--- title: Vietnam Raises Regional Minimum Wages from 1 January 2027 description: Vietnam issues Decree 399/2026/ND-CP raising regional minimum wages from 1 January 2027 by VND 310,000 to VND 390,000 monthly across four economic zones. url: https://ginity.vn/en/blog/vietnam-regional-minimum-wage-2027-decree-399 canonical: https://ginity.vn/en/blog/vietnam-regional-minimum-wage-2027-decree-399 markdown: https://ginity.vn/en/blog/vietnam-regional-minimum-wage-2027-decree-399.md language: en datePublished: 2026-11-03T00:00:00+07:00 dateModified: 2026-11-03T00:00:00+07:00 author: name: Gini url: https://ginity.vn/en/authors/gini reviewer: Ginity Editorial Desk 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: - name: Government News url: https://baochinhphu.vn/muc-luong-toi-thieu-tu-ngay-1-1-2027-doi-voi-nguoi-lao-dong-lam-viec-theo-hop-dong-102261103113728634.htm title: Decree 399/2026/ND-CP on Regional Minimum Wages from 1 January 2027 - name: Government Policy Portal url: https://xaydungchinhsach.chinhphu.vn/nghi-dinh-so-399-2026-nd-cp-quy-dinh-muc-luong-toi-thieu-tu-01-01-2027-11926110315241276.htm title: Decree số 399/2026/ND-CP quy định mức lương tối thiểu từ 01/01/2027 - name: VnEconomy url: https://vneconomy.vn/chinh-thuc-tang-luong-toi-thieu-vung-tu-112027.htm title: Official Regional Minimum Wage Increase from 1 January 2027 - name: Government News url: https://baochinhphu.vn/tang-luong-toi-thieu-vung-tu-1-1-2026-102251110175033018.htm title: Decree 293/2025/ND-CP on Regional Minimum Wages from 1 January 2026 - name: National Statistics Office url: https://www.nso.gov.vn/bai-top/2026/10/bao-cao-tinh-hinh-kinh-te-xa-hoi-quy-iii-va-9-thang-nam-2026/ title: Socio-Economic Report for Q3 and 9 Months 2026 - name: National Statistics Office url: https://www.nso.gov.vn/du-lieu-va-so-lieu-thong-ke/2026/10/tang-truong-gdp-quy-iii-va-9-thang-nam-2026-ba-dong-luc-tao-da-cho-muc-tieu-tang-truong-cao/ title: Three Growth Drivers for Q3 and 9 Months 2026 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 Raises Regional Minimum Wages from 1 January 2027 > Vietnam issues Decree 399/2026/ND-CP raising regional minimum wages from 1 January 2027 by VND 310,000 to VND 390,000 monthly across four economic zones. Gini · Macro & monetary · 2026-11-03 · https://ginity.vn/en/blog/vietnam-regional-minimum-wage-2027-decree-399 _Lead analyst: Đào Ngọc Bảo Linh · Finance and securities specialist · Ho Chi Minh City · 0932 439 639_ ## Key takeaways - Decree 399/2026/ND-CP was published on 03/11/2026, taking effect from 1/1/2027 to replace Decree 293/2025/ND-CP dated 10/11/2025. - Monthly minimum wages increase by VND 310,000 to VND 390,000 per month, lifting Region I from VND 5,310,000 to VND 5,700,000. - Hourly minimum wages increase by VND 1,400 to VND 1,900 per hour, reaching VND 27,400 in Region I and VND 19,400 in Region IV. - Enterprises operating within industrial zones spanning multiple territories apply the highest regional rate among the 4 zones. - Businesses have a 2-month preparation period before 1/1/2027 to adjust payroll budgets and social insurance contributions. On 03/11/2026, the official Government news portal [Government News](https://baochinhphu.vn/muc-luong-toi-thieu-tu-ngay-1-1-2027-doi-voi-nguoi-lao-dong-lam-viec-theo-hop-dong-102261103113728634.htm) released the full text of Decree 399/2026/ND-CP signed by the Deputy Prime Minister on behalf of the Government. The decree establishes the statutory regional minimum wage framework for contractual employees nationwide. The regulation enters into force on 1/1/2027 and replaces Decree 293/2025/ND-CP dated 10/11/2025. Statutory wage adjustments represent a regular balancing process between living cost trends, labor productivity growth, and corporate payment capacity across diverse economic sectors. This analysis outlines the legal provisions established under Decree 399/2026/ND-CP, the zone determination criteria, and the conditional channels influencing listed enterprises and financial markets. ## Legal Foundation and Timeline for Decree 399 Decree 399/2026/ND-CP was issued under the statutory authority of the Labor Code following formal consultations within the National Wage Council. According to the release published on [Government News](https://baochinhphu.vn/muc-luong-toi-thieu-tu-ngay-1-1-2027-doi-voi-nguoi-lao-dong-lam-viec-theo-hop-dong-102261103113728634.htm) on 03/11/2026, promulgating the regulation nearly two months ahead of its effective date provides essential predictability for corporate financial planning heading into 2027. The regional minimum wage