Vietnam’s minimum wage is an attractive drawcard for businesses in a broad range of industries. Among the lowest in Southeast Asia, foreign firms may be able to realise real value by making the most of this low-cost labour.
That said, the minimum wage should not be conflated with the average salary which can be quite a bit higher. Firms should also note that though technically speaking the minimum wage is standard across all industries, it is well below what is considered a living wage. With this in mind, in many industries, it is difficult to attract workers at these rates.
That said, understanding Vietnam’s minimum wage can still be helpful in developing a broader understanding of Vietnam’s human resources landscape. In this light, this article runs through some common questions with regard to the minimum wage in Vietnam.
What is the minimum wage in Vietnam?
Firstly, note that the minimum wage is determined by the National Wage Council. This body meets at least once a year and determines what the minimum wage should be raised to. It then presents this determination to the government to approve.
That said, the minimum wage does not necessarily rise every year. For example, during COVID minimum wage rises were put on hold. Similarly, as Vietnam’s economy struggled in 2023 minimum wage hikes were delayed until 2024.
Also, Vietnam’s minimum wage is divided into regions which are generally determined by the perceived cost of living in a particular area. Broadly speaking, Vietnam’s major cities generally fall into Region 1 with rural, isolated, generally mountainous areas falling under Region 4. Everywhere else falls somewhere in between.
Vietnam’s minimum wage, per month, from July 1, 2022
| Region | VND | USD |
| 1 | 4,680,000 | $195 |
| 2 | 4,160,000 | $173 |
| 3 | 3,640,000 | $151 |
| 4 | 3,250,000 | $135 |
Source: Decree 38/2022/ND-CP
Also note that in December 2023 a minimum wage rise of 6 percent was approved for 2024. Note, however, that though widely reported this still technically needs to be approved by the government. In lieu of an official decree, minimum wages outlined in the table below are estimates only.
Vietnam’s minimum wage, per month, from July 1, 2024
| Current (2022) | Change (6%) | New (2024) | ||||
| Region | VND | US$ | 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 |
What is the average salary in Vietnam?
Whereas the minimum wage in Vietnam is set by the government, this does not necessarily represent real labour costs. In fact, data collected by the General Office of Statistics generally reflects much higher labour costs, particularly in the manufacturing sector. A broad overview of average salaries in Vietnam is below, however, a more detailed breakdown can be found here: Average Salary in Vietnam 2024: Quick Guide
Average salary in Vietnam Q4, 2022 to Q3, 2023
| Monthly Wage | Change | |||
| Period/Source | VND | US$ | VND | US$ |
| Q4 2022 | 6,800,000 | 279.61 | – | – |
| Q1 2023 | 7,000,000 | 287.83 | 200,000 | 8.22 |
| Q2 2023 | 7,000,000 | 287.83 | 0 | 0.00 |
| Q3 2023 | 7,100,000 | 291.94 | 100,000 | 4.11 |
How much is the hourly wage in Vietnam?
Hourly wages are generally determined by dividing monthly wages by 208 hours. This works out to a little less than 10 hours a day five days a week. In manufacturing, at peak periods, these sorts of hours can be common, however, in professional services, it would be uncommon to work this many hours.
Minimum hourly wage in Vietnam, as of July 1, 2022
| Region | VND | USD |
| 1 | 22,500 | $0.94 |
| 2 | 20,000 | $0.83 |
| 3 | 17,500 | $0.73 |
| 4 | 15,600 | $0.65 |
Average hourly wage in Vietnam, Q4, 2022 to Q3, 2023
| Average Hourly Wage | ||
| Period/Source | VND | US$ |
| Q4 2022 | 32,692 | 1.34 |
| Q1 2023 | 33,654 | 1.38 |
| Q2 2023 | 33,654 | 1.38 |
| Q3 2023 | 34,135 | 1.40 |
What is the Vietnamese living wage?
The Global Living Wage Coalition, in its 2023 report, estimated that the Vietnamese living wage was VND 8,606,008 (US$366). This is not far off double the current Region 1 minimum wage and is about US$74 short of the current average wage.
The Global Living Wage Coalition makes its calculations based on a family of four with 1.86 workers living in Region 1 areas as defined in Vietnam’s minimum wage regulations. It uses an estimate of family living expenses of VND 13,404,719 (US$550.22).
Is US$1,000 a good salary in Vietnam?
A salary of US$1000 is roughly VND 24,357,500. This is nearly four times the average wage in Vietnam and about five times the minimum wage. In this context, US$1000 is a good salary in Vietnam.
However, it’s worth noting that foreign workers will often command wages much higher as will professionals and high-skilled workers. The industry and the role will also play big factors in the wages a worker can command.
For the average Vietnamese, US$1000 is enough to pay rent, buy food, and have a little left over for entertainment. That said, particularly in Hanoi and Ho Chi Minh City, individuals who have more expensive tastes will find they can burn through US$1000 relatively quickly and easily.
What is the salary in Ho Chi Minh City?
The minimum wage in Ho Chi Minh City is VND 4,680,000 or US$195 per month. That equates to VND 22,500 or US$0.94 per hour. This, however, only applies to Vietnam’s lowest-paid workers in fields like hospitality and retail.
As Vietnam’s most expensive city, Ho Chi Minh City workers generally receive a salary well above the minimum wage.
What is the salary in Hanoi?
Salaries in Hanoi vary, however, the minimum wage is VND 4,680,000 or US$195 per month. This is the same as Ho Chi Minh City, however, notably HCMC is somewhat more expensive than Hanoi. In this respect, the minimum wage can be stretched further in Hanoi than it can in HCMC. That said, the minimum wage in Hanoi is usually only in the hospitality sector, with most workers in other industries earning considerably more.
What’s next?
This article provides a broad overview of the minimum wage in Vietnam. To reiterate, however, the minimum wage is a floor rate only. Most workers are generally paid more than this with average wages roughly double the minimum wage.
Foreign firms looking to manufacture goods in Vietnam or open a business in Vietnam should keep this in mind, in that how Vietnam is presented in terms of low-cost labour is not always the reality. In this light, firms should consult human resources experts for specific advice. They should also make sure to subscribe to the-shiv to ensure they always have the most up-to-date minimum wage information from Vietnam.