This strategy is aimed at retaining skilled workers during these tough economic times.

Nike footwear supplier Changshin Vietnam in the southern province of Dong Nai will raise the monthly salary of its 37,000 workers by VND150,000 ($6.19) each starting next year.

Employees work in a garment factory in Thu Duc City.

The move is set to cost the company VND5.7 billion more monthly.

The head of union labor at the firm Dang Tuan Tu said that even though Changshin had seen orders plunging 20% this year due to weak global demand, company leaders wanted to retain workers by raising their wages.

A new employee will have a starting wage of VND5.5 million next year, which is 16% higher than the minimum requirement by the government.

"The company will raise the wage higher should the minimum wage increase in the upcoming years," Tu said.

Medical equipment manufacturer Vikki Vina in Ho Chi Minh City will also raise its 1,500 workers’ salaries by VND200,000 each next year, a 5-6% hike. A new recruit will start at VND7.3 million a month.

The company’s board decided to approve the raise even though it has seen orders declining by 1,000 products each month.

It also gives each worker an average bonus of a two-month salary and a gift set worth VND600,000.

Nearly 45% of respondents in a survey by recruitment firm Navigos Search said they received a raise this year, against those who reported a decline of 11.5%.

Raises were in the range of 5-10%.

Nguyen Van Duc, union labor chairman of the Vietnam Singapore Industrial Park Binh Duong, said that many companies in the park would raise salaries to share the burden with workers as they seek to retain employees and wait for a recovery in demand.

Nguyen Xuan Son, an analyst at recruitment firm ManpowerGroup Vietnam, said that most companies had the resources to raise salaries, some of them from laying off a number of workers last year.

Raising wages is one of the best ways to retain workers, especially during difficult times, he added.

Factories raise wages amid increasing cost of living

Factories in HCMC and neighboring Binh Duong Province have raised workers’ wages to help them cope with the rising cost of living.

Companies pay same starting salary for new graduates from Vietnam and abroad

For the first time in many years, the starting salary of new graduates from Vietnamese universities and overseas universities is the same (about 10.6 million VND, or 443.5 USD, per month), according to the Talent-Mercer Total Remuneration Survey (TRS) 2022.

Loans offered to 68 business owners to pay for salary in production recovery and severance

(BGO) - The Bac Giang branch of Social Policy Bank has disbursed over 4.8 billion VND (210,986 USD) as the loan for four businesses to pay for salary in production recovery and severance to 1,049 labours in line with the Government’s Resolution No.68 on July 1, 2021 and PM’s Decision No.23 on July 7, 2021 about implementation of policies to support employers and employees affected by Covid-19 pandemic.

212 billion VND loan for salary in production recovery and severance

(BGO) – Implementing Government’s Resolution No.68 on July 1, 2021 and PM’s Decision No.23 on July 7, 2021 about implementation of policies to support employers and employees affected by Covid-19 pandemic, so far the Bac Giang branch of Social Policy Bank has disbursed nearly 212 billion VND (9.3 million USD) as the loan for 64 businesses.

Nearly 93 billion VND disbursed to pay for salary in suspension period and production recovery

(BGO) – Following Government’s Resolution No.68 on July 1, 2021 and PM’s Decision No.23 on July 7, 2021 about implementation of policies to support employer and employee in difficulties due to Covid-19 pandemic, the Bac Giang provincial branch of Social Policy Bank has to date disbursed nearly 93 billion VND (4 million USD) to 54 companies under bank loan.

Source: VnExpress