Prime Minister Phan Van Khai has issued decree 03/2006 on new minimum pays for employees of foreign-invested enterprises and foreign organizations nationwide.
Taking effects February 1, 2006, the decree stipulates that the minimum monthly pay for Vietnamese workers in foreign enterprises is VND870,000 (about US$55), VND790,000 ($50) or VND710,000 ($45) depending on the workplace location.
Urban areas in Ho Chi Minh City and Ha Noi fall under the first group. The second group comprises the two cities’ outskirts; urban areas of cities Hai Phong, Ha Long; Bien Hoa, Vung Tau; and Binh Duong Province’s Thu Dau Mot Town, and districts Thuan An, Di An and Ben Cat. The third group consists of other localities in Viet Nam.
The new minimum salaries replace the old levels of VND626,000VND, 556,000, and VND480,000, which had been in effect since July 1999.
At a press briefing on the Government’s decision in Ha Noi on January 7, Labor Minister Nguyen Thi Hang said this decision aims to harmonize the interests of all the three sides – the State, the employers and the employees.
This pay rise is just part of a pay adjustment program in Viet Nam, according to the Ministry of Labor, War Invalids and Social Affairs. In the long run, the country must realize pledges to join the World Trade Organization, ensuring pay equality in the foreign and domestic sectors. Therefore, Viet Nam expects to apply only one minimum pay level for all economic sectors in 2010.
The decree signed by Prime Minister Phan Van Khai came out in the wake of massive strikes recently in Ho Chi Minh City and neighboring Binh Duong Province involving dozens of thousands of laborers.
Officials of Ho Chi Minh City and Binh Duong have worked with management of the companies and the laborers to find out solutions to the strikes.
City authorities called on the laborers to return to work and to denounce bad guys who had illegally incited the strikes. Up to January 6, almost 30,000 employees of foreign companies in the city’s industrial parks and export processing zones had returned to work.