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 report for the third quarter of 2024, Vietnam has an abundant labor force with 51.64 million people in the working age. Besides, Vietnam has a young, dynamic labor force, while many countries in the region are facing an aging population. This is also one of the important factors to help Vietnam attract 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
According to the National Wage Council, the proposal to increase the basic salary in Vietnam from July 2022 has been approved by the State, whereby Vietnam’s regional minimum wage has been increased as follows:
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
According to the General Statistics Office, the percentage of trained workers with diplomas and certificates in Vietnam in the third quarter of 2024 is 28.5%, 0.4 percentage points higher than the previous quarter and 1.2 percentage points higher than the previous year. According to a report by the Ministry of Labor, Invalids and Social Affairs in early June 2023, the quality and effectiveness of vocational education in Vietnam is gradually being improved, with more than 80% of graduates having jobs, and 70-75% having jobs in the right fields and occupations.
According to Directive No. 21, which was issued on May 4, 2023, by the Secretariat, Vietnam strives to have about 90 high-quality vocational education institutions by 2030, 200 key professions and occupations, and 15-20 majors with outstanding competitiveness in the ASEAN region and the world. With continuous innovation, development, and enhancement of the quality of vocational education, increasing the quality of unskilled labor, Vietnamese workers are becoming better at meeting the needs of employers and the market, especially FDI enterprises and factories.
Sources: The World Data, ManpowerGroup, The Labor Newspaper
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