Understanding the Average Salary in Vietnam: A Comprehensive Guide

Did you know Vietnam’s economy is growing at 7% per year? This hot economy is changing the job market, and salaries across all sectors are shifting. Knowing the average salary in Vietnam is important for job seekers and employers who must negotiate this new landscape.

As Vietnam moves from an agricultural economy to a more diversified one, salaries are adapting to new opportunities and industries. Knowing the average salary in Vietnam will help you make informed career decisions or set competitive salaries in your business, whether you're looking to work in tech, manufacturing, services, or any other sector.

This article will give you an overview of the average salary in Vietnam. We’ll cover current numbers, sector-by-sector trends, and future outlook. By the end, you’ll be well-educated on the financial situation in one of Southeast Asia’s hottest economies.

Average Monthly Salary in Vietnam

As of the first quarter of 2024, the average monthly salary for paid workers and employees in Vietnam is approximately 8.5 million Vietnamese Dong (VND), which is roughly $360 USD. 

This figure represents the overall average across sectors and regions, reflecting the country's economic growth and labor market conditions. 

The median salary, a critical indicator of income distribution, is 14.8 million VND per month (according to Time Doctor). This means that half of the population earns more than this amount while the other half earns less. 

Contextual Comparison

Comparing these figures with previous years, there has been a noticeable upward trend in salaries. 

For instance, in 2021, the average monthly salary was around 6.1 million VND ($277 USD). This increase to 8.5 million VND in 2024 is a large rise, indicating a 39% growth over three years. 

This growth can be attributed to economic development, inflation adjustments, and government policies aimed at improving wage standards. 

The minimum wage in Vietnam has also seen periodic increases, further contributing to the rise in average salaries.

Median Salary and Its Significance

The median salary is a critical metric in understanding income distribution within a country. It represents the middle point of a salary range, meaning that half of the population earns more than this amount while the other half earns less. 

In Vietnam, the median salary is approximately 14.8 million VND per month. This figure is significant because it more accurately reflects what a typical worker earns, especially in a country with substantial income disparities. 

Unlike the average salary, which extremely high or low salaries can skew, the median salary offers a clearer picture of a country's income trend. 

Comparison with Average Salary

The differences between the median and average salaries reveal much about income distribution in Vietnam. 

In Vietnam, the average monthly salary is around 8.5 million VND, which is lower than the median salary of 14.8 million VND. This discrepancy indicates that many low-income earners are pulling the average down. 

The higher median salary suggests that half the workers earn closer to this amount, with fewer extreme outliers affecting the general picture. 

This comparison highlights an unusual income distribution where typically the median is lower than the average.

Vietnam’s Minimum Wage

The minimum wage in Vietnam is set by the government and adjusted periodically to reflect the cost of living and inflation. This aims to protect workers’ purchasing power, especially those in low-income groups.

Since recent adjustments, Vietnam’s minimum wage has varied by region, recognizing the country's different economic conditions. 

The Vietnamese government has been active in wage reform, with periodic increases to the minimum wage to keep up with economic growth and inflation. These are part of a broader effort to improve labor conditions, attract foreign investment, and stabilize the economy.

Salary Ranges Across Different Sectors

Salaries in Vietnam vary widely across sectors. IT and banking offer the highest pay, while customer service and administrative roles are among the lowest. Let’s examine these sectors in more detail. 

Sector Breakdown

Salaries in Vietnam vary across different sectors. In the IT sector, professionals can expect to earn between 15 million VND and 30 million VND per month, depending on their role and experience. Software developers and IT managers are among the highest earners within this sector. 

In the healthcare sector, doctors and specialists typically earn around 20 million VND to 30 million VND monthly, while nurses earn approximately 10 million VND monthly. 

The education sector offers salaries ranging from 8 million VND to 15 million VND per month for teachers, with university professors earning on the higher end of this spectrum and potentially up to 20 million VND. 

In the manufacturing sector, salaries are generally lower, with factory workers earning between 4 million VND to 8 million VND per month, depending on their skills and experience.

High and Low Paying Sectors

The highest salaries in Vietnam are typically found in the IT and banking sectors. IT professionals, especially those in senior roles or with specialized skills, can earn substantial salaries, sometimes exceeding 30 million VND per month. 

Banking professionals, particularly those in managerial or executive positions, also command high salaries, often ranging from 20 million VND to 40 million VND per month. 

On the other hand, the lowest salaries are found in customer service and administrative roles, where employees typically earn between 10 million VND and 13 million VND per month. These roles often require less specialized skills, and jobs are more abundant.

Discipline Specific Salaries

In this section, you’ll learn about Vietnam’s average salary for some of the most common employment disciplines.  

IT Sector

The IT sector in Vietnam is one of the most lucrative fields, offering competitive salaries that reflect the high demand for skilled professionals. 

Software engineers, for instance, earn an average of 25 million VND per month. This figure varies based on experience, specialization, and the specific technologies they work with. 

Entry-level IT positions typically start at around 15 million VND per month. Senior roles, such as IT managers or project leaders, can command salaries upwards of 30 million VND monthly. 

The sector's growth is driven by the increasing number of tech startups and the expansion of multinational tech companies in Vietnam.

Healthcare Sector

Salaries in the healthcare sector in Vietnam also vary widely depending on the role and level of expertise. 

Doctors and specialists are among the highest earners, with monthly salaries ranging from 20 million VND to 30 million VND. For example, a senior doctor working in a private hospital can earn up to 40 million VND per month, while those in public hospitals might earn slightly less due to the structured pay scales. 

On the other hand, nurses earn around 10 million VND per month, reflecting the necessary yet less specialized nature of their work.

The healthcare sector's compensation packages often include additional benefits such as housing allowances and performance bonuses, which can improve the remuneration package.  

Education Sector

In the education sector, salaries for teachers and educational administrators can vary based on the type of institution and the teacher's qualifications. 

University professors in Vietnam earn between 15 million to 20 million VND per month, with those holding advanced degrees or significant teaching experience earning on the higher end of this range.

Teachers in international schools can earn even more, with salaries ranging from 35 million to 48 million VND per month. This reflects the premium placed on international education standards and the higher cost of living in urban areas. 

While public school teachers earn less, they still receive competitive salaries ranging from 10 million to 15 million VND per month, along with benefits such as paid vacations and professional development opportunities.

The following table breaks down Vietnam's most common industry sectors and gives each one's current average wage range in Vietnamese Dong. 

Sources: SalaryExplorer, Vietnam Briefing,Glassdoor 

Regional Differences in Salaries

Salaries in Vietnam are different in urban and rural areas. There is higher pay in cities like Ho Chi Minh City and Hanoi due to higher living costs and greater demand for skilled labor.

Urban vs. Rural

Salaries in Vietnam exhibit strong disparities between urban and rural areas. 

Salaries are considerably higher in major cities like Ho Chi Minh City and Hanoi than in rural regions. For instance, professionals in Ho Chi Minh City can earn up to 30% more than their counterparts in rural areas due to the concentration of businesses, higher living costs, and greater demand for skilled labor. 

According to recent data, the average monthly salary in urban areas is about 8.7 million VND, while in rural areas, it is around 6.2 million VND.

Cost of Living Adjustments

The increased cost of living often offsets the higher salaries in urban areas. In cities like Hanoi and Ho Chi Minh City, housing, transportation, and food expenses are higher than in rural areas.

For example, renting an apartment in Ho Chi Minh City can cost between 8 million VND to 15 million VND per month, whereas in rural areas, the cost can be as low as 2 million VND to 5 million VND per month. 

While urban workers earn more, their disposable income may not be substantially higher than rural workers once living costs are accounted for. 

Consequently, salary expectations and negotiations often consider these cost-of-living differences, ensuring that compensation packages are competitive and reflect regional economic conditions.

Regional Minimum Wage in Vietnam

The regional minimum salary differs depending on where you work in Vietnam. Based on data from Vietnam Briefing, this table shows the minimum wage rates in each region.

These regional minimum wage rates reflect the varying cost of living and economic conditions across different parts of Vietnam, ensuring that workers in higher-cost areas receive adequate compensation.

Factors Influencing Salaries

In Vietnam, salaries are influenced by qualifications, experience, and industry demand, with advanced degrees and high-demand sectors like IT and healthcare offering higher pay.

Qualifications and Experience

In Vietnam, education and work experience are pivotal in determining salary levels. Employees with advanced degrees or significant experience can earn up to 50% more than their less experienced counterparts. 

For instance, a professional with a master's or doctorate degree is likely to command a higher salary than someone with only a bachelor's degree. 

Individuals with extensive work experience, particularly those with over 10 years in their field, often see substantial salary increases. This trend is evident across sectors, including IT, healthcare, and education, where specialized knowledge and skills are highly valued. 

The correlation between higher education, extensive experience, and increased earnings underscores the importance of continuous professional development and lifelong learning in enhancing career prospects and salary potential.

Industry Demand

The demand for specific skills and expertise within industries also influences salary levels. 

High-demand sectors like information technology (IT), finance, and healthcare tend to offer higher salaries to attract and retain top talent. For example, the rapid growth of the tech industry in Vietnam has driven up salaries for IT professionals, with roles such as software engineers and IT managers commanding premium wages. 

The healthcare sector, which requires specialized skills and qualifications, offers competitive salaries to doctors, specialists, and nurses. 

Conversely, industries with lower demand or a surplus of available labor, such as customer service and administrative roles, typically offer lower salaries. 

Comparison with Other Countries

Vietnam's average salaries are lower than those in Malaysia and Thailand but higher than Cambodia's, reflecting its position within the regional economic landscape.

Regional Comparison

When comparing Vietnam's average salaries with those of neighboring countries, it becomes evident that Vietnam's wages are relatively lower. 

For instance, the average salary in Vietnam is approximately $360 USD per month, which is lower than in Malaysia and Thailand but higher than in Cambodia. 

The average monthly salary in Malaysia ranges from $400 to $1,000 USD, reflecting a more developed economy with higher living standards. 

The average monthly wage in Thailand is around $425 USD, indicating a slightly higher earning potential compared to Vietnam.

On the other hand, Cambodia's average monthly salary is about $250 to $400 USD, making Vietnam's wages more competitive within the region.

Global Perspective

On a global scale, Vietnam's salaries are quite a bit lower than those in Western countries, but they remain competitive within the Southeast Asian region. 

For example, the average annual salary in the United States is approximately $76,770 USD, which translates to about $6,400 USD per month. This stark contrast highlights the economic disparities between developed and developing nations. 

However, when considering the cost of living, Vietnam offers its residents a relatively high standard of living. The lower cost of living in Vietnam means that the purchasing power of the average salary is more substantial than in some higher-wage countries. 

This balance between competitive wages and affordable living costs makes Vietnam an attractive location for local workers and expatriates.

Future Trends in Salary Growth

Economic forecasts and government policies indicate steady salary growth in Vietnam, particularly in high-demand sectors like IT, finance, and healthcare. Let’s look more closely at the economic details for Vietnamese workers.

Economic Projections

Economic forecasts suggest that salaries in Vietnam are poised for steady growth in the coming years. 

Analysts project that salaries will increase by an average of 7% annually, driven by the country's robust economic development and increasing foreign investment. This growth is expected to be particularly pronounced in high-demand sectors such as information technology, finance, and healthcare, where the need for skilled professionals continues to rise. 

Vietnam's integration into global supply chains and its strategic position as a manufacturing hub in Southeast Asia are likely to contribute to sustained salary growth across industries. 

These positive economic projections indicate a promising future for wage earners in Vietnam, with the potential for improved living standards and greater financial stability.

Government Policies

Government policies help to shape salary growth trends in Vietnam. 

Recent wage reforms, including periodic adjustments to the minimum wage, are expected to improve public sector salaries. For example, the Vietnamese government has implemented policies to increase the minimum wage to keep pace with inflation and the rising cost of living. 

These reforms are designed to make sure that workers receive fair compensation and reduce income inequality. Government initiatives to attract foreign investment and promote economic diversification will likely create more high-paying job opportunities. 

Your Potential in Vietnam's Dynamic Job Market

Vietnam is booming, and so are the job opportunities. Salaries are rising, so understanding the average wages in Vietnam will help you make better personal and business decisions. 

Whether you’re negotiating your next job offer or setting salaries for your team, you now have the data and insights you need.

Don't miss out on the chance to capitalize on Vietnam's economic growth. Start a trial with Knit People today and improve your employee management strategy today.

Disclaimer: The content of this article is intended solely for informational purposes. It is advised to consult with a qualified professional before making any contractual commitments. Any decisions made or actions taken based on the information provided herein are at the sole discretion and responsibility of the reader.