including the pressure of seeking funds for the
purchases.
Between
2015 and 2019, Vietnam Airlines will take delivery of eight Boeing 787-9
Dreamliners and 10 Airbus A350 XWBs.
In
addition, it said the planned
In
2009, Vietnam Airlines signed a memorandum of understanding with Airbus Group
for the purchase of four superjumbo passenger jets, but terminated the
memorandum four years later.
Seafood
output in eight months surges 4%
According
to the Directorate of Fisheries, the weather in the review period was rather
favourable for ocean fishing and the decrease in oil and gas prices also
helped reduce cost.
Particularly,
total tuna output of three key provinces in the first eight months reached
13,975 tonnes, including Phu Yen (3,812 tonnes, up 13%), Binh Dinh (6,970
tonnes, up 10.6%) and Khanh Hoa (3,193 tonnes, down 5%).
In the
period, tra fish (Pangasius) farms occupied about 6,315 hectares, up 2% and
tra fish output reached 740,000 tonnes, up 5% compared to the same period
last year.
Meanwhile,
the prawn breeding area has been expanded to 577,000 hectares, up 2.9%
against the corresponding period last year. However, prawn output is
estimated at 160,000 tonnes, down 4%.
EVN
earns US$43.6 million from divestment
Electricity
of Vietnam (EVN) has completed divestment from three real estate companies,
while reducing its capital at EVN Finance Company to 16.5% of its original
charter capital.
Following
three years of divestment, EVN has earned VND981 billion (US$43.6 million).
In the
group's report to the Government on its implementation of its restructuring
plan, EVN said it had faced difficulties when withdrawing capital from some
of its larger corporations.
EVN's
biggest challenge was divesting from businesses in finance, banking,
securities, insurance and property, due to the requirements of ensuring
capital in the midst of a bleak securities market. In addition, regulations
on divestment have resulted in shortcomings.
EVN,
however, has been active in developing divestment plans, organising public
auctions, as well as seeking partners to transfer their capital into
enterprises that are to be divested.
Further, the group has
carried out equitisation of Power Generation Corporation 3 (GENCO 3) and is
preparing for equitisation at GENCO 1 and 2.
The
equitisation of GENCO 3 has seen difficulties, as the company was established
to follow a road map of the competitive electricity market, as it seeks to
manage, operate and produce power. The equitisation would be implemented
after the company's financial situation was considered healthy. However, the
company has found it difficult to arrange capital for its projects, making it
less attractive to investors.
Further,
EVN said it had proposed to the Government and other agencies that they issue
Decrees and Circulars to provide guidelines on implementation of the
Enterprise Law, which took effect on July 1st.
It has
also carried out power tariff adjustments using the existing market
mechanisms.
On
November 23, 2012, Prime Minister Nguyen Tan Dung enacted Decision No
1782/QD-TTg, approving EVN's restructuring plan.
The
plan sought to ensure EVN's suitable structure and focus on power production
and trading.
EVN
has been allowed to access export credits from
Accordingly,
The
National Assembly, in 2009, passed a resolution on the construction of a
4,000MW nuclear power plant in the province's Thuan Nam and Ninh Hai
districts, with investment of VND200 trillion (US$8.9 billion) from EVN, the
main investor in the two plants.
The
plant was begun in 2015 and has its maiden trial scheduled for 2020.
January-July
CBU auto imports from
The
volume of completely built-up (CBU) autos imported from
Statistics
of the department showed auto imports from
Of the
total volume,
Although
domestic automakers have the ability to assemble trucks, this vehicle still
took the largest volume of imported autos in the first seven months of this
year with 24,480 units and a majority of them imported from
Apart
from growing demand on the domestic market, soaring truck imports were
attributable to the Ministry of Transport’s stricter controls and heavy fines
on overloaded trucks.
According
to car importers, most of the vehicles imported from
For
instance, Chinese-made tractors are priced at VND1.1-1.2 billion per unit, or
10%-15% lower than the prices of domestically assembled trucks. Meanwhile,
vehicles with similar capacities from RoK cost a staggering VND1.8 billion.