functions as a statutory floor designed to safeguard baseline living standards for employees performing simple work under normal conditions. It does not dictate actual operational wages across advanced skill tiers, but rather fixes the non-negotiable minimum base below which employers cannot contractually compensate standard work. In parallel with monthly rates, the regulatory framework maintains standardized hourly minimum wages for each zone. This dual structure provides legal coverage for part-time, seasonal, and flexible shift labor throughout the economy. ## Monthly and Hourly Minimum Wage Rates by Four Zones According to the official decree details published on [Government News](https://baochinhphu.vn/muc-luong-toi-thieu-tu-ngay-1-1-2027-doi-voi-nguoi-lao-dong-lam-viec-theo-hop-dong-102261103113728634.htm) on 03/11/2026, monthly minimum wages effective from 1/1/2027 will rise by VND 310.000 to VND 390.000 per month depending on geographical zone classification. In Region I, the rate increases by VND 390.000 from VND 5.310.000 to VND 5.700.000 monthly. In Region II, the wage increases by VND 350.000 from VND 4.730.000 to VND 5.080.000 monthly. In Region III, the monthly rate rises by VND 310.000 from VND 4.140.000 to VND 4.450.000. In Region IV, the rate increases by VND 340.000 from VND 3.700.000 to VND 4.040.000 monthly. Regarding hourly minimum wage standards, statutory rates effective from 1/1/2027 were confirmed on [Government News](https://baochinhphu.vn/muc-luong-toi-thieu-tu-ngay-1-1-2027-doi-voi-nguoi-lao-dong-lam-viec-theo-hop-dong-102261103113728634.htm) on 03/11/2026 as follows: Region I increases by VND 1.900 from VND 25.500 to VND 27.400 per hour; Region II increases by VND 1.700 from VND 22.700 to VND 24.400 per hour; Region III increases by VND 1.400 from VND 20.000 to VND 21.400 per hour; and Region IV increases by VND 1.600 from VND 17.800 to VND 19.400 per hour. The table below summarizes the statutory monthly and hourly minimum wage rates across four regional classifications under Decree 293/2025/ND-CP and Decree 399/2026/ND-CP: | Regional Zone | Current Monthly Rate | Monthly Rate from 1/1/2027 | Monthly Increase | Current Hourly Rate | Hourly Rate from 1/1/2027 | Hourly Increase | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Region I | 5.310.000 VND/month | 5.700.000 VND/month | 390.000 VND/month | 25.500 VND/hour | 27.400 VND/hour | 1.900 VND/hour | | Region II | 4.730.000 VND/month | 5.080.000 VND/month | 350.000 VND/month | 22.700 VND/hour | 24.400 VND/hour | 1.700 VND/hour | | Region III | 4.140.000 VND/month | 4.450.000 VND/month | 310.000 VND/month | 20.000 VND/hour | 21.400 VND/hour | 1.400 VND/hour | | Region IV | 3.700.000 VND/month | 4.040.000 VND/month | 340.000 VND/month | 17.800 VND/hour | 19.400 VND/hour | 1.600 VND/hour | Source: [Government News](https://baochinhphu.vn/muc-luong-toi-thieu-tu-ngay-1-1-2027-doi-voi-nguoi-lao-dong-lam-viec-theo-hop-dong-102261103113728634.htm) published on 03/11/2026. The percentage adjustment formula between consecutive statutory periods is formulated as follows: $$\text{Wage Adjustment Rate} = \frac{\text{New Minimum Wage} - \text{Current Minimum Wage}}{\text{Current Minimum Wage}} \times 100\%$$ According to calculations based on the statutory schedule for 2027, applying this formula to Region I yields an adjustment of VND 390.000 divided by VND 5.310.000, representing a 7.34% adjustment. In Region II for 2027, the formula yields a 7.40% adjustment. In Region III for 2027, the adjustment equals 7.49%, while Region IV in 2027 reflects an increase of 9.19%. The chart below compares the statutory monthly wage tiers across the four economic regions taking effect on 1/1/2027: > Chart: Monthly minimum wage across four regions effective 1 January 2027. million VND/month. Region I: 5.70; Region II: 5.08; Region III: 4.45; Region IV: 4.04. ## Zone Application Rules and Worker Benefit Protections The application of regional wage minimums is determined by the physical operating location of the employer. According to regulatory guidelines published on [Government Policy Portal](https://xaydungchinhsach.chinhphu.vn/nghi-dinh-so-399-2026-nd-cp-quy-dinh-muc-luong-toi-thieu-tu-01-01-2027-11926110315241276.htm) on 03/11/2026, an employer operating in a specific regional zone must apply the statutory minimum established for that zone. Where an enterprise maintains branch offices or production units across multiple geographic jurisdictions, each unit applies the rate designated for its local operating area. Crucially, employers operating inside industrial parks, export