On July 11 in Hanoi, the National Wage Council concluded its second meeting of 2025 by voting to propose a 7.2% increase in the regional minimum wage for 2026. The new wage levels are set to take effect on January 1, 2026.

Deputy Minister of Home Affairs and Chairman of the National Wage Council, Nguyen Manh Khuong, announced that 13 out of 16 council members supported the proposal, with three abstaining.

“After comprehensive discussions among the tripartite stakeholders and careful consideration of Vietnam's economic development trends, the council reached a strong consensus on a 7.2% increase in the regional minimum wage from January 1, 2026,” Khuong said.

He emphasized that the proposed increase aligns well with the country’s current development trajectory and supports the national growth target of 8% in 2025, and potentially double-digit growth in the years ahead.

The average proposed increase amounts to 300,000 VND (approx. $12) per month compared to 2025. Specifically:

Region I: from 4.96 million VND to 5.31 million VND/month (increase of 350,000 VND, or 7.1%)
Region II: from 4.41 million VND to 4.73 million VND/month (increase of 320,000 VND, or 7.3%)
Region III: from 3.86 million VND to 4.14 million VND/month (increase of 280,000 VND, or 7.3%)
Region IV: from 3.45 million VND to 3.70 million VND/month (increase of 250,000 VND, or 7.2%)

Deputy President of the Vietnam General Confederation of Labor and Vice Chairman of the National Wage Council, Ngo Duy Hieu, stated that this proposal meets the expectations of union members and workers across the country, while also reflecting empathy toward the challenges faced by businesses.

“This wage increase provides motivation for workers to contribute more actively to the goal of 8% growth by the end of this year and potentially double-digit growth thereafter,” Hieu emphasized.

He added that the minimum wage adjustment will help improve living standards for workers, particularly those earning base-level wages. While most businesses already pay above the minimum, this serves as an important reference point for wage-setting.

Once the government officially approves the increase, the Vietnam General Confederation of Labor will launch a campaign to inform and encourage workers to support the policy and continue contributing to the nation’s productivity and progress.

Hoang Quang Phong, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI) and Vice Chairman of the National Wage Council, also noted that the council operates on a high-consensus model. With this agreement reached, employers will support the recommendation and prepare accordingly.

Employers will be required to reallocate tasks, improve management systems, adopt technological solutions, and upgrade overall operations to maintain performance, protect jobs, and retain skilled workers in the face of higher labor costs.

PV