Southeast Asia Pay Outlook 2026 – How Vietnam Compares

This article is written in English for readers in Vietnam. Vietnamese and Japanese translations are available on our website. 

🌏 1. A Regional Snapshot: Salaries Rising 5.3% Across Southeast Asia

According to the AON Southeast Asia Salary Survey 2025, average pay increases across the region are projected to hit +5.3% in 2026, marking steady optimism despite global uncertainty.

• Vietnam leads the growth with an estimated 5–7% salary increase, driven by manufacturing, semiconductors, and digital services.

• Indonesia and Philippines follow at 5–6%, buoyed by domestic consumption and nearshoring.

• Singapore and Malaysia hover between 3.5–4.5%, reflecting mature, stable economies with slower wage inflation.

• Thailand is forecasted at 4–5%, with recovery in tourism and retail hiring.

Vietnam’s strong FDI inflows, talent shortages, and a growing bilingual workforce make it a regional bright spot for wage competitiveness.

💼 2. Why Vietnam Continues to Outperform

Vietnam’s salary momentum stems from three structural advantages:

Expanding FDI and Supply Chain Realignment

Manufacturing and logistics firms are relocating operations from China to Vietnam. Sectors like semiconductors, green energy, and industrial automation are paying 10–15% higher for engineering and project management roles.

Bilingual Premiums Still Matter

Japanese and English-speaking professionals earn 10–20% salary premiums — a trend validated in Reeracoen’s 2025 Salary Guide. Employers see language fluency as essential for client interface and regional coordination.

Leadership & Retention Gaps

Vietnam’s scarcity of mid-level managers remains acute. Employers are budgeting additional 5–7% raises in 2026 to retain talent with both technical and leadership capabilities.

📊 3. Regional Benchmark Table (2026 Salary Growth Forecast)

(Sources: AON SEA Salary Survey 2025; Reeracoen Vietnam Salary Guide 2025; MoLISA Labour Market Report)

📈 4. What Employers Should Do

🔹 Benchmark smartly: Use percentile medians (P25–P75) from verified guides to maintain pay equity.

🔹 Reward bilingual expertise: Structure allowances (VND 3–8 million/month) or uplifts (+10–20%) to stay competitive.

🔹 Plan retention early: Invest in leadership development and structured training to close mid-tier talent gaps.

🔹 Localise pay strategy: Vietnam’s cost advantage still holds, but workers increasingly prioritise purpose, CSR, and growth over short-term pay.

💬 FAQ

Q1. Why are salaries rising faster in Vietnam?

Because of foreign investment and a shortage of skilled engineers and bilingual professionals.

Q2. Which industries will drive wage growth?

Manufacturing, IT/telecom, finance, and green energy lead 2026 increases.

Q3. How can employers manage rising costs?

Balance compensation with flexible benefits, training, and performance-based incentives.

Q4. Is Vietnam now the most competitive salary market in SEA?

Yes — for mid-level technical and bilingual roles, Vietnam now matches or surpasses Thailand and Malaysia in total compensation potential.

✅ Final Author Credit

• By Valerie Ong (Regional Marketing Manager)

• Published by Reeracoen Vietnam — a leading recruitment agency in APAC.

🔗 Related Articles  

• [What HR Needs to Budget for 2026: Compensation Trends & Hiring Costs]

• [Vietnam 2025 in Review: Lessons for 2026 Recruiters]

• [Beyond Pay: What Vietnamese Professionals Want in 2026]

📚 References

• Reeracoen Vietnam Salary Guide 2025  (Data Window: Sep 2024 – Aug 2025)

• AON Southeast Asia Salary Survey 2025

• MoLISA Employment Outlook 2025

• Reeracoen × Rakuten Insight APAC Workforce Whitepaper 2025

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