Vietnam’s minimum wage is set to rise by 6 percent next year. Here are the details.
It has been announced that Vietnam will raise the minimum wage by 6 percent next year from July. The National Wage Council met on Wednesday and voted unanimously for the increase.
The Vietnam General Confederation of Labor had asked for between 6.48 and 7.3 percent, with the Vietnam Chamber of Commerce and Industry suggesting that a 4.5 to 5 percent increase would be better for business. The final outcome looks to have split the difference.
When this minimum wage hike comes into effect, it will be the first minimum wage adjustment for Vietnam in two years. With an average rate of inflation of 3.2 percent a year between 2012 and 2022, and inflation for the first 11 months of this year pushing 4.27 percent, this may see another wage hike necessary in the not-too-distant future.
Notably, over the pandemic, a pause in raising the minimum wage saw Vietnam’s minimum wage workers realize a real wage increase of just 0.7 percent, according to the International Labour Organisation.
This latest wage increase still needs to be officially approved. That said, it would be unusual for key decision makers to go against the recommendation of the National Wage Council.
Vietnam’s new minimum wage from July 2024
| Current (2022) | Change (6%) | New (2024) | ||||
| Region | VND | US$ | VND | US$ | VND | US$ |
| 1 | 4,680,000 | 192.33 | 280,800 | 11.54 | 4,960,800 | 203.87 |
| 2 | 4,160,000 | 170.96 | 249,600 | 10.26 | 4,409,600 | 181.22 |
| 3 | 3,640,000 | 149.59 | 218,400 | 8.98 | 3,858,400 | 158.57 |
| 4 | 3,250,000 | 133.56 | 195,000 | 8.01 | 3,445,000 | 141.58 |
Average wage growth in Vietnam
Also of note, in a Q3 Labor Market report, the General Statistics Office found that average monthly wages had increased quarter-on-quarter and year-on-year. These increases put the average wage well above the minimum.
The average income in Q3 of this year was VND 7.1 million (US$289). This represents an increase of VND 146,000 (US$5.94) over the previous quarter and VND 359,000 (US$14.61) more than workers were earning over the same period last year.
Wages by selected industries, Q3 2023 vs Q3 2022
| Monthly wage | Change | |||
| Industry | VND | US$ | VND | US$ |
| Mining | 10.4 | 423.11 | 1.030 | 41.90 |
| Accommodation and food service | 6.9 | 280.72 | 0.486 | 19.77 |
| Wholesale, retail, and automobile and motorbike repair | 8.2 | 333.60 | 0.500 | 20.34 |
| Processing and manufacturing | 7.8 | 317.33 | 0.271 | 11.03 |
Source: General Office of Statistics
Accessing Vietnam’s low-cost labor
Vietnam’s abundant low-cost workforce has proven very attractive for foreign firms. From garments and textiles to electronics manufacturing, all manner of goods are now being made by millions of Vietnamese workers.
Furthermore, managing these workers, including hiring and firing, and their payroll and benefits, has never been easier with firms like Dezan Shira and Associates. Providing a full suite of human resources and payroll services in Vietnam, the Dezan Shira and Associates experts can give new firms entering the Vietnam market an edge over their competitors. Contact their experts today!
