Starting January 1, 2026, several policies will come into effect, directly impacting Vietnamese citizens. Here’s a breakdown of the key changes:
Wage Policy Updates
Minimum Wage Increase for Contract Workers
Decree 293/2025/NĐ-CP, effective January 1, 2026, adjusts the minimum wage for contract workers across four regions:
- Region I: VND 5,310,000/month (VND 25,500/hour) – Increase of VND 350,000.
- Region II: VND 4,730,000/month (VND 22,700/hour) – Increase of VND 320,000.
- Region III: VND 4,140,000/month (VND 20,000/hour) – Increase of VND 280,000.
- Region IV: VND 3,700,000/month (VND 17,800/hour) – Increase of VND 250,000.
This applies to all contract workers and employers under the Labor Code, including businesses, organizations, cooperatives, households, and individuals hiring labor.
Teachers to Receive Highest Salary Tier in Public Sector
The 2025 Teacher Law, passed by the National Assembly, elevates teachers’ status and benefits. Key highlights from Article 23 include:
- Highest Salary Tier: Teachers’ salaries will be prioritized at the top of the public sector salary scale.
- Additional Allowances: Teachers in challenging areas (remote regions, ethnic minority areas, special education) will receive higher allowances.
- Non-Public Sector Teachers: Minimum wage increases per Decree 293/2025/NĐ-CP.
Tax Policy Reforms
Millions to Benefit from Personal Income Tax Reduction
The amended Personal Income Tax Law, effective July 1, 2026, introduces significant changes:
- Increased Deductions: Basic deduction rises to VND 15.5 million/month (VND 186 million/year), with dependent deductions at VND 6.2 million/month.
- Tax-Free Threshold: Individuals earning up to VND 17 million/month (after deductions) will be exempt from income tax.
- Simplified Tax Brackets: Reduced from 7 to 5 brackets (5%, 10%, 20%, 30%, 35%), widening income ranges.
Higher Excise Tax on Alcohol and Beverages
The 2025 Excise Tax Law, effective January 1, 2026, aims to regulate consumption of harmful products:
- Alcohol and Tobacco: Gradual tax increases from 2027-2031.
- Sugary Drinks: 8% tax from 2027, rising to 10% in 2028 for drinks with >5g sugar/100ml.
Land and Housing Policy
New Land Price Framework: Single Market-Based System
- Annual Updates: Land prices will be revised yearly, reflecting market values.
- Plot-Specific Pricing: Prices will be determined per plot, using digital maps and standardized benchmarks.
Interior Ministry Cites Reasons for 7.2% Regional Minimum Wage Increase Starting 2026
The Ministry of Home Affairs has proposed a 7.2% average increase in regional minimum wages starting from 2026, amounting to an additional VND 250,000-350,000 per month for workers. This adjustment aims to boost employees’ income while keeping production costs for businesses minimally impacted.
A Minimum Wage Increase of 7.2%: Strategies to Prevent a Price ‘Hike’
The minimum wage is set to increase by 7.2% from the beginning of 2026, a move aimed at counteracting the effects of inflation and ensuring workers can afford the rising cost of living. Historically, such wage increases have been followed by a rise in the price of goods. To prevent this, authorities must take action to stop businesses from simply passing on these increased labor costs to consumers, ensuring that this wage increase truly benefits workers.
Steady Aim for Public Investment Disbursement
Despite the challenges faced in disbursing public investment capital, Ho Chi Minh City remains resolute in its efforts to fast-track solutions and maintain its target of 95%.
The Magic of Three: Unveiling the Art of Timely Land Valuation in Vibrant Ho Chi Minh City
The Ho Chi Minh City authorities are set to embark on a research-led journey to evaluate land prices in areas with limited infrastructure and socio-economic conditions. This proactive approach aims to shed light on the intricate balance between land values and the surrounding environment, a pivotal yet often overlooked aspect of urban development. By delving into this nuanced relationship, the city aspires to make informed decisions that foster equitable growth and a vibrant urban landscape.
The Land Records on Hold by the Tax Agency: Ho Chi Minh City to Report and Seek the Prime Minister’s Opinion
“Land use conversion and recognition of land use rights are crucial steps in any development process. However, citizens’ applications for land use conversion and recognition of their land use rights have been put on hold by the tax authority due to ongoing discussions regarding adjusted land price tables by the city. This has caused a roadblock for many, and it is essential to address this matter promptly to ensure the smooth progression of projects and to protect the rights of citizens.”
