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Vietnam textile association opposes minimum wage increase

The vice chairman of the Vietnam Textile and Apparel Association (VITAS), Truong Van Cam, has said the organisation is not in favour of a 6.5% increase in the regional minimum wage for 2018.

The increase was decided in August by the National Wage Council. It has been submitted to the government for final approval.

At a conference in Hanoi on October 4, VITAS proposed that there be no increase in the minimum wage for the next two years as several businesses are already struggling to cope with the increases that have taken place in the past decade. The minimum wage has increased 21.8% since 2007.

Mr Truong said increasing the regional minimum wage does not necessarily mean an improvement in the living standards of workers because it often also results in an increase in the cost of living.

He added that constant increases in the minimum wage reduce competition and prevent companies from expanding production and creating more jobs. 

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