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Minimum Wage adjustment (increase) spooks many enterprises

Pham Minh Huan, VM of MoLISAVIR, Aug 27 – Sep 2, 2012. While some enterprises are unhappy about the minimum wage hike proposal, Deputy Minister of Labour, Invalids and Social Affairs Pham Minh Huan says his ministry (MoLISA) is determined to raise salaries to improve workers’ living standards.

Enterprises said raising salaries now, under MoLISA’s increased minimum wage proposal to take effect from January 1, 2013, will make them go bankrupt. Is that true?

“Raising salaries as planned will mean by 2015, the minimum wage will meet the employees’ minimum living standards. Currently, the minimum wage just meets about 60-65 per cent of a need of the minimum living standards.

“We understand enterprises’ difficulties and there are two proposed options to increase minimum wages. The lower option aims to share difficulties and ease burdens with businesses in the context of crisis. The proposed hike was calculated based on consumer price index (CPI), wage and payment levels, as well as enterprises’ financial abilities.”

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Many FIEs face closure

Jun 18, 2012. Thousands of foreign-invested enterprises are in jeopardy because of missing a crucial investment certification re-registration deadline.

The proposal was sent in the context that there are 784 foreign-invested enterprises (FIEs) in the city missed the re-registration deadline on July 1, 2011 and now face having to stop operating once their investment licences expire. Some 27 FIEs must stop operating in 2012 and 174 others will share the problem in 2013 and 2014.

According to the municipal people’s committee, some typical cases in point are Taiwan-based Saigon Joubo Textile Co. Ltd, Sweden-based FKS Vietnam and Australian-backed RMIT University Vietnam. Le Manh Ha, vice chairman of the committee, said this was a big issue because most FIEs wanted to continue doing business in Vietnam.

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Vietnam rejects US push on state firms in trade talks

Oct 28 (Reuters) – Vietnam on Friday rejected a U.S. proposal to establish new trade rules for state-owned companies, which Washington says often benefit from unfair subsidies and protections.

The United States floated its plan in negotiations this week on the nine-country Trans-Pacific Partnership, or TPP, a free-trade zone that would stretch across much of the Pacific Rim.

Despite the disagreement, President Barack Obama and leaders of the eight other TPP countries are expected to announce next month in Hawaii they are committed to finishing the talks and have the “broad outlines” of a final deal. It could take as much as another year to conclude the ambitious negotiations.

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