Vietnam may postpone wage increase amid economic difficuties

TN News

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Vietnam's labor ministry said its plan to raise the minimum salary at companies from January 1 may be delayed until mid-2013 since many businesses are still struggling.

While most local firms support a rise of at least 25 percent in the minimum wage proposed by the ministry, many of them believe they should be given more time, according to the Vietnam News Agency.

The ministry, officially known as the Ministry of Labor, Invalids and Social Affairs, said it may postpone the plan by two months or longer.

Nguyen Hong Ha, deputy director of the Vietnam Chamber of Commerce and Industry in Ho Chi Minh City, said more than 30,000 companies have shut down this year while many others are facing high inventory levels.

A salary increase will have negative impacts on labor-intensive businesses, especially those in garment, textile and seafood sectors.

Vietnam's economy expanded 4.66 percent in the three months ending June from a year earlier, following a 4 percent growth in the first quarter, according to the General Statistics Office in Hanoi.

Experts have said the full-year growth will be around 5 percent only.

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