Vietnam’s Average Wages on the Rise
According to a recent economic development report by the government, average monthly wages in Vietnam grew by over 10 percent last year. The private sector witnessed the highest growth, while employees of state-owned enterprises earned the highest salaries. Major FDI destinations in the country continue to have much higher salaries compared to the rest of the country.
According to the General Statistics Office report about enterprise development during the period 2010 – 2017, State-owned enterprises (SOEs) paid the highest average monthly wages compared to FDI and private sector firms in 2017.
In 2017, the average monthly wages of the business sector reached VND 8.3 million (US$354), up 10.1 percent compared to 2016. SOEs had the highest wages at VND 11.01 million (US$ 469), an increase of 4.4 percent compared to 2016.
Average monthly wages in FDI firms in 2017 grew by 6.2 percent compared to the previous year, to VND 9.04 million (US$ 386).
The private sector had the lowest average monthly wages in 2017 compared to SOEs and FDI firms at VND 7.37 million (US$ 314). However, it grew the fastest at 15.1 percent.
Between 2010 and 2017, the average monthly wages for SOEs, FDI, and private firms grew by 8.9 percent, 11.4 percent, and 11.6 percent respectively.
Regions that have attracted the majority of the FDI in the last few years, continue to have the highest salaries in the country.
According to the government study, the highest average monthly salary in 2017 was in the Ba Ria – Vung Tau province, at VND 10.4 million (US$ 444), followed by Ho Chi Minh City, Hanoi, and Bac Ninh Province at VND 9.85 million (US$ 421), VND 9.19 million (US$ 393), and VND 8.98 million (US$ 383).
Other provinces include Thai Nguyen at VND 8.74 million (US$ 373), Quang Ninh at VND 8.29 million (US$ 354), and Binh Duong at VND 8.19 million (US$ 350).
The lowest monthly average income in 2017 was in the Bac Lieu Province at VND 4.17 million (US$ 178). Other regions with low wages include Dien Bien Province at VND 4.32 million (US$ 184), Son La Province at VND 4.58 million (US$ 195), Dak Nong Province at VND 4.64 million (US$ 198), Dak Lak Province at VND 4.74 million (US$ 202), and Thanh Hoa Province at VND 4.91 million (US$ 209).
Amongst all the economic sectors, the service industry had the highest average monthly income at VND 9.41 million (US$ 402), growing by 13.5 percent. Income for employees in the construction and industrial sectors grew by 8.7 percent in 2017, to VND 7.76 million (US$ 332).
The agriculture, forestry, and fishery sector had the lowest average monthly wages in 2017 at VND 5.25 million (US$ 225), growing by only 3.9 percent compared to 2016.
According to a separate report released in October 2018 by Mercer and Talentnet, both HR consulting firms, the highest salary increase in 2018 were in the technology, life sciences, and chemical industries, while the education, financial services, and oil and mining sectors had the lowest growth.
Vietnam Briefing is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia and maintains offices in China, Hong Kong, Indonesia, Singapore, Vietnam, India, and Russia.
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