Vietnam proposes minimum wage hike amid rising average incomes

Vietnam's Ministry of Home Affairs has proposed a draft decree to increase the minimum wage by an average of 7.8%, effective January 1, 2027. Under this plan, monthly wages would rise to 5,700,000 VND in Region I and 4,040,000 VND in Region IV. The Ministry rejected requests from the Vietnam Textile and Apparel Association to delay the implementation until July 2027, noting that the current timeline was agreed upon by the National Wage Council based on labor laws and cost of living factors.

Separately, the 2025 living standards survey conducted by the General Statistics Office shows that Vietnam's average monthly per capita income rose to 6 million VND, a 10.9% increase from 2024. While urban income reached nearly 7.4 million VND, rural income averaged nearly 5.2 million VND. Regional disparities remain, with the Southeast region reporting the highest average income and the Northern Midlands and Mountains reporting the lowest. Specifically, Dien Bien province recorded the lowest average monthly income at approximately 2.583 million VND.