Affected by the Sino -US trade war, the minimum wages in Southeast Asian countries inh

Source: Nikkei Chinese Network

Southeast Asian countries, which will adjust the minimum wage in January 2020, have narrowed the increase of wages.Affected by the Sino -US trade war, the Thai economy has slowed down. Due to the industry, the minimum wage rose by about 2%.In Vietnam, the production base of enterprises has gradually shifted from China to the country.Due to the narrowing of labor costs with China, Vietnam has controlled the minimum wage increase to more than 5%.Although the minimum wages of the strong demands of the people in Southeast Asian countries are raised, they are also racking their brains to maintain industrial competitiveness.

From January 2020, Thailand raised the minimum wage in Bangkok 1.8%to 331 baht (about 76.7 yuan) per day.The increase has narrowed from 4.8%in April 2018.In the General House of the House of Representatives of the People's Republic of China, the People's Republic of China promised to increase the daily minimum wage to 400 baht, but this time did not increase significantly.

Affected by the appreciation of the Sino -US trade war and the appreciation of the Thai baht, Thailand's exports to China have decreased and the economy has slowed down.The industry believes that if the minimum wage is raised at the level of the election commitment, SMEs will be impacted (Chairman of the Thai Industry Federation, Su Pan), and oppose a significant minimum wage.The Thai government plans to increase the minimum wage in the 4 years.

In Vietnam, in major cities such as Hanoi and Ho Chi Minh, the minimum wage will be raised by 5.7%to the 4.42 million Vietnam South Dun (about 1343.6 yuan) per month.Although the increase is more than 5%of the last January 2019, compared with the actual growth rate of about 7%of the GDP in 2019, the minimum wage increase is not high.

The country's workers originally demanded that the average minimum wage nationwide was raised by about 8%, but employers demanded that the increase in wages to increase the increase of wages within 3%.Vietnam is booming and developed with cheap labor costs as weapons, clothing processing and other industries. However, by 2016, the annual wage increase has reached more than 10%, and its competitiveness is not as good as before.Affected by the government's intention, the increase in wages in recent years has fallen to about 5-7%.

In terms of Malaysia, the minimum wage in 57 major cities including Kuala Lumpur will increase by 9%to 1,200 Linjit (about 2047.4 yuan) per month.When the minimum wage was adjusted in January 2019, some regions increased by 10-20%, but local cities with low economic levels will remain unchanged.The ruling party led by Prime Minister Mahathir won in the 2018 election. The alliance promised to increase the minimum wage to 1,500 Linjit per month within 5 years, raising the stages in stages.

In Indonesia, the minimum wage in Jakarta will increase by 8.5%to 4.28 million Indonesian Shields (about 2175.4 yuan) per month.The growth rate exceeded 8%in January 2019.Indonesia combines the growth rate and price increase of GDP (GDP) to decide the minimum wage increase in the second year, which has maintained around 8%in recent years.

Affected by China's labor costs, production is transferring to Southeast Asia.According to statistics from the Japan Trade Revitalization Agency (Jetro), according to the US dollar, the minimum wage in Jakarta in 2015 was about 80 % of Beijing. In 2019, it was about 90 %, and the wage gap was reduced.The lowest wage in 2015 in Phnom Penh in Cambodia was 50 % of Beijing, which reduced to 60 % in 2019.

Kobayashi Kimosuke of the Overseas Investigation Department of the Japan Trade Activities Agency pointed out that it is important for enterprises to raise wages with increasing production efficiency.If the minimum wage in Southeast Asia increases at the level of economic growth, foreign companies, including Japanese companies, will have to adjust their strategy.