Laws of Vietnam

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 23, 1994 Labor Code; the April 2, 2002 Law Amending and Supplementing a Number of Articles of the Labor Code; and the June 29, 2006 Law Amending and Supplementing a Number of Articles of the Labor Code;

Pursuant to the XIth National Assembly's Resolution No. 56/2006/NQ-QH11 of June 29, 2006, on the 2006-2010 five-year socio-economic development plan;

At the proposal of the Minister of Labor, War Invalids and Social Affairs,

DECREES:

Article 1.- To specify region-based minimum wage levels for payment to laborers doing the simplest jobs under normal working conditions at foreign-invested enterprises, foreign agencies or organizations, international organizations or foreigners in Vietnam (below collectively referred to as enterprises) to be applied from January 1, 2008, as follows:

1. VND 1,000,000/month for enterprises operating in urban districts of Hanoi and Ho Chi Minh cities.

2. VND 900,000/month for enterprises operating in rural districts of Hanoi and Ho Chi Minh cities; urban districts of Hai Phong city; Ha Long city of Quang Ninh province; Bien Hoa city, Long Khanh town, and Nhon Trach, Long Thanh, Vinh Cuu and Trang Bom rural districts of Dong Nai province; Thu Dau Mot town, and Thuan An, Di An, Ben Cat and Tan Uyen rural districts of Binh Duong province; and Vung Tau city of Ba Ria-Vung Tau province.

3. VND 800,000/month for enterprises operating in other localities.

1. The region-based minimum wage levels specified in Article 1 of this Decree serve as a basis for calculating wage levels in wage scales and tables, wage-based allowances and wage levels to be indicated in labor contracts, and for implementing other mechanisms formulated and promulgated by enterprises according to their competence prescribed by the labor law.

2. The minimum levels of wages paid to trained laborers (including those trained by enterprises themselves) must be at least 7% higher than the region-based minimum wage levels specified in Article 1 of this Decree.

3. Enterprises are encouraged to apply minimum wage levels higher than the region-based minimum wage levels specified in Article 1 of this Decree.

4. Based on the region-based minimum wage levels specified in Article 1 of this Decree, enterprises may adjust wages under labor contracts as appropriate.

1. The region-based minimum wage levels specified in Article 1 of this Decree may be adjusted depending on the economic growth rate, consumer price index and labor supply-demand in each period.

2. The Ministry of Labor, War Invalids and Social Affairs shall, after consulting the Vietnam General Labor Confederation, labor users' representatives and concerned ministries and branches, submit to the Government the adjustment of the region-based minimum wage levels specified in Article 1 of this Decree.

1. This Decree takes effect on January 1, 2008.

To annul the Government's Decree No. 03/2006/ND-CP of January 6, 2006, specifying minimum wage levels applicable to Vietnamese laborers working for foreign-invested enterprises, foreign agencies or organizations, international organizations or foreigners in Vietnam.

Article 5.- Ministers, heads of ministerial-level agencies, heads of government-attached agencies and presidents of provincial/municipal People's Committees shall implement this Decree.