Investigating Enterprise Salary Data for the 2025 Regional Minimum Wage Review.

An extensive survey will be conducted across 3,400 enterprises in 18 provinces and cities, representing 8 economic regions of Vietnam. These regions boast a large number of businesses and a well-developed labor market.

Specifically, the survey will cover the following regions: Red River Delta: Hanoi, Hai Phong, Hai Duong, Bac Ninh, and Vinh Phuc; Northeast: Quang Ninh; Northwest: Hoa Binh; North Central: Thanh Hoa and Nghe An; South Central Coast: Da Nang and Khanh Hoa; Central Highlands: Dak Lak; Southeast: Ho Chi Minh City, Dong Nai, Binh Duong, and Ba Ria – Vung Tau; and Mekong Delta: Long An and Can Tho.

Hanoi, with 700 enterprises and 1,400 workers, and Ho Chi Minh City, with 800 enterprises and 1,600 workers, are the two localities with the highest number of surveyed businesses. Dong Nai comes in third with 200 enterprises and 400 workers, followed by Bac Ninh, Thanh Hoa, Da Nang, and Binh Duong, each with 150 enterprises and 300 workers.

According to the Ministry of Labour, Invalids and Social Affairs, the survey aims to gather information on production, business, labor, and wage conditions in enterprises. This will provide a basis for adjusting the minimum wage for 2025, in line with the activities of the National Wage Council. Additionally, it will serve the management and periodic announcement of average wage levels in the labor market, offering a reference for enterprises and employees in wage negotiations.

The Ministry has instructed that the survey on labor and wages in enterprises for 2024 should strictly adhere to the approved plan. The scope and content of the survey must be comprehensive, consistent, and non-overlapping with other surveys. Moreover, confidentiality of information collected from enterprises and employees should be ensured as per regulations.

The surveyed enterprises are those established and operating under the Law on Enterprises. These enterprises were established and engaged in production and business activities before January 1, 2023, and are still operating at the time of the survey.

The enterprises are categorized into three groups based on their scale of labor: 10 to under 100 employees, 100 to under 300 employees, and 300 employees or more. In terms of ownership, they can be state-owned, non-state-owned, or foreign-invested.

The survey also focuses on three groups of production and business sectors: Agriculture, Forestry, and Fisheries; Industry and Construction; and Trade and Services. Employees with a minimum of one year of work experience are included in the survey.

The minimum wage is the lowest monthly or hourly wage that employers may legally pay to employees for their work. It is intended to provide workers and their families with a minimum standard of living, taking into account social and economic conditions.

The minimum wage is determined by region and is adjusted based on factors such as the minimum standard of living, market wage levels, consumer price index, economic growth, labor supply and demand, employment and unemployment rates, labor productivity, and the ability of businesses to pay.

The Government decides and announces the minimum wage based on the recommendations of the National Wage Council. Most recently, the Government issued Decree No. 74/2024/ND-CP, increasing the minimum wage by 6% from July 1, 2024. This translates to a monthly increase of VND 200,000 to VND 280,000, depending on the region.

As a result, the minimum monthly wage for Region 1 is now VND 4,960,000, Region 2 is VND 4,410,000, Region 3 is VND 3,860,000, and Region 4 is VND 3,450,000. The minimum hourly wage has also increased by 6%, with Region 1 at VND 23,800, Region 2 at VND 21,200, Region 3 at VND 18,600, and Region 4 at VND 16,600.

Regarding the adjustment of regional minimum wages from July 1, 2024, the Ministry of Labour, Invalids, and Social Affairs received feedback from an enterprise in Dong Nai Province regarding difficulties in implementing the new minimum wage levels. The company stated that the decree took effect on June 30, 2024, and the new wages had to be applied immediately from July 1, 2024, leaving them little time to adjust.

Responding to this concern, Mr. Tong Van Lai, Deputy Director of the Department of Labor Relations and Wages, affirmed that the adjustment of regional minimum wages is an annual activity, except for a few years when it was postponed due to the COVID-19 pandemic and economic challenges. Therefore, the implementation of the 2024 regional minimum wage increase follows the established regulations.