HÀ NỘI — Vietnam is steadily revising its economic strategies with new proposals aimed at enhancing the regional minimum wage and extending tax payment deadlines for businesses as part of its long-term growth agenda.
The Ministry of Labour, Invalids and Social Affairs (MoLISA) announced plans to reevaluate the minimum wage structure to align with changing administrative boundaries across the nation. This initiative, which was highlighted on February 21, 2025, aims to improve the living standards of workers as economic growth is anticipated to exceed 8% by 2025. The proposed adjustments are not simply about numbers; they represent Vietnam's commitment to ensuring fair worker compensation.
According to the Vietnam News Agency, MoLISA has officially requested local authorities to review areas where the minimum wage is applied, consolidatively working with the Việt Nam General Confederation of Labour (VGCL) to formulate new proposals for wage increases. The recent changes to administrative boundaries have necessitated these updates to keep wage policies relevant and effective. This approach echoes the last major update, Decree No 74/2024/NĐ-CP, which provided regional minimum wage classifications and increases following careful assessments of living costs.
The government categorizes minimum wages under four regions, with the most recent adjustments pegging the minimum monthly wages at VNĐ4.96 million (US$200) for Region I, VNĐ4.41 million ($180) for Region II, VNĐ3.86 million ($160) for Region III, and VNĐ3.45 million ($140) for Region IV. Under the same decree, hourly rates were also increased accordingly, aiming to make wages reflect living expenses more accurately.
What’s more, the VGCL is actively working on its own proposal for wage increases, gathering insights from recent surveys on worker living conditions. Preliminary findings show many employees are eager for higher wages, especially after experiencing financial strains during the Tết (Lunar New Year) holiday. Lê Đình Quảng, Deputy Head of VGCL’s Policy, Legal Affairs, and Industrial Relations Department, notes, “Investing in wages is investing in development and human resources,” emphasizing the connection between wage policies and economic growth.
Meanwhile, Vietnam's finance sector is also undergoing revisions. The Ministry of Finance has proposed extending deadlines for payments related to value-added tax (VAT), corporate income tax, personal income tax, and land rents to help businesses weather current challenges. The total deferred amount is estimated at nearly 102 trillion VND (over 3.99 billion USD), aimed at ensuring businesses remain liquid during this recovery phase.
Under the proposed draft decree, VAT payments due from February through June 2025 would see deferrals spanning from five to six months, with the necessary final payments scheduled for December 31, 2025. Similarly, corporate income tax provisional payments will be extended for businesses facing financial pressures, which the MoF stated is intended as policy support rather than tax exemptions.
The continuing economic pressures—stemming from constrained credit access, rising bad debts, and uneven growth across sectors—underscore the necessity for these adaptations. While various industries experience stagnation, including agriculture and machinery production, the tourism sector's recovery remains sluggish. These conditions have led the government to reassess both labor policies and fiscal strategies comprehensively.
Despite these concerns, Vietnam is still aiming high. The government is hopeful for overall economic growth projections and desires to cultivate an environment where costs do not stifle progress. Analysts and policymakers understand the importance of improving living conditions for workers who are fundamental to achieving these broad economic objectives.
The latest measurements from the stock market reveal slight declines as the VN-Index closed less than half a point lower recently, ending its winning streak. Although foreign investment sell-offs were noted, several major caps, including Military Commercial Joint Stock Bank (MBB) showed potential for resilience, lifting the overall market sentiment. With the VN-Index and other indicators providing insights, Vietnam’s future economic prospects appear intricately tied to the adjustments being made today.
Overall, the drive for increased minimum wages and prudent tax extensions reflect Vietnam's ambition to cultivate equitable economic growth where policy reform directly benefits worker welfare, thereby enhancing productivity across various sectors. This comprehensive approach demonstrates the bridge between enhancing workers’ lives and achieving broader economic success, allowing Vietnam to stride forward confidently.