The Ministry of Home Affairs in Vietnam is currently drafting a decree to propose a 7.8% increase in the minimum wage for 2027. This increase is designed to ensure that the real income of workers is maintained in the face of inflation, thereby stabilizing their living conditions.

In response to concerns raised by voters in Ho Chi Minh City, the Ministry has provided guidance regarding wage policies in the business sector. The current wage system for workers in Vietnam is based on market principles as outlined in the 2019 Labor Code. Wages are determined through agreements between employees and employers, reflecting labor productivity and job performance quality.

This system allows businesses to autonomously establish their pay scales, ensuring fair compensation for workers, especially for skilled professionals who contribute significantly to their companies. The government sets the minimum wage as the lowest amount payable to workers performing the simplest jobs under normal working conditions.

The minimum wage adjustments are based on various factors, including the cost of living for workers and their families, market wage levels, consumer price indices, economic growth rates, labor supply and demand, employment and unemployment rates, productivity, and the financial capacity of businesses.

The government will decide and announce the minimum wage based on recommendations from the National Wage Council. Following the Council's activity plan for 2026, discussions were held regarding the minimum wage for 2027, resulting in a recommendation for an average increase of 7.8%.

Economist Nguyen Thuong Lang, a senior lecturer at the National Economics University, emphasized that the goal of adjusting the minimum wage is to ensure workers' real incomes are not diminished by inflation, which helps them maintain stable lives. He stated, "When income improves, workers will feel secure in their jobs, increase productivity, and remain committed to their companies. Therefore, ensuring and enhancing real income should be prioritized to create a foundation for improving labor productivity."

Currently, the Ministry of Home Affairs is working on a draft government decree that will establish the minimum wage for workers under labor contracts. The proposed minimum monthly wages will vary by region: 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. This represents an increase of 310,000 to 390,000 VND, corresponding to an average increase of 7.8% compared to the current minimum wage.