Vietnamese workers earn half as much as Thailand

Vietnamese workers earn half as much as Thailand
Vietnamese workers earn half as much as Thailand
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Compared with Chinese and Thai workers, the monthly income of Vietnamese people is half and just higher than workers in Laos, Cambodia and Myanmar, according to JICA.

From September 2021 to May 2022, the Japan International Cooperation Agency (JICA) surveyed Japanese enterprises investing in Southeast Asia and China and India to assess the quality correlation. domestic human resources as well as the level of labor income in each country.

According to the survey results, Chinese workers working in Japanese companies enjoy the best salary with 493 USD/month (about 11.5 million VND), followed by Thailand with 446 USD (10 USD). 4 million dong).

Vietnamese workers have an income just above Cambodia, Laos, Myanmar and equivalent to the Philippines at 236 USD (5.5 million VND). This figure is far behind and only half that of China and Thailand.

Explaining this, JICA said that under the impact of US-China trade tensions, Japanese investors tend to choose Vietnam as a production location. However, the income level for Vietnamese workers has not improved because they mainly focus on industries with low added value. For industries requiring high qualifications, Chinese and Thai workers still dominate compared to Vietnam.

Specifically, in the 5 industries that Japanese enterprises choose to invest the most in Asian countries, Vietnam only dominates in retail and mass production. Meanwhile, Japanese enterprises tend to expand their investment in China in areas such as research and manufacturing; manufacturing high value products and logistics. These are all areas that bring added value and improve income for employees.

The 2019 survey of Japanese businesses investing in Vietnam also showed that 40.9% of businesses chose to invest in Vietnam due to low labor costs, young and abundant labor market. However, less than 20% of companies appreciate Vietnamese human resources.

Employees work at a Japanese company assembling electronic components. Image: vinanippon

In order to increase the competitiveness of human resources, JICA said that it will coordinate with Vietnamese agencies to strengthen the supply of high-quality human resources through higher and vocational education. This agency recommends a number of priority industries to enhance quality human resources such as: Mechanical engineering and supporting industries; information technology and digitization; environment and green technology; health care; civil construction and gradually reduce human investment in agriculture.

For provinces and cities with large FDI capital from Japan, JICA makes recommendations for each locality. For example, in Ho Chi Minh City, JICA recommends promoting the internationalization of higher education programs, focusing on the following industries: Health – human resources for care, nursing. Hai Phong focuses on mechanical engineering – supporting industry. Da Nang builds high-quality human resources for smart city development, green energy, and renewable energy.

Can Tho strengthens high-quality human resources for green development and climate change response in agriculture and fisheries. Dong Nai focuses on developing human resources for the aviation industry, associated with the formation of Long Thanh International Airport.

Son Ha

The article is in Vietnamese

Tags: Vietnamese workers earn Thailand

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