Low Average Salary Makes Vietnam One of the Most Affordable Countries for Doing Business

Vietnam is among the three countries in Asia with the lowest operating costs for businesses, largely thanks to its low average salary.

Known for its resilient economic performance, growing working population and low manufacturing costs, Vietnam is emerging as a key source of inexpensive labor for businesses expanding and/or setting up in Southeast Asia and Asia-Pacific. In fact, at around USD 200 a month, the country’s minimum wage is almost half of China’s. However, for international businesses, the shortage of skilled workforce in the nation continues to be a major hurdle. This article covers the average salary in Vietnam in terms of minimum wage, overall average, industry-specific, and management income.

Although manufacturing contributes 10% of the US’s GDP, the majority of labor used by American manufacturers generally comes from China and Mexico, as the cheap workforce is readily available in these areas.

For instance, in 2018, it was projected that China had manufacturing labor costs of USD 5.51 per hour, compared to USD 4.45 per hour in Mexico. In contrast, Vietnam’s pay rate, at USD 3 per hour, makes it a considerably more competitive market for businesses to operate in.

Minimum Wage by Geographic Areas

Starting in July 2022, the nationwide monthly minimum wage will increase by 6%. Here is a regional breakdown of the specific changes included in the announcement. 

Provinces Included Previous Min. WageUpdated Min. Wage
Region IUrban Hanoi and Ho Chi Minh City4,420,000 VND4,680,000 VND
Region II Da Nang, Rural Hanoi, and Ho Chi Minh City3,920,000 VND4,160,000 VND
Region IIIProvincial Cities, Districts of Bac Ninh, Bac Giang, Hai Duong, Phu Tho, Binh Phuc & other provinces not listed in Region I and II3,430,000 VND3,640,000 VND
Region IV Other Localities3,070,000 VND3,250,000 VND

2022 Average Salary in Vietnam

In the third quarter of 2022, average wages in Vietnam rose to 6,700,000 VND monthly, up from 6,600,000 VND in the second quarter. Trading Economics’ macro models estimated that wages in Vietnam would reach 5,600,000 VND/month at the end of 2022.

Additionally, econometric models predict that over the long run, the Vietnam Average Monthly Wages will tend to be in the range of 5,900,000 VND/Month in 2023 and 6,500,000 VND/Month in 2024.

From 2007 to 2022, the average monthly wage in Vietnam was 4,805,000 VND, increasing about 10-15% yearly.

Average Wages in Vietnam’s Key Industries

Manufacturing

In Vietnam, a manufacturing industry worker normally makes around 11,800,000 VND every month. The lowest average pay is 4,360,000 VND, while the highest is 29,500,000 VND.

IT

The range of gross salaries for those working in the information technology sector in Vietnam lands anywhere between 4,200,000 VND (minimum salary) and 22,500,000 VND (highest average, actual maximum salary is higher). This is the monthly wage in its entirety, including bonuses.

Travel and Tourism

In Vietnam, the average monthly salary for someone working in the food, hospitality, tourism, or catering industries is roughly 11,500,000 VND. The lowest average pay is 4,360,000 VND, while the highest is 32,000,000 VND (the highest average, the actual maximum salary is higher).

Logistics

In Vietnam, an executive working in logistics normally makes roughly 13,000,000 VND per month. The lowest salary is 6,380,000 VND, and the highest is 20,300,000 VND.

Average Income of a Manager in Vietnam

In Vietnam, the average monthly pay for managers hovers around 35,000,000 VND. More specifically:

  • The average monthly salary for an entry-level general manager is around 30,500,000 VND. The lowest salary for this position is 15,900,000 VND, and the highest is 46,700,000.
  • Moving up to a senior level, managers can earn an average of 40,000,000 VND, but some companies can include benefits pushing the maximum pay to 85,000,000 VND.

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Verified by:​

Thanh (Tim) Ta

Tim Ta is the Head of the Business Consulting Department of Incorp Vietnam. He is a seasoned professional with more than 6 years of consulting experience in Vietnam for market entry, incorporation, and real estate investment.