Dec. 4 – The government last week passed a new decree that will increase minimum wages throughout Vietnam as of December 31, 2013, which will be effective for enterprises, co-operatives, household businesses, foreign companies and international organizations operating in the country.
Replacing Decree 103/2012/ND-CP, the new Decree 182 will implement increases of up to VND2.7 million (US$130) in Vietnam’s four different geographic regions categorized on the basis of living standards. Region I, for instance, includes the urban and some suburban districts of Ho Chi Minh City (HCMC), Hanoi, and Hai Phong, as well as the cities of Bien Hoa, Binh Duong, and Vung Tau. Region II covers rural Ha Noi and HCMC plus urban Can Tho and Da Nang. Region III covers provincial cities and the districts of Bac Ninh, Bac Giang, Hai Duong, and Vinh Phuc. Region IV covers the remaining localities.
According to the decree, the regional minimum wage levels provide a basis for monthly salary negotiation between employers and untrained laborers. On average, minimum wages will rise 15 percent, resulting in the following amounts in each region:
