The minimum wage in Vietnam is scheduled to rise by 7.8% from January 1, 2027, as proposed by the Ministry of Home Affairs. This increase is expected to enhance the living standards of workers, with the new minimum wage varying by region.

According to the draft decree currently under review by the Ministry of Justice, the highest minimum wage will reach 5.7 million VND per month. The proposed monthly minimum wages for the four regions are as follows: Region I will be set 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 marks an increase of between 310,000 VND and 390,000 VND, averaging 7.8% above the current minimum wage.

The Ministry of Home Affairs noted that this adjustment is approximately 3.7% higher than the minimum living standards for workers, aimed at improving their quality of life. The proposed changes reflect a balance between enhancing worker welfare and ensuring that businesses can maintain and grow their operations.

In addition to the monthly wages, the hourly minimum wages are also set to increase, with Region I at 27,400 VND, Region II at 24,400 VND, Region III at 21,400 VND, and Region IV at 19,400 VND. The adjustments will also involve a reassessment of the regions to which these wages apply, considering factors such as economic growth, infrastructure development, and labor market conditions.

As part of the ongoing review, seven provinces and cities have proposed changes to their minimum wage regions, including Hung Yen, Da Nang, Dong Nai, Ho Chi Minh City, Hai Phong, Quang Ninh, and Gia Lai. Specific areas within these regions are being considered for adjustments based on their economic development and labor market dynamics.

The Ministry of Home Affairs has emphasized the importance of maintaining a stable labor relationship while ensuring that wage adjustments do not significantly impact business operations. The proposed changes are now awaiting approval from the government.