Vietnamese workers earn half of Thai counterparts in Japanese companies

By Son Ha August 31, 2022 | 04:00 am PT

Workers are seen at a Japanese electronics assembly company in Vietnam. Photo courtesy of Vina Nippon

Vietnamese workers earn half of their Thai counterparts in Japanese companies as they can only participate in sectors with low-added value, a study has found.

Worker of Japanese manufacturing companies in Vietnam earn $236 on average, compared to $446 in Thailand, said the study by Japan International Cooperation Agency (JICA), which surveyed Japanese businesses in Southeast Asia, China and India between September and May.

Workers in China earn the most at $493, followed by those in Thailand, Malaysia, Indonesia and India.

Vietnam’s workers have a higher income than those in Cambodia, Laos and Myanmar.

JICA said U.S.-China tensions have urged Japanese companies to select Vietnam as their manufacturing hub, but the country can only participate in low added value production in sectors like retail and mass production.

For research and manufacturing of advanced products, Japanese companies prefer China, it added.

A survey in 2019 also pointed out that less than 20% of Japanese companies in Vietnam highly value the country’s workforce. They instead chose the country because of its abundant and low-cost source of labor.

JICA proposed that several localities improve education and training in specific sectors to improve labor quality.

Ho Chi Minh City, for example, can focus on medical and nursing, Hai Phong: mechanics and supporting industry, and Da Nang: smart city construction and green energy.