Textile industry could suffer after Vietnam minimum wage hike
30/08/2017
According to local media reports, this change has been agreed following three rounds of negotiations between the National Wage Council and representatives of employers and workers.
The ministry has made this recommendation after taking into account a range of factors including job creation, unemployment, production, business conditions, manufacturing costs, the current inflation rate and labour productivity growth.
The 6.5% rise in minimum wage is expected to increase production costs by around 0.6%, but this could rise to approximately 1.2% in labour-intensive industries such as textile and garment manufacturing.
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