Proposal to postpone the rise in the minimum wage until 2023

DNHN - The groups urged the Prime Minister to explore and consider alternatives to support businesses, including deferring the implementation of the regional minimum wage hike scheduled to take effect on January 1, 2023, in order to create more favourable conditions for firms to prepare.

Eight associations include: Japan Business Association in Vietnam, Vietnam Association of Seafood Exporters and Producers, Vietnam Textile and Garment Association, Vietnam Electronic Business Association, City Food Association Ho Chi Minh City, Vietnam Wood and Forest Products Association, Vietnam Plastics Association, and Vietnam Motorcycle Manufacturers Association have sent an official letter CHH/14042022 to the Prime Minister on a proposal to increase wages. minimum region from January 1, 2023. 

According to the official dispatch, on April 12, the National Wage Council met and finalized the proposal to increase the regional minimum wage from July 1, 2022 at 6%. However, the above associations realize that the time to apply the regional minimum wage increase from July 1, 2022 will cause businesses to face many difficulties.  

Therefore, the associations urged the Prime Minister to consider and consider solutions to support businesses, including deferring the implementation of the regional minimum wage increase scheduled to take effect on January 1, 2023, in order to create favourable conditions for businesses to prepare adequately. 

The eight associations explained their proposal to delay the regional minimum wage adjustment until 2023 by stating that between 2020 and 2021, the Covid-19 epidemic spread rapidly and unpredictable developments had a significant impact on all aspects of business, making it extremely difficult and exhausting. 

Moreover, at present, the situation of employees as F0 continues to occur, businesses are still struggling to cope with that situation and consequently the post-Covid situation, seriously affecting the productivity of enterprises. 

On the other hand, a fresh wave with a new variation of the Covid-19 outbreak may strike enterprises in the near future. The average consumer price index (CPI) climbed by 1.84 percent in 2021 compared to 2020, which had a minimal impact on employees' lives, and the state is also attempting to contain inflation.

The official letter noted:"Enterprises will be unable to adjust their business strategies and production plans in time due to the close proximity of the deadline, as all of our production, financial, and order choices are based on the end of last year". 

Currently, businesses have all implemented salary increases in early 2021 and 2022. At the same time, contracts with partners including commodity prices... have been closed and signed with partners since the beginning of the year, so they cannot increase sale price of goods. 

The associations also believe that a salary increase in the middle of the year like this July will push businesses into an extremely difficult situation, many businesses will have to cancel contracts because of unwarranted costs, affecting their work. employment and income of workers and the survival of enterprises. 

Numerous organisations face the prospect of having to lay off employees, cease or limit operations, or even go bankrupt due to an inability to pay labour costs. This could result in the loss of tens of thousands of jobs. 

 PV