This Year, We Opened Factories In Southeast Asia? Vietnam Has No Cheap Wages!

At present, the minimum wage in Vietnam is about $140 to $180 (regional difference), and the total salary and overtime pay are estimated at an average monthly salary of at least $300. Next, Vietnam's wage costs will only increase as banks become compounded.

The trade war between the US and China remains unclear. Spin The industry is facing a 15% crisis of export tariffs. Is it feasible to spanfer domestic output to Southeast Asia, especially Vietnam? The result seems to be otherwise, because there is no cheap wage in Vietnam.

The industry says clothing frontline brand In Vietnam, the proportion of production capacity has been very large. If we want to build a new factory or expand production lines, there will be some pressure on business, because there is no cheap labor in Vietnam now.

The new entrants will move to Vietnam, and the original enterprises will expand their factories. Now the two forces are all scrambling for jobs, which will only aggravate the pressure of competition, and the imbalance between the supply and demand of the local labor force and the overheating of Vietnam.

At present, the minimum wage in Vietnam is about 140 US dollars to 180 US dollars (regional differences), and the total wage and overtime pay are estimated at an average salary of at least 300 US dollars. If the number of 150 thousand employed in Vietnam is equal to 150 thousand yuan per year, the wage cost of Vietnam will only increase as compound interest.

According to industry sources, the labor law of Vietnam stipulates that enterprises entering the company must establish trapezoidal salaries, with the government's announcement of minimum wage level as the benchmark, and the first level wage level as the minimum wage plus 7%.

From the second level, each additional level increases by 5%, and so on.

For example, suppose that the minimum monthly salary of Vietnam is 140 dollars, the first level salary is 149.8 dollars, the second level salary level is 157.3 dollars, the third level is 165.2 dollars, and according to the seniority of employees, the advance salary level distance.

Over the past ten years, the Vietnamese government has raised the minimum wage by 10% per cent per year. When the minimum wage rises, the ladder salary will be kept up. "It means that all employees are paid 15%, which is a terrible expenditure."

Not only that, the potential cost is also a big trap. For example, the annual payment of union membership fee is paid by 2% of the total salary of the labour force. The annual minimum wage plus ladder salary is increasing. The total salary scale continues to expand, and the union membership fee keeps rising. This does not include the local social security cost.