Vietnam Considers 6% Raise for Regional Minimum Wage

The National Wage Council of Vietnam has proposed a 6% increase in the regional minimum wage, to be implemented starting from July 1, 2024, as reported by Vietnam Briefing.

The proposal, supported unanimously by all 16 council members following two negotiation sessions in 2023, comes amidst a backdrop of a monthly influx of over 18,300 new businesses returning to the market and a continual rise in the number of orders each quarter.

Presently, the wage ranges from 3.25 to 4.68 million Vietnamese dong (VND) per month, depending on the region. 

As per the new structure, wages will be lifted as follows:

• Region 1: VND 4.96 million (US$203.87) per month, covering urban areas of Hanoi and Ho Chi Minh City.
• Region 2: VND 4.41 million (US$181.22) per month, including rural areas of Hanoi and Ho Chi Minh City, as well as major urban centers like Can Tho, Da Nang, and Hai Phong.
• Region 3: VND 3.86 million (US$158.57) per month, comprising provincial cities and districts of Bac Ninh, Bac Giang, and Hai Duong provinces.
• Region 4: VND 3.45 million (US$141.58) per month, encompassing the remaining areas of the country.

The proposed implementation date of July 1 allows businesses time to prepare plans and allocate resources for the scheme.

Vietnam raised the regional minimum wage by 7.3%, 6.5%, 5.3%, and 6% in the years 2017, 2018, 2019, and 2022, respectively.

If approved, this would mark the second increase in the regional minimum wage in four years, coinciding with the State sector’s wage reform implementation.