The Vietnam Textile and Apparel Association (VITAS) is vehemently opposing any increase in the minimum wage.
The National Wage Council of the country had decided in August to increase the minimum wage by 6.5 per cent from 2018. In this regard, the Council had also submitted a report to the Government of Vietnam for approval.
However, while attending a conference in Hanoi on 5 October, VITAS advocated that there should be no hike in regional minimum wage from next year.
The trade association reasons that many textile firms are finding it difficult to survive in the wake of consistent salary rise.
The minimum wage of the workers has increased by 21.8 per cent in the last ten years. As a result of which, many Vietnamese textile companies had to cut down the bonuses of workers and also replace workers with machines.
“Constant increase in wages kills competition and stops textile firms from expanding thereby ending job opportunities too for workers,” underlined Truong Van Cam, Chairman, VITAS.
In addition to minimum wage, the textile association also proposed to make some amendments in Labour Code 2012, especially with regard to unemployment benefits, overtime, health and occupational safety among others.
