Businesses look for ways to give Tet bonuses

Amid difficult economic times, many leaders of companies have been looking for ways to provide Tet bonuses to their employees this year.

This year’s Tet bonuses forecast to be lower than last year

A number of companies have to sought loans and even sold their own houses to pay salaries and Tet bonuses.

Nguyen Van Tan, Director of Thong Tan Food Ltd. Co., in Hanoi, said this year the company is quite stable, so the management board decided to provide a Tet bonus of VND1 million (USD47.6) for each employee and VND2 million (USD95.2) for managers. Aside from this, he added, each staff member also receives a gift worth VND200,000 (USD9.52).

On the other hand, Vu Giao Long, Director of Hung Phat Investment Company, said this year has been very tough for private companies. Over the past few months, leaders of the firm have been scrambling to pay loans to avoid default. They are also worried about paying salaries.

Bui Ngoc Huyen, Chairman of Xuan Kien Motor Joint Stock Corporation (Vinaxuki), said the company now considers turning to other business sectors and the management board does not yet have a plan for their Tet bonuses.

The director of an engineering company in Haiphong said he very much regretted the decision to reduce the number of employees as Tet nears.

“We have sold our homes and cars to make salary payments. Now, we are at an impasse and have to cut back on staff before Tet,” he added.

Do Manh Tuan, Director of Hop Thanh Joint Stock Company in Hai Duong Province, said many workers do not care much about the bonuses and that, for them, the most important thing is they can receive annual salary.

Tuan said he had to sell two houses, worth VND5 billion (USD238,095) each, to pay his staff at a company that pays VND1 billion (USD47,619) per month in salaries. As a result, the company has had to let go of around 90% of their employees. Now they employ only 20 people.

Meanwhile, Hoang Thi Hong Gam in Dong Da District, Hanoi, has had to ask for loans from members of her company’s management board to pay the staff.

Many banks have not announced their specific Tet bonuses either.