Labour: Vietnam wage council finalises proposal for 7.2 percent minimum wage increase

Vietnam’s National Wage Council has decided to propose a 7.2 percent increase in the regional minimum wage from 1 January 2026, to the Prime Minister for approval, Tuoi Tre has reported→view source.

The Vietnam General Confederation of Labor has proposed a minimum wage increase of 8.3 to 9.2 percent with business groups pushing for an increase of between 3 to 5 percent. 

Key details:

  • New wage levels:
    • Region I: VND 5.31 million (up VND 350,000)
    • Region II: VND 4.73 million (up VND 320,000)
    • Region III: VND 4.14 million (up VND 280,000)
    • Region IV: VND 3.7 million (up VND 250,000)
    • Average: VND 4.47 million
  • Rationale: Deputy Minister of Home Affairs Nguyen Manh Khuong stated the increase aligns with economic growth targets, supporting an 8 percent growth goal for 2025 and double-digit growth in later years.
  • Business perspective: Hoang Quang Phong (VCCI) expressed reservations but affirmed businesses would comply, highlighting the need to improve employee retention and contract management.
  • Union view: Ngo Duy Hieu (Vietnam General Confederation of Labor) noted the raise aims to improve living standards, motivating workers to support growth targets, but did not seem to have expressed an opinion either way.

The last minimum wage hike was in July of 2024. 

Inflation in 2024 reached 3.63 percent and as of June 2025 was sitting at 3.57 percent.

See also: Minimum Wage in Vietnam 2025: Monthly & Hourly

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