The Vietnam General Confederation of Labor has proposed a minimum wage increase of 8.3 to 9.2 percent from January 1, 2026, citing inflation, productivity gains, and rising living costs. Employers, however, are calling for a more modest adjustment of 3 to 5 percent, Dan Tri has reported→view source.
Key details:
- Proposed increase: VND 290,000–450,000 (8.3–9.2 percent)
- Effective date: January 1, 2026.
- Supporting data: 2024 CPI (~4.5%), 5.88% productivity growth.
- Employer proposal: 3–5 percent increase to preserve flexibility.
- Council’s technical suggestion: 6.5–7 percent as compromise range.
- Next meeting: Early August 2025 to finalise the proposal.
Raising the minimum wage in Vietnam would improve living standards for millions of workers, particularly in labour-intensive and low-wage sectors such as garments, textiles, footwear, electronics assembly, and retail.
These industries employ large numbers of rural and migrant workers who rely on minimum or near-minimum wages to meet rising urban living costs.
A wage increase would help offset inflation, reduce working poverty, and support household consumption, especially in major industrial zones like Binh Duong, Dong Nai, and Bac Ninh.
However, for employers—especially small and medium-sized enterprises (SMEs) in export-oriented sectors—the added labour costs may be difficult to absorb.
Garments and footwear manufacturers, which compete on thin margins, are likely to be most affected, along with logistics, hospitality, and food service providers.
While some larger firms may benefit from better workforce stability, the overall business impact depends on how well wage hikes align with productivity gains and whether support measures—like tax relief or access to credit—are in place.