Vietnam will implement a 6% increase in its regional minimum wage starting July 1, 2024, under a government decree issued on June 30. This move is intended to support workers’ living standards amid inflationary pressures and rising living costs.
The revised monthly minimum wage will vary across four economic regions. In Region I—which includes urban Hanoi and Ho Chi Minh City—the wage will rise from VND 4.68 million to VND 4.96 million. Region II will see an increase from VND 4.16 million to VND 4.41 million. In Region III, the wage will move from VND 3.64 million to VND 3.86 million, and Region IV will rise from VND 3.25 million to VND 3.45 million. Hourly wages will also increase by a similar percentage, with Region I reaching up to VND 23,800 per hour.
This is Vietnam’s second mid-year wage hike since 2022, reflecting the government’s effort to balance worker welfare with business sustainability. Authorities say the adjustment aligns with ongoing economic recovery and is based on extensive consultation with trade unions, employers, and regional economic data.
The Ministry of Labour, Invalids and Social Affairs has reviewed and updated the regional classification system to match recent changes in district and commune boundaries, ensuring the new wage policy is applied fairly.
While the move benefits over 55 million workers, some textile and garment companies have expressed concerns about rising labor costs amid stiff global competition. Still, the government views the increase as necessary for long-term economic and social stability.