Many
experts forecast the volume of CBU vehicles imported from
The
department also reported that in the period
Businesses
encouraged to invest in agriculture, new rural development
On
August 25,
These
include coordinated measures by relevant agencies to support businesses in
terms of investment procedures, bank loans, and public information on
investment support mechanisms in line with target programs for agriculture
and rural development.
Delegates
said the state should build facilities to promote trade and agricultural
development and boost IT application to increase productivity, quality, and
competitiveness.
Ho
Xuan Hung, President of Vietnam’s General Council of Agriculture and Rural
Development, said, “The Party and state have focused on policies to attract
more business investment into the agricultural sector. To do this, barriers
particularly administrative procedures and those not beneficial to
businesses, should be removed.”
Over
the past 5 years, more than 880 communes and 5 districts have fulfilled all
the new rural development criteria. Income per capita in rural areas has
increased 1.8 fold from 2010 and US$29 billion has been invested in building
new rural areas.
Danang
assists businesses to sharpen competitiveness
Central
Danang city is willing to offer the best possible conditions for businesses
to enhance competitiveness and soundly develop.
The
statement was made by Phung Tan Viet, Vice Chairman of Danang municipal
People’s Committee at a conference on economic integration, held in the city
on August 25.
The
city put one-stop shopping and e-government models into practice, helping to
shorten time and costs for local businesses, Viet noted.
Despite
some difficulties, the city found ways to finance businesses, build policies
which support exporters, help businesses renew technology and develop
products to wider markets, he added.
At the
event, Vietnam Chamber of Commerce and Industry (VCCI) Chairman Vu Tien Loc
expressed his sincere appreciation of the great efforts from Danang city to
facilitate businesses’ development.
He
encouraged the city to maintain a high provincial competitiveness index (PCI)
in
“It
will be hard to reach the goal” of selling VND17.9 trillion (US$795 million)
of non-core investments by the year-end “if companies aren’t more determined
and active in executing the planned sales,” Deputy Finance Minister Tran Van
Hieu said in written answers on August 24 to questions from Bloomberg.
Prime
Minister Nguyen Tan Dung had set the end of the year as the deadline for
state enterprises to sell their non-core investments, and in April said
leaders of companies that are behind their goal will be dealt with sternly.
State-owned
enterprises have sold VND4.1 trillion worth of non-core investments in the
first seven months this year, including stocks, banks and properties, Hieu
said. A regional stocks selloff may be a challenge to further divestments.
The
region’s benchmark stock gauge headed toward a bear market on August 24 and
Chinese shares plunged by the most since 2007 on speculation that the
slowdown in its economy may be deeper than previously thought.
“The
stock market has fallen and this downtrend may prolong toward the year-end on
weak demand and low liquidity,” said Nguyen Duy Khoa, Ho Chi Minh City-based
head of retail equity services in Saigon Securities Inc. “In such a market
situation, state companies won’t draw many investors to their share sales.”
The
government’s privatization plan fell short of its target last year too, with
just 143 state-owned companies selling stakes compared with a goal of 200.
SOEs
sold only 27% of the shares they offered at initial public offerings in the
first seven months this year, according to Hieu.
The
process is “slow and behind schedule” due partly to executives’ concerns
about their positions at these companies after the sales, he said.
CapitaLand
optimistic about demand for Seasons Avenue apartment project
Singapore-headquartered
property developer CapitaLand is confident that its Seasons Avenue apartment
project in
Designed
with four high-rise buildings inspired by
Despite
the fact that it’s still under construction, the project has drawn keen
interest from buyers with a substantial amount of bookings already in place,
according to Lim Hua Tiong, general manager, North Office, CapitaLand Vietnam
Holdings.
“The
local property market is warming up and the demand for housing from the
Vietnamese people is increasing sharply, especially in the mid-end segment.
Seasons Avenue offers the right product that meets the market demand for
quality housing in this segment,” he said.
