---
title: "Vietnam Minimum Wage 2027: New Rates and Business Costs"
description: Decree 399/2026/ND-CP signed November 2, 2026 raises Vietnam minimum wages from January 1, 2027 across 34 provinces, impacting labor costs and purchasing power.
url: https://ginity.vn/en/blog/vietnam-regional-minimum-wage-2027-business-costs
canonical: https://ginity.vn/en/blog/vietnam-regional-minimum-wage-2027-business-costs
markdown: https://ginity.vn/en/blog/vietnam-regional-minimum-wage-2027-business-costs.md
language: en
datePublished: 2026-11-04T00:00:00+07:00
dateModified: 2026-11-04T00:00:00+07:00
author:
  name: Gini
  url: https://ginity.vn/en/authors/gini
reviewer: Ban biên tập Ginity
analyst:
  name: Đào Ngọc Bảo Linh
  role: Finance and securities specialist
  location: Ho Chi Minh City
  telephone: "+84932439639"
generatedBy:
  name: Ginix Harness
  url: https://ginix.vn
desk:
  id: macro
  name: Macro & monetary
  url: https://ginity.vn/en/topics/macro
tickers: []
sources: []
publisher: Ginity
attribution: 'Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content.'
disclaimer: "Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources."
usageTerms: https://ginity.vn/ai.txt
---

# Vietnam Minimum Wage 2027: New Rates and Business Costs

> Decree 399/2026/ND-CP signed November 2, 2026 raises Vietnam minimum wages from January 1, 2027 across 34 provinces, impacting labor costs and purchasing power.

Gini · Macro & monetary · 2026-11-04 · https://ginity.vn/en/blog/vietnam-regional-minimum-wage-2027-business-costs

_Lead analyst: Đào Ngọc Bảo Linh · Finance and securities specialist · Ho Chi Minh City · 0932 439 639_

## Key takeaways

- The Government issued Decree 399/2026/ND-CP on November 2, 2026, establishing new regional minimum wage rates effective January 1, 2027, replacing Decree 293/2025/ND-CP dated November 10, 2025.
- Monthly minimum wages increase by 310,000 to 390,000 VND (gains of 7.00% to 9.19%), lifting Region I to 5,700,000 VND/month and hourly pay to 27,400 VND/hour.
- The geographical classification appendix covers 34 provincial units: key cities in Quang Ninh apply Region I, Bac Ninh peaks at Region II, and Dong Nai spans Regions I through III.
- Enterprise costs face dual upward pressure from higher floor wages and 23.5% mandatory statutory contributions (21.5% insurance and 2.0% trade union funds), while net purchasing power depends on inflation dynamics.

On November 2, 2026, the Government officially promulgated [Decree 399/2026/ND-CP](https://xdcs.cdnchinhphu.vn/446259493575335936/2026/11/3/399-2026-nd-cp-02112026-6-signed-17936943233711295080721.pdf) establishing regional minimum wage levels for contractual employees. The regulation takes effect on January 1, 2027, superseding Decree 293/2025/ND-CP issued on November 10, 2025.

The upward adjustment in baseline wage standards establishes a revised income floor for formal employees, while directly influencing employer payroll obligations, statutory contributions, and aggregate economic consumption within the macroeconomic backdrop discussed in our [macroeconomic review for Q3 2026](/en/blog/q3-2026-macroeconomic-overview-995-percent-gdp-growth).

## New Regional Minimum Wage Rates Under Decree 399

According to Article 3 of [Decree 399/2026/ND-CP signed on November 2, 2026](https://xdcs.cdnchinhphu.vn/446259493575335936/2026/11/3/399-2026-nd-cp-02112026-6-signed-17936943233711295080721.pdf), monthly and hourly minimum wages effective January 1, 2027 are structured across 4 distinct economic regions. Specifically, Region I increases to 5,700,000 VND/month (27,400 VND/hour); Region II reaches 5,080,000 VND/month (24,400 VND/hour); Region III stands at 4,450,000 VND/month (21,400 VND/hour); and Region IV rises to 4,040,000 VND/month (19,400 VND/hour).

Compared with the benchmark set by Decree 293/2025/ND-CP dated November 10, 2025, monthly minimum wages rise by 310,000 VND to 390,000 VND per month. According to details reported by [VietnamPlus on November 3, 2026](https://www.vietnamplus.vn/tang-luong-toi-thieu-tu-112027-doi-voi-nguoi-lao-dong-lam-viec-theo-hop-dong-post1145923.vnp), monthly regional minimum wage adjustments for contractual employees across 4 regions were promulgated following consensus recommendations from the National Wage Council.

| Regional Zone | Monthly Wage 2026 (Decree 293) | Monthly Wage 2027 (Decree 399) | Absolute Increase | Monthly Growth (%) | Hourly Wage 2027 | Hourly Growth (%) |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| Region I | 5,310,000 VND | 5,700,000 VND | +390,000 VND | +7.34% | 27,400 VND | +7.45% |
| Region II | 4,730,000 VND | 5,080,000 VND | +350,000 VND | +7.40% | 24,400 VND | +7.49% |
| Region III | 4,140,000 VND | 4,450,000 VND | +310,000 VND | +7.49% | 21,400 VND | +7.00% |
| Region IV | 3,700,000 VND | 4,040,000 VND | +340,000 VND | +9.19% | 19,400 VND | +8.99% |

Source: Compiled from Decree 293/2025/ND-CP dated November 10, 2025 and [Decree 399/2026/ND-CP signed November 2, 2026](https://xdcs.cdnchinhphu.vn/446259493575335936/2026/11/3/399-2026-nd-cp-02112026-6-signed-17936943233711295080721.pdf).

```chart
{
  "preset": "sector-columns",
  "label": "Monthly minimum wage by region effective January 1, 2027",
  "caption": "Article 3 of Decree 399/2026/ND-CP signed on November 2, 2026.",
  "locale": "en",
  "params": {
    "values": [5700000, 5080000, 4450000, 4040000],
    "labels": ["Region I", "Region II", "Region III", "Region IV"],
    "unit": "VND/month"
  }
}
```

The mathematical formula to determine the relative percentage growth between consecutive decree benchmarks is defined as:

$$\text{Percentage Wage Growth} = \frac{\text{New Minimum Wage} - \text{Prior Minimum Wage}}{\text{Prior Minimum Wage}} \times 100\%$$

Evaluating this formula for Region I based on the November 2, 2026 figures from [Decree 399/2026/ND-CP](https://xdcs.cdnchinhphu.vn/446259493575335936/2026/11/3/399-2026-nd-cp-02112026-6-signed-17936943233711295080721.pdf) and Decree 293/2025/ND-CP:

$$\text{Region I Wage Growth} = \frac{5,700,000 - 5,310,000}{5,310,000} \times 100\% = +7.34\%$$

In Region IV, the 340,000 VND monthly gain represents a 9.19% expansion, registering the fastest growth rate among all zones according to the [Government Portal on November 3, 2026](https://xaydungchinhsach.chinhphu.vn/nghi-dinh-so-399-2026-nd-cp-quy-dinh-muc-luong-toi-thieu-tu-01-01-2027-11926110315241276.htm).

## List of 34 Provinces and Zoning Rules

A structural enhancement in Decree 399/2026/ND-CP lies in the administrative classification appendix, designed to match the streamlined territorial framework of 34 provincial-level units following the consolidation implemented on June 12, 2025. Comprehensive boundary listings for districts, towns, and cities are detailed in the [Decree 399 Appendix signed PDF on November 2, 2026](https://xdcs.cdnchinhphu.vn/446259493575335936/2026/11/3/399-2026-nd-cp-02112026-7-signed-17936944277231626733610.pdf).

According to independent review reported by [CafeF on November 4, 2026](https://cafef.vn/danh-muc-dia-ban-ap-dung-luong-toi-thieu-tai-34-tinh-thanh-pho-tu-01-01-2027-188261104075400686.chn) and verified directly against the Appendix text, regional wage allocations vary specifically across constituent local jurisdictions:

According to Section 10 of the [Decree 399 Appendix](https://xdcs.cdnchinhphu.vn/446259493575335936/2026/11/3/399-2026-nd-cp-02112026-7-signed-17936944277231626733610.pdf), in Quang Ninh, major urban, mining, and industrial centers including Ha Long and Cam Pha, alongside coastal industrial hubs, apply Region I standards at 5,700,000 VND/month; while special zones such as Van Don apply Region II standards at 5,080,000 VND/month; and remaining rural jurisdictions fall under Region III at 4,450,000 VND/month.

According to Section 11 of the [Decree 399 Appendix](https://xdcs.cdnchinhphu.vn/446259493575335936/2026/11/3/399-2026-nd-cp-02112026-7-signed-17936944277231626733610.pdf), in Bac Ninh, the highest regional classification is Region II at 5,080,000 VND/month, covering primary manufacturing and municipal hubs including Tu Son and surrounding industrial districts; while other localities fall under Region III (4,450,000 VND/month) and Region IV (4,040,000 VND/month). Bac Ninh contains no localities classified under Region I.

According to Section 27 of the [Decree 399 Appendix](https://xdcs.cdnchinhphu.vn/446259493575335936/2026/11/3/399-2026-nd-cp-02112026-7-signed-17936944277231626733610.pdf), in Dong Nai, jurisdictional assignments span across Regions I, II, and III. Core manufacturing powerhouses including Bien Hoa, Long Khanh, Nhon Trach, and Long Thanh apply Region I standards at 5,700,000 VND/month; secondary manufacturing hubs apply Region II standards at 5,080,000 VND/month; while outlying districts apply Region III standards at 4,450,000 VND/month.

Clause 3 Article 3 specifies 5 governing rules for allocating employers to regional wage zones based on operating location:

First, an employer operating within a designated jurisdiction applies the minimum wage assigned to that specific locality.

Second, where an enterprise maintains branches or operating units across disparate regional jurisdictions, each respective branch applies the minimum wage assigned to its physical operating locality under the [Decree 399 signed text dated November 2, 2026](https://xdcs.cdnchinhphu.vn/446259493575335936/2026/11/3/399-2026-nd-cp-02112026-6-signed-17936943233711295080721.pdf).

Third, a mandatory aggregation standard applies to concentrated industrial spaces: employers situated inside industrial parks, export processing zones, high-tech zones, centralized digital technology parks, special economic zones, free trade zones, or agricultural high-tech zones spanning multiple wage boundaries must apply the highest minimum wage rate among the constituent localities.

Fourth and fifth, administrative units undergoing name changes or divisions temporarily maintain prior wage classifications, while newly established jurisdictions formed from multiple regions apply the highest prevailing minimum wage rate until subsequent government determination under [Government Portal guidelines on November 3, 2026](https://xaydungchinhsach.chinhphu.vn/danh-muc-dia-ban-ap-dung-muc-luong-toi-thieu-tu-01-01-2027-119261103153601628.htm).

## Enterprise Labor Cost and Statutory Contribution Channels

For the enterprise sector, the regional minimum wage increase scheduled for January 1, 2027 creates tangible financial consequences through two direct cost channels: baseline wages paid to entry-level workers and statutory social contribution liabilities outlined initially in our [coverage of Decree 399/2026/ND-CP](/en/blog/vietnam-regional-minimum-wage-2027-decree-399).

The regional minimum wage establishes the statutory calculation base for mandatory social deductions for contract personnel. According to prevailing social insurance, health insurance, employment, and trade union legislation, total mandatory contributions incurred by employers equal 23.5% of the mandatory insurance salary pool. This comprises 21.5% in statutory insurance schemes (17.5% social insurance covering 14% pension and survivorship, 3% sickness and maternity, 0.5% occupational accidents; 3.0% health insurance; and 1.0% unemployment insurance) plus 2.0% in mandatory trade union funds under the Trade Union Law. Conversely, employee-side payroll deductions total 10.5% (8.0% social insurance, 1.5% health insurance, and 1.0% unemployment insurance), creating a combined statutory contribution rate of 34.0%. [Decree 399/2026/ND-CP signed November 2, 2026](https://xdcs.cdnchinhphu.vn/446259493575335936/2026/11/3/399-2026-nd-cp-02112026-6-signed-17936943233711295080721.pdf) establishes the baseline salary floor for calculating these mandatory contribution obligations from January 1, 2027, rather than setting statutory percentage rates.

