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Vietnam Today

Private enterprises a major employer

Released at: 15:22, 15/09/2017

Private enterprises a major employer

Photo: Ngoc Lan

Hanoi seminar hears research on employer types and employee wages.

by Ngoc Lan

Private enterprises in Vietnam employ nearly 14 million people, accounting for 64 per cent of salaried workers and more than 35 per cent of employed workers, according to figures from the business community released at a seminar entitled “The Development Trends of Labor in Types of Enterprises in Vietnam” held on September 14 in Hanoi.

Scientists, managers, and trade union experts shared research results in four areas: the development of types of enterprises, labor and wages in types of enterprises, the development of industrial zones and housing for workers, and forecasts in labor supply and demand in types of enterprises to 2030.

Mr. Tran Van Thuat, Deputy President of the Vietnam General Confederation of Labor (VGCL), told the seminar that the importance of private enterprise development in the country is increasingly noted by the government, to constantly improve economic competitiveness, create more jobs, and increase incomes.

According to research from the Institute for Workers and Trade Unions, based on 2,550 questionnaires completed by workers at 64 enterprises in 14 cities and provinces during March and April, actual wages in the first quarter increased 8.1 per cent, higher than the increase in the minimum wage, which averaged 7.3 per cent.

The research also showed that 22.7 per cent are satisfied with their wage, 52.4 per cent are neutral, and 24.9 per cent are not satisfied. “For employees, increases to the minimum wage did not meet their expectations,” said Mr. Vu Quang Tho, Head of the Institute for Workers and Trade Unions.

Dr. Tran Thi Minh Phuong from the University of Labor and Social Affairs (ULSA), said appropriate wage and incentive policies at private enterprises would promote labor productivity. “Low pay that is not based on productivity can lead to conflict between employees and employers, affecting the interests of parties within the economy,” she said.

The Institute proposed that the government direct the implementation of economic development policies, create more jobs, and overcome inadequacies between training and employment. Ms. Phuong said that adjustments to wage policy by the government and enterprises must consider the interests of employees. “This would motivate employees, contributing to productivity growth,” she said.

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