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Hiếu Mạnh, Huỳnh Kha, and Lam Hồng wrote this Vietnamese article, published in Luật Khoa Magazine on May 14, 2025. Thúc Kháng translated it into English for The Vietnamese Magazine.

With incentives in place to attract foreign direct investment (FDI), Việt Nam has become an appealing destination for companies seeking "cheap labor." Many workers from impoverished rural areas have migrated to major cities like Hồ Chí Minh City and Hà Nội in search of employment. However, after over three decades of this FDI-driven growth, a growing number of factory workers are now leaving these positions.

In previous sections, readers were provided with a historical overview of FDI in Việt Nam and the concept of "cheap labor." The focus will now shift to examining the current monthly wages offered to factory workers across the three main economic regions of the country.

Businesses Seeking Workers as Factory Wages Range From 5 to 12 Million Dong The Vietnamese labor market is currently witnessing a notable paradox. According to reports, companies across the country are constantly advertising and hiring for open positions, yet workers are showing little interest in these advertised roles.

The common monthly wage range for factory workers varies depending on location, skill level, and experience—typically falling between 5 to 12 million dong. In the Southern region, which is considered the most active labor market in Việt Nam, businesses are facing particular difficulties in recruiting unskilled laborers.

Data from the job site "Việc Làm Tốt" (Chợ Tốt) indicates that in Hồ Chí Minh City alone, nearly 2,900 factory worker positions were being advertised in May, with salaries ranging from 8 to 12 million dong per month. However, they also report that companies are struggling to hire workers, with some even facing severe labor shortages.

Journalists visiting an industrial park in Ho Chi Minh City at the end of April observed that many FDI-funded companies had been advertising job openings both before and after the Lunar New Year holiday, but were still unable to meet their hiring targets.

Despite posting job ads on social media and hanging banners at factory gates offering what appear to be attractive wages ranging from 7 to 12 million dong, many companies are still failing to attract workers.

Ms. H, a street vendor who has operated near an industrial park in Hồ Chí Minh City for several years, observed that recruiting efforts for businesses—especially in sectors like textiles, footwear, and electronics—have become increasingly difficult. She noted that fewer people seem to be actively seeking jobs compared to the past. For example, she recalls that a few years ago, right after the Lunar New Year holiday, large crowds would rush to apply at the factory gates. However, this year the atmosphere has been much quieter.

Companies have introduced various incentives like hiring bonuses and referral rewards, but workers continue to show little interest in the available positions. According to Ms. H, the advertised salaries of 10 or 12 million dong per month often include overtime pay, allowances, and other bonuses. The actual base salary for a new worker is only around 5.2 million dong per month, just slightly higher than the regional minimum wage. Furthermore, new employees must undergo a three-month probation period during which they receive a lower wage.

For experienced workers, even after being laid off and rehired, they are often paid the same entry-level wages as new employees. According to Ms. H, " To increase income, workers have to work overtime, earning about 40,000 to 60,000 dong per hour. But now no one wants to spend eight hours a day in a hot factory anymore."

Mr. T, who has worked as a factory worker for many years alongside his wife, noted that base wages have not changed much over time. He explained, "From around 3-4 million dong per month in 2010, by 2025, base wages have only risen to just over 5 million dong. Some people who have worked more than ten years are only earning 8-9 million dong per month."

With such income levels, Mr. T stated that it is not enough to live comfortably in Hồ Chí Minh City, especially for families