The National Wage Council held its first negotiation session on 23/6 to discuss regional minimum wages for 2027. The Vietnam General Confederation of Labor put forward hai proposals: a 9,8% increase, meaning an adjustment of 360,000 dong to 520,000 dong; and an 8,5% increase, corresponding to 315,000 dong to 450,000 dong.

The proposed wages for the 4 regions under the hai plans are detailed below (Unit: Million VND):

Tran Thi Thanh Ha, Deputy Head of the Labor Relations Department at the Vietnam General Confederation of Labor, highlighted that nearly 75% of businesses experienced growth and expanded production, which provides a basis for increasing the minimum wage. She stated, "In reality, the minimum wage is outdated compared to the current situation," arguing that the proposed increase would only relatively ensure a basic living standard for workers.

However, Hoang Quang Phong, Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), emphasized the need to prioritize maintaining production, enhancing competitiveness, and preserving jobs given the global economic impact on operating costs and taxes. While agreeing with a minimum wage adjustment, he stressed that "the exact amount must balance the interests of both sides."

Male workers in the shirt production workshop of May 10 Company, Hanoi. Photo: Ngoc Thanh

The most recent regional minimum wage adjustment took effect on 1/1/2026, with a 7,2% increase. Region I reached VND 5,31 million per month; Region II, VND 4,73 million; Region III, VND 4,14 million; and Region IV, VND 3,7 million. The hourly minimum wage, calculated based on the monthly rate and standard working hours, was 25,500 dong per hour for Region I; 22,700 dong for Region II; 20,000 dong for Region III; and 17,800 dong for Region IV.

The Ministry of Home Affairs estimated that this adjustment would lead to a 0,5-0,6% increase in production costs, specifically 1,1-1,2% for textiles, garments, leather, and footwear. However, since most businesses currently pay above the minimum wage, the primary impact is an increase in social insurance contributions.

The International Labor Organization (ILO) in Vietnam reported that between 2015 and 2022, the government consistently adjusted the minimum wage upwards, from 119 USD in 12/2015 to 168 USD in 12/2022. Despite this, rising inflation meant the real value of the minimum wage did not increase significantly. From 2015-2019, the nominal minimum wage increased by 42,7%, but inflation limited the real wage increase to only 20,1%. In the 2020-2022 period, the minimum wage was adjusted by over 6%, yet the real wage increased by just 0,7%.

ILO experts emphasize that prices and living costs often rise before wage adjustments. Therefore, the process of determining the minimum wage requires balancing the needs of workers and their families, including living costs, general wage levels, social security benefits, and relative living standards. It also considers economic factors such as productivity, economic growth, employment, sustainability, and business affordability. Regular review and monitoring of the minimum wage's impact, along with consultation with social partners, are crucial.

Data from the General Statistics Office indicates that the Consumer Price Index (CPI) for the first 5 months of the year increased by 4,31% compared to the same period last year. While the index for food and catering services decreased, 10 other groups of goods saw price increases. Housing, electricity, water, fuel, and construction materials experienced the sharpest rise at 6,6%; transportation increased by 5,2%; and food and catering services rose by nearly 4,8%.

Hong Chieu