Average Salary in Vietnam and Its Benefits for Outsourcing

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Vietnam is known for its beautiful scenery, rich history, and, increasingly, as a business and investment hub. It is one of Southeast Asia’s rapidly growing countries.

 

According to the currency rates for November 2023, the average salary in Vietnam is around 17.3 million VND per month, which is almost equivalent to 713 USD.

 

Whether you’re an entrepreneur looking for business opportunities in Vietnam, a job seeker considering a career change, or simply curious about the economic landscape of this Southeast Asian gem, this in-depth look at Vietnam’s average salary will shed light on the financial factors influencing its salary structure.

 

So, let us go on this informative blog to learn about the intricacies of average salaries in Vietnam.”

 

What is the Average salary in Vietnam?

 

1. The Vietnamese Average salary

 

According to the General Statistics Office of Vietnam’s July 2021 press release, the average monthly salary in Vietnam is 6.1 million VietnameseGeneral Statistics Office of Vietnam’s July 2021 press release Dong (VND). This is comparable to 277 USD/month at the August 2021 exchange rate.

 

According to Salary Explorer, the average monthly salary in Vietnam is around 17.3 million VND (nearly 207 million VND yearly). This statistic comprises a wide range of incomes from various businesses and occupations, with the lowest average being approximately 4.36 million VND and the highest being approximately 76.9 million VND.

 

2. The Median Salary in Vietnam

In Vietnam, the average monthly pay is 14.9 million VND. According to the median pay, half of the working population gets less than this amount, while the other half earns more. This figure provides a more accurate reflection of the average earnings in the country, especially where there are huge income inequalities.

 

3. Maximum and Minimum Salaries in Vietnam

The pay range in Vietnam varies greatly. The lowest reported wage is approximately 4.36 million VND per month, with a maximum average compensation of 76.9 million VND. These data indicate a wide range of earnings across many industries and jobs. 

Note that the actual maximum salary can be higher than the maximum average.

 

4. Legal Minimum Wage in Vietnam

 

The minimum wage in Vietnam remained unchanged in 2023, at 4.680 million VND per Month, from 4.680 million VND per Month in 2022.

 

Minimum Wages in Vietnam averaged 3133.53 VND Thousand/Month from 2008 to 2023, with a peak of 4680.00 VND Thousand/Month in 2022 and a low of 1000.00 VND Thousand/Month in 2008.

 

The minimum wage in Vietnam varies according to area. For example, in major locations such as Ho Chi Minh City and Hanoi, it is approximately 4.42 million VND each month, however in rural areas, it can be as low as 3.07 million VND.

 

The minimum wage is set to guarantee that workers in various sections of the country have a baseline quality of living.

 

Vietnamese Average Salary Comparisons


Salaries in Vietnam vary according to numerous criteria, including experience, education, work type, occupation, and region. Indiv

 

iduals with more experience or higher education levels, for example, typically earn higher incomes. Similarly, incomes might differ dramatically between cities and professions.

 

1. Average Salary by Experience

 

In Vietnam, an employee’s income is frequently correlated with their years of experience. In general, the more work experience a person has, the higher their income.

 

Employees with more than 20 years of experience, for example, may earn much more than those just beginning out in their professions. However, employees with 20+ years experience earn less than those with 16-20 years experience.

Years of Experience Average Annual Salary
16-20
794,892,000 VND
20+
57662,410,000 VND
12-16
98638,752,500 VND
8-12
212600,900,500 VND
4-8
269456,589,750 VND
2-4
243314,644,750 VND
1-2
141208,186,000 VND
0-1
99167,968,250 VND

Source: averagesalarysurvey.com

 

2. Average Salary by Education

Educational qualifications also play a crucial role in determining salary levels. Higher academic degrees, such as a Master’s or Doctorate, often earn more than a high school diploma or a Bachelor’s degree.

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

 

3. Work Type

 

Different Work types have distinct wage scales. Full-time and self-employed individuals tend to earn more than part-time and contract-based employees.

 

Table Header Table Header
Permanent
874 463,687,000 VND
Self Employed
447,126,750 VND
Contract
383,251,500 VND
Part Time
234,209,250 VND

 

4. Average Salary by City

 

Salaries in Vietnam vary based on where you live. When compared to smaller towns or rural areas, major urban areas like Ho Chi Minh City and Hanoi often have higher average earnings.

 

This variation is frequently caused by disparities in living costs as well as the concentration of industries and enterprises in these cities.

 

City average Annual Salary Table Header
Ho Chi Minh City
456,589,750 VND
Da Nang
442,395,250 VND
Hanoi
397,446,000 VND
Hai Phong
354,862,500 VND
Can Tho
208,186,000 VND

5. Average Salary by Profession

 

Here are some popular professions in Vietnam and their average yearly salaries:

 

Profession 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 Worker
75,213,197 VND

 

Source: salaryexpert.com

 

Note: All salary figures are for guidelines and the actual numbers may change depending on job titles and regions.

Average Salary Increment Every Year

 

Vietnamese workers typically receive a 9% rise every 17 months, outpacing the global average of 3% every 16 months.

 

This pattern is mostly affected by two factors:

 

1. Level of Experience:

Fresh grads often begin with lesser earnings but can expect considerable raises. Younger employees, especially those in their early careers, typically receive higher increments than their more experienced counterparts.

 

For example, freshers and juniors normally receive a 7.25% rise, while supervisors and managers typically receive a 6.98% rise.

 

(Source: jobstreet.co.id )

 

2. Salary Increments Vary by Industry

Booming industries give larger increases. For example, in the context of 2020-21, the tourism industry increased by 1%, banking by 2%, construction by 3%, energy by 4%, education by 5%, information technology by 6%, and healthcare by as much as 8%, indicating the impact of Vietnam’s economic patterns, including the pandemic’s impact on various sectors.

