Compliance
Major Wage Update: Vietnam Announces 7.2% Increase

Vietnam is set to raise its regional minimum wage by 7.2% beginning January 1, 2026, marking an important step in improving income levels for workers across the country’s diverse economic regions.


Under the new adjustment, the monthly minimum wage will be:

  1. Region 1: VND 5.31 million (US$210)
  2. Region 2: VND 4.73 million (US$180)
  3. Region 3: VND 4.14 million (US$157.42)
  4. Region 4: VND 3.70 million (US$141)


The hourly minimum wage will also increase accordingly:

  1. Region 1: From VND 23,800 → VND 25,500 per hour
  2. Region 2: From VND 21,200 → VND 22,700 per hour
  3. Region 3: From VND 18,600 → VND 20,000 per hour
  4. Region 4: From VND 16,600 → VND 17,800 per hour


What the Four Wage Regions Represent


Vietnam’s minimum wage system is divided into four regions that reflect different levels of economic development and living costs:


Region 1


Home to the country’s most dynamic economic centers—Hanoi, Ho Chi Minh City, Hai Phong, and Da Nang. These areas lead in industrial activity, services, and overall economic competitiveness.


Region 2


Covers areas with robust but slightly less intense economic growth, including most of the former Binh Duong and Dong Nai provinces, along with Can Tho City in the Mekong Delta.


Region 3


Includes emerging industrial and agricultural zones such as parts of the former Hai Duong, Khanh Hoa, and Long An provinces.


Region 4


Consists largely of rural or less industrialized provinces where agriculture and small-scale industries dominate.


Why This Adjustment Matters


The wage increase reflects Vietnam’s continued focus on:

  1. Supporting workers’ living standards
  2. Aligning wages with rising costs
  3. Maintaining competitiveness while encouraging sustainable labor practices
  4. Ensuring fairer wage distribution across regions


As Vietnam’s economy continues to expand, this adjustment is expected to have a meaningful impact on both employees and employers—especially in manufacturing, services, and export-oriented industries.