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Vietnam's new minimum wages for 2027: what employers need to know
Updated: 7 hours ago
Vietnam's regional minimum wages will rise from January 1, 2027. On November 2, 2026, the Government issued Decree No. 399/2026/ND-CP, which sets new monthly and hourly minimums for all four wage regions. For employers with staff in Vietnam, this affects payroll budgets, labor contracts and, in many cases, social insurance contributions. This article sets out the new rates and what to review before January.
KEY TAKEAWAYS
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What Decree 399/2026/ND-CP sets out
Decree No. 399/2026/ND-CP was issued on November 2, 2026, and takes effect on January 1, 2027. It replaces Decree No. 293/2025/ND-CP and applies to employees working under labor contracts as defined by the Labor Code.
Monthly minimums rise by VND 310,000 to VND 390,000, depending on the region. This is an average increase of 7.8%.
Source: Decree No. 399/2026/ND-CP dated November 2, 2026
New monthly minimum wages
Region | Until December 31, 2026 | From January 1, 2027 | Increase |
Region I | VND 5,310,000 | VND 5,700,000 | +7.3% |
Region II | VND 4,730,000 | VND 5,080,000 | +7.4% |
Region III | VND 4,140,000 | VND 4,450,000 | +7.5% |
Region IV | VND 3,700,000 | VND 4,040,000 | +9.2% |
The monthly minimum is the lowest wage the employer and employee can agree on, and the employer can pay, for monthly-paid work.
New hourly minimum wages
The hourly minimum is the lowest rate for employees paid by the hour.
Region | Until December 31, 2026 | From January 1, 2027 | Increase |
Region I | VND 25,500 | VND 27,400 | +7.5% |
Region II | VND 22,700 | VND 24,400 | +7.5% |
Region III | VND 20,000 | VND 21,400 | +7.0% |
Region IV | VND 17,800 | VND 19,400 | +9.0% |
Source: Decree No. 399/2026/ND-CP, Article 3
Which rate applies to your business
The applicable minimum depends on where the employer operates. The Decree lists the localities in each region in its appendix.
One location, one region: An employer operating in a locality applies the minimum wage set for that locality's region.
Industrial and high-tech zones: Employers in an industrial park, export processing zone, high-tech zone or concentrated digital technology zone that spans localities with different minimums apply the highest one.
Updated locality list: Following Vietnam's administrative restructuring, the Decree updates the list of localities in each region. Some locations may have changed region, so check each work location against the new list.
What employers should review
Employment contracts. Check that agreed wages meet the applicable minimum from January 1, 2027.
Payroll and budgets. Update payroll calculations and assess related employer costs. In practice, the regional minimum wage is also the floor for insurable salary, so social insurance contributions may change too.
Work locations. Confirm the correct wage region for each operating location.
Existing benefits. Preserve more favorable contractual terms and legally required entitlements.
Plan ahead. Stay compliant.
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This article is for general information and reflects regulations as of November 2026. It is not legal advice.