 

(Source: salaryexplorer.com)

 

Vietnam’s Cost of Living

The cost of living in Vietnam is far lower than in many Western countries, making it an appealing option for both expats and investors. Let us break it down:

 

1. Housing: The cost of living in Vietnam is very low. Rent is substantially lower in cities such as Ho Chi Minh City and Hanoi than in major Western cities. Even in cities, a nice flat can be rented for a fraction of what you’d expect to pay in the West.

 

2. Healthcare: Vietnam has an affordable healthcare system. Both governmental and commercial healthcare facilities provide services at significantly lower costs than in Western countries. This affordability does not jeopardise the quality of care, which has been continuously improving.

 

3. Transportation: Public transportation in Vietnam, including buses and railroads, is quite affordable. Even private modes of mobility, like as taxis and motorbike rentals, are inexpensive by Western standards.

 

4. Food & Groceries: Daily necessities and groceries are inexpensive in Vietnam. The country’s markets are stocked with reasonably priced local products, and dining at local establishments will not break the budget.

 

5. Education: While international schools can be expensive, local educational institutions are a considerably more affordable option. The government’s education investment has resulted in a strong public education system.

 

Top 5 Benefits of Outsourcing to Vietnam

 

1. Cost Efficiency

The fundamental attraction of outsourcing to Vietnam is its relatively competitive labour prices. Outsourcing to Vietnam can result in significant cost savings for many firms, particularly those in the technology industry, such as software development.

 

The lower cost of living translates into lower salaries, yet the labour quality remains excellent, providing an optimal cost-quality balance.

 

2. Strategic Geographic Location

 

Vietnam’s location in Southeast Asia is perfect for conducting global commerce. Its time zone corresponds to critical business hours in several major markets, including Asia, Europe, and the Americas, allowing for easy communication and collaboration. Because of its geographic location, it is a convenient outsourcing hub for businesses all over the world.

 

3. Extensive Talent Pool

 

The workforce in Vietnam is remarkable for its size, talent diversity, and high literacy rate.

 

The government’s emphasis on education and skill development has resulted in a vast pool of competent people, particularly in sectors such as technology, manufacturing, and business services.

 

This broad talent pool is constantly expanding, giving Vietnam a dependable source of qualified labour for a wide range of outsourcing demands.

 

4. Steady Economic Growth

 

Vietnam’s economic growth has been steady, resulting in a stable and attractive business climate. Foreign investors and companies wishing to outsource are drawn to the country’s economic stability.

 

A developing economy frequently means better infrastructure and a more stable business climate, both of which are advantageous for outsourcing collaborations.

 

5. Investor-Friendly Policies

 

The Vietnamese government has been proactive in fostering an environment conducive to foreign business.

 

Vietnam has become an appealing destination for global firms due to regulations that encourage investment and economic growth, notably in the outsourcing sector.

 

These policies not only make doing business easier, but they also give international investors a sense of security and dependability.

 

Outsourcing to Vietnam provides a cost-effective combination of strategic location, skilled labour, economic stability, and supporting government policies, making it an attractive choice for global corporations.

 

What is Time Champ?

Time Champ is a software application that tracks employee time and productivity, particularly in hybrid, remote, and outsourced work environments. It has capabilities that help monitor employee activitiess, manage time efficiently, and ensure accountability in a workforce that may be dispersed across multiple locations.

 

Time Champ’s main characteristics are as follows:

 

1. Time Tracking: Accurately tracks the time spent on various tasks.

2. Productivity analysis: This provides information about employee productivity.

3. Activity Monitoring: Tracks the websites and applications that are accessed during working hours.

4. Reports and Analytics: Provides detailed reports to help management make better decisions.

5. Remote Management: Enables effective management of remote staff.

How Time Champ Helps in Employee Productivity Tracking and Maintenance:

 

Time Champ is essential for managing remote or outsourced teams. Its time monitoring and productivity analysis tools enable managers to better understand work patterns, identify areas for development, and ensure that people stay engaged and productive.

 

It is equipped with features that aid in tracking employee activities, managing time efficiently, and ensuring accountability in a workforce that may be spread across various locations.

 

Conclusion

 

Overall, understanding Vietnam’s average income and economic landscape reveals a country brimming with potential, notably for outsourcing. Vietnam is an appealing business destination due to its strategic position, developing economy, and qualified workforce.

 

Tools like Time Champ expand on this promise by allowing you to easily manage teams from anywhere, assuring productivity and accountability in the increasingly prevalent practise of outsourcing to Vietnam. 

FAQs:

The average salary in Vietnam is approximately 17.3 million VND per month, encompassing a range of industries and roles.

The median salary in Vietnam is about 14.9 million VND per month, representing the middle point of income distribution.

The minimum wage in Vietnam varies by region, with the highest in urban areas like Hanoi and Ho Chi Minh City at around 4.42 million VND per month.

A good salary in Vietnam would typically be above the median of 14.9 million VND, varying according to industry, location, and role.

Vietnam offers a relatively low cost of living, with affordable housing, healthcare, transportation, and education.

Time Champ enhances productivity by tracking time, analyzing work patterns, and providing detailed reports for better management of remote teams.

Outsourcing to Vietnam offers benefits like lower labor costs, a strategic location, a large talent pool, rapid economic growth, and an investor-friendly environment.

Vietnam’s steady economic growth makes it a stable and attractive destination for outsourcing, with improved infrastructure and a robust business environment.

Vietnam’s strategic location facilitates easy communication with major business hubs, making it a convenient outsourcing destination.

Vietnam’s focus on education has created a skilled workforce suitable for various sectors, making it an excellent source for outsourcing needs.