Employment conditions for Danang Vietnam business investment opportunities

EMPLOYMENT CONDITIONS

VIETNAM'S WORKFORCE PROFILE

Vietnam is projected to have a population of 83 million by the year ended 2006. Vietnam's well-educated and competitive workforce is one of its greatest assets.

The tradition of learning and reverence for authority is cited by foreign investors as one of the most attractive aspects of Vietnam's investment environment.

The workforce was estimated to be 52 million in year 2005 and is growing at a rate of 3.5% annually.

Vietnam has a literacy rate of 95%. Even so, there appears to be an inequilibrium in training at the moment as the shortage of trained workers is a problem faced by many investors. Recognising this, the state is making the necessary steps to increase by two fold the number of trained workers entering the workforce by the year 2003. Education and training takes up 15% of the national budget.

WORKING HOURS

In most cases, working hours are 7:30 am to 4:30 pm, with an hour's lunch break from 12:00 pm to 1:00 pm. Normal working hours are limited by law not to exceed 8 hours a day and 48 hours a week. Overtime up to 200 hours a year is allowed.

All workers are entitled to 12 days paid leave a year not inclusive of 8 days for official holidays. Workers are entitled to an extra day's leave after five years of service.

WAGES & BENEFITS
Vietnamese and foreign workers performing the same job should be paid equal salaries. Salary payment must be made in Vietnamese currency.

RECRUITMENT
Recruitment of required personnel can be made through a local labour office or local labour supply company or investment service company. Advertisements to recruit workers from other regions are allowed should the above avenues prove unfruitful.

MINIMUM WAGE
Minimum wage for unskilled labour in the City and Province is VND 710,000 per month. An additional payment of 15% on social insurance and 2% for medical benefits is paid by the employer.

Last Updated 1st February 2006