The salaries of Vietnamese workers are among the lowest of all Southeast Asian countries, according to the Ministry of Labour, Invalids and Social Affairs (MoLISA).

Workers at a wood factory

The information was announced at the national conference on “Vietnam wage policy in the context of a market economy and economic integration” organized in Hanoi on 25-26 November.   

Co-hosted by the Ministry of Labour, Invalids and Social Affairs and the International Labour Organization (ILO), the event emphasized the necessity of a good balance between promoting enterprise development and providing workers with a fair share of enterprise productivity gains. 

The average monthly wage in Vietnam is estimated at VND3.8 million (USD181). One reason for the low pay, according to Nicola Connolly, head of the European Chamber of Commerce in Vietnam, is that Vietnamese workers lack "soft skills".

She said, "They have the degrees and theories but lack some skills for the jobs, so we often need to train them again." She suggested changes in curriculum and introducing more technology into schools.

Deputy Minister of Labour, Invalids and Social Affairs, Pham Minh Huan acknowledged the problem. As of the second quarter, Vietnam had 53.7 million workers, with just under 50% skilled.

However, Huan said that another reason Vietnamese workers are paid less is that companies simply take advantage of the policies in the country. When the government sets a minimum wage, many firms see it as a standard.

Le Dinh Quang, from the Vietnam General Confederation of Labour, said the practice of collective bargaining has not caught on in Vietnam. Most agreements do not deal with salaries in detail. He said, "We've made a survey on collective agreements at 10 wood workshops in Binh Duong Province and found numerous of violations."

According to the International Labour Organization, in 2013, workers in agriculture, forestry and fisheries had lowest salary, VND2.63 million per month. Workers in the business, banking and insurance sectors had highest; VND7.23 million per month.