All I can say is that at $50 per month, we were 20% above domestic company rates. $5 an hour would be the wage of someone with a bachelor's degree and 2-3 years experience. The skill and education level in Vietnam is roughly equal to China, so you could give them Singaporean style wages and kill the competitiveness of that economy and bring it to its knees, or you pay prevailing wages plus a little and keep people employed whilst gradually improving the economy (i.e. the status quo). The tiger economies are progressing quite well (check growth rates). In the small time I lived in Shanghai (3 years) the progress in living standards, wages and quality of life was amazing. When you combine these pluses with an average education level that will soon surpass ours, only population density and lack of infrastructure holds them back.