As production and business results in 2023 were unsatisfactory for some businesses, low Tet bonuses were foreseeable. But workers see signs of recovery in the Year of the Dragon.

Deputy Chair of the Vietnam Labor Federation (VLF) Phan Van Anh confirmed that the average Tet bonus this year was lower than the previous year, and that some enterprises had to borrow money from banks to give Tet bonuses to their workers.

Pham Xuan Hong, chair of the HCM City Association of Garments, Textiles, Embroidery & Knitwear, said 2023 was a tough year for enterprises in the industry, but they still managed to maintain the Tet bonus tradition.

With average monthly income of VND8-10 million a month, Tet bonuses are between VND4 million and VND10 million for each worker. In general, the Tet bonus is equal to one month salary. A very small number of companies that saw business results for the year offered a half month salary bonus. 

According to Anh, VLF has advised the state to give VND1.3 million each to more than 30,000 workers in extremely difficult conditions.

In addition, VLF has given support to 2,000 workers in extremely difficult conditions who want to return to hometown to celebrate Tet with family members by providing air or train tickets.

Local labor union branches in HCM City, Binh Duong and Dong Nai have arranged vehicles and organized trips for workers in industrial zones and export processing zones to return to their hometowns.

VLF’s total amount of money budgeted to support workers is over VND6.15 trillion. 

Hong said the textile and garment industry is still facing challenges because of global uncertainties. However, the domestic market is recovering well.

The Vietnam Textile and Apparel Association (Vitas) reported that textile and garment exports in 2023 totalled $40.3 billion, down 10 percent from the $44.4 billion in 2022. The number of orders as well as the unit price decreased by 30-50 percent.

Vitas chair Vu Duc Giang said he hopes the market will warm up gradually in 2024 as demand is coming back. Export turnover in 2024 is expected to reach $44 billion, or 9 percent more than last year.

VCCI (Vietnam Chamber of Commerce and Industry) chair Hoang Quang Phong confirmed that enterprises in industry, trade, and service sectors faced difficulties in 2023 with decreases in orders, export turnover and total revenue. VCCI has proposed policies to help businesses, including tax remissions, tax debt payment deadline extension, and interest rate cuts.

Viet Nam Net