Vietnam’s apparel enterprises are resisting any idea of a wage increase. They say any fresh wage increase would put pressure on them and that textile and garment firms cannot expand investment and production if regional minimum wages are adjusted up. They say a wage hike at this point would lead to massive layoffs as textile and garment firms are already struggling with increasingly high input costs.

The country’s export sector is struggling with tough market conditions, especially the lack of orders, which did not happen last year. Last year, the government approved a minimum wage hike of 12.4 per cent from January 1 this year.

Only eight per cent of workers earn incomes that cover their demands while also allowing them to save some money; about 20 per cent of workers have incomes that do not meet their living standards, and the rest are struggling to make ends meet.

Despite 54,500 new enterprises being registered in the first six months of this year, they met a lot of difficulties in their operations. The number of enterprises that dissolved or temporarily halted their operations reached 36,626. These enterprises account for two-thirds of the total number of registered ones, marking an increase of 17 per cent compared with the same period last year.