Basic salary in Vietnam: issues that investors need to know

Basic salary in Vietnam: issues that investors need to know

Basic salary index of Southeast Asian countries

Compared to other countries in Southeast Asia, the basic salary of Vietnamese workers is about $ 4.92 – $ 5.55 / day, equivalent to $ 147.47 – $ 166.57 / month, much lower than Thailand ($ 270.71 / month), Malaysia ( $ 218.16 – $ 237.13 / month) and the Philippines ($ 172.58 – $ 301.57 / month).

minimum wage across southest asia

Source: theaseanpost

Basic salary in Vietnam are slightly higher than in Laos ($ 110.34 / month), Cambodia ($ 140 / month), Myanmar ($ 80.28 / month). However, Vietnam is still an attractive destination for investors thanks to:

  • Stable political situation
  • Attractive policies to attract FDI investors
  • A large proportion of young workers with increasing qualifications
  • Prime location, convenient for transportation
  • The Government has well controlled the recent COVID-19 epidemic, creating a good premise for economic recovery and development.
  • Vietnam is also one of the few countries to maintain economic growth after the COVID-19 epidemic.vietnam economy forecast

Read more: Vietnam continue being bright spot in FDI attraction in the midst of the COVID-19 pandemic 

Basic salary in major cities in Vietnam

Currently, the Vietnamese Government stipulates that the minimum wage of workers in Vietnam ranges from 3.07 million VND – 4.42 million VND / month (equivalent to $ 131.9 – 189.94), distributed by positions as follows:

  • Region I (Hanoi, Ho Chi Minh City, Binh Duong): 4.42 million VND / month (equivalent to $ 189.94)
  • Region II (Da Nang, Quang Ninh, Hai Phong, Bac Ninh …): 3.92 million VND / month (equivalent to $ 168.45)
  • Region III (Ha Nam, Hai Duong, Bac Giang …): 3.43 million VND / month (equivalent to $ 147.4)
  • Region IV (Ha Tinh, Nghe An, Hoa Binh …): 3.07 million VND / month (equivalent to $ 131.9).

The Vietnamese Government adjusts the minimum wage according to the frequency of 1-2 years / time, each increase of 5 – 5.5% on average. Compared with the growth rate of GDP (gross domestic product) and CPI (consumer price index) in the range of 6-7% / year, this adjustment can be seen as reasonable, in the forecasts of many economy experts.

Read more: Vietnamese worker psychology when negotiating salaries

Refer to: Decree 90/2019 / ND-CP, Luatvietnam.vn, Jetro, Theaseanpost… 

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