Labor is excited
Mr. Nguyen Van Hanh - sales staff of a handicraft manufacturing company in Thuong Tin commune (Hanoi) - shared that the information that the Vietnam General Confederation of Labor proposed to increase the highest regional minimum wage by 9.8%, made workers like him very excited.
According to Mr. Hanh, he belongs to region 2, the regional minimum wage applied from January 1, 2026 is 4,730,000 VND/month. Although companies and businesses in the area basically pay higher wages than the regional minimum wage, the decision to increase the minimum wage is still very meaningful for workers.
I have been working for 7 years now, in any minimum wage increase, business owners and employers also increase salaries for us. Based on the "base" of the minimum wage and the increase, labor income also increases accordingly" - Mr. Hanh said.
Similarly, Mr. Nguyen Van Phuc, a worker for a construction company in Ha Dong ward (Hanoi), confided that although he does not understand the minimum wage too deeply, he only basically understands that the general salary increase regulations issued by the State mean that businesses also tend to increase salaries for employees.
When asked about the proposed 9.8% increase proposed by the VGCL, Mr. Phuc said "the increase of nearly 10% is extremely valuable". "We have to worry about room and market costs. Prices increase from bunches of vegetables, kilograms of meat to electricity and water bills... so each salary increase and income increase is very valuable. The Trade Union organization's proposal helps workers have more motivation to work" - Mr. Phuc said.
The increase of 9.8% is based on a solid macroeconomic basis
Ms. Nguyen Thi Lan Huong - former Director of the Institute of Labor Science and Social Affairs, commented that, as a person with many years of research on the labor market, she agrees with the proposal of the VGCL on adjusting the regional minimum wage in 2027 to increase by 9.8%, officially applied from January 1, 2027.
This is not simply a mechanical number, but an extremely pivotal socio-economic policy to ensure social security for workers in the face of strong fluctuations in the global economy," Ms. Huong said.
Ms. Huong realistically acknowledged that this 9.8% increase is completely feasible and based on three solid macroeconomic foundations.
Compensating for price slippage and cost of living pressure: Inflation and consumer goods prices in major cities are creating pressure on workers' daily spending. This increase will help preserve the value of real wages, helping workers cover minimum hard costs.
Corresponding to the economic growth rate: Our economy is recording positive signs of recovery and growth. This economic achievement needs to be redistributed fairly, and the most direct channel is to improve income for direct production forces.
Motivation to promote labor productivity: When wages meet the basic living standards, workers can feel secure in sticking together, regenerating labor and proactively improving technical skills. This is also a lever forcing companies to automate and restructure management processes to optimize efficiency, instead of relying on cheap labor sources.
Also according to Ms. Huong, the salary increase from January 1, 2027 will pose certain challenges in operating costs for the business community in the short term. However, looking at the long term, a labor market with stable income will stimulate domestic consumption, creating a healthy economic cycle. Businesses and workers are symbiotic relationships; improving the value of human resources is the key to maintaining political and social stability and promoting sustainable development.
