What is the average salary in Vietnam in 2024?

One of the key resources that helps businesses compete in any country's market is a skilled workforce. Therefore, understanding the average salary in Vietnam in 2024 is essential for organizations to ensure that their employee salaries remain competitive and attractive in today's labor market. This information helps them adjust their compensation strategies, ensuring that they can attract and retain talented employees amidst fierce competition, thereby enabling them to thrive and succeed in the Vietnamese labor market.

Understanding the average salary in Vietnam is important for gaining insight into the market

Average Salary in Vietnam in 2024

In the dynamic landscape of Vietnam's economy, understanding the average salary in Vietnam 2024 becomes pivotal for both employers and employees alike. Let's delve into the intricacies of the average salary in Vietnam in 2024, according to General Statistics Office’s report.

Monthly average salary in 2024 (first quarter)

The first quarter of 2024 witnessed a notable rise in the monthly average salary in Vietnam. Clocking in at 7,600,000 VND, this figure represents an increase of 301 thousand dong compared to the previous quarter and 549 thousand dong compared to the same period last year. This positive trend indicates a promising trajectory for the country's workforce.

Minimum wage in Vietnam

Ensuring fair compensation for workers is imperative, and Vietnam's government has laid down clear guidelines regarding minimum wage standards. As per Government Decree No. 38/2022/ND-CP dated June 12, 2022, the minimum wage for laborers under labor contracts is specified.

The minimum wage applies to various categories, including employees under labor contracts as per the Labor Code, as well as employers defined by the Labor Code, such as enterprises, organizations, cooperatives, households, individuals and other relevant entities involved in employing laborers.

The minimum basic salary in basic salary in Vietnam across different regions, categorized into four zones:

• Zone I: 4,680,000 VND per month, or 22,500 VND per hour for part-time job salary in vietnam.

• Zone II: 4,160,000 VND per month, or 20,000 VND per hour for part-time job.

• Zone III: 3,640,000 VND per month, or 17,500 VND per hour for part-time job.

• Zone IV: 3,250,000 VND per month, or 15,600 VND per hour for part-time job.

>>> See more: Payroll Vietnam: Quick Guide (Updated 2024)

Annual average Salary Growth in Vietnam 2024

Despite the challenges posed by various economic factors, the annual average salary in Vietnam has been on a positive trajectory. In Q1 2024, the average income continued its upward trend, albeit at a slightly slower pace compared to the previous year. With a growth rate of 7.8% in Q1 2024, compared to 10.0% in the same period in 2023, the country's workforce sees steady improvement in their earning potential.

The income of Vietnamese workers in 2024 shows positive growth

Average Salary in Vietnam vs other countries

According to a report by ManpowerGroup at the end of 2022, the average salary in Vietnam is 275 USD, equivalent to approximately 6.5 million VND per month, significantly lower than the global average salary of 2,143 USD per month. Data from The World Data shows that the average monthly salary in Vietnam is 299 USD, compared to 591 USD in Thailand, 893 USD in Malaysia, and 990 USD in China. It is evident that Vietnam's basic salary ranks among the countries with the most competitive labor costs in Asia and Southeast Asia.

Characteristics of the Labor Market in Vietnam

Let's explore the intricate dynamics of Vietnam's labor market, understanding its pivotal role in economic growth and the challenges it faces:

• Development and Stability: Vietnam's labor market has grown steadily since the 1986 Renovation policy.

• Increase in Labor Force: The workforce in Vietnam has surged from 32 million in 1990 to 56.15 million in 2022, particularly among those aged 15 to 39.

• Challenges from COVID-19 Pandemic: COVID-19 has led to higher unemployment rates and affected labor force participation in Vietnam.

• Low Labor Productivity: Despite more workers, labor productivity remains low due to a lack of skilled labor.

• Restructuring of the Labor Market: Government policies aim to improve vocational training and enhance labor quality.

• Shortage of Specialized Labor and Industry 4.0 Impact: Vietnam grapples with a shortage of skilled labor, worsened by the impact of Industry 4.0, leading to a mismatch between the labor structure and real needs and hampering the country's competitiveness.

• Uneven Distribution of Labor: Labor distribution across regions and urban-rural areas is uneven, affecting supply and demand balance.

• Imbalance between Economic Sectors: Vietnam's focus on traditional sectors during FDI attraction has led to labor structure imbalances and reduced international competitiveness.

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Vietnam has a plentiful and diverse labor force

Regional Administrative Salary in Vietnam

Here is a table showing the average salaries in the first quarter from 2022 to 2024 across different regions in Vietnam:

Region	Q1 2022 Salary	Q1 2023 Salary	Q1 2024 Salary
Northern Midlands and Mountainous Region	4,800,000 VND	5,100,000 VND	5,700,000 VND
Red River Delta	7,400,000 VND	8,300,000 VND	8,900,000 VND
North Central Coast and Central Coast	5,500,000 VND	6,200,000 VND	6,600,000 VND
Central Highlands	4,600,000 VND	5,000,000 VND	5,600,000 VND
Southeast Region	8,300,000 VND	8,900,000 VND	9,500,000 VND
Mekong River Delta	5,600,000 VND	6,400,000 VND	6,900,000 VND

Source: gso.gov.vn

In the first quarter of 2024, the average salaries across different regions of Vietnam varied significantly. The highest average salary was observed in the Southeast region at 9,500,000 VND, followed by the Red River Delta at 8,900,000 VND. These regions typically have higher economic activity and attract more investment, leading to higher wages. Conversely, the lowest average salary was recorded in the Northern Midlands and Mountainous areas at 5,700,000 VND, which can be attributed to factors such as lower levels of industrialization and economic development.

