Vietnam has a population of nearly 96.5 million[1] people, with 61%[2] of the population living in rural areas. The urban population has been steadily increasing since the early 1990s, with 39%[3] of the current population living in cities. The agricultural sector is the country’s main employer, with a third of the population employed in agriculture.[4]
In Vietnam, nearly 40% of the land is agricultural land, the majority of which is dedicated to rice production. Smallholders account for 89% of farmers in Vietnam, with the average family farm cultivating 0.4 hectares. Despite small land sizes and low rates of mechanization, farms are typically highly productive, with Vietnam having the highest on-farm labour productivity among all Asian countries. The shift to intensive agricultural practices has resulted in the use of large amounts of fertilizer, with 97% of smallholders using some type of fertilizer. High yields may be attributed to fertilizer use, however, such fertilizers have increased environmental detriments and are cost intensive.[5]
Rice is the top commodity in Vietnam, both in terms of production and export quantity.[6] In terms of export value, rice, coffee, and cashew nuts are the top three commodities, respectively, and all three represent nearly identical export values.[7]
- ^ World Bank. (2019). https://data.worldbank.org/indicator/SP.POP.TOTL?locations=VN
- ^ World Bank. (2022). https://data.worldbank.org/indicator/SP.RUR.TOTL.ZS?locations=VN
- ^ World Bank. (2022). https://data.worldbank.org/indicator/SP.URB.TOTL.IN.ZS?locations=VN
- ^ World Bank. (2021). https://data.worldbank.org/indicator/SL.AGR.EMPL.ZS?locations=VN
- ^ FAO. (2018). Small Family Farms Country Factsheet. http://www.fao.org/3/I8358EN/i8358en.pdf
- ^ FAOSTAT. 2018. http://www.fao.org/faostat/en/#rankings/commodities_by_country
- ^ FAOSTAT. 2018. http://www.fao.org/faostat/en/#rankings/commodities_by_country
Minimum wage
The government mandated minimum wage in Vietnam varies by region, ranging from 3,250,000 Vietnamese dong (129 EUR) to 4,420,000 (186 EUR) Vietnamese dong per month.[1] However, labour laws are not always effectively enforced in Vietnam, where overtime is a recurrent problem in most factories. Specifically, in the informal economy, low incomes and exceeding working hours prevail.[2]
The Global Living Wage Coalition developed 3 Living Wage Benchmarks and 1 Living Income Benchmark using the Anker Methdology. Each study brings the estimates for the 4 regions used by the Government of Vietnam for setting minimum wages.
Living wage
Region 1 is one of four regions used by the Government of Vietnam for setting minimum wages and covers the two largest cities – Ho Chi Minh City and Hanoi. For Region 1, a living wage was estimated at 8,606,008 Vietnamese Dong (318 EUR) per worker per month.[3]
Region 2 is mostly comprised of major urban areas in Northern, Central, and Southern Vietnam, excluding Ho Chi Minh City and Hanoi. For Region 2, the estimated living wage is 7,884,064 Vietnamese Dong (291 EUR) per month.[4]
Region 3 includes districts in three main areas: the Red River Delta in the north (around Hanoi), the Central Coast, and across the southeast and the Mekong River Delta in the south. It consists mostly of smaller size cities and towns, where a living wage is estimated at 7,656,606 Vietnamese Dong (283 EUR) per month.[5]
Based in urban settings, the 3 studies brings the gross wage required for a typical family of 2 adults (1,86 - one in full-time employment and one in part-time employment) and 2 children to afford a nutritious, low-cost diet, healthy housing, adequate health care, education through secondary school, and all other essential expenses, plus a small margin for unexpected events.
The last report, a Living Income study, focus on region 4, comprised of mostly rural areas of the country and estimates a living wage at 6,169,935 Vietnamese Dong (228 EUR) per worker per month. More on the study below.
Living income
The living income benchmark produced using the Anker Methdology estimates a living income for minimum wage Region 4 of Vietnam. Region 4 includes rural areas across the north, center, and south of the country, where the cost of a basic but decent living for a family is of 10,156,329 Vietnamese Dong (375 EUR) per month.[6]
For the other 3 studies, living incomes were also estimated.
- ^ WageIndicator Foundation. (2023). https://wageindicator.org/salary/minimum-wage/vietnam
- ^ U.S. Department of State. (2019). https://www.state.gov/reports/2019-country-reports-on-human-rights-practices/vietnam/
- ^ Global Living Wage Coalition (2023). Living Wage for Minimum Wage Region 1, Vietnam. https://www.globallivingwage.org/living-wage-benchmarks/living-wage-for-minimum-wage-region-1-vietnam/
- ^ Global Living Wage Coaltion (2023). Living Wage for Minimum Wage Region 2, Vietnam. https://www.globallivingwage.org/living-wage-benchmarks/living-wage-for-minimum-wage-region-2-vietnam/
- ^ Global Living Wage Coaltion (2023). Living Wage for Minimum Wage Region 3, Vietnam. https://www.globallivingwage.org/living-wage-benchmarks/living-wage-for-minimum-wage-region-3-vietnam/
- ^ Global Living Wage Coalition (2023). Living Wage Report for Minimum Wage Region 4, Vietnam. https://www.globallivingwage.org/living-wage-benchmarks/living-wage-report-for-minimum-wage-region-4-vietnam/
Vietnam Garment Industry Study 
Country study on labour issues in the garment industry and how to make living wage improvements for factory workers. CNV International, 2020.
Garment Supply Chain Study
This report compares the wages earned by apparel & footwear workers in Vietnam to living wage targets. Fair Labor Association, 2019.
Toward Fair Compensation in Vietnam: Reaching a Living Wage
This report compares the wages earned by apparel & footwear workers in Vietnam to living wage targets. Fair Labor Association, 2019.
Living Wage Report for Minimum Wage Region 4, Vietnam
Living income benchmark developed for minimum wage Region 4 of Vietnam, comprised by rural areas across the north, center, and south of the country.
Living Wage for Minimum Wage Region 3, Vietnam
Living wage benchmark developed for minimum wage Region 3 of Vietnam, which includes small cities and towns in three main areas: the Red River Delta in the north (around Hanoi), the Central Coast, and across the southeast and the Mekong River Delta in the south.
Living Wage for Minimum Wage Region 2, Vietnam
Living wage benchmark developed for minimum wage Region 2 of Vietnam, mostly comprised of major urban areas in Northern, Central, and Southern Vietnam, excluding Ho Chi Minh City and Hanoi.
Living Wage for Minimum Wage Region 1, Vietnam
Living wage benchmark developed for minimum wage Region 1 of Vietnam, which covers the two largest cities – Ho Chi Minh City and Hanoi.