processing zones, or high-tech parks located across administrative boundaries with differing wage rates must apply the highest regional rate among them. This provision ensures parity across unified industrial campuses and simplifies payroll administration for industrial park developers. For alternative compensation structures including weekly, daily, or piece-rate pay, the converted compensation must not fall below the statutory minimum. The formula for converting weekly pay to an hourly equivalent is specified as follows: $$\text{Converted Hourly Minimum Wage} = \frac{\text{Weekly Wage Rate}}{\text{Normal Weekly Working Hours}}$$ According to the official implementation manual on [Government Policy Portal](https://xaydungchinhsach.chinhphu.vn/nghi-dinh-so-399-2026-nd-cp-quy-dinh-muc-luong-toi-thieu-tu-01-01-2027-11926110315241276.htm) on 03/11/2026, converting weekly compensation to a monthly equivalent requires multiplying weekly wages by 52 weeks and dividing by 12 months. This mathematical standard maintains consistency between varied payroll frequencies and statutory floors. Decree 399/2026/ND-CP also establishes mandatory protections for non-wage entitlements. According to [Government News](https://baochinhphu.vn/muc-luong-toi-thieu-tu-ngay-1-1-2027-doi-voi-nguoi-lao-dong-lam-viec-theo-hop-dong-102261103113728634.htm) on 03/11/2026, employers may not eliminate or reduce existing allowances for overtime work, night work, or in-kind hazardous duty compensation mandated by law. According to the regulatory decree, pre-existing favorable employment agreements remain binding unless renegotiated. Specifically, customary pay differentials requiring at least 7% higher pay for vocational workers, 5% higher pay for hazardous labor, and 7% higher pay for particularly hazardous labor remain enforceable under valid collective bargaining agreements. ## Conditional Cost Impact on Listed Enterprises From an economic perspective, the adjustment of statutory wage floors generates conditional and asymmetric impacts across listed corporate sectors. The actual financial effect depends on labor cost intensity, current average compensation levels, and the contractual composition of corporate workforces. For labor-intensive sectors such as garment manufacturing, footwear, basic construction, retail distribution, and facility security: Direct personnel costs represent a substantial portion of overall operating expenses. While large-scale listed firms in major urban centers often offer take-home pay above statutory minimums, rising wage floors directly adjust compulsory social insurance contributions. According to economic reporting by [VnEconomy](https://vneconomy.vn/chinh-thuc-tang-luong-toi-thieu-vung-tu-112027.htm) on 03/11/2026, statutory minimum wages serve as the legal floor for compulsory social insurance deductions, which mechanically increases statutory benefit obligations for corporate employers starting in 2027. According to compensation observations across capital-intensive and knowledge-driven sectors, including commercial banking, information technology, oil and gas, specialized chemicals, and power generation, average monthly salaries in 2026 substantially exceed the Region I statutory floor of VND 5.700.000. Consequently, Decree 399/2026/ND-CP exerts negligible direct pressure on the operating cost structures or operating margins of firms within these industries. For developers in [industrial park real estate and foreign investment](/en/blog/vietnam-industrial-parks-fdi-earnings-gap-2026), updated statutory minimums demonstrate institutional commitment to worker welfare while preserving regional competitiveness. Benchmark comparisons across Southeast Asian industrial hubs indicate that Vietnam maintains competitive unit labor costs, supporting ongoing foreign direct investment expansion. ## Consumer Purchasing Power and Cost Inflation Channels Transmission of minimum wage adjustments operates simultaneously through two distinct mechanisms: disposable income support reinforcing domestic demand, and cost-push transmission affecting consumer price indices. Along the aggregate demand channel, lifting statutory base pay directly enhances disposable earnings for lower-income worker segments. This demographic exhibits a high marginal propensity to consume essential consumer staples, packaged foods, and household services. According to statistical releases published on 12/10/2026 by [National Statistics Office](https://www.nso.gov.vn/du-lieu-va-so-lieu-thong-ke/2026/10/tang-truong-gdp-quy-iii-va-9-thang-nam-2026-ba-dong-luc-tao-da-cho-muc-tieu-tang-truong-cao/), total