Proposal to Increase Minimum Wage by 7.8% from January 1, 2027, Agreed Upon

Vietnam's National Wage Council has reached a unanimous agreement to propose a 7.8% increase in the regional minimum wage, set to take effect on January 1, 2027. This decision came after extensive negotiations between labor and employer representatives.

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The negotiation process at the National Wage Council was lively, at times quite tense when each side presented its own arguments and proposals. However, in a spirit of sharing and harmonizing the interests between workers and businesses, the parties found common ground and unanimously agreed on the proposal to increase the minimum wage by 7.8%.

Initially, the Vietnam General Confederation of Labor proposed increases ranging from 8.5% to 9.8%. However, during the session, they adjusted their proposal to over 8%. In contrast, the Vietnam Chamber of Commerce and Industry, representing employers, suggested an increase of less than 5%. Despite the differing initial positions, all council members voted 100% in favor of the 7.8% proposal.

The proposed adjustment will result in varying increases across different regions. Region I will see a monthly increase of 390,000 VND, raising the minimum wage from 5.31 million VND to 5.7 million VND (a 7.3% rise). Region II will increase by 350,000 VND per month, from 4.73 million VND to 5.08 million VND (7.4% increase). Region III's minimum wage will rise by 310,000 VND, from 4.14 million VND to 4.45 million VND (7.5% increase). Region IV will experience the largest percentage increase, with an additional 340,000 VND per month, bringing the wage from 3.7 million VND to 4.04 million VND (a 9.2% rise).

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This is one of the highest increases in recent years, reflecting the positive signals of the economy as well as the Party and State's policy to promote growth, remove difficulties for businesses, and at the same time improve the lives of workers.

Ngo Duy Hieu, Vice Chairman of the Vietnam General Confederation of Labor, described the negotiation process as lively and at times tense, but ultimately harmonious. He stated that the 7.8% increase is among the highest in recent years, reflecting positive economic signals and the government's commitment to economic growth and improving workers' lives. He expressed hope that this adjustment will encourage workers to remain with their jobs and contribute to economic growth targets. The proposal will now be submitted to the government for final approval.

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We aim for sharing and harmonizing interests, both to better care for the lives of workers and to create conditions for businesses to develop production, thereby contributing to the economy's double-digit growth target.