Vietnam’s high labour costs putting off investors
Labour costs in Vietnam are among the highest in Southeast Asian countries, the World Bank has said.
In a report on enterprise competitiveness, the World Bank said that wage costs are now about US$2,739 per worker, for the median Vietnamese firm.
This is about double that of the equivalent figures in Laos, Myanmar, and Malaysia. It is also about 30% to 45% higher than in Cambodia, Thailand, and the Philippines.
The high labour cost is now becoming a top concern of foreign investors.
For instance, a report from the Japan External Trade Organisation (JETRO) considers it a key risk and challenge to investing in Vietnam.
Takimoto Koji, chief representative of JETRO in Ho Chi Minh City, said that high labour costs were in the top three of major concerns that Japanese companies have towards investing in Vietnam.