Vietnam agrees 7.8% rise in regional minimum wage effective 2027

The National Wage Council in Vietnam voted unanimously to raise the regional minimum wage by an average of 7.8% starting 1 January 2027. The increase will raise monthly minimum wages by 310,000–390,000 VND depending on the region: Region I up to 5.70 million VND (‑390,000 VND), Region II to 5.08 million VND (‑350,000 VND), Region III to 4.45 million VND (‑310,000 VND) and Region IV to 4.04 million VND (‑340,000 VND). Labor representatives had initially proposed rises of 8.5–9.8%, while the Vietnam Trade‑Promotion Association (VCCI) favored a more modest increase of around 5%, citing concerns over businesses’ ability to absorb higher costs. After extensive negotiations, “we have reached absolute consensus on a 7.8% increase,” said Ngọ Duy Hiểu, vice‑president of the Vietnam General Confederation of Labour. VCCI’s Hoàng Quang Phòng noted the decision balances workers’ livelihood improvements with firms’ financial resilience. The proposal will be submitted to the government for final endorsement.