Friday, November 14, 2025, 09:52 GMT+7

Vietnam to raise minimum wage by 7% in new year

Vietnam will raise the minimum wage for contracted workers by over seven percent from next year, according to a government document reviewed by Reuters, in a move that could potentially increase labor costs for companies.

The new minimum wage will range from VND3.7 million to VND5.31 million ($141-$202) per month, depending on the region, according to a document signed by Deputy Prime Minister Ho Duc Phoc on Monday.

The decision will take effect on January 1, 2026.

Vietnam to raise minimum wage by 7% in new year- Ảnh 2. — Vietnam's Deputy Prime Minister Ho Duc Phoc speaks during the third plenary session of the 4th International Conference on Financing for Development, in Seville, Spain, July 1, 2025. Photo: Reuters

The minimum wage is the basis for employers to negotiate salaries with their workers, and is applicable for people working under employment contracts, according to the document.

The Southeast Asian country, a regional manufacturing hub with cheap labor costs that attract foreign investors, last raised its minimum wage a year and a half ago.

According to the document, the minimum wage per hour will increase to VND17,800-VND25,500.

($1 = VND26,344)