Vietnamese was paid by half of Chinese in Japan firms and the reason

Vietnamese workers earned $4,025 on the average in 2016. This data was harvested from those whom worked in top Japanese firms by JETRO’s survey (Japan External Trade Organization)


Vietnamese received earnings 50% less than Chinese whom are paid by Japanese firms which have factories in China

Responding to this event, Atsusuke Kawada – Spokesperson of JETRO said that Vietnam still stays in cheap labor market and the salary for workers is the clear mark for that. This comes as a strong edge to attract investors from Japan and the world.


On the other hand, many Vietnamese experts think low labor costs are not-so-good.

Nguyen Dinh Cung – Director of CIEM said that productivity of workforces mostly determined the monthly earnings because the more value workers bring to the company, the likely employer pays higher
According to ILO’s research, labor productivity was founded on the value that workers made in real time measurements, for instances, workers made a product in one hour
From recent statistics, ILO ranked Vietnam in the lowest productivity group of Asia Pacific, only higher than Laos and Cambodia

Mrs Pham Chi Lam – Economic specialist stated the elements that affected the productivity at this condition are: vocational training, planning and forecasting labor market

According to her: “I believed that not all the faults pour on Vietnamese workers, their virtue are laborious and creativity, they held many first prizes in skill contest for SEA regional workers, besides the IQ of Vietnamese is fairly high, only behind Singaporeans. So why is the productivity lower than peers?”

Many Japanese firms invested and built factories in Vietnam, which created various jobs for local workers but they only assemble equipment, the part that earns smallest profits in the value chain.
Vu Thanh Tu Anh – Director of Fullbright Economics Teaching Program said that although many top-ranking corps came to Vietnam for many years but the country’s still stay at the lowest point of the “smile curve”

He added that: “If foreign firms in Vietnam take over the simple jobs and do the assembly part, Vietnam workers earn higher income in value chains”


On the February 14th 2016, JETRO releases a statistics which showed that Vietnamese managers in manufacturing firms in Japan have salary around $14,629 in 2016

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