Expert: The minimum wage only causes the Vietnamese to lose more jobs

According to the Institute for Economic and Policy Research (VEPR), Vietnam currently has 50% of the working population but can not sign official contracts, the minimum wage policy is unsatisfactory and can not support more than 50% Unemployed employees of the minimum wage provision.

Workers at industrial plants have high productivity but not increased. (Photo by Nguyen Tuyen)
“Do we have to ask the non-living wage contractor to live up to the minimum wage?” I suppose, up to 50% more is not enough to live on. very much, “said Tuyen.

Former Commerce Minister said: Not every country has a minimum wage like Vietnam and the calculation as Vietnam. If Vietnam pays minimum wage to the institution as a social protection instrument, then we will have to build a better welfare fund. Then maybe the labor market will be different, paying the right people for the better. This should be considered, comprehensive consideration.

About the minimum wage increase is in tandem with labor productivity growth, economist Pham Chi Lan said: The message of Vietnam Report 2035, macroeconomists have put forth four concerns. The largest for Vietnam in the long term, where concern is No. 1 low labor productivity and decline.

“Labor productivity is the number one issue in the Vietnamese economy.” We have to emphasize that labor productivity and wages must have a close relationship, increasing wages to serve labor productivity growth, but can not be separated, “said Lan. pot.

Ms. Lan analyzed: Previously, we expect high labor productivity in Vietnam, which is before 2010. However, the nature is mainly due to the shift of labor from agriculture to industry and services. This has led to higher wages, higher labor value of the sector than agriculture, so we increase labor productivity mechanically.

However, recent labor productivity in industry and services has been reduced, which is unlikely to increase, as evidenced by our lack of qualifications. If salary increases do not go with productivity, it will obstruct labor productivity. In many years of implementation of the minimum wage policy, anyone questioned whether increased wages would increase labor productivity.

I am obsessed with rising salaries but businesses are cutting back on jobs, or bankruptcy So, the minimum wage increase, our current average wage increase only thinks of increasing wages for current workers. There are millions of people who are still waiting to get a job, no worries about the number of people without jobs, and the jobs of the Vietnamese in the future will be a very painful problem for Vietnam, Not based on labor productivity will be no small challenge, “Lan said.