Decree No. 107/2010/ND-CP dated October 29, 2010 of the Government stipulating region-based minimum wage levels for Vietnamese laborers working for foreign-invested enterprises, foreign agencies and organizations and international organizations and for foreigners in Vietnam

DECREE

STIPULATING REGION-BASED MINIMUM WAGE LEVELS FOR VIETNAMESE LABORERS WORKING FOR FOREIGN-INVESTED ENTERPRISES, FOREIGN AGENCIES AND ORGANIZATIONS AND INTERNATIONAL ORGANIZATIONS AND FOR FOREIGNERS IN VIETNAM

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 23, 1994 Labor Code; the April 2, 2002 Law Amending and Supplementing a Number of Articles of the Labor Code; and the June 29, 2006 Law Amending and Supplementing a Number of Articles of the Labor Code;

Pursuant to the November 29, 2005 Law on Enterprises;

At the proposal of the Minister of Labor, War Invalids and Social Affairs,

DECREES:

Article 1.Region-based minimum wage levels

Region-based minimum wage levels payable to Vietnamese laborers doing simplest jobs under normal working conditions at foreign-invested enterprises, foreign agencies and organizations and international organizations and to foreigners in Vietnam (below collectively referred to as enterprises) are as follows:

1. The level of VND 1,550,000/month applies to enterprises operating in localities of region I.

2. The level of VND 1,350,000/month applies to enterprises operating in localities of region II.

3. The level of VND 1,170,000/month applies to enterprises operating in localities of region III.

4. The level of VND 1,100.000/month applies to enterprises operating in localities of region IV.

Article 2.Localities applying region-based minimum wage levels are specified in Appendices I and II to this Decree.

Article 3.Application of region-based minimum wage levels

1. The region-based minimum wage levels specified in Article 1 of this Decree shall be used as a basis for calculating wage levels in wage scales and tables and all kinds of wage allowances, and wage levels indicated in labor contracts and for implementing other policies adopted and issued by enterprises according to their competence prescribed by the labor law.

2. The lowest wage level payable to laborers who have received vocational training (including laborers trained by enterprises themselves) must be at least 7% higher than the region-based minimum wage levels specified in Article 1 of this Decree.

3. Enterprises are encouraged to apply a minimum wage level higher than the region-based minimum wage levels specified in Article 1 of this Decree.

4. On the basis of the region-based minimum wage levels specified in Article 1 of this Decree, enterprises shall adjust salaries in labor contracts accordingly.

Article 4.Organization of implementation

The Ministry of Labor, War Invalids and Social Affairs shall assume the prime responsibility for, and coordinate with the Vietnam General Confederation of Labor, Vietnam Chamber of Commerce and Industry, concerned ministries and branches and provincial-level People s Committees in popularizing the region-based minimum wage levels stipulated in this Decree among laborers and employers and inspect and supervise the application of these minimum wage levels.

Article 5.Effect

1. The region-based minimum wage levels specified in Article 1 of this Decree are applied as follows:

a/ Localities specified in Appendix I to this Decree shall apply them from January 1, 2011.

b/ Localities that are changed from one region to another specified in Appendix II to this Decree shall apply them from July 1, 2011.

2. To annul the Government s Decree No. 98/2009/ND-CP of October 30, 2009, stipulating region-based minimum wage levels for Vietnamese laborers working for foreign-invested enterprises, foreign agencies and organizations and international organizations and for foreigners in Vietnam.

3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People s Committees shall implement this Decree.

APPENDIX I

LIST OF LOCALITIES APPLYING REGION-BASED MINIMUM WAGE LEVELS FROM JANUARY 1, 2011
(To the Government s Decree No. 107/2010/ ND-CP of October 29, 2010)

1. Region I, covering the following localities:

- Urban districts of Hanoi;

- Urban districts of Ho Chi Minh City.

2. Region II, covering the following localities:

- Gia Lam, Dong Anh, Soc Son, Thanh Tri, Tu Liem, Thuong Tin, Hoai Duc, Dan Phuong, Thach That, Quoc Oai, Me Linh and Chuong My districts and Son Tay town of Hanoi;

- Urban districts and Thuy Nguyen, An Duong, An Lao and Vinh Bao rural districts of Hai Phong city;

- Hai Duong city of Hai Duong province;

- Vinh Yen city, Phuc Yen town and Binh Xuyen rural district of Vinh Phuc province;

- Bac Ninh city, Tu Son town, and Que Vo, Tien Du and Yen Phong rural districts of Bac Ninh province;

- Ha Long and Mong Cai cities of Quang Ninh province;

- Thai Nguyen city of Thai Nguyen province;

- Viet Tri city of Phu Tho province;

- Ninh Binh city of Ninh Binh province;

- Hue city of Thua Thien Hue province;

- Urban and rural districts of Da Nang city;

- Nha Trang city and Cam Ranh town of Khanh Hoa province;

- Da Lat and Bao Loc cities of Lam Dong province;

- Phan Thiet city of Binh Thuan province;

- Rural districts of Ho Chi Minh City;

- Bien Hoa city, Long Khanh town and Nhon Trach, Long Thanh, Vinh Cuu and Trang Bom rural districts of Dong Nai province;

- Thu Dau Mot town and Thuan An, Di An. Ben Cat and Tan Uyen rural districts of Binh Duong province;

- Vung Tau city, Ba Ria town and Tan Thanh rural district of Ba Ria-Vung Tau province;

- My Tho city of Tien Giang province;

- Urban districts of Can Tho city;

- Rach Gia city of Kien Giang province;

- Long Xuyen city of An Giang province;

- Ca Mau city of Ca Mau province.

