[Vietnam] 7.2% regional minimum wage increase proposed

In Vietnam, the National Wage Council has proposed a 7.2 per cent increase in the regional minimum wage, to take effect from January 1, 2026, VnEconomy reports.

According to a report from Government News, the monthly regional minimum wage will increase by VND350,000-500,000 ($15.50-$22.20) if approved by the Government. The amount of the wage hike will vary by region.

The monthly minimum wage for Regions 1, 2, 3 and 4 will be VND4.96 million ($219), VND4.41 million ($194), VND2.6 million ($114) and VND2.5 million ($109), respectively.

Using these minimum rates as a baseline, employers will reportedly be able to negotiate with their employees over actual monthly salaries that must not be lower than the minimum in each region.

By July 1, 2025, Vietnam's regional minimum wage had been applied in 34 provinces and centrally run cities following the merger of localities.

Vietnam's monthly minimum wages vary across four different regions, each based on the living standards in those areas. The new organisation of local administrative units has had a significant impact on how regions are categorised.

The current regional categories are as follows:

Region 1: This region reportedly encompasses the most economically developed and urbanised areas, including key industrial and business hubs, such as Hanoi, Ho Chi Minh City, Hai Phong, and Da Nang.

Region 2: This region is comprised of areas with substantial industrial and economic development, but at a lower intensity than Region 1. The majority of areas of former Binh Duong and Dong Nai provinces in Southern Vietnam, and Can Tho city in the Mekong Delta, belong to Region 2.

Region 3: Encompassing areas with moderate economic development, this region reportedly covers emerging industrial and agricultural areas. Some belong to the former Hai Duong province in Northern Vietnam, the former Khanh Hoa province in the South Central Region, and the former Long An province in the Mekong Delta.

Region 4: The least economically developed areas, often characterised as rural or less industrialised, make up this region. Their primary focus is on agriculture and small-scale industries.

Source: VnEconomy

In Vietnam, the National Wage Council has proposed a 7.2 per cent increase in the regional minimum wage, to take effect from January 1, 2026, VnEconomy reports.

According to a report from Government News, the monthly regional minimum wage will increase by VND350,000-500,000 ($15.50-$22.20) if approved by the Government. The amount of the wage hike will vary by region.

The monthly minimum wage for Regions 1, 2, 3 and 4 will be VND4.96 million ($219), VND4.41 million ($194), VND2.6 million ($114) and VND2.5 million ($109), respectively.

Using these minimum rates as a baseline, employers will reportedly be able to negotiate with their employees over actual monthly salaries that must not be lower than the minimum in each region.

By July 1, 2025, Vietnam's regional minimum wage had been applied in 34 provinces and centrally run cities following the merger of localities.

Vietnam's monthly minimum wages vary across four different regions, each based on the living standards in those areas. The new organisation of local administrative units has had a significant impact on how regions are categorised.

The current regional categories are as follows:

Region 1: This region reportedly encompasses the most economically developed and urbanised areas, including key industrial and business hubs, such as Hanoi, Ho Chi Minh City, Hai Phong, and Da Nang.

Region 2: This region is comprised of areas with substantial industrial and economic development, but at a lower intensity than Region 1. The majority of areas of former Binh Duong and Dong Nai provinces in Southern Vietnam, and Can Tho city in the Mekong Delta, belong to Region 2.

Region 3: Encompassing areas with moderate economic development, this region reportedly covers emerging industrial and agricultural areas. Some belong to the former Hai Duong province in Northern Vietnam, the former Khanh Hoa province in the South Central Region, and the former Long An province in the Mekong Delta.

Region 4: The least economically developed areas, often characterised as rural or less industrialised, make up this region. Their primary focus is on agriculture and small-scale industries.

Source: VnEconomy