Little Tet cheer in 2011

Deputy minister of Labour, Invalids and Social Affairs (MoLISA) Pham Minh Huan said the Lunar New Year  reward in 2010 would increase slightly against the previous year's level though the country’s economy saw a fast recovery and most businesses reported improved performances. He noted that the reward level might vary greatly among business fields as well as localities, especially in big cities such as Hanoi, Ho Chi Minh City and Danang.

In the labour export field, Chau Hung Trading Joint Stock Company deputy general director Tong Thanh Tung said as 2010 was not a good year for labour exports, keeping the Tet reward level as previous year’s levels was a big endeavour of the company’s management.

In the textile and garment field, many businesses posted upbeat revenue figures amid an escalating Vietnam dong-US dollar exchange rate which have driven up input material expenses. Some big businesses such as the 19/5 Textile Company and Chien Thang Garment Company intended to offer their employees two-month salaries of around VND6-8 million ($300-$400) each as Tet bonus against 2009’s level of over VND2 million ($100) on average.

In terms of localities, over 800 Ho Chi Minh City-based businesses had sent their wage and Tet bonus reports to the city’s Department of Labour, Invalids and Social Affairs. Initial figures showed that the top reward until present was around VND200 million ($10,000) from the non-state sector while corresponding figure in the state sector was VND30 million ($1,500). The reward fluctuated between VND1.6-8 million each ($80-400) in the foreign invested sector.

In Danang, according to reports from 130 businesses the ceiling and floor reward levels in the state sector were VND30 million ($1,500) and VND1 million ($50), while corresponding figures in the private sector were VND82 million ($4,100) and VND500,000 ($25). The biggest gap in Tet bonus was seen in businesses operating in the foreign-invested sector’s industrial production and construction fields with corresponding figures of VND244 million ($12,200) and VND600,000 ($30).

Head of MoLISA’s Institute of Labour Science and Social Affairs Nguyen Thi Lan Huong suggested businesses share profits with the employees in an appropriate manner to keep their foot as currently companies are frequently threatened by labour turnover danger on the back of low wages.

“Businesses might lose their labourers after Tet holidays if they offered them too low Tet rewards compared to company profits and by that time they would have to spend a huge sum on new recruitment and training,” she said.