Throughout the first three quarters of 2023, Ho Chi Minh City in particular and the whole country in general witnessed significant changes in the labor market as numerous large enterprises cut staff, leading to job losses for workers. In Ho Chi Minh City, statistics for the first 10 months of 2023 show that the unemployment rate increased by 11% compared to the same period last year.
Many businesses have yet to finalize their Tet bonus plans for 2024.
The Ho Chi Minh City Department of Labor, War Invalids and Social Affairs assesses that the labor market will "warm up" towards the end of the year due to the strong increase in production demand to serve consumption during the Tet holiday. However, the labor and employment situation still faces many difficulties as many businesses have to adapt to maintain production operations.
Losing your job is more worrying than not receiving a Lunar New Year bonus.
Ms. Vo Thi Thanh Duyen (26 years old), who works at a logistics company in Phu Nhuan District, said that her company has mentioned giving a Tet (Lunar New Year) bonus for 2024, but has not yet announced the specific amount. "But with the difficult economic situation this year, any bonus is already a blessing," she said. Similarly, Ms. Tran Van Anh, an employee at a company specializing in selling travel accessories in Binh Thanh District, said: "Currently, the company is laying off a lot of staff, so we don't know what the year-end benefits will be like. However, the current trend is that companies are not holding year-end parties and are only giving small bonuses to employees to celebrate Tet."
Ms. Le Thi Thu Thuy, a benefits and payroll specialist at a service company in Thu Duc City, stated that her company doesn't typically use terms like "13th-month salary" or "Tet bonus." Instead, benefits are calculated based on employee performance.
"Throughout the year, the company evaluates employee performance every three months to reward them ( quarterly bonuses), ensuring that employees who don't work until the end of the year receive no bonus. At the end of the year, employees usually receive this bonus along with support from the union... Last year, each employee received 3 million VND from the union; 1.2 million VND for uniform allowance... Some will receive an 8% salary increase after the evaluation," Ms. Thuy said.
A quick survey of several workers in real estate companies revealed that they had "not heard anything about Tet bonuses." Many even stated that there would be no bonus because they hadn't sold much during the year, and employees were already lucky not to have their salaries cut or reduced.
Many workers are more afraid of losing their jobs than of not receiving their Tet bonuses. Ms. Anh Dao (45 years old), a garment worker at N. Company Limited (Tan Thoi Hiep Industrial Park, District 12), said that there have been layoffs over the past year, most recently in August when the company announced that hundreds of people would lose their jobs, including her. However, this plan has been postponed because there has been no consensus between the workers and the authorities.
"Last week, the workers were busy asking the company's HR and union about whether they would be providing support for Tet holiday bus tickets to return home so they could book tickets in advance. At that time, there was no answer. Recently, the management announced that they will organize 3 bus trips (the company will cover 70% of the cost, and the union will support the remaining 30%) to take more than 100 disadvantaged workers back to the central and northern provinces, scheduled to depart on the 27th day of the 12th lunar month (February 6, 2024)," Ms. Dao said, adding: "Currently, we don't know what the Tet bonus will be like. Last year, we received a bonus equivalent to one month's salary. Of course, I'm more worried about losing my job than not receiving the Tet bonus. But seeing that the workers are working overtime again this month, everyone hopes for a bonus to warm their hearts."
Unpredictable, unlike last year.
Ms. Nguyen Thi Thuy, Vice President of the Vietnam Textile and Garment Trade Union, said that according to current information, textile and garment companies are still trying to maintain production and most have not yet planned to increase their workforce at the end of the year. Regarding Tet bonuses, employers have not yet made a final decision, so there is no accurate information. Ms. Thuy assessed this as different from previous years. In previous years, businesses usually had longer-term plans for welfare policies and support for workers at the end of the year, about 3-6 months before the Lunar New Year. "Currently, businesses are trying to weigh their options carefully because if the bonus is lower, it could lead to a labor shortage, but if it is higher, businesses will also face difficulties," Ms. Thuy said.
Mr. Pham Xuan Hong, Chairman of the Ho Chi Minh City Textile, Garment, Embroidery and Knitting Association, also commented: "This year is the only year that's hard to predict. In previous years, we knew the trends beforehand, whether things would be favorable or difficult. But this year, based on our observations, some places say bonuses will be better, but many others say things will continue to be difficult."
Some businesses are expected to maintain the same Lunar New Year bonus levels for 2024 as last year. Mr. Luu Kim Hong, Chairman of the Trade Union of Nidec Vietnam Co., Ltd., informed that the company has not yet held a meeting on year-end welfare policies. However, he predicted that the bonus level will be the same as last year, at a rate of 1.1, meaning that for example, a salary of 10 million VND/month would result in a Tet bonus of 11 million VND. In addition, the company and the trade union will also coordinate to organize activities such as year-end parties, Tet gifts, and transportation for disadvantaged workers to return home for Tet...
Still facing many difficulties.
According to the Ho Chi Minh City Department of Labor, War Invalids and Social Affairs, the unit is planning to survey and request businesses to report on the labor situation and wages in 2023, as well as plans for Tet bonuses during the New Year and Lunar New Year holidays in 2024, allowances and support for employees (gifts, train/bus ticket support, etc.), Tet holiday leave, annual leave, and payment schedules for salaries and bonuses.
The Ho Chi Minh City Department of Labor, Invalids and Social Affairs assesses that the overall labor market still faces many difficulties, so it is not yet possible to predict policies; specific data is needed for analysis. Typically, businesses submit reports on salaries and bonuses close to the Lunar New Year. The department will closely monitor the labor situation in businesses to work with relevant agencies such as trade unions, management boards of export processing zones and high-tech zones, etc., to develop timely support plans. Simultaneously, businesses need to ensure full and timely payment according to schedule; avoiding any situations of unpaid salaries and bonuses.
"Tet (Lunar New Year) comes to all trade union members."
The Ho Chi Minh City Federation of Labor reports that due to the impact of the global and regional economic situation, the production and business activities of enterprises in Ho Chi Minh City are still facing difficulties due to the impact of production orders, especially enterprises in the footwear and garment industries. Some enterprises have had to negotiate the termination of contracts with workers; for example, in Binh Tan District, one company has had 9,284 workers lose their jobs since the beginning of the year.
From now until the end of the year, the Ho Chi Minh City Trade Union will focus on coordinating with relevant agencies to inspect and monitor employers' compliance with legal regulations on wages and bonuses during the Tet holiday; and promptly understand the concerns and aspirations of workers in order to address them in a timely manner.
In particular, the Ho Chi Minh City Federation of Labor recently issued a plan to care for union members and workers in Ho Chi Minh City during Tet (Lunar New Year) with the motto "Tet comes to all union members," which includes prioritizing care for workers who have lost their jobs, had their working hours reduced, or had their salaries cut.
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