Monthly salaries in Vietnam rise fastest in Southeast Asia

1 min readUpdated May 27, 2025Dec 15, 20176:35 AM

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Salaries in Vietnam are rising faster than in any other Southeast Asian country, according to a recent survey released by employment website Jobstreet.com.

The average annual growth rate of Vietnam’s payroll stands at 20-24 percent, compared to 14-20 percent in Thailand, the Philippines, Indonesia, Myanmar and Singapore.

In Vietnam, management and executive salaries grew fastest, at 26 and 35 percent respectively.

The survey found that 68 percent of companies operating in Vietnam want to expand their businesses in the future, so they have high recruitment demands. Jobstreetforecast that salary growth will continue with this demand.

Vietnam’s minimum wage, however, doesn’t enjoy such a large jump. On Monday, the prime minister signed off on a decree raising the minimum wage for 2018 by 6.5 percent, the lowest nominal bump in 11 years.

The rise brings the minimum wage for Region I to VND3.98 million ($175) a month. Region II to VND3.53 million, Region III to VND3.09 million and Region IV to VND2.76 million.

In Vietnam, there are four different minimum wage regions, which are supposed to reflect the cost of living in each area. Region I, including Hanoi and Ho Chi Minh City, has the highest minimum wage, while region IV, which is for rural areas, has the lowest.

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What this means

The surging salary growth in Vietnam presents a complex challenge for retailers. While a buoyant workforce with higher disposable income could boost consumer spending, the rapid 20-24% average payroll increase, especially for management roles, significantly elevates operational costs. This dynamic could pressure profit margins for companies like those expanding in China and Japan or opening new stores in Singapore. Unlike the 6.5% minimum wage rise, which is manageable, the executive salary hikes will impact high-end retail and brand expansion strategies. Retailers must carefully balance investment in talent acquisition with cost management, particularly as 68 percent of companies plan business expansion. Retailers should monitor skilled labour availability and its impact on pricing strategies.

Sarah Chen · Retail News Asia newsroom

Questions & Answers

Which specific job levels in Vietnam saw the most significant salary increases, according to the survey?

Management and executive salaries experienced the fastest growth. Management salaries increased by 26 percent, while executive salaries saw an even higher jump of 35 percent, leading all categories.

What is the primary reason given in the article for the anticipated continuation of salary growth in Vietnam?

The high recruitment demands from companies operating in Vietnam are the main driver. The survey found that 68 percent of these companies intend to expand their businesses in the future.

How does the latest minimum wage increase for 2018 compare to previous years?

The minimum wage increase for 2018 is 6.5 percent, which marks the lowest nominal bump in 11 years. This contrasts with the much larger growth seen in overall monthly salaries.

What is the highest monthly minimum wage set for 2018, and which areas does it cover?

The highest monthly minimum wage for 2018 is VND3.98 million ($175), designated for Region I. This region includes major urban centres like Hanoi and Ho Chi Minh City.

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