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Rising investment pushes up salaries (24/10)
06/08/2010 - 87 Lượt xem
Based on figures Navigos, Vietnam’s leading human resource solutions provider, and the Ministry of Planning and Investment are reporting, the FDI growth rate so far this year is over 38 percent from last year.
Through September, FDI stood at US$9.6 billion, 8.3 percent higher than original estimates.
There is currently some $50 billion worth of investment applications awaiting approval from the ministry.
Winnie Lam, director of Navigos, said, “New companies setting up in Vietnam cause an added pressure because most of them will target hiring people from the same sector, offering them higher pay.” Thus, the competition for labor among new companies serves to hike up individual salaries.
Meanwhile, as FDI grows the unemployment rate has decreased.
The 2007 unemployment rate is currently 4.4 percent, down from last year’s rate of 4.8 percent.
The low jobless rate is contributing to driving up salaries, as there are fewer candidates with more job options.
Inflation has also contributed to the rise in salaries.
The first seven months of 2007 saw an 8.3 percent increase in the inflation rate.
That rate is forecasted to rise by the end of the year.
The report went on to say that while all sectors of the market are affected by these trends, the financial market is among the sectors hardest hit due to a sudden surge of new finance companies surfacing in Vietnam.
Lam advised that, “...[Employers] need to be aware of what is happening in their sector and the market in general so that they can properly respond and adjust their compensation policies where needed.”
Source: Thanh Nien.
