The 2025 Total Remuneration Report of Vietnam's Labor Market with Talentnet-Mercer Data
Oct 31, 2025
Last updated on Oct 31, 2025
Vietnam's labor market is in a period of unprecedented caution when it comes to pay raises. The average salary increase is at a record low—even lower than during the pandemic—reflecting a global tightening of budgets. But this isn't just about cutting costs. Beneath the surface, a quiet restructuring is happening, where companies are willing to pay more for managers with the right skills to lead change, while keeping costs in check for other roles. This is a strategic shift in how businesses are investing in their people.
Key Takeaways
- Vietnam’s labor market is shifting from a strategy of expansion to optimization, with the most cautious salary growth seen in the last decade.
- A clear divide is emerging: some industries are willing to pay a premium for key talent, while others are focused on restructuring and cutting personnel costs.
- Instead of competing on base salary, Vietnamese companies are carving their own path by using higher bonuses to compete with multinational corporations (MNCs).
Over the next five years, AI and data skills will define the value of talent, creating a completely new wave of demand in the labor market.
The Talentnet-Mercer Total Remuneration Survey 2025, with data from 678 of Vietnam’s leading companies, offers a clear look at the complex dynamics of the labor market. This article goes beyond the numbers to decode the stories behind them, helping leaders make smart talent decisions in a challenging environment.
An overview of the 2025 labor market
Unveiled on Day 2 of The Makeover 2025, a survey of 678 businesses shows that Vietnam’s labor market is undergoing a major transformation. Data from the 2025 Talentnet-Mercer salary report reveals that both foreign-owned and local companies are adopting a defensive strategy in their HR management. This caution is not a sign of a recession, but of a maturing market where cost efficiency has become a top priority.
Nguyen Thi Quynh Phuong, Head of Human Capital Solutions at Talentnet, notes, “For large organizations, significant salary hikes put considerable pressure on fixed and operational costs, especially as the global economy slows.”
What’s notable in the 2025 survey isn’t just the salary statistic; it’s the strategic shift from growth to optimization, and from raising pay to increasing value. Nearly half of all businesses are choosing to maintain their current workforce size rather than expand, focusing instead on strengthening their internal capabilities and building core competencies.
This cautious approach isn’t limited to employers; it’s seen in the workforce as well. The 2025 labor market data shows that the voluntary turnover rate remained low in the first half of the year—just 6.5% at multinational companies and 9.6% at local firms.
Two main factors explain this trend:
- Employees are prioritizing job security in a slower economy.
- Many companies are putting a greater emphasis on retention policies to create a more stable and engaging work environment.
This is a period where both businesses and employees are prioritizing stability and investing in internal development over rapid expansion.
Want to see where your company fits into the bigger picture? The 2025 salary and labor market report provides detailed analysis by industry, company size, and region.
The two-speed war for talent
Even though the overall market is seeing slow growth, the battle for talent is still intense in certain areas. The compensation market is clearly splitting, creating a two-speed race between different industries.
Chemicals, Logistics, and Pharmaceuticals are the industries with the fastest salary growth because they require a workforce with deep expertise and the ability to innovate continuously. These are sectors where high-quality talent directly determines a company’s ability to compete and achieve long-term growth.
Companies in these fields have to offer attractive pay to land highly qualified experts. This isn’t just a short-term need; it’s a long-term strategy to stay ahead of the competition.
In contrast, sectors like Banking, Insurance, and Transportation are seeing much lower pay adjustments. This difference doesn’t reflect the value of the industry, but rather a period of transition: as technology and automation replace many traditional roles, companies are reallocating resources to new, more strategic positions.
The pay gap between new hires and current employees also reveals different strategies by level.
- At the management level, companies are willing to pay more for outside candidates who can lead change and bring in fresh perspectives.
- At the professional and staff levels, the focus is on retaining existing talent with higher pay, valuing their experience, stability, and deep understanding of the company’s operations.
This is clear evidence that businesses are investing selectively, a strategy that directly impacts the 2025 salary landscape, with resources focused on roles that drive transformation while maintaining stability in core positions.
Curious which group your industry falls into? Download the salary survey report for a detailed analysis of 18 industries and specific trends for each segment.
How Vietnamese companies are competing in 2025
The data shows that competing with MNCs on base salary is an uphill battle. The pay gap between local firms and MNCs is significant at all levels.
Instead of getting into a costly race to match base salaries—which could throw their cost structure out of balance—Vietnamese companies are finding their own way with a flexible compensation structure and rewards strategy to create a competitive total package.
In 2025, both local firms and MNCs plan to maintain or slightly increase their bonus budgets, but Vietnamese companies will continue to offer higher bonuses to close the base salary gap. This isn’t just an expense; it’s a strategic investment in employee productivity and engagement.
This approach is especially effective in an uncertain economy, where businesses need to balance retaining talent with staying financially stable. Instead of adding to their fixed costs with high salary raises, Vietnamese companies are creating a flexible pay model that’s tied directly to performance and is a better fit for their resources.
Advantages of this model:
- Financial Flexibility: Bonus costs change with business performance, allowing companies to adjust to the current situation.
- Stronger Motivation: Directly links individual pay to company results.
- Competitive Total Income: Offers the potential for attractive total pay without putting excessive pressure on fixed operational costs.
What’s the standard bonus for your industry and specific roles? Download the report for detailed data on bonus structures, benefits, and total income in today’s Vietnamese labor market.
Investing in the future: How AI and data will reshape the market?
In a volatile economy, businesses are not only looking to control personnel costs but are also investing heavily in technology, training, and developing their people—the key to building an agile and resilient organization.
Skills in artificial intelligence, data analytics, and cybersecurity are set to define the value of talent over the next five years, surpassing the importance of many traditional skills. This shift isn’t just a forecast; it’s already showing up in compensation structures.
- Roles related to data management, business intelligence, and strategic investment now command the highest salaries on the market.
- Job functions that can be automated are seeing significantly lower pay.
This is a critical signal for both businesses and employees: investing in tech and data skills is no longer a choice—it’s essential for staying competitive.
Download the 2025 salary and labor market report now—the most reliable dataset to help your business make informed decisions and design compensation policies that align with market trends.
The Talentnet-Mercer 2025 Salary Survey clearly shows a shift in the HR strategies of Vietnamese businesses. This period of cautious salary increases is not a sign of a recession but a necessary phase of restructuring. In this changing environment, making decisions based on data is essential for survival. The full Talentnet-Mercer report will give your business:
- Detailed salary comparisons for every industry, level, and job function.
- Data on the types of allowances and benefits being offered in the market.
- Specific turnover and salary increase rates for your industry.
- In-depth analysis of hiring trends and the skills you’ll need for the future.
Don’t let your business fall behind. Arm yourself with the most comprehensive data to build an HR strategy that will not only see you through this challenging period but also position you to break ahead in the future. Talentnet’s team of experts is ready to help.
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