The Ministry of Internal Affairs made this assessment in a draft decree on minimum wage adjustments for contract workers in the enterprise sector, which is currently open for public comment.
Following recommendations from the National Wage Council, the drafting agency proposes new monthly minimum wages effective 1/1/2027: 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 VND to 390,000 VND, a general rise of 7.8%.
The corresponding hourly minimum wages are 27,400 VND for Region I, 24,400 VND for Region II, 21,400 VND for Region III, and 19,400 VND for Region IV.
The Ministry of Internal Affairs estimates the 7.8% increase will exceed the minimum living standard for workers by about 3.7% by the end of 2027. This calculation projects a Consumer Price Index (CPI) increase of approximately 4.5% annually for 2026 and 2027. The proposed minimum wage hike seeks to balance the interests of workers and businesses, improving livelihoods while supporting business operations.
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Shift entry time for garment workers at Vinh Loc A, TP HCM, 8/2025. *Quynh Tran*. |
The draft decree also mandates that employers review and adjust existing contract and collective bargaining agreements. They must not eliminate or reduce wage benefits for overtime, night work, or in-kind allowances. Furthermore, any agreements more favorable to workers—such as paying at least 7% above the minimum wage for positions requiring advanced education or vocational training, or 5% more for arduous, hazardous, or dangerous work—must remain in effect, unless both parties mutually agree to a change.
Additionally, the Ministry of Internal Affairs proposes that the government consider and decide on adjusting the minimum wage application areas based on recommendations from five localities after review, including Hai Phong, Hung Yen, Da Nang, Dong Nai, and TP HCM. Specifically:
| Province/City | Adjusted Area |
| TP Hai Phong | Region II to Region I: Thanh Ha, Ha Tay, Ha Bac, Ha Nam, Ha Dong, Ninh Giang, Vinh Lai, Khuc Thua Du, Tan An, Hong Chau, Thanh Mien, Bac Thanh Mien, Nam Thanh Mien, Hai Hung |
| Hung Yen | Region IV to Region III: Dong Hung, Bac Tien Hung, Dong Tien Hung, Nam Dong Hung, Bac Dong Quan, Bac Dong Hung, Dong Quan, Nam Tien Hung, Quynh Phu, Minh Tho, Nguyen Du, Quynh An, Ngoc Lam, Dong Bang, A Sao, Tan Tien, Phu Duc, Hung Ha, Tien La, Le Quy Don, Hong Minh, Than Khe, Dien Ha, Ngu Thien, Long Hung, Le Loi, Kien Xuong, Quang Lich, Vu Quy, Binh Thanh, Binh Dinh, Hong Vu, Binh Nguyen, Tra Giang, Vu Thu, Vu Tien, Van Xuan within Hung Yen province. |
| TP Da Nang | Region III to Region II: Dien Ban, Dien Ban Dong, An Thang, Dien Ban Bac and the communes of Dien Ban Tay, Go Noi |
| TP Dong Nai | Region II to Region I: Cam My, Dinh Quan, Tan Phu, Thuan Loi |
| TP HCM | Region II to Region I: Ba Ria, Long Huong, Tam Long, the communes of Ngai Giao, Nghia Thanh, Kim Long, Chau Duc, Long Hai, Long Dien, Binh Khanh, An Thoi Dong, Can Gio, Thanh An and Con Dao Special Zone |
The proposed regional minimum wage plan for 2027, with a 7.8% increase, was unanimously approved by the National Wage Council on 16/7 after two negotiation sessions.
The General Statistics Office reported that the average Consumer Price Index (CPI) for the first six months of 2026 rose by 4.38% compared to the same period in 2025. Key drivers included the housing, electricity, water, fuel, and construction materials group, which increased by over 6.7%. Rental housing prices climbed by 6.3% due to higher maintenance and operating costs. Housing maintenance materials saw an increase of over 14%, driven by rising construction material prices and demand for repairs. Additionally, household electricity prices grew by 5.54% due to increased consumption.
A survey by the Vietnam General Confederation of Labor in 3-4/2026, encompassing 2,000 workers across nearly 200 businesses in 7 provinces and cities, highlighted that wages impact daily spending and significantly influence the ability to buy homes, save, and plan for the future. The survey found that 55% of single workers cited wages as the primary reason for delaying marriage. Furthermore, 73% of married individuals reported that their current wages affected their decisions to have more children. The escalating costs of education, healthcare, and child-rearing are prompting many families to postpone these crucial life choices.
Hong Chieu
