In Vietnam, adjustment of minimum wage always leads to debates about possible negative impacts of minimum wages on low-wage workers as well as firm performance. Discussions among tripartite partners concerning minimum wages consistently revolve around concerns regarding their adverse effects on firm performance and whether businesses can both afford and adhere to them. Several studies have explored the impact of minimum wages on employment in Vietnam. However, most of these studies rely on pre-COVID-19 pandemic data, which do not capture the recent changes in Vietnam’s economy and labor market dynamics. It is necessary to examine the impact of the minimum wage on the labor market and firm performance using more updated data.
This research aims to gauge the suitability of current minimum wage levels in the context of Vietnam’s economic and social progress, through evaluation of impact on workers and firms.
Main tasks:
- Review literature on minimum wage in developing countries in general and in Vietnam in particular
- Develop research framework
- Conduct quantitative analysis of secondary data
- Develop qualitative tools
- Conduct qualitative interviews with firm executive representatives, union leaders, and workers
- Write the final report
Photo source: Công nhân Bình Dương hối hả đến nhà máy sản xuất ngày đầu năm mới 2022 (laodong.vn)
