Vietnam - Tet bonuses a curly question

Businesses are taking different approaches towards Tet bonus amid continuing economic woes.

Thai Nguyen-based Investment and Trade (TNG) chairman Nguyen Van Thoi said the company planned to offer labourers a 13th month’s wage and equal to VND1.2 million ($58) to all labourers as the traditional Lunar New Year (Tet) bonus.

With monthly wages averaging VND4.5 million ($215) plus VND1.2 million, each labourer will get around VND6 million ($285) as a Tet bonus this year.

TNG envisages reaping $60 million in total export value in 2012, hiking 10 per cent against 2011 of $55 million and reaching full-year target.

“However, the Tet reward this year could not surge compared to last year on the back of lingering economic difficulties. The company’s executives even accept slight decreases in their bonus,” said Thoi, adding that with 7,500 labourers and bonus averaging VND5.7 million ($270) per worker, TNG would need to set aside more than VND42 billion ($2 million) in Tet bonus this year.

Executives at building material maker Viglacera Tien Son said though the management had yet to hold a separate meeting on Tet bonus, the overall situation would not be bright.

“One could not expect high bonus figures when stores are full of unsold stock and most sale plans drop targets. This November the company just achieved VND28 billion ($1.3 million) in sales revenue against proposed VND50 billion ($2.3 million) whereas until this time we just posted VND5 billion ($230,000) against set VND15-16 billion ($715,000-$760,000) sales amount for December,” said company’s deputy director Truong Ngoc Minh.

However, amid unfavourable business climates several firms, particularly those in the textile garment sector, have persisted the headwinds and outperformed business and profit targets.

“The company’s management has decided to retain Tet bonus level as in the previous year albeit 2012 revenue and profit figures were not yet made,” according to a Nam Dinh-based Song Hong Garment source.

Several other garment firms under Vinatex like Hung Yen, Viet Tien and Nha Be Garment also tended to offer labourers the same Tet rewards as in 2011.

Hai Yen | vir.com.vn

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