Smallest wage rise in financial services sector: report

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A global professional services company has revealed that the financial services sector saw the smallest payment increases in Vietnam.

Towers Watson's report, which polled 312 businesses in the country from June to September, said the sector had the smallest increase in wages this year at 10 percent. This marked the slowest growth in recent years, it said, adding that the pace would remain next year as well.

TalentNet, a Vietnamese representative of consulting firm Mercer, had earlier said in a report that employees in banking and non-bank financial services reported the smallest growth in their payments -- 8.7 percent and 8.1 percent

Official data shows that 24 of 124 banks and financial companies in the country have reported losses in the first half of the year, while other 57 had their profits decrease year-on-year.

According to Towers Watson's report, average wages in Vietnam increased 11.7 percent this year, lower than 13.8 percent pace in 2012.

Manufacturing reported the largest hike of 12.7 percent, down nearly one percentage point from last year.

However, Vietnam along with China had the highest increases in average rates in East Asia, while Japan ranked bottom in terms of payment hikes.

The country's wages are forecast to rise 11.5 percent in 2014, and Trang Vu, the firm's global data services manager, said it reflected a prudent view of most companies.

"Given the fact that inflation is expected to be under control, there would be no room for a significant jump in salary increases in 2014."

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