3. Region III, covering the following localities:

- Remaining provincial cities (except those of region II);

- Remaining rural districts of Hanoi;

- Chi Linh town and Cam Giang, Nam Sach, Kim Thanh, Kinh Mon, Gia Loc, Binh Giang and Tu Ky rural districts of Hai Duong province;

- Yen Lac, Vinh Tuong, Tarn Dao, Tarn Duong, Lap Thach and Song Lo rural districts of Vinh Phuc province;

- Phu Ninh and Lam Thao rural districts of Phu Tho province;

- Gia Binh. Thuan Thanh and Luong Tai rural districts of Bac Ninh province;

- Viet Yen, Yen Dung and Hiep Hoa rural districts of Bac Giang province;

- Uong Bi and Cam Pha towns and Hoanh Bo and Dong Trieu rural districts of Quang Ninh province;

- My Hao, Van Lam, Van Giang and Yen My rural districts of Hung Yen province;

- Song Cong town and Pho Yen, Phu Binh, Phu Luong, Dong Hy and Dai Tu rural districts of Thai Nguyen province;

- My Loc rural district of Nam Dinh province;

- Duy Tien and Kim Bang rural districts of Ha Nam province;

- Tam Diep town and Gia Vien, Yen Khanh and Hoa Lu rural districts of Ninh Binh province;

- Bim Son town and Tinh Gia rural district of Thanh Hoa province;

- Ky An rural district of Ha Tinh province;

- Huong Thuy town and Huong Tra, Phu Loc, Phong Dien, Quang Dien and Phu Vang rural districts of Thua Thien Hue province;

- Dien Ban, Dai Loc, Duy Xuyen and Nui Thanh rural districts of Quang Nam province;

- Binh Son and Son Tinh rural districts of Quang Ngai province;

- Song Cau town of Phu Yen province;

- Cam Lam, Dien Khanh, Ninh Hoa and Van Ninh rural districts of Khanh Hoa province;

- Ninh Hai and Thuan Bac of Ninh Thuan province;

- Due Trong and Di Linh rural districts of Lam Dong province;

- La Gi town and Ham Thuan Bac and Ham Thuan Nam rural districts of Binh Thuan province;

- Trang Bang and Go Dau rural districts of Tay Ninh province;

- Dong Xoai, Phuoc Long and Binh Long towns and Chon Thanh and Dong Phu rural districts of Binh Phuoc province;

- Remaining rural districts of Dong Nai province;

- Remaining rural districts of Binh Duong province;

- Long Dien, Dat Do, Xuyen Moc and Chau Due rural districts and Con Dao island district of Ba Ria-Vung Tau province;

- Thu Thua, Due Hoa, Ben Luc, Can Duoc and Can Giuoc rural districts of Long An province;

- Go Cong town and Chau Thanh rural district of Tien Giang province;

- Chau Thanh rural district of Ben Tre province;

- Binh Minh and Long Ho rural districts of Vinh Long province;

- Rural districts of Can Tho city;

- Ha Tien town and Kien Luong, Phu Quoc, Kien Hai, Giang Thanh and Chau Thanh rural districts of Kien Giang province;

- Chau Doc and Tan Chau towns of An Giang province;

- Nga Bay town and Chau Thanh and Chau Thanh A rural districts of Hau Giang province;

- Nam Can, Cai Nuoc, U Minh and Tran Van Thoi rural districts of Ca Mau province.

4. Region TV, covering the remaining localities.-

APPENDIX II

LIST OF LOCALITIES CHANGED FROM ONE REGION TO ANOTHER APPLYING REGION-BASED MINIMUM WAGE LEVELS FROM JULY 1, 2011
(To the Government s Decree No. 107/2010/ ND-CP of October 29, 2010)

1. Region I, covering the following localities:

- Cu Chi, Hoc Mon, Binh Chanh and Nfra Be rural districts of Ho Chi Minh City;

- Bien Hoa city and Nhon Trach, Long Thanh, Vinh Cuu and Trang Bom of Dong Nai province;

- Thu Dau Mot town and Thuan An, Di An, Ben Cat and Tan Uyen rural districts of Binh Duong province;

- VungTau city of Ba Ria-Vung Tau province.

2. Region II, covering the following localities:

- Dinh Quan and Xuan Loc rural districts of Dong Nai province;

- Phu Giao and Dau Tieng rural districts of Binh Duong province;

- Tan An city and Due Hoa, Ben Luc, Can Duoc and Can Giuoc of Long An province.

3. Region III, covering Thu Thua, Due Hue, Chau Thanh and Tan Tru rural districts of Long An province.