The monthly mandatory employer statutory contribution liability formula is expressed as:

$$\text{Mandatory Employer Contribution} = \text{Monthly Minimum Wage} \times 23.5\%$$

Evaluating this formula for an entry-level worker in Region I starting January 1, 2027 according to [Decree 399 signed text on November 2, 2026](https://xdcs.cdnchinhphu.vn/446259493575335936/2026/11/3/399-2026-nd-cp-02112026-6-signed-17936943233711295080721.pdf):

$$\text{Region I Contribution 2027} = 5,700,000 \times 23.5\% = 1,339,500\text{ VND/month}$$

Conversely, baseline statutory contribution overhead under the 2026 Region I standard (5,310,000 VND/month) according to [Decree 293/2025/ND-CP and Decree 399/2026/ND-CP](https://xdcs.cdnchinhphu.vn/446259493575335936/2026/11/3/399-2026-nd-cp-02112026-6-signed-17936943233711295080721.pdf) was:

$$\text{Region I Contribution 2026} = 5,310,000 \times 23.5\% = 1,247,850\text{ VND/month}$$

The incremental mandatory overhead per employee across Region I according to our calculation equals:

$$1,339,500 - 1,247,850 = 91,650\text{ VND/month}$$

Combining the 390,000 VND direct floor wage increment with the 91,650 VND statutory contribution increase according to [Decree 399/2026/ND-CP signed November 2, 2026](https://xdcs.cdnchinhphu.vn/446259493575335936/2026/11/3/399-2026-nd-cp-02112026-6-signed-17936943233711295080721.pdf), the total direct labor cost increase incurred by an employer per entry-level Region I position reaches 481,650 VND per month (comprising 390,000 VND wage gain and 91,650 VND contribution increase). Total baseline employer overhead expands from 6,557,850 VND to 7,039,500 VND per month, representing a 7.34% expansion in baseline labor overhead.

Beyond immediate floor adjustments, enterprises encounter wage scale adjustments according to Clause 3 Article 5 of [Decree 399/2026/ND-CP signed November 2, 2026](https://xdcs.cdnchinhphu.vn/446259493575335936/2026/11/3/399-2026-nd-cp-02112026-6-signed-17936943233711295080721.pdf), which mandates that employers review collective bargaining agreements and labor contracts without reducing existing overtime, night shift, or in-kind allowances. The clause highlights the continuation of more favorable terms, such as maintaining wage premiums of at least 7% for vocational certified personnel and 5% for hazardous working environments.

Vulnerability varies significantly by operating cost structure. Labor-intensive industries such as garment manufacturing, footwear, seafood processing, basic logistics, and food services maintain labor expenditures representing a major component of cost of goods sold, thus facing greater cost adjustment pressures compared to capital-intensive or knowledge-driven sectors.

## Worker Purchasing Power and Transmission Conditions

From the macroeconomic perspective, the regional wage revision functions as an essential protection mechanism for low-income wage earners, bolstering nominal household incomes across contractual workforces. Entry-level demographic segments exhibit a high Marginal Propensity to Consume, directing the vast majority of incremental disposable revenue into immediate consumer staples, groceries, and essential utility expenditures.

Nonetheless, real purchasing power gains depend strictly on price stabilization and inflationary trends. Official data published by the [Statistics Office on November 3, 2026](https://www.nso.gov.vn/du-lieu-va-so-lieu-thong-ke/2026/11/chi-so-gia-tieu-dung-chi-so-gia-vang-va-chi-so-gia-do-la-my-thang-muoi-va-muoi-thang-nam-2026/) confirms that Vietnam's average 10-month CPI expanded by 4.57% year-on-year in 2026, driven by fuel and construction material price movements outlined in our [10-month 2026 CPI report](/en/blog/vietnam-cpi-rises-4-57-percent-in-first-10-months-2026).

Real purchasing power changes can be modeled as the spread between nominal wage adjustments and broader consumer price inflation:

$$\text{Real Wage Growth} \approx \text{Nominal Minimum Wage Growth} - \text{CPI Inflation Rate}$$

