According to The World Data, Vietnam’s average salary is $348/month. Compared with other countries in the region, the basic salary of Vietnam is among the top countries with the most competitive labor costs in Southeast Asia in particular and Asia in general.
Basic salary in VietNam and compensation based on the Labor Law
According to the General Statistics Office’s Q1 2025 report, Vietnam boasts a robust labor force of 52.9 million people aged 15 and above. The average monthly income in 2025 reached VND 8.9 million (~USD 321), marking a VND 500,000 increase from 2024, as reported by the Ministry of Labor, Invalids and Social Affairs. Vietnam’s youthful and dynamic workforce stands out, especially as many neighboring countries grapple with aging populations. This demographic advantage has been pivotal in attracting FDI in recent years.
Vietnam has abundant human resources, cheap labor force
According to Decree 74/2024/NĐ-CP issued on June 12, 2022, Vietnamese employees working in non-state enterprises will be applied to the regulations on the regional minimum wage, which is the lowest salary as a basis for negotiation and monthly salary payment by region. The basic salary policy of employees in enterprises currently: Region 1 is 4,960,000 VND/month, Region 2 is 4,410,000 VND/month, Region 3 is 3,860,000 VND/month, Region 4 is 3,450,000 VND/month.
Proposal to increase the basic salary
As of May 1, 2025, regional minimum wage levels remain unchanged due to the absence of a new adjustment decree.
The National Wage Council has proposed a 6–8% increase in regional minimum wages starting July 2025. As of May 1, 2025, this proposal is under review and pending official approval. If approved, the estimated new wages would be:
Region I: VND 4,960,000 – 5,050,000/month
Region II: VND 4,410,000 – 4,490,000/month
Region III: VND 3,860,000 – 3,930,000/month
Region IV: VND 3,450,000 – 3,510,000/month
Investors should note that actual wages in major cities like Hanoi and Ho Chi Minh City often exceed regional minimums, ranging from VND 7–12 million/month for unskilled workers and VND 15 million/month or more for skilled labor, depending on the industry and position.
The increase and adjustment of the basic salary is predicted not to have too much impact on the actual salary in Vietnam, as the actual salary of workers has been higher than the basic salary for many years. In addition, the economic crisis in the period of 2022 – 2024 makes the labor market become difficult, so the compensation of workers in Vietnam is forecasted to remain the same compared to the previous period, not increase in proportion to the proposed increase in base salary.
Basic salary and compensation according to the Labor Law
Pursuant to Article 112 of the Labor Code 2019, employees are entitled to enjoy public holidays and Tet holidays. In addition, the policy on annual authorized leave is a minimum of 12 days. Although not counted as an official regulation of the State, the 13th month salary is being applied by Vietnamese businesses to employees. This is a bonus that businesses give employees at the end of the year when the business is profitable to support and encourage employees to work.
In addition, according to the Health Insurance Law 2014, Vietnamese workers are also entitled to insurance policies including health insurance, social insurance, and unemployment insurance.
Comparison of Vietnam’s average salary and other countries in the region
According to data from The World Data, the average monthly salary in Vietnam is 348 USD, compared with the average salary in Thailand is 598 USD, Malaysia is 998 USD, China is 1.117 USD…. It can be seen that the basic salary of Vietnam is in the top one of the countries with the most competitive labor costs in Asia and Southeast Asia.
Average annual income Vietnam compared to some other countries
Improving the quality of Vietnamese labor
Directive No. 21, issued on May 4, 2023, outlines Vietnam’s goal to establish approximately 90 high-quality vocational education institutions by 2030, with 200 key occupations and 15–20 professions achieving regional and global competitiveness. By Q1 2025, the proportion of trained workers with degrees or certificates reached 29.0%, a 0.5% increase from the previous quarter and a 1.5% rise year-over-year. According to the Ministry of Labor, Invalids and Social Affairs, over 82% of vocational education graduates secured employment in early 2025, with 72–77% working in fields aligned with their training.
This progress enhances Vietnam’s ability to meet the demands of FDI enterprises, particularly in electronics, precision engineering, textiles, and food processing. However, investors should anticipate potential labor cost increases due to inflationary pressures and minimum wage adjustments.
Sources: The World Data, National Statistics Office of Vietnam
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