Viet Nam's minimum wage reforms face compliance gaps and regional disparities
A new report has examined the impact of Viet Nam's minimum wage policies over the past decade. The study, led by the International Labour Organisation (ILO), highlights differences in compliance and effects across regions and industries. It also proposes key changes to improve fairness and economic stability. The research, titled Impacts of Minimum Wage in Viet Nam, was conducted for the National Wage Council. It analysed data from workers, employers, and government officials between 2013 and 2024. Findings show that compliance varies, with household businesses most likely to underpay staff.
From 1 January 2026, four regional wage rates will apply. Region I, covering the most developed urban areas, will set the minimum at VNĐ5.31 million ($200) per month. Region II, with moderate economic growth, will pay VNĐ4.73 million ($179). Region III's rate is VNĐ4.14 million ($157), while Region IV, the least developed, will have a minimum of VNĐ3.7 million ($140). The report found that wage adjustments had little effect on overall employment or business performance. However, they did alter labour costs, competitiveness, and workers' access to social insurance. To address these issues, the ILO recommends a clearer wage adjustment plan, stronger inflation controls, and better alignment with broader economic policies.
The study offers a detailed look at how minimum wage rules have shaped Viet Nam's labour market. Its proposals aim to create a more predictable system for workers and businesses alike. The government will now consider the findings as it reviews future wage policies.
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