Minimum Wage Changes in Vietnam for 2026: A Strategic Guide for FDI Leaders
Vietnam’s 2026 minimum wage increase is now official — and it’s set to influence compensation planning, recruitment strategies, and cost forecasting for all foreign-invested companies.
Introduction to Minimum Wage Changes in Vietnam for 2026
The Minimum Wage Changes in Vietnam for 2026 reflect official regulatory updates that directly impact labor costs, expansion strategies, and compensation planning for multinational corporations operating in Vietnam. For C-suite executives—CEOs, CFOs, CHROs, Regional Directors—understanding these changes is critical for accurate budgeting, complying with labor law, and designing competitive compensation packages.
As a recruitment and workforce advisory specialist for FDI enterprises, Invest Talent JSC brings forward a clear, data-driven analysis so businesses can foresee cost implications and plan hiring accordingly.
Vietnam’s 2026 Minimum Wage: Official Data & What’s Changing
On November 10, 2025, the Vietnamese government issued Decree 293/2025/ND-CP, which revises the regional minimum wage for employees working under labor contracts — effective from January 1, 2026.
Vietnam’s minimum wage system divides the country into four zones:
- Region I (HCMC, Hanoi): highest wage levels
- Region II (Da Nang, Can Tho): upper-mid wage tier
- Region III (emerging industrial areas)
- Region IV (rural, agricultural-focused regions)
Here are the new minimum wage levels, by region:
| Region | Minimum Monthly Wage (from 1 Jan 2026) | Minimum Hourly Wage (from 1 Jan 2026) |
|---|---|---|
| Region I | VND 5,310,000 | VND 25,500 / hour |
| Region II | VND 4,730,000 | VND 22,700 / hour |
| Region III | VND 4,140,000 | VND 20,000 / hour |
| Region IV | VND 3,700,000 | VND 17,800 / hour |
That means compared to the previous wage levels (under Decree 74/2024/ND-CP), the increase is between VND 250,000 – VND 350,000 per month, an average rise of ~7.2%.
Previous (2024–2025) Minimum Wage Levels
Before 2026 the minimum wages were:
| Region | Monthly Wage | Hourly Wage |
|---|---|---|
| Region I | VND 4,960,000 | VND 23,800/hour |
| Region II | VND 4,410,000 | VND 21,200/hour |
| Region III | VND 3,860,000 | VND 18,600/hour |
| Region IV | VND 3,450,000 | VND 16,600/hour |
The new 2026 increase helps employers and analysts benchmark wage floors and plan accordingly.
Why This Increase Matters for FDI Companies
1. Increased Payroll & Operating Costs
For companies, especially labour-intensive operations, the 7.2% rise in minimum wages means an increase in base wage bills, overtime calculations, and potentially social security / insurance contributions tied to base wage levels. For expanding operations in urban/industrial hubs (Region I or II), the cost impact will be more significant.
2. Competitive Salary Benchmarks for Hiring & Retention
As minimum wages rise, market expectations for entry-level and low-skilled roles will adjust upward. This can exert upward pressure on salaries across the levels — including mid-level and skilled workers — because companies may want to maintain internal compensation equity or market competitiveness.
3. Budgeting & Forecasting for Expansion Projects
For FDI companies planning new plants, offices or large-scale hires, it’s more important than ever to factor in the revised minimum wage early. Budgets must account for higher base salary expense, possibly higher turnover, and updated social insurance contributions.
4. Compliance & Legal Risk Management
With the new figures codified in Decree 293/2025/ND-CP, employers must ensure that all wages — monthly, hourly, overtime — comply with the regional minimums. Non-compliance can lead to labor disputes, fines, and reputational risk.
Strategic Advice from Invest Talent JSC for C-suite Decision-Makers
As you navigate expansion and recruitment in Vietnam in 2026, here’s how your organization can proactively respond:
- Conduct region-based salary benchmarking: Use the official 2026 minimum wage as a starting point, then adjust based on role, skills, and market competition — especially for skilled labour.
- Anticipate upward pressure on pay bands: As minimum wages rise, plan for subsequent salary band reviews across roles to maintain internal equity and market competitiveness.
- Include social insurance and benefit cost inflation in financial forecasting: Base wage increases often lead to higher contributions for social insurance and other statutory benefits — factor them into COGS and HR budgets.
- Leverage a recruitment & advisory partner (like Invest Talent JSC): We help FDI firms align hiring strategies with the new wage floor, avoid compliance issues, and secure talent efficiently during expansion.
Conclusion
The 2026 update to Vietnam’s regional minimum wages — with increases of 7.2% effective from January 1, 2026 — represents a pivotal moment for all employers, especially foreign-invested enterprises. For C-suite executives leading expansion, labor-intensive operations, or strategic hiring plans, integrating these changes into payroll budgets, talent strategies, and compliance frameworks is vital.
At Invest Talent JSC, we stand ready to help you navigate these changes — from salary benchmarking, recruitment, to workforce planning — so your expansion in Vietnam in 2026 is smooth, cost-effective, and compliant.
Plan smarter - Hire faster - Expand stronger, Partner with Invest Talent JSC!
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