Vietnam Will Hike Minimum Wage To 540,000 Dong In 2008

October 24, 2007 12:30 a.m. EST

Ho Chi Minh City, Vietnam (AHN) - Vietnam's minimum wage earners will get a 90,000 dong ($5.60) monthly salary increase beginning January 2008.

The adjustment to 540,000 dong ($33.65) from 450,000 dong ($28.05) monthly wage, represents a 20 percent to 38 percent rate increase.

The announcement is the latest in a series of minimum wage hikes given to labor over the past four years. The robust Vietnam economy had a 7 percent annual gross domestic product growth rate, the second-fastest growing economy in the world.

Foreign direct investments had increased three times over, making it possible for the state to periodically legislate salary hikes.

Vietnam has a two pronged approach to minimum wages. Workers employed by foreign investment joint ventures enjoy monthly salaries ranging from 710,000 ($44.25) to 870,000 dong ($54.22), while domestic firms pay 450,000 dong.