The Government has issued Decree 399/2026/ND-CP, increasing basic regional minimum wages by VND310,000-VND390,000 per month, effective January 1, 2027. The move is a positive signal as workers continue to face mounting pressure from living expenses.
For working-class families that must carefully budget every expense, an additional few hundred thousand Vietnamese dong each month could make a significant difference. However, the key question is not simply how much wages will increase, but whether the additional income will genuinely improve workers' living standards.
A survey conducted by the Vietnam General Confederation of Labor at 196 businesses in March and April 2026 found that 54.3 percent of respondents earned just enough to cover basic living expenses, while 20.6 percent said their income was insufficient to make ends meet, forcing them to work overtime.
The survey also found that 26.8 percent of workers had to borrow money every month to make ends meet. These figures reflect the reality that many employees work full schedules, and even take on overtime, yet still struggle to save money for emergencies such as illness or job loss.
Therefore, wage increases must go hand in hand with protecting workers' rights. Decree 399 requires businesses to review employment contracts, collective bargaining agreements and payroll regulations. They are prohibited from unlawfully eliminating or reducing overtime pay, night-shift allowances and other entitlements.
If base wages increase but other legally entitled components of workers' income are cut, employees may not actually benefit from the policy.
As the year draws to a close, ensuring workers' incomes has become increasingly urgent. The Ministry of Home Affairs has requested that local authorities report on 2026 wage levels, outstanding wage payments, labor relations and plans for bonuses for the 2027 New Year's Day (Tet) and Lunar New Year holidays by November 25.
The Ho Chi Minh City Labor Federation has also encouraged businesses to announce their Tet bonus plans, bonus amounts and payment dates before November 30. These measures aim to identify businesses at risk of wage arrears or delays in paying previously committed benefits, allowing authorities to introduce timely support measures and protect workers' rights at an early stage.
Meanwhile, businesses are also facing cost pressures, particularly those with large workforces that are struggling with orders and competitiveness. Policy implementation must therefore balance the interests of both employers and employees while being linked to productivity improvements and employment stability.
Wages and bonuses not only help ensure workers' livelihoods but also recognize their contributions and motivate them to remain with their employers.
However, the benefits of higher wages will be diminished if rents, food prices and essential services continue to rise. Wage adjustments must therefore be accompanied by price stabilization, the development of social housing, accommodation for industrial workers and affordable essential services.
