Vietnam is seeing intense discussions surrounding proposed adjustments to the minimum wage as the government seeks to address the challenges faced by workers, especially within the textile and garment sector. Recent meetings have brought to light the issues of low salaries and high labor demands, leading to calls for changes to labor laws.
On February 21, 2025, Total Federation of Labor Vietnam held a conference in Ho Chi Minh City to discuss wages and income reports for employees working within the textile industry. According to Nguyen Vinh Quang, Deputy Head of the Labor Policy and Relations Department, hiring workers has become increasingly challenging due to fierce competition from service sectors and e-commerce.
The textile industry has faced annual fluctuation rates of about 2% to 5%. Quang explained, "Low wages contribute significantly to the issue. Workers confront harsh working environments characterized by dust, noise pollution, and excessive heat. The long hours and increased pressure exacerbate these problems." He emphasized the need for labor organizations to partake actively in shaping policies affecting labor rights and wages.
One of the proposed solutions is to revise the minimum wage to align with the rising costs of living. Labor leaders suggest establishing minimum wage policies reflecting the real conditions faced by workers. They aim for adjustments to the minimum salary across different regions to account for these disparities.
Another proposal includes reducing the standard working hours from over 48 hours per week and increasing the number of paid holidays. The overarching goal of these suggestions is to improve worker welfare significantly and create more conducive working conditions.
Nguyen Thanh Do, head of the Labor Policy Department at the Ho Chi Minh City Federation of Labor, stressed the importance of evaluating the current salary structures stating, "Average salaries for textile workers range from 6.5 to 6.8 million VND per month, complicates their ability to meet basic living standards." He urged re-evaluation of annual wage negotiation quotas, currently set at 4% to 5%, arguing these rates are still insufficient to counteract rising inflation rates.
"The financial burdens being placed on workers necessitate urgent action from policymakers to secure living-wage salaries," Do added, which aligns with recent findings by the Vietnamese Labor Federation. Part of the discussion includes research on how the nature of the work; hazardous and labor-intensive tasks are currently not reflected adequately within wage structures.
NGuyen Trung Ngan, the head of Labor Policy at the Ba Ria-Vung Tau Labor Federation, echoed the concern, noting, "Most workers are engaged under hazardous conditions but do not receive adequate compensation for their toil. The current systems need reevaluation to address these pressing needs comprehensively."
Given the present economic climate where inflation is outpacing wage growth, it’s clear changes are urgently needed. With the textile industry projected to continue operating at stable orders, the demand for labor steadily rises, presenting opportunities for unions to push for negotiations. The adjustments made, according to these leaders, would not just address immediate financial struggles but assure security and dignity for the workforce.
"The capacity to institute change lies within cooperative discussions among the enterprises, local authorities, and labor unions," Ngan stated, highlighting the collaborative need between different sectors to address these systemic wage issues effectively.
Those living on the edge of financial, especially within urban areas, require solutions. Recent surveys show 71.3% of firms expect to maintain their order levels like 2024, potentially leading to increased employment opportunities. This scenario presents the unions with leverage to negotiate for more favorable wage conditions.
Overall, the urgent call for revision of the minimum wage standards and labor laws is indicative of the broader economic realities. The workers' needs for financial security and improved standards of living are at the forefront of conversations as the Total Federation of Labor Vietnam continues advocacy efforts. Maintaining pressure on policymakers to take these insights on board ensures the creation of fair working conditions and pays for the nation’s hardworking labor force.