Hanoi (VNA) –🦄 The regionalmonthly minimum wage will increase by 5.5 percent from January 1, 2020 after representativesof the State, employers and employees reached consensus at their second roundof negotiations on July 11.

Accordingly, minimum wage forworkers in Region I, which covers urban areas of Hanoi and Ho Chi Minh City, isset to rise to 4.42 million VND (190.5 USD) while workers in Region II –covering rural areas of Hanoi and HCM City, along with major urban areas in thecountry like Can Tho, Da Nang, and Hai Phong, will earn 3.92 million VND (169USD). Those in Region III, or provincialcities and the districts of Bac Ninh, Bac Giang and Hai Duong provinces, willmake at least 3.43 million VND (148 USD) a month, while Region IV, or the restof the country, will make 3.07 million VND (132.5 USD). The National Wage Council comprising15 members – split evenly between the Ministry of Labour, Invalidsand Social Affairs (MOLISA), representing the State, the Vietnam Chamber ofCommerce and Industry (VCCI), representing the employers, and the VietnamGeneral Confederation of Labour (VGCL), representing the employees – holdsmeetings every year to debate the regional minimum wage for the next year. Deputy Minister of Labour, Invalidsand Social Affairs Doan Mau Diep said the current minimum wage has met 95 percentof the labour force’s minimum living standards so the raise would make theirlives more comfortable. The MOLISA presented three schemes:increasing the minimum wage by 4.9 percent, 4 percent or 6 percent. The VCCI argued that since theminimum wage has already met 95 percent of the basic living demands,there’s no need for any further increase to the workers’ wage in 2020. It said if there should be anincrease, the rate should be kept at 1-2 percent, because boosting minimum wagewould increase businesses’ expenditures and hurt their performance, but theorganisation said it acknowledged the calls for higher minimum wage from theState and from employees given robust economic growth in recent years. VCCI Vice Chairman Hoang Quang Phongsaid this result “will not bring any smile to the business community but we aresympathetic and willing to share the workers’ difficulties.” The VGCL said that though the finalresult fell short of its hopes for a more than 6 percent increase, 5.5 percentserves as a “middle ground” most of the council members could agree upon. Minimum wage in Vietnam has beenrising for the last three years, with year-on-year increases of 7.3 percent, 6.5percent and 5.3 percent in 2017, 2018, and 2019, respectively.-VNA