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Hanoi criticizes income disparity
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By ELIZABETH PISANI
534 words
27 March 1997
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Asia Times
English
(c) 1997 Chamber World Network International Ltd

Vietnamese officials are complaining that foreign workers earn far more than their local counterparts, but their pleas for more equal treatment are falling on deaf ears.

President of the Confederation of Vietnamese Workers Nguyen Van Tu was quoted by local newspapers on Monday as saying he supported local workers' demands for equal pay with foreign workers at joint venture companies.

At the same time, he urged Vietnamese employees to work as efficiently as their foreign counterparts.

Our point exactly, said foreign managers. "You have to compare apples with apples," commented one financial services joint venture manager. "There is no wage discrimination on the basis of nationality, only on the basis of ability."

Having fought foreign domination for a significant part of this century, Vietnam is extremely sensitive about its economic sovereignty.

A foreign senior manager commented: "You can be sure that if there were a Vietnamese citizen qualified to do my job, they would be doing it instead of me." His boss, a Vietnamese woman, receives a higher salary than he does.

Most of the work force are ill-prepared for white-collar jobs which command the highest salaries. Until just a few years ago, Vietnamese considered to be the country's best and brightest students were sent to the Soviet Union for training. But the education they received has not equipped them to take on jobs in banking.

In fact, foreign managers say, the scarcity of adequately-trained Vietnamese workers has sent salaries for the best-educated rocketing, especially in white-collar industries. Foreign banks and accountancy companies scramble to keep good staff, frequently losing them to competing firms willing to pay just a little more.

"There are six major international accountants here - there is a market for skilled Vietnamese accountants and they know it. I've seen people change companies for the difference of a few dollars," said one accountant.

The official Vietnam News on Monday cited a recent Ministry of Labor, War Invalids and Social Affairs report detailing difference in wage levels. One example given was a hotel which pays its foreign general director US$3,500 a month in salary and US$3,000 in housing allowance. His Vietnamese deputy earns US$800 a month.

Accountants said such figures could be misleading. While officials said Vietnamese nationals were not paid enough, the government imposes stiff taxes on Vietnamese: 90 percent on anything over US$1,180 a month. As a result, many people under-declare their incomes.

"I know (Vietnamese) people on five and six thousand dollars a month," said one accountant. "But if they are smart enough to be earning that, they are certainly smart enough not to declare it." Such salaries remain unusual, according to official figures.

The average Vietnamese citizen still earns less than US$300 a year.

Some foreigners point out that discrepancies in pay are in any case not unfair in a country which still charges foreigners higher prices for most services.

Vietnamese nationals pay US$130 for a return flight from Hanoi to Ho Chi Minh City. A foreigner would be charged US$200 more.

Copyright 1996 Asia Times.

(c) 1997 Chamber World Network International Ltd.

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