Comparing the average salaries in the first quarter of 2024 with those of the previous year (2023), we can observe varying growth rates across regions. The Southeast region experienced a significant increase of 7.8%, from 8,900,000 VND in 2023 to 9,500,000 VND in 2024. Similarly, the Red River Delta saw a notable growth of 7.5%, reflecting the region's strong economic performance. Meanwhile, the Central Highlands region had a relatively modest growth rate of 4.3%, from 5,600,000 VND to 5,800,000 VND. Other regions such as the North Central Coast and the Central Coast also showed moderate increases, while the Northern Midlands and Mountainous areas recorded the lowest growth rate of 3.5%. Overall, these growth rates reflect the varying economic dynamics and development trajectories across different regions of Vietnam.

A bar chart illustrating the average salary in Q1 of the recent years for each region

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Average Salary by Industry in Vietnam

Compared to the same period last year, the average monthly income of workers in the first quarter of 2024 increased in all three economic sectors, with the service sector experiencing the highest growth rate. The average monthly income of workers in the service sector in the first quarter of this year was 9,000,000 VND, up 8.7%, equivalent to an increase of 724,000 VND compared to the same period last year; in the agriculture, forestry, and fisheries sector, it was 4,400,000 VND, up 8.3%, with an increase of 338,000 VND; and in the industry and construction sector, it was 8,400,000 million VND, up 5.9%, corresponding to an increase of 471,000 VND.

More specifically, below are some trend in Average Salaries by Industry in Vietnam:

• Real estate business activities: The average monthly income in Q1/2024 is 12.1 million VND, a 15.3% increase compared to the same period last year.

• Production and distribution of electricity, gas, hot water and steam: The average monthly income in Q1/2024 is 11.1 million VND, a 12.7% increase compared to the same period last year.

• Financial activities, banking, and insurance: The average monthly income in Q1/2024 is 13.1 million VND, a 12.7% increase compared to the same period last year.

• Accommodation and food services: The average monthly income in Q1/2024 is 7.3 million VND, a 9.3% increase compared to the same period last year.

• Warehousing and transportation: The average monthly income in Q1/2024 is 10.5 million VND, a 9.2% increase compared to the same period last year.

It's worth noting that male workers generally earn higher average salaries than female workers, and urban workers typically earn higher average salaries than rural workers.

Other components of Salary

In addition to the Vietnam basic salary, workers in Vietnam can augment their earnings through various supplementary allowances and bonuses. These additional components play a significant role in enhancing overall compensation and motivating employees.

Overtime Pay

Overtime pay is compensation for the extra hours worked beyond regular working hours. In Vietnam, employees are entitled to different rates of pay depending on when they work overtime. For instance, on regular working days, workers receive 170% of their hourly wage for overtime hours. On weekly rest days, this rate increases to 220%, and on public holidays, employees can earn up to 350% of their regular wage.

The overtime pay rates described for Vietnam can be considered relatively high

Holiday Pay

Holiday pay is granted to employees who work during official holidays, such as the Lunar New Year in Vietnam. During Lunar New Year 2024, workers received a minimum of 300% of their regular wage, excluding additional benefits for holiday, Lunar New Year, or other paid days off. Those who work on public holidays are eligible for extra compensation, ensuring that employees are adequately rewarded for their dedication during festive seasons.

Performance and Revenue-based Bonuses

Performance and revenue-based bonuses vary depending on the company's policies and performance evaluation criteria. These bonuses serve as incentives for employees to achieve individual and organizational goals, encouraging productivity and commitment to excellence.

13th-Month Salary

The 13th-month salary is a common practice in Vietnam, wherein employees receive an additional month's pay as a year-end bonus. Employees who have worked for the entire year are entitled to a bonus equivalent to their average monthly salary for the past 12 months. For those who haven't completed a full year, the bonus is prorated based on the number of months worked.

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The 13th-month salary motivates employees to work harder

Lunar New Year Bonuses

Lunar New Year bonuses, often referred to as Lunar New Year bonuses, are discretionary bonuses given by companies to their employees during the Lunar New Year holiday. The amount and distribution of Lunar New Year bonuses vary from one company to another and are often influenced by factors such as company performance and budget allocation.

Allowances and Other Benefits

Apart from bonuses, employees may receive various allowances and benefits, including incentives for working under specific conditions or fulfilling certain job requirements. These may include sick leave allowances, maternity benefits, retirement benefits, accident and occupational disease allowances, as well as severance pay and unemployment benefits.

Based on the information provided in the article, it is evident that the labor market in Vietnam is highly diverse and complex. This poses a significant challenge for businesses, especially foreign enterprises, looking to enter this market. Therefore, a recruitment agency partner like Aniday is indispensable in helping businesses select quality labor.

Aniday - Trusted Recruitment Partner - Companion of Every Business

In conclusion, the average salary in Vietnam reflects a dynamic and evolving labor market. Despite challenges, Vietnam remains an attractive destination for businesses seeking to tap into its growing workforce. However, navigating this complex landscape requires expertise and local knowledge, making recruitment agencies like Aniday invaluable partners for businesses aiming to thrive in Vietnam's labor market. Contact Aniday today to gain access to top-quality labor and streamline your recruitment process!

>>> See more: Aniday's Executive Search Services