Applying this equation to Region I with a 7.34% nominal minimum wage adjustment alongside the 4.57% 10-month 2026 CPI rate reported by the [Statistics Office on November 3, 2026](https://www.nso.gov.vn/du-lieu-va-so-lieu-thong-ke/2026/11/chi-so-gia-tieu-dung-chi-so-gia-vang-va-chi-so-gia-do-la-my-thang-muoi-va-muoi-thang-nam-2026/):

$$\text{Region I Real Wage Growth} \approx 7.34\% - 4.57\% = +2.77\%$$

A positive spread of 2.77 percentage points according to our calculation demonstrates that nominal compensation gains comfortably exceed general inflation, generating conditional disposable purchasing gains based on [official Statistics Office data released November 3, 2026](https://www.nso.gov.vn/du-lieu-va-so-lieu-thong-ke/2026/11/chi-so-gia-tieu-dung-chi-so-gia-vang-va-chi-so-gia-do-la-my-thang-muoi-va-muoi-thang-nam-2026/). However, in Tier-1 metropolitan centers like Hanoi or Ho Chi Minh City, urban housing rental rates and local food services often outpace the national average CPI basket, making local market surveillance essential to preserve net real welfare.

From a market transmission perspective, enterprises subjected to input cost pressures typically respond through two primary avenues: absorbing overhead via efficiency enhancements and labor productivity growth, or passing costs forward into consumer retail prices if market positioning permits. If businesses pass wage adjustments broadly into end prices, cost-push pressures could diminish the purchasing power gains intended by the wage policy. Consequently, implementing Decree 399/2026/ND-CP alongside productivity enhancements and proactive price stabilization remains essential for macroeconomic equilibrium entering 2027.

## Sources

- [Government Office - Decree 399/2026/ND-CP Signed PDF Document](https://xdcs.cdnchinhphu.vn/446259493575335936/2026/11/3/399-2026-nd-cp-02112026-6-signed-17936943233711295080721.pdf) - 02/11/2026
- [Government Office - Decree 399/2026/ND-CP Appendix Signed PDF Document](https://xdcs.cdnchinhphu.vn/446259493575335936/2026/11/3/399-2026-nd-cp-02112026-7-signed-17936944277231626733610.pdf) - 02/11/2026
- [Government Portal - Regional Minimum Wage Regulations Effective January 1, 2027](https://xaydungchinhsach.chinhphu.vn/nghi-dinh-so-399-2026-nd-cp-quy-dinh-muc-luong-toi-thieu-tu-01-01-2027-11926110315241276.htm) - 03/11/2026
- [Government Portal - Geographic Classification List Effective January 1, 2027](https://xaydungchinhsach.chinhphu.vn/danh-muc-dia-ban-ap-dung-muc-luong-toi-thieu-tu-01-01-2027-119261103153601628.htm) - 03/11/2026
- [VietnamPlus - Regional Minimum Wage Increase from January 1, 2027](https://www.vietnamplus.vn/tang-luong-toi-thieu-tu-112027-doi-voi-nguoi-lao-dong-lam-viec-theo-hop-dong-post1145923.vnp) - 03/11/2026
- [CafeF - Minimum Wage Geographic List Across 34 Provinces from January 1, 2027](https://cafef.vn/danh-muc-dia-ban-ap-dung-luong-toi-thieu-tai-34-tinh-thanh-pho-tu-01-01-2027-188261104075400686.chn) - 04/11/2026
- [Statistics Office - Consumer Price Index Press Release October and 10 Months 2026](https://www.nso.gov.vn/du-lieu-va-so-lieu-thong-ke/2026/11/chi-so-gia-tieu-dung-chi-so-gia-vang-va-chi-so-gia-do-la-my-thang-muoi-va-muoi-thang-nam-2026/) - 03/11/2026

## Frequently asked questions

### What are the new Vietnam regional minimum wage rates starting January 1, 2027?

Under Article 3 of Decree 399/2026/ND-CP signed November 2, 2026, monthly minimum wages from January 1, 2027 are: Region I 5,700,000 VND, Region II 5,080,000 VND, Region III 4,450,000 VND, and Region IV 4,040,000 VND.

### Which regional wage applies to enterprises operating in industrial parks?

Clause 3 Article 3 of Decree 399/2026/ND-CP establishes that employers operating in industrial parks or economic zones spanning areas with different minimum wage levels must apply the highest regional wage rate.

### How does the minimum wage hike affect statutory social insurance and union contributions?

The regional minimum wage serves as the statutory base floor for mandatory contributions. Employers incur a combined 23.5% mandatory overhead on the insurance wage base (17.5% social insurance, 3% health insurance, 1% unemployment insurance, and 2% trade union funds), lifting mandatory floor costs.

---

_Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content._

_Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources._