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Based in Southeast Asia, Vietnam or Viet Nam is one of the stable and fast-growing countries globally.
The typical salary in Vietnam is 17.3 million Vietnamese Dong (VND) per thirty days or 697 USD/month (in line with the exchange rates in August 2024) — which is significantly lower than the common salaries in countries just like the USA or UK.
This low-cost labor, a highly educated workforce, and government support for entrepreneurship make Vietnam ideal for many IT, manufacturing, and BPO outsourcing firms.
In this text, we’ll discuss stats about Vietnam’s average monthly salary and compare average salaries and increment rates. We’ll then list five explanation why Vietnam is an outsourcing powerhouse.
Table of Contents
Let’s start.
What’s the common salary in Vietnam?
In response to salary explorer, the common salary in Vietnam is 17.3 million Vietnamese Dong (VND) per thirty days.
As per the August 2024 exchange rate, that is akin to 697 USD/month.
In Vietnam, it’s common to pay employees a Thirteenth-month salary as an annual bonus. Moreover, there’s a Tet bonus paid before the Lunar Recent Yr. The Tet bonus amount can range from one to a few months’ salary.
Let’s explore another figures related to Vietnam’s average salary:
1. Salary range
The salary range in Vietnam is 4,360,000 VND/month (minimum salary) to the very best average of 76,900,000 VND/month (actual monthly salary could also be higher).
These figures are inclusive of bonuses.
The bottom salaries are within the accounting, customer support, and administrative sectors. The very best salaries are typically present in IT, banking, financial services, civil engineering, and marketing.
2. Median salary
The median Vietnamese salary is 14,900,000 VND/month.
Median salary means half the population earns greater than 14.9 million VND/month, while the opposite half earns lower than 14.8 million VND/month.
3. Minimum wage
The minimum wage in Vietnam is 4.68 million VND/month (in line with Take-Profit.org). It equates to roughly 200 US dollars per thirty days.
The minimum wage is determined by the worker’s region:
- Region I (urban HCMC (Ho Chi Minh City) and Hanoi): 4,420,000 VND/month.
- Region II (rural areas of Hanoi and Ho Chi Minh, in addition to the cities of Da Nang, Can Tho, and Haiphong): 3,920,000 VND/month.
- Region III (Bac Giang, Bac Ninh, Hai Duong, and Vinh Phuc provinces): 3,430,000 VND/month.
- Region IV (other remaining areas): 3,070,000 VND/month.
As well as, you furthermore mght must pay an worker with vocational training 7% greater than their region’s basic salary.
Vietnamese average salary comparisons
Let’s now have a look at how the common income differs based on the worker’s experience, education level, work type, city, and job title:
1. Experience
Generally, the more experienced the worker, the more they’re paid.
Yet, Vietnamese employees with over 20 years of experience might receive a lower average annual salary than their peers with 16-20 years of experience.
Here’s a salary comparison in line with the years of experience:
| Years of Experience | Average Annual Salary |
| 20+ | 604,037,493 VND |
| 16-20 | 704,001,363 VND |
| 12-16 | 600,059,175 VND |
| 8-12 | 564,438,279 VND |
| 4-8 | 412,549,306 VND |
| 2-4 | 263,005,931 VND |
| 1-2 | 178,495,413 VND |
| 0-1 | 139,517,092 VND |
Source: averagesalarysurvey.com
2. Education
Higher education qualifications normally result in a better average base salary.
Let’s have a look at the salary level comparison for various education levels:
| Education Level | Average Annual Salary |
| Doctorate Degree | 583,387,031 VND |
| Master’s Degree | 512,237,224 VND |
| Bachelor’s Degree | 369,017,765 VND |
| Some College Degree | 287,680,703 VND |
| High School Diploma | 267,467,167 VND |
| Below High School | 116,245,080 VND |
Source: averagesalarysurvey.com
3. Work type
Full-time employees worldwide generally receive high salaries.
Nevertheless, over half (54.3%) of Vietnamese individuals often earn greater than full-time employees.
That’s because these individuals are self-employed, and the federal government actively encourages entrepreneurship through lower tax rates.
Here’s how the salaries differ based on employment type:
| Work Type | Average Annual Salary |
| Self-Employed | 436,557,192 VND |
| Full-Time | 416,297,664 VND |
| Contract | 327,693,847 VND |
| Part-Time | 171,481,615 VND |
Source: averagesalarysurvey.com
4. City
The placement of your small business also plays a major role in deciding worker salaries.
Ho Chi Minh City (HCMC) is the very best city for employment, followed closely by Hanoi, the capital.
Let’s explore the common salaries and popular professions of three major Vietnamese cities — Hanoi, Ho Chi Minh City, and Haiphong:
| City | Average Annual Salary | Popular Professions |
| Hanoi | 295,927,293 VND | Project Manager Software Engineer Software Developer |
| Ho Chi Minh City (Saigon) | 281,614,084 VND | Operations Manager Software Engineer Senior Software Engineer |
| Haiphong | 254,739,112 VND | Credit Analyst Accounting ClerkESL Teacher |
Hanoi provides the country’s highest salary, on average.
Nevertheless, HCMC is the biggest city and provides essentially the most economic opportunities. In consequence, it receives many migrants and expats yearly, resulting in a better cost of living.
5. Professions
Here’s a listing of some popular professions in Vietnam and their average yearly salary:
| Occupation | Average Annual Salary |
| Dentist | 775,633,674 VND |
| HR Manager (Human Resources Manager) | 523,705,126 VND |
| JavaScript Developer | 516,559,063 VND |
| Electrical Engineer | 512,670,713 VND |
| Project Manager | 482,558,759 VND |
| Financial Analyst | 479,134,485 VND |
| Business Development Analyst | 450,939,128 VND |
| UX Designer | 434,145,081 VND |
| Registered Nurse | 368,537,199 VND |
| Graphic Designer | 308,767,751 VND |
| Secondary School Teacher | 304,552,491 VND |
| ESL Teachers (English as a Second Language) | 179,883,257 VND |
| Construction Employee | 75,213,197 VND |
Source: salaryexpert.com
Public sector employees typically earn 8% more (7,800,000 VND) than private sector employees (6,400,000 VND) annually.
Note: All figures are presented as a salary benchmark. Actual numbers may change depending on job titles and regions.
Average annual salary increment
Typically, Vietnamese employees receive a 9% salary increment every 17 months, higher than the worldwide average of three% every 16 months.
Let’s have a look at the 2 major aspects that impact this increment rate:
1. Experience
In Vietnam, it’s common for fresh graduates to affix an organization on a lower salary with an expectation for a better salary increase.
In reality, the younger the worker, normally the upper the increment.
In consequence, freshers and juniors typically receive a better annual increment than more experienced and older employees.
Listed here are the common increment numbers:
| Experience Level | Average Annual Salary Increment |
| Freshers and Juniors | 7.25% |
| Supervisors, Managers, and Above | 6.98% |
Source: jobstreet.co.id
2. Industry
Thriving industries are more likely to present larger and more frequent increments.
But Vietnam’s economic situation also impacts increments. As an illustration, attributable to the pandemic, travel has been down while the healthcare sector is booming.
The next expected salary increment rates are specifically for 2020-21:
| Industry | Average Annual Increment Rate |
| Travel | 1% |
| Banking | 2% |
| Construction | 3% |
| Energy | 4% |
| Education | 5% |
| Information Technology (IT) | 6% |
| Healthcare | 8% |
Source: salaryexplorer.com
The typical salary in Vietnam is significantly lower in comparison with Western countries, making it a cheap outsourcing location.
Let’s explore this and more reasons how your organization can profit by outsourcing to Vietnam.
5 advantages of outsourcing to Vietnam
Early within the pandemic, the federal government’s decisive actions helped Vietnamese firms and employees sustain with worldwide outsourcing demands while others struggled.
Listed here are another aspects that make this country so unique in the worldwide outsourcing market:
1. Competitive labor cost
Cost optimization is one among the most important reasons firms outsource their operations, especially IT services comparable to software development.
Such services may be extremely expensive onshore for US-based firms and even to other common outsourcing locations like India or Poland.
As an illustration, an American software developer might charge USD 100/hour while those in Poland charge $35-$55/hour. But you may hire a top-quality developer in Vietnam for $20-$40/hour.
Despite rising outsourcing costs worldwide, the BPO (Business Process Outsourcing) and IT services in Vietnam are 50% cheaper than in East Europe and 30% cheaper than in India.
Kearney’s 2021 Global Services Location Index also listed Vietnam because the sixth-best outsourcing destination by way of financial attractiveness. The country ranks higher than most of its Asian counterparts, comparable to Malaysia and Thailand.
2. Large talent pool
There are over 74 million Vietnamese of working age, and the federal government’s concentrate on education has led to an incredible 95% literacy rate on this population.
Recently, the main focus has shifted to providing high-quality English education to assist Vietnamese residents sustain with the worldwide demand.
Developing technical knowledge and digital skills is one other factor helping Vietnamese employees get employed in high-tech sectors.
But what makes it unique from other countries?
Currently, Vietnam is in a “golden population structure,” which implies there are two or more employed people for each unemployed person. Experts suggest that this era will last till 2035, with roughly 1.4 million people becoming eligible for work yearly.
It’s difficult for the country to create so many recent jobs yearly. Outsourcing may also help this case.
The world is currently facing a worldwide talent shortage. Corporations can hire highly expert Vietnamese residents, helping them contribute to the economy. At the identical time, you may gain access to a available and talented workforce at a fraction of the associated fee.
3. Strategic location
Situated just south of China, Vietnam is right for many various time zones.
It’s only a number of hours behind leading Asia-Pacific economies, comparable to:
- Australia (3 hours).
- Japan (2 hours).
- Korea (2 hours).
Similarly, it’s only a number of hours ahead of Europe (5 hours) and the UK (6 hours).
In consequence, it’s possible to speak together with your Vietnamese colleagues during your regular business hours.
Vietnam can be a brief flight away from most European cities, making it easier to go to your offshore centers.
While it’s far-off from the American and Canadian markets (11 hours each), it’s also a serious supplier of IT services to those regions.
Because the time zones are so different, your offshore team can work whilst you sleep, guaranteeing the 24/7 growth of your small business.
4. Fast economic growth
In 2019 alone, the ICT (Information and Communications Technology) sector generated over USD 2 billion in revenue. It contributed about 14% to the country’s GDP and created over one million jobs.
Not only is it a fast-growing nation, nevertheless it’s also largely regular.
In 2020, Vietnam was one among the few countries to witness economic growth (2.9%). Its particular concentrate on software development cemented its place in the worldwide economy.
By 2025, the country goals to turn out to be an upper-middle-income country or higher as per World Bank standards. The plan is to proceed economic reforms that attract foreign manufacturing investments to Vietnam.
If this happens, Vietnam can have a large middle-class population with a good amount of disposable income. Naturally, this may result in an increase in consumption.
So, more foreign investors will likely select to take a position in Vietnam because it’ll offer them higher corporate sales and increased stock evaluations.
5. Investor-friendly environment
As one among the world’s most stable countries, Vietnam’s primary goal is economic growth, making it a lovely destination for domestic and foreign investors.
Many tech-heavy markets, comparable to China, Hong Kong, Japan, Korea, and Singapore, have invested heavily in Vietnam. In response to Vietnam Briefing, Singapore is the second-largest foreign investor in Da Nang, Vietnam.
It has also entered into multiple free trade agreements (FTAs) through the World Trade Organization (WTO) with Japan, Chile, and Korea.
And as a component of ASEAN (Association of Southeast Asian Nations), Vietnam has access to the union’s existing FTAs with Australia, Canada, and India.
In consequence, Vietnam has witnessed unprecedented business development up to now few years.
The Binh Duong province, specifically, is well-known for its manufacturing industry. Many global firms comparable to H&M, Adidas, and Nike have arrange factories within the province to sell their products locally and internationally.
Nevertheless, Vietnam has its sights set even higher, as evident from its recent international trade agreements, comparable to:
- Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
- EU-Vietnam FTA (EVFTA).
They’ll require Vietnam to evolve to International Labor Organization (ILO) standards. Doing so will allow the country to modernize its large labor force and truly enter the worldwide market.
These trade agreements will even help Vietnam attract further foreign investments. The EVFTA, specifically, is anticipated to show Vietnam right into a European business hub.
Wrapping up
The federal government’s commitment to business development has ensured that Vietnam is a world leader in IT services.
In comparison with countries just like the US, its lower average wage also makes Vietnam a lovely IT and software outsourcing destination.
In the event you’re seeking to outsource to Vietnam, use the above salary guide to make sure you’re adequately paying this highly-educated workforce.