retail sales of consumer goods and services expanded 13.4% year-on-year in the first nine months of 2026, with final household consumption growing 9.75%. Sustained base wage adjustments provide supportive demand foundations for retail commerce into 2027. Along the supply channel, incremental payroll overhead could exert cost-push pricing pressure on end products, notably within casual dining, transport, and consumer packaging. However, the extent of pricing pass-through depends strictly on demand elasticity and competitive market structures. According to macroeconomic data published on 03/10/2026 by [National Statistics Office](https://www.nso.gov.vn/bai-top/2026/10/bao-cao-tinh-hinh-kinh-te-xa-hoi-quy-iii-va-9-thang-nam-2026/), the headline [CPI and inflation readings](/en/blog/cpi-and-inflation-reading-the-numbers) rose 4.52% year-on-year on average over the first nine months of 2026, while core inflation increased 4.26%. Stable price management across 2026 indicates sufficient economic absorption capacity to accommodate statutory wage adjustments without triggering broad inflationary spirals. ## Implementation Window and Preparation for Businesses Promulgating Decree 399/2026/ND-CP on 03/11/2026 establishes a preparatory window of nearly two full months before mandatory enforcement begins on 1/1/2027. This advance schedule prevents the operational friction previously associated with sudden policy implementation. Previously, on 10/11/2025, the Government promulgated Decree 293/2025/ND-CP as reported by [Government News](https://baochinhphu.vn/tang-luong-toi-thieu-vung-tu-1-1-2026-102251110175033018.htm) to establish wage baselines for 2026. This consistent annual review cycle reinforces institutional predictability for international and domestic investors alike. To maintain regulatory compliance under Decree 399/2026/ND-CP, corporate management teams should audit baseline salary scales, verify statutory social insurance floors, and incorporate revised labor expenditures into their 2027 financial plans. Proactive workplace dialogue and clear payroll communication will ensure smooth operational continuity as the new regulatory standards take effect. ## Sources - Government News: [Mức lương tối thiểu từ ngày 1/1/2027 đối với người lao động làm việc theo hợp đồng](https://baochinhphu.vn/muc-luong-toi-thieu-tu-ngay-1-1-2027-doi-voi-nguoi-lao-dong-lam-viec-theo-hop-dong-102261103113728634.htm) (03/11/2026) - Government Policy Portal: [Decree số 399/2026/ND-CP quy định mức lương tối thiểu từ 01/01/2027](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) - VnEconomy: [Official Regional Minimum Wage Increase from 1 January 2027](https://vneconomy.vn/chinh-thuc-tang-luong-toi-thieu-vung-tu-112027.htm) (03/11/2026) - Government News: [Tăng lương tối thiểu vùng từ 1/1/2026](https://baochinhphu.vn/tang-luong-toi-thieu-vung-tu-1-1-2026-102251110175033018.htm) (10/11/2025) - National Statistics Office: [Báo cáo tình hình kinh tế - xã hội quý III và 9 tháng năm 2026](https://www.nso.gov.vn/bai-top/2026/10/bao-cao-tinh-hinh-kinh-te-xa-hoi-quy-iii-va-9-thang-nam-2026/) (03/10/2026) - National Statistics Office: [Tăng trưởng GDP quý III và 9 tháng năm 2026: Ba động lực tạo đà cho mục tiêu tăng trưởng cao](https://www.nso.gov.vn/du-lieu-va-so-lieu-thong-ke/2026/10/tang-truong-gdp-quy-iii-va-9-thang-nam-2026-ba-dong-luc-tao-da-cho-muc-tieu-tang-truong-cao/) (12/10/2026) ## Frequently asked questions ### How much will Vietnam regional minimum wages increase from 1 January 2027? Under Decree 399/2026/ND-CP, monthly minimum wages increase by VND 310,000 to VND 390,000 per month across the four economic zones. ### What are the new hourly minimum wage rates across four zones from 1 January 2027? From 1 January 2027, hourly minimum wages are VND 27,400 in Region I, VND 24,400 in Region II, VND 21,400 in Region III, and VND 19,400 in Region IV. ### Which regional wage applies if an industrial zone spans multiple areas? Decree 399/2026/ND-CP stipulates that employers operating in industrial parks, export processing zones, or high-tech parks located across multiple areas with differing rates must apply the highest regional wage. ### How does the minimum wage adjustment affect corporate social insurance contributions? The regional minimum wage establishes the floor for compulsory social insurance contributions for regular standard work. An increase in minimum wages lifts the statutory minimum contribution base for employers starting 1 January 2027. --- _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._