He
added that the joint venture between
Furthermore,
experiences drawn from developing
“With
the success of high-end residential projects in
After
more than 20 years in
The
Singaporean developer has announced that
Hoang
Thanh JSC general director Nguyen Nhu Vinh said that the CapitaLand brand had
facilitated the development of the joint venture’s projects, and the two
companies’ established partnership was a primary factor in the successful
sales of their project in
Lim
said Hoang Thanh was the right choice for CapitaLand to partner with as it
boasted a wealth of experience in
The
two partners in the joint venture expect that
Soaring
prices boost tapioca industry
Tapioca
exports have shot up 35.4% in volume and 31% in value year-on-year in the seven
months leading up to August, driven mainly by an import surge from China, the
Ministry of Agriculture and Rural Development (MARD) has reported.
During
the seven months January-July, MARD reported businesses operating in
The
industry is currently on pace to reach a record high US$1.5 billion of
revenue for 2015.
China
remained the largest export market accounting for 89% of market share while
Japan and Taiwan (China), the two fastest growing markets, expanded 10-fold
and 64%, respectively.
The
Vietnam Cassava Association (VCA) in turn reported the average export price
of tapioca hovered around US$420-430 per metric tonne for the period and
market demand was stable.
Besides
the traditional market of
The
industry has set a target of achieving revenue of US$2 billion by 2020, the
VCA representative unveiled.
Shoe
industry hopes to kick-start nation’s brands
Over
the past five years, the news has become increasingly filled with stories about
manufacturing shifting from
In
2010 it was revealed that
According
to official statistics, Vietnam now ranks among the globe’s top four largest
footwear manufacturers in terms of volume of shoes produced trailing China,
India and Brazil, which success has been highly dependent on lower labour
costs.
However,
However,
the question is really twofold as one must first consider whether
Trade
news reports show that though Vietnam has proven to be quite capable of
producing labour-intensive products like footwear and is now starting to win
over major technology companies for significant investments in other
manufacturing industries, serious roadblocks exist to future development of
the footwear industry.
Innumerable
reports in the
Poor
infrastructure and heavy bureaucracy lead the list of concerns
Most
reports say that capabilities and confidence in Vietnamese manufacturing are
growing, but
In
China a US business can find just about anything it wants – and usually more
than a handful of viable options that aren’t too far away from where they
need them, said one leading US business.
With
well-paved roads, seven of the globe’s 10 busiest shipping ports, and a
massive network of high-speed and commercial rail lines, infrastructure in
Thousands
of businesses have already set up shop and blazed the path in
Online
portals like Alibaba or Made in
While
certainly true that a ‘supplier’ is not necessarily a manufacturer,
When
it comes to raw materials, shipping, and other logistical issues, those
looking to relocate production to
In
short,
The
important first step is to secure a firm foothold in the domestic market and
then seek opportunities to export footwear products abroad and elevate the
nation’s brands within the industry as a supplier, said Director Tran Van
Tac, of Tuan Viet Footwear Co, Ltd.
“Over
the past three years, we have begun to get involved in nurturing the image of
brands in the domestic market,” said Tac adding that at present, our products
have been gaining in reputation throughout the country for high quality at a
reasonable price.
The
Tuan Viet Ltd Company with its Tuvi footwear brand has been one of the most
successful domestic brands to date. The company is currently preparing
to begin shipping footwear under its own brand name to the Russian market.
Vu
Cham, president of the Management Board of Giay Viet Joint Stock Company in
turn said the four domestic brands – Vu Cham, Vina Giay, Giay Viet and
Vinagico – have experienced solid growth in the domestic market over recent
years.
Cham
stressed with more than 90 million people, the domestic market has great
potential for businesses to establish themselves and heighten their
reputations for quality to strengthen their chances for future global
development.
For
their part, leaders of Ho Chi Minh City’s Leather Association said it will
take dozens of years to build famous brand names like Biti’s, Bita’s and Vina
Giay in the domestic market and even longer for them to establish themselves
in the global arena.
Outsourcing
for the major brands such as Nike is profitable and its importance to the
nation’s economy and good paying jobs that increase the standard of living
for citizens should not be discounted for any reason.
