Vietnam to raise minimum wage by 7.8% starting Jan 1 2027

The Ministry of Home Affairs has drafted a decree to increase Vietnam’s minimum wage by an average of 7.8% beginning on 1 January 2027. The proposal sets new monthly minimums for four regional wage zones: Region I at 5.7 million VND, Region II at 5.08 million VND, Region III at 4.45 million VND and Region IV at 4.04 million VND, an increase of roughly 310,000–390,000 VND over current levels. Corresponding hourly rates would rise to 27,400 VND in Region I, 24,400 VND in Region II, 21,400 VND in Region III and 19,400 VND in Region IV.

The adjustment aligns with the National Wage Council’s recommendation and follows a prior decree (293/2025) that raised wages 7.2% from July 2026. Officials highlight that the 7.8% rise is about 3.1% above the minimum living standard target for 2027, aiming to balance workers’ purchasing power against inflation (projected CPI around 4.5% annually) while preserving firms’ capacity to sustain production and growth. Five provinces and cities—Hưng Yên, Đà Nẵng, Đồng Nai, Hồ Chí Minh and Hải Phòng—have already submitted local adjustment proposals, which the ministry intends to incorporate before submitting the final decree to the government.