Businesses strive to give Tet bonuses, leaders hesitate to write 'letters' complaining about difficulties

Up to this point, many businesses have announced their Tet bonus plans. Many businesses, despite facing difficulties, are still trying to maintain their Tet bonuses and take care of their employees.

Despite facing difficulties, Vinacam Group Joint Stock Company said it will still give Tet bonuses like last year because it has a previously accumulated reserve fund - Photo: VN

According to the General Department of Customs, as of mid-November 2024, FDI (foreign direct investment) enterprises contributed 75% of the country's total export turnover. The economy grew from FDI enterprises, so there was a clear differentiation in Tet bonuses with domestic enterprises.

Some units have one month's salary, some maintain the same bonus level as last year, some units win big and give big bonuses, but there are also some companies that "hesitate" to write a letter cutting Tet bonuses...

From... trying to reward

In 2024, storm No. 3 (Yagi) left catastrophic consequences for many businesses in the North, so the answer about Tet bonuses was given by some seafood export businesses that they could not say in advance and "will try"...

The entire property worth hundreds of billions of dong was left in ruins after the storm. The frozen factory of Viet Truong Company Limited (Hai Phong) has not yet been restored due to lack of funds. Mr. Ngo Minh Phuong, the company's director, jokingly said that the Tet bonus will be replaced by... "loss... bonus".

"We are having a hard time, the workers know this. I don't have a plan for Tet bonuses yet, but I will try to make everyone happy at the end of the year," said Mr. Phuong.

Similarly, a company that has a brand attached to consumers in the agricultural sector, especially honey and export products, but Mr. Lu Nguyen Xuan Vu - General Director of Xuan Nguyen Group Joint Stock Company - also shared that he "tried" to have a Tet bonus for nearly 500 workers of the group nationwide.

"This year is difficult, but we will try to provide our brothers with at least half a month's salary," said Mr. Nguyen. According to Mr. Nguyen, there are not many small and medium-sized agricultural enterprises that have had successful business this year.

Despite a difficult year, employees at HIKAWA Joint Stock Company in all departments received equal Tet bonuses from the company, the same bonus level as in 2023 - Photo: V.TUYEN

...to the difficult but still rewarding

As a fertilizer importer and supplier present in Vietnam for nearly 20 years, Mr. Vu Duy Hai - General Director of Vinacam Group Joint Stock Company - sees the year as favorable for manufacturers, especially NPK fertilizer production.

Meanwhile, the fertilizer industry is facing difficulties due to reduced purchasing power, fluctuating and erratic exchange rates, leading to business results that are not yet satisfactory for businesses. However, according to Mr. Hai, despite the difficulties, the group still gives Tet bonuses like in years of stable economy.

"We still maintain a 10% dividend, and employees are rewarded with several months' salary. This amount is taken from the previously accumulated reserve fund. Everyone looks forward to the bonus during Tet, so the company will still ensure this no matter what," said Mr. Hai.

Mr. Tran Van Tuyen - Chairman of the Board of Directors of Hikawa Joint Stock Company - said that the company's business situation in 2024 is also in the common denominator of difficulties. However, with the bonus plan as last year, Mr. Tuyen said: "Tet bonus is the responsibility, obligation and ethics of the enterprise, so it cannot be cut."

Meanwhile, although it is a "hot" industry with bonuses always at a "dream" level compared to other industries at the end of the year, this year, according to the media representative of Binh Son Refining and Petrochemical Joint Stock Company (BSR), the business results of all types of gasoline and oil of Dung Quat Oil Refinery are worse than previous years, so the regime for officers and employees during Tet is not the same as in 2023.

"The company does pay bonuses every six months or a year, and during Tet, the only benefits for staff and workers are additional salaries and 13th month salaries. However, this year's business is ineffective, if not at a loss, so the benefits are not as good as last year."

Workers only rely on year-end bonuses to celebrate Tet - Photo: BE HIEU

And "upside wind" revenue, big bonus

In this group, we can mention Mobile World Investment Corporation (stock code MWG). In the third quarter business situation meeting, the company informed that the Tet payment for employees this year has increased dramatically.

Specifically, more than 1,689 billion VND was allocated in advance for more than 60,000 employees, with an average of 28 million VND/person, 2.5 times higher than the same period last year. Previously in 2023, due to unfavorable business results, the company only awarded one month's salary, the lowest level in the past 15 years.

"VND28 million is not the average bonus for the whole year because there is still the last business quarter. The above figure will depend on the number of employees remaining at the end of the year as well as whether to add or reduce the bonus fund or not," said a media representative of Mobile World.

If one month's salary, several months' salary or "surely a bonus" is the plan of domestic enterprises, FDI enterprises promise much higher bonuses. With a revenue of billions of dollars, a company with a parent company abroad, operating in the closed agricultural - industrial and food processing sector and having dozens of animal feed factories nationwide with tens of thousands of workers will end a year of business with much joy.

The communications director of this company in Vietnam informed: "Our revenue is quite surprising, so workers are rewarded with 4-5 months' salary, high-level positions can get hundreds of millions of dong."

There are also thrills

Mr. NVV (director of a construction equipment company in Tan Binh district, Ho Chi Minh City) confided that his company had been in business for a year and "just one more punch" before declaring bankruptcy.

"At the end of the third quarter, I was very scared and hesitant to announce bankruptcy to my colleagues to ease my mind. But at the beginning of October, I signed a big contract in the Central region, saving the whole year. I planned to write a "letter of intent" to cut the Tet bonus even though I felt very guilty, but thinking back now, I can't say for sure, I don't know how much, but I will definitely give it as a small year-end gift," Mr. NVV shared.

Some businesses are facing a choice: pay their salaries or keep them for Tet bonuses. A garden design company in Thu Duc City (HCMC) owes its employees three months' salary, some of whom have quit their jobs because they can't afford it, while the remaining employees are trying to survive until the end of the year to receive their Tet bonuses, so they are having a headache.

Bonus or not depends on management

Economist Le Trung Nam (Fulbright University Vietnam) shared that the Tet bonus depends on the "health" of the enterprise and the collective labor agreement.

Most businesses often build a salary structure divided into two parts: hard and soft. If the two parts are clearly built, the business results will be very harmonious no matter what. Therefore, even in profitable years, businesses do not spend all of it, to prepare for difficult years," Mr. Nam analyzed.

However, with the reality of 2024, this expert assessed that this is not simply a story to be recorded "overly" but needs to be re-examined about business management or operation.

"It is very important to catch the economic cycle to have a reserve fund. Enterprises without good financial knowledge will have their salary and bonus funds shrink if business is difficult and spending sources are affected," said Mr. Nam.

Mr. Dinh Sy Phuc, Chairman of the Trade Union of Taekwang Vina Joint Stock Company, gave lucky money for the New Year 2024 to workers who returned to work on the scheduled date - Photo: AB

There must be a reward anyway.

Mr. Pham Quang Anh - Director of Dony Garment Company (Binh Chanh District, Ho Chi Minh City) - said that the good news is that throughout 2024, orders were always abundant, and the company's revenue increased by one and a half times compared to 2023. Therefore, workers' income increased by about 20% compared to 2023. However, although revenue increased by one and a half times, profits did not reach expectations. The reason is the story of market difficulties, when many businesses are facing difficulties, cutting profit margins is necessary to have orders to maintain operations. "Looking at the positive side, things are gradually getting better, so no matter what, we have to give Tet bonuses to our employees," said Mr. Quang Anh.

Before the Lunar New Year holiday last year, in addition to the 13th month salary bonus, the company also awarded gold to many outstanding employees. The company has not yet officially finalized the Tet bonus plan, but plans to award at least one month's salary and Tet gifts. "The price of gold is rising, so awarding additional gold to employees with high achievements is impossible. However, we are still considering other forms of reward, encouragement and recognition for outstanding employees," said Mr. Quang Anh.

Mr. Huynh Van Hai - representative of a company specializing in processing household goods in Tan Binh district - said that the company is planning to give Tet bonuses to employees even though the business situation is still difficult.

"The business has just gone through a turbulent 2024 with a shortage of orders. When there were orders, the value and profit were not as expected.

In addition, the costs of warehouses, materials, labor, etc. have increased, so business in 2024 will be limited, and some will have to make up for losses, so calculating the Tet bonus is a headache. But my colleagues have been with me all year, so I can't not give them bonuses. Obviously, they need this bonus," said Mr. Hai.

In the immediate future, Mr. Hai said the company is planning to reward each employee with a minimum of 5 million VND, and a maximum of one month's basic salary.

Meanwhile, at some other garment and footwear companies, business and production have improved this year. Song Ngoc Garment Company Limited (Binh Tan District) has planned to give Tet bonuses quite early as last year, workers' income also increased by nearly 10%. Mr. Tran Thanh Son - Chairman of the company's union - said that the company currently has orders until the end of the first quarter of 2025.

"The company plans to still give a one-month bonus like every year for the production sector and organize a year-end party for employees with a party cost of about 600,000 VND/person, giving 400,000 VND in cash along with a union gift worth 400,000 VND/person," said Mr. Son.

Long Rich Vietnam Co., Ltd. (Thu Duc City) also has a plan to give Tet bonuses to all employees of the company with seniority bonuses ranging from 1 to 3 months of basic salary.

"The bonus has increased compared to last year because the company has increased salaries annually according to the State's minimum wage increase of 6%. At the same time, despite the high price of gold, the company still maintains the policy of giving gold bonuses to employees with 10 years or more of service. Employees who have worked for 10 years or more will be rewarded with 1 tael of gold, and 1.5 taels of gold for 20 years," said Ms. Nguyen Thi Thuy Van, chairwoman of the company's union.

This year, about 400 employees with 10 years or more of seniority will be awarded gold. However, Ms. Van said that this year, due to changes in the gold sales policy, the commitment to not speculate... will not be awarded in December as usual, but will have to wait until March.

Ho Chi Minh City Trade Union spends more than 46 billion VND to take care of Tet

The plan to organize activities to care for workers during the Lunar New Year 2025, recently issued by the Ho Chi Minh City Labor Federation, shows that there are many programs and activities with a budget of more than 46 billion VND.

The highlight of the activity is the Tet Sum Vay program with the theme "Tet Sum Vay - Xuan Doan Ket", which the City Trade Union focused on implementing to take care of 15,000 workers' families. Most of them are in difficult circumstances, have unpaid wages, social insurance, are affected by natural disasters in the northern provinces, and do not have the conditions to return home for Tet.

In addition, the Ho Chi Minh City Labor Federation will coordinate with units to organize the "Workers' Festival - Charity Market" for the Lunar New Year 2025 with the theme "Encouraging cashless payments". This activity aims to take care of 9,500 workers in the informal labor sector, spending 1 million VND/person to shop at the market.

About 10,000 workers will be taken care of through the program "Workers' families celebrate Tet with the city". Along with that are programs such as Love Ticket, Tet for Children, Happy Tet in the boarding house...

Source: https://tuoitre.vn/doanh-nghiep-no-luc-de-thuong-tet-lanh-dao-ngai-viet-tam-thu-than-kho-20241207080812975.htm