Current Garment Worker Wages Vietnam

Key takeaways

• Garment workers rely heavily on overtime to reach the $440/month average, creating significant health and long-term productivity risks
• Real wages are losing value with only 3.3% annual increases while living costs surge, making workers more likely to quit
• Companies face recruitment challenges: 62.6% want to expand workforce but turnover rates have reached 20%
• Paying below regional minimum wage can result in fines of $1,600-6,000 plus mandatory compensation with interest

Decisions about garment worker wages go far beyond legal compliance. How companies design salary levels, income structures, and workers’ ability to meet living costs will determine whether businesses can attract and retain talent while maintaining production stability. The compensation landscape in Vietnam’s garment industry is far more complex than surface-level figures suggest, requiring analysis from both legal and market perspectives.

What are current garment worker wages in Vietnam?

Decree 74/2024/ND-CP, effective July 1, 2024, establishes mandatory minimum wages that companies must pay:

• Region 1: $200/month
• Region 2: $177/month
• Region 3: $155/month
• Region 4: $139/month

These figures represent only the legal minimum requirements and don’t reflect actual income realities within the industry.

Garment worker salaries in Vietnam vary widely, from $154-192 USD (4-5 million VND) per month for new workers to $385-577 USD (10-15 million VND) per month for those with experience and high skills, depending on the work area.

A survey by the Vietnam General Confederation of Labor covering 735 companies with grassroots unions shows that average income for textile workers can reach $400 USD (10.4 million VND per month). Of this, the basic salary is only about $288 USD – 7.5 million VND (72% of total income). Notably, to earn this income, workers must work overtime every day with about 80 overtime hours per month – only then can monthly income reach over $385 USD.

However, the average basic income of garment workers is still lower than the general average income of factory workers ($319 USD according to Q1 2025 General Statistics Office data). Compared to other industries, garment workers are at a disadvantage: electronics workers earn $482 USD per month and manufacturing workers earn $408 USD per month.

What is concerning is that to reach this $400 USD income, workers must depend heavily on overtime and extra work hours, while their actual basic salary is only slightly above the regional minimum wage. This gap makes it difficult for the garment industry to compete for talent with other industries, and also affects workers’ social insurance contributions and welfare benefits. 

Hidden problems behind the average wage of garment worker

Behind the $400 figure lie structural issues that silently undermine sustainable business development.

Low base wages with long-term social security consequences

The biggest problem is that base wages (used to calculate mandatory social insurance) comprise only 72% of total income. The remainder comes from allowances, overtime pay, bonuses, and other benefits.

This structure creates serious long-term consequences: sickness benefits, maternity leave, and especially retirement pensions remain low because they’re calculated on limited base wages. This not only reduces employee loyalty but also creates long-term financial pressure for both workers and the entire social security system.

High income comes at the cost of worker health

To achieve income above $400, most workers must work continuous overtime at high intensity. Those earning $560-680/month typically work over 10 hours daily, often without weekends off.

Additionally, garment factory working conditions present health challenges: dust, noise, hot humid air, and high production pressure. While overtime wage regulations are legally protected, relying on overtime for adequate income not only harms worker health but also creates risks for productivity and product quality.

Wage growth lags behind inflation

Another concerning factor is that industry wage growth reaches only 3.3% annually—insufficient to offset inflation. Workers receive promotions on average after 19 months with only 6% increases per level.

This means workers’ real purchasing power decreases over time. When living standards don’t improve, workers easily seek opportunities elsewhere, increasing recruitment and training costs for businesses.

Gap between actual income and living wages

According to calculations by the Asia Floor Wage Alliance (AFWA), living wages for Vietnamese garment workers should reach approximately $500/month—$60 higher than current average income.

Living wages don’t just meet basic needs but help workers have better lives, earn respect, and have opportunities for personal and family development. This gap shows workers still struggle with rising living costs, directly affecting motivation and work productivity.

HR challenges and opportunities in 2025

The garment industry faces an ironic situation: bright business prospects alongside severe labor shortages.

Growing human resource crisis

Many companies, including large corporations like Vinatex, report labor turnover rates reaching 20%. This situation affects not only large companies but also extends to small garment workshops.

The main cause is many garment workers choosing overseas employment to seek better income opportunities. Simultaneously, other industries with more attractive wages are “pulling” human resources from garment manufacturing. Designing appropriate worker wage allowances can help companies compete better in retaining talent.

Positive outlook creates recruitment pressure

Despite HR challenges, business prospects for 2025 look optimistic. Surveys show 71.3% of companies predict stable orders, while 22.6% expect increased orders compared to 2024.

This creates a paradox: with favorable markets, 62.6% of companies want to hire additional workers while 33.6% maintain current workforce levels. Increased recruitment demand amid scarce labor supply will intensify fierce competition for talent, forcing companies to develop more competitive compensation and benefits strategies.

Ignoring the realities hidden behind average wage figures isn’t just a strategic mistake but also harbors legal risks. Building sustainable HR strategies requires competitive, transparent, and legally compliant compensation structures.

This demands deep market understanding and reliable data. Comprehensive salary surveys and professional payroll services from Talentnet provide the necessary tools and analysis to transform current garment worker wage policies into competitive advantages for attracting and retaining talent.