Speaking to the press after the closed-door meeting of the National Wage Council, Nhac Phan Linh, Deputy Director of the Institute for Strategic Studies and the Labor and Trade Union Magazine (under the Vietnam General Confederation of Labor), said the two proposed increases were based on fluctuations in prices, minimum living standards, and businesses' payment capacity. The goal is to balance the interests of workers and employers amid ongoing economic challenges.

The Confederation also proposed implementing the wage hike from July 1, 2025, instead of January 1, 2026, as suggested by the employer representative.

This proposal is grounded in the broader economic context, national development goals, and ongoing surveys conducted by the labor union system.

Linh highlighted macroeconomic factors and the government's commitment to improving living conditions and social welfare as the foundation for this wage proposal.

Citing Vietnam’s goal of becoming a high-income developed country by 2045, Linh explained that average annual income must reach USD 15,000 per capita - up from the current USD 4,700. This requires yearly income growth of over USD 400 per person (equivalent to more than VND 10 million).

He said this national vision requires the Wage Council to adopt a new approach. “Of course, the minimum wage must still be calculated based on inflation indexes and commodity baskets, but we must also align with the political goals set by the Party and State to drive breakthrough change,” Linh emphasized.

Ngo Duy Hieu, Vice President of the Vietnam General Confederation of Labor and Vice Chairman of the National Wage Council, noted that while the council should have convened sooner, it deferred discussions due to continued challenges faced by businesses recovering from the Covid-19 pandemic.

“Both sides will continue negotiating the implementation date, but workers still hope for an earlier raise,” Hieu said.

Representing the business community, Hoang Quang Phong - Vice President of the Vietnam Chamber of Commerce and Industry (VCCI) and Vice Chairman of the Council - said negotiations are ongoing and a final consensus has yet to be reached.

Phong suggested a more moderate increase of 3-5%, which he believes would give businesses room to adapt while still allowing them to reward diligent employees and support the effective implementation of Resolution 57-NQ/TW on breakthroughs in science, technology, innovation, and digital transformation.

The current term of the National Wage Council includes 17 members. Chaired by Deputy Minister of Home Affairs Nguyen Manh Khuong, the council also includes three Vice Chairmen: Ngo Duy Hieu (Vietnam General Confederation of Labor), Hoang Quang Phong (VCCI), and Dinh Hong Thai (Vietnam Cooperative Alliance). Other members include four representatives from the Ministry of Home Affairs, four from the General Confederation, three from employer organizations, and two independent experts in labor, wages, and socio-economic policy.

Vu Diep