Neither
is anyone suggesting that Vietnam could develop national brands that might
compete with the likes of Nike, Reebok, New Balance as such a suggestion
would be faceitious on its face.
Clearly,
however, it is within the realm of possibility that with much hard work and
innovation, someday years down the road
Business
associations urged to boost cooperation
The
conference, which drew over 150 businesses in the Central and Central
Highlands regions, focused on how to raise awareness and skills of businesses
catching up on opportunities at a time when
"Domestic
businesses are told to have more competitive capacity, develop better
technology and legal knowledge in availing of opportunities for exports and
production for large markets," Loc said.
"Local
business associations play an important role in providing detailed
information and guidance on institutions and legal framework and tax cuts
when the country signs FTAs," he said.
"Businesses
should understand more about the FTA in order to overcome difficulties and
improve product quality to meet the strict requirements of these
markets," he said.
Loc
also added that ASEAN has set a goal for the ASEAN Economic Community (AEC)
to be established by the end of 2015, and
Nguyen
Van Ly, General Secretary of the
"Vietnamese
businesses need to prepare for the impact of the new global business
environment and strengthen their competitiveness in foreign trade,
particularly through online technologies like e-commerce," Ly said.
E-commerce
emerged as a subject of major discussions among businesses at the conference.
According
to the
"E-commerce
is bringing a lot of opportunities for SMEs, thanks to its ability to allow
around-the-clock customer sales, reduced marketing and transaction expenses,
and an overall market expansion to regions outside Vietnam," Vice Chairman
and General Secretary of VECOM, Nguyen Thanh Hung, said.
"SMEs
need to invest to build an online presence in order to compete in this new
business environment. They can grow into global businesses with easy access
to partners and customers around the world and increase their profitability
in the long term with a strong online brand," he said.
"It
is important for businesses to build and develop their own online brands with
a reputable domain name," said Nguyen Minh Thai, Business Development
Director of Eye Storm Network, one of leading registrars in
"Choosing
an appropriate domain name is the first step in building a successful online
presence. While there are many domains available, .com is the global online
standard for doing business online," he said.
Thai
said his company always advised customers to choose .com due to its
availability, reliability and stability to build their online brands,
especially when they want to reach larger markets.
According
to VCCI, garment-textile, shoes and sandals, seafood, furniture and handbag
sector will witness tax cuts from 77 per to 100 percent on account of the FTA
commitments with the EAEU.
"We
are in the dark as there are too many associations. We did not know how to
access information for export or new export market," said Nguyen Van
Son, director of a sandal and furniture export company in
"We
mostly ask for such information through other partners or try and find it
ourselves. The business association has yet to provide necessary information
to us," Son said.
"We
get little opportunity to join trade fairs abroad due to limited funds at our
disposal for travelling or accessing sources of information," he said.
He
asked for further commitment and support from VCCI's branches and local
associations in hosting more conferences and advocated introduction of new
markets or new tax policies rather than organising useless seminars.
He
blamed that some seminars were not attractive or dispense little information
useful for businesses.
Circular
limits used machinery imports
Vietnamese
enterprises should carefully consider before importing second-hand machinery
and equipment for production, Minister of Science and Technology Nguyen Hoang
Quan said in a recent interview.
Outdated
and used equipment would not help produce good quality and low-cost products,
he said in a VTV show People ask, Ministers answer on August 23.
According
to the minister, to realise the Prime Minister's instruction and the Law of
Commerce, the Ministry of Science and Technology (MST) in co-operation with
other relevant ministries had mapped out a circular on restricting and
controlling second-hand machinery, equipment and technology chains.
The
new circular will replace the circular No. 20 which was issued last year.
Tight
control of imports was very important. Second-hand machinery and equipment
would cause environmental pollution and waste energy, said the minister.
The
circular would help control the use of old machinery and equipment and
promote the application of new, hi-tech equipment in
In the
near future, the country will sign the Trans-Pacific Partnership (TPP) and
free trade agreements (FTAs) with the European Union and many other
countries. This means tariff barriers will be wiped out and the country will
have to follow international rules, so Vietnamese goods will face tough
competition from other countries.
