Wage increases will soon outpace inflation in China and Vietnam, a US management consulting firm said this week.
Chinese salary raises are expected to reach 9.5%, roughly triple the pace of inflation, while raises in Vietnam climbed to higher than world average rate of 12.8%, according to a survey of around 20,000 companies worldwide, conducted by the Hay Group.
The sharp increases reflect intense competition among companies for human resources, the report which accompanied the survey said.
Other Asian countries, such as Indonesia and Malaysia, will likely see increases of more than double their inflation rates at 10.6% and 6.2% respectively.
Pay rises in India and Brazil will reach 10.5% and 5.5% respectively, around the same rate as their price rises, while wages in the US and Germany will increase 3%. Japan’s wages will likely rise 2%.
This comes as salaries in Asia Pacific are expected to increase next year amid positive business outlook among firms in the region, global professional services firm Towers Watson said in a report.