Workers in the construction sector are owed VND528bn(USD25m) in unpaid wages, according to a review by the Vietnam General Confederation of Labour.
Trade and labour unions from 63 provinces and cities took part in an online meeting January 15 led by Dang Ngoc Tung, chairman of the Vietnam General Confederation of Labour.
A highlight of the meeting was the problem of unpaid wages. Statistics from labour unions showed the average monthly wage in 2014 was VND5.8m per employee. But unpaid wages in 22 provinces and localities were a major feature of the construction sector.
Do Van Quang, vice chairman of the construction trade union speaking at the meeting.
As of December 31, 2014, 85 companies, or 17.2 percent of listed companies, owed employees VND395.3bn in unpaid wages alone. The construction trade union said the companies blamed a lack of cash flow for the unpaid wages.
"In 2010, there were no unpaid wages, but this problem has been rising since 2011. There is a VND4trn project that has been completed with bank loans, but the customer has yet to pay and the company doesn't have the funds to pay wages," said Do Van Quang, vice chairman of the construction trade union.
"On the other hand, many companies had to borrow money from banks due to difficulties, and as soon as clients transfer funds, the money is taken by the banks. I know of a company that replaced its directors three times in order to improve its financial situation."
Quang suggested companies make unpaid wage problem a priority and meet employees to try to find ways of improving their businesses.
