Vietnam plans to raise its minimum wage by 6 per cent from July to help workers weather the impact of the COVID-19 pandemic. The hike would be the first in the country in two years. A government statement said that under the plan the minimum monthly wage would be raised to between 3.25 million dong and 4.68 million dong ($142.00-$204.47).

“A proportion of laborers are facing difficulties due to the pandemic, and therefore an increase in the minimum salary at this time is needed to help them stabilize their life and stay with their employers,” head of Vietnam General Confederation of Labour, Ngo Duy Hieu, said in the statement.

The Vietnam Chamber of Commerce and Industry, which represents businesses in the country, said firms would try to increase their productivity to help fund the wage hike, according to the statement. Vietnam, a key labour-intensive manufacturing hub for products such as garment and footwear, reported gross domestic product growth of 5.03% in the first quarter, beating the 4.72% expansion recorded in the first quarter last year but down from 5.22% in the fourth quarter


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