"Importing
used and outdated equipment means we kill ourselves," said Quan.
Last
year, the ministry issued Circular 20 on ensuring the quality, safety, energy
efficiency and environmental protection of used machinery, equipment and
technology chains imported into
However,
the circular was suspended after few months.
Minister
Quan said the circular had faced a strong reaction from some businesses,
especially foreign direct investment (FDI) firms that had imported old
technologies. Some called for the circular to be reviewed and amended.
He
said that the idea and objectives behind Circular 20 were good because it
would help state agencies manage and prevent imports of obsolete technology
into
For
example, the circular stipulated that old equipment imported into
The
circular also required inspections of old equipment in order to assess the
level of environmental pollutants, energy consumption and quality, but
Vietnamese assessment organisations were not up to the task.
The
old equipment could not be assessed while it was not assembled. If
enterprises were permitted to import old equipment after a quality
assessment, they would suffer big losses from storage fees, and if it did not
meet standards, it would be difficult to disassemble and re-export them.
Based
on this, the MST decided to halt the circular and replace it with a new one.
According
to the minister, the new circular would regulate that used equipment may be 5
years old or more since the date of manufacturing.
In
terms of quality assessment, imported second-hand equipment must conform to
Vietnamese technical standards or standards set by the G7 countries.
Customs
procedures would be simplified, but imported goods would only be cleared at
customs when they were certified by quality control agencies responsible for
imported products.
Enterprises
would be fined if any violations were uncovered, he said.
Measures
discussed to promote Cai Mep – Thi Vai Passage
Measures
to fully tap the potential of the Cai Mep – Thi Vai Passage in the southern
The
event, organised by the provincial Department of Transport, included
participating representatives from the Ministry of Transport, the Vietnam
Maritime Administration, the Vietnam Ship Agents and Brokers Association,
local authorities and enterprises.
Deputy
Minister of Transport Nguyen Van Cong said the ministry is mobilising
resources to dredge the passage to accommodate larger vessels and urged the
provincial customs office to facilitate vessel access to ports.
Local
authorities pledged to offer the best incentives for investors, particularly
in developing the port’s infrastructure facilities and human resource
training in a bid to enhance its competitiveness in the region.
A
representative from the CMA CGM Group, a global shipping company based in
According
to the provincial Department of Transport, the province is home to 57 port
projects with a total registered capital exceeding 7 billion USD.
As
many as 28 of them have gone into operation with a total annual capacity of
87 million tonnes, including seven container terminals of 6.8 million TEUs
(twenty foot equivalent unit)
However,
the container terminals only handled roughly 17 percent of their annual
capacity, with more than 590,000 TEUs of cargo in the first half of this year
and 1.15 million TEUs last year.
The
Cai Mep – Thi Vai Passage runs through Tan Thanh district in Ba Ria – Vung
Tau province; Long Thanh and Phuoc An districts in Dong Nai province; and Can
Gio district of HCM City.
Binding
regulations hinder rice exports
The
binding requirements on rice exports are attributable to the continuous
decrease in both volume and value of the product, said delegates to a
workshop in
According
to Tran Xuan Dinh, head of the Department of Crop Production under the
Ministry of Agriculture and Rural Development, Vietnam exports around 6-7
million tonnes of rice each year, however, the profits gained remain low and
the prices of Vietnam’s exported rice are always lower than those of
Thailand.
Together
with
Deputy
Director of the National Agricultural Extension Centre Tran Van Khoi proposed
loosening requirements on rice exports to encourage the involvement of
businesses.
He
said that
At the
workshop, many participants suggested the country change the landowner
retention limit of 3 hectares as the current Land Law allows the transfer of
land ownership.
Improving
business environment is vital to increase competitiveness for enterprises,
especially in the light of international integration, heard a workshop in the
Mekong Delta city of
Director
of the Central Institute for Economic Management (CIEM) Nguyen Dinh Cung
pointed to shortcomings in the business climate at both national and local
levels, saying that more than half of the legal documents in the field of
economy are no longer suitable with the reality, significantly hindering
business activities.
He
noted that
Besides
complicated and overlapping administrative procedures, the time to deal with
paper work is too long. Specifically, it takes 34 days to get a start-up
licence in
Deputy
Head of the CIEM’s Business Environment Department Nguyen Minh Thao mentioned
another problem, which is unofficial “fees” besides tax and fees. Therefore,
it is important to create a transparent business environment and increase
professional ethics among State employees.
At the
same time, it is necessary to push ahead with the application of information
technology in administrative reform, she suggested.
It is
reported that over 90 percent of State-run administrative agencies have
applied information technology. But in reality, many places have failed to
establish a database and links between departments, she noted.
Credit
firms struggle to retrieve collateral
While
handling pledged assets is considered an effective tool for credit
institutions to retrieve debts and reduce non-performing loans, gaps in
regulation have been hindering progress on this front, experts said during a
seminar in
According
to Nguyen Tien Dong, Director of the central bank's Department of Credit for
Economic Sectors, handling of pledged assets is becoming a pressing matter of
concern in the operation of credit institutions.
He
attributed the stagnation in handling pledged assets to the overlaps and gaps
in relevant legal documents which make it difficult to properly evaluate the
value of the pledged assets or hindered seizure of assets.
While
a majority of pledged assets are in the shape of real estate, handling such
assets involves many entities, but the lack of coordination among such
entities is causing delays in transferring pledged assets.
The
General Secretary of the Vietnam Banks Association, Tran Thi Hong Hanh, said
the process to handle these pledged assets must be expedited as stagnation
will hurt both lenders and borrowers as well as the economy. She urged that
the legal framework needs to be improved.
Facts
show that involved parties in any pledged asset hardly reached an agreement
regarding the value of the asset, especially if the pledged assets were
evaluated lower than the loan amount, experts said. Many such cases were
brought to courts, thus taking valuable time.
According
to Pham Hong Son, head of Agribank's Department of Individual and Household
Customers, involved parties could take advantage of the gaps in regulation to
prolong any dispute over asset handling.
In
addition, auctioning process of pledged assets lacks transparency and
sometimes the assets are over-evaluated on purpose, said a representative
from Hanoi Civil Judgement Enforcement.
According
to Dong, credit institutions should pay adequate attention to the evaluation
and management of pledged assets to prevent conflicts which might arise
later.
The
coordination among local authorities, banks and police is also important in
handling pledged assets, experts said, adding that regulations about
responsibilities of police and people's committees, in coordination with
credit institutions and Vietnam Asset Management Company, are needed to
hasten resolution of bad debts.
Minimum
pay increase for 2016 yet to be fixed
The
Vietnam Chamber of Commerce and Industry (VCCI) and the
The
VGCL, representing employees, proposed a 16.8 percent pay hike while the VCCI
– representative of employers, recommended a mere 10 percent, according to
Deputy Minister of Labour, Invalids and Social Affairs Pham Minh Huan when
briefing about the outcomes of the second meeting of the Vietnam National
Wage Council.
If the
third meeting, slated for September 3, fails to reach a consensus, the Council
will decide the final solution to submit to the Prime Minister for approval,
Huan said.
VCCI
Vice President Hoang Quang Phong insisted that the 10 percent hike is
reasonable, given a 3 percent productivity rise and 1-3 percent Vietnamese
dong depreciation.
If the
minimum pay climbs 10 percent, businesses in fact have to shell out 17-18
percent inclusive of social insurance for workers, meaning that they have to
pay an extra amount of 30-45 percent compared to 2015.
VGCL
Vice President Mai Duc Chinh raised the fact that about 8 percent of
employees nationwide earn more than 5 million VND (230 USD) per month, which
is enough to cover only necessities.
He
suggested the Council make field trips to industrial parks to learn about
workers’ lives, and emphasised that the 2016 pay rise should at least be
equal to the 2014 level, or 14.6 percent.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR
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Thứ Bảy, 29 tháng 8, 2015
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