Low labour cost has attracted many investors to Viet Nam. Despite recent increases, Viet Nam’s minimum wage remains one of the lowest in Asia. However, recent double digit increases in each of the past two years has moved the minimum wage for foreign industries from a maximum of 1 million VND in 2008 to maximum 1.2 million VND in 2009. As of March 2009, foreign invested enterprises face a minimum wage of 1.2 million VND. This is about 20 per cent higher than domestic enterprises. Additionally, foreign companies are now obligated by law to contribute 2 per cent of employee payroll to pay for union activities in the enterprise.

Many foreign managers view Vietnamese in general as very positive and hard-working people. Tourists to Vietnam often remark on how engaging and friendly they find the local population. However, in the factory setting, Vietnamese workers are not always used to the open and informal communication style that other countries may have at the work place. This book provides readers with simple suggestions about how to effectively work with Vietnamese workers.