TalentNet has released its “2024 Salary, Bonus, and Benefits Report for Vietnam.” The report includes insights from 594 foreign companies and 59 domestic enterprises, capturing data from over 551,380 employees in Vietnam across 3,481 positions.
RENEWABLE ENERGY SEES THE HIGHEST SALARY INCREASE
Analyzing the data by industry, there were notable shifts in the sectors with the highest and lowest salary increases between 2023 and 2024.
While the top three industries with the highest salary increases in 2023 were High Tech (8.3%), Commerce (7.7%), and Renewable Energy (7.7%), the top three industries in 2024 are Renewable Energy (7.2%), Chemicals (7.0%), and Supply Chain (7.0%).
TalentNet attributes the decline in salary increases in the high-tech sector to the challenges it faces in balancing salary budgets following the strong development of AI.
INDUSTRIES WITH THE LOWEST SALARY INCREASES:
The top three industries with the lowest salary increases include Financial Institutions (5.9%), Non-Financial Institutions (5.6%), and Oil & Gas and Mining (4.8%).
The report also highlights that Gen Z will account for more than a quarter of the workforce by 2025. In the next year, Gen Z is expected to make up 28.4% of the workforce. This generation will become the core of the labor market in the next five years, moving into management roles in the next ten, and senior management positions in the next fifteen.
With this insight, businesses need to plan for training and development to ensure Gen Z is prepared to take on critical roles within their organizations in the coming years.
VOLUNTARY TURNOVER RATES DECREASE
In 2024, Vietnam’s economic growth reached 5.8%, up from 5.1% in 2023. However, inflation also rose during this period, from 3.3% in 2023 to 3.7% in 2024. The stagnant economic situation has significantly impacted the job market, leading to a desire for job stability among employees and a decrease in voluntary turnover rates. In multinational companies, voluntary turnover rates dropped from 14.2% in 2023 to 6.5% .
On the other hand, businesses had to implement strategies such as reducing salary increases and downsizing to balance their budgets.
Compared to 2023, there was a over 6% increase in the number of companies planning to reduce their headcount in 2024. The number of companies expecting no changes in their staffing structure rose from 39% in 2023 to 45.9% in 2024, while the number of undecided companies decreased from 23% last year to 5.4% this year.
This indicates a sense of certainty among businesses regarding their hiring plans for the upcoming year, despite predictions of a continued stagnant economy.
On a positive note, the percentage of companies planning to hire more staff increased from 37% in 2023 to 41.4% in 2024.
HO CHI MINH CITY OFFERS HIGHER SALARIES THAN HANOI
Compared to 2023, the average salary across all regions in Vietnam decreased, reflecting the overall trend of a declining economy. While the median basic salary in Ho Chi Minh City dipped slightly by 2%, it remains the region with the highest average salary in the country.
Ho Chi Minh City offers salaries that are 17% higher than those in Hanoi and 25% higher than those in Da Nang. When considering total income, the gap narrows to 16% and 21%, respectively.
Notably, other regions in the North and Central parts of the country experienced relatively high decreases in basic salaries compared to 2023. The “Other Northern Region” saw a 7% decrease, while the “Other Central Region” experienced a 9% decrease.
For multinational companies, the salary increase rate also dropped slightly from 6.7% to 6.5%. This rate is predicted to increase slightly in 2025. Ms. Nguyen Thi Quynh Phuong, Director of TalentNet’s HR Consulting Division, added: ” Despite the decrease in salary increase rates, the slight decline, considering that overall salaries across the country have decreased, shows that businesses are making efforts to support their employees during these challenging economic times.”
Ms. Nguyen Thi Quynh Phuong, Director of TalentNet’s HR Consulting Division.
The Ruling Elite: Unveiling the Astronomical Salaries of Vietnam’s Maritime and Aviation Titans
A number of state-owned enterprises have recently gone public on the stock exchange, revealing the salaries and remunerations of their top executives. These include well-known companies such as VIMC, Vietnam Airlines, the Vietnam Rubber Group, and Vinafood II. As these companies open up to public scrutiny, it will be interesting to see how their executive compensation packages compare to those of their peers in the industry. With shareholders now having a say in these matters, we can expect greater transparency and accountability in the way these businesses are run.
The World’s Most Impressive Growth Story: A Vietnamese Index Set to Outperform Indonesia and Thailand in the Next 5 Years.
According to the EIU, Vietnam’s business environment has witnessed the most significant improvement during the 2003-2023 period, with a score of 1.3, outperforming 82 countries and territories in the study.
Unveiling Inspection Conclusions for Three Ministries and a Province
The Government Inspectorate has publicly released 3 inspection conclusions regarding the responsibility of officials, civil servants, and public employees in handling administrative procedures and providing public services to citizens and enterprises in the Ministry of Natural Resources and Environment, the Ministry of Transport, and the People’s Committee of Dong Nai province.
High-Speed North-South Rail Project: A Boon for Vietnamese Businesses
The Ministry of Transport is working diligently to finalize the draft report on the pre-feasibility study for the high-speed railway project on the North-South axis. This report is set to be presented to the National Assembly in the upcoming session.
Accelerating Vietnam’s Infrastructure Dream: 600km of Expressways in the Mekong Delta by 2025
On October 16th, Prime Minister Pham Minh Chinh chaired a conference in Can Tho to address challenges and promote the development of transport infrastructure in the Mekong Delta region.
