Mr Tam said that the high bonus should be seen not only as the recognition of the efforts and high results of labourers, but also as a method to keep talents. Therefore, it is understandable why the company plans to give such a high bonus.

Prominent individuals will be given a gift which is equal to 10-20% of the turnover the individuals can bring to the company. One staff of the company received a $1mil bonus on the 2005 Tet. The lowest bonus level applied in the company was VND7mil per person, equal to two month’s pay.

Besides the bonus given on Tet as gifts, the staffs who hold key positions in the company for more than three years and commit to work for the company for a long time will be allocated land and vehicles for travelling. At the weekend, they can go on holiday with these vehicles while still receiving full pay. Any staff of ITACO who wants to follow training courses to increase their knowledge will be supported by the company.

When ITACO began listing on the bourse in November, all the members of the company were given a bonus in the form of company shares.

Ly Xuan Hai, Director General of Asia Commercial Bank (ACB), also thinks that giving bonuses is a way to keep talented employees. The bank will also give bonuses based on results.

Banks generous, garment companies stingy

Leaders of a joint stock bank said that banks plan to give high bonuses to their staffs as all banks saw high profit in 2006. The tentative bonus level is VND10mil ($625) per person, while good staffs can receive VND50mil ($3,125).

The Export – Import Joint Stock Bank (Eximbank) said that the bonus will be VND4.5mil person, while high-ranking officials will get specific levels.

In fact, the generous bonuses are applied in joint stock banks only. Vietcombank’s Director General said that the state owned bank would give the 13th month salary of VND4mil, while the best staffs will receive VND12mil ($750). Vietcombank HCM City branch will give the bonus of VND2-3mil on average, while senior experts will get VND7-9mil.

While the staffs at financial companies and banks expect to receive high bonuses, garment companies cannot give high bonuses to their workers. Le Quoc An, Chairman of the Vietnam Textile and Apparel Association (Vitas), said that garment companies would try to offer higher bonuses than previous year’s levels in order to limit the brain drain; however, this is without the company’s reach.

The Hanoi Textile and Garment Company proves to be the one which has the highest bonus levels, but each of its staff will receive VND1.8mil on average only. The highest bonus level is VND6mil ($375), while the lowest is VND1.5mil ($93.75).

The bonus levels are lower in other garment companies: workers at Nam Dinh Garment Company will receive VND 600,000-1mil ($62.5) on average.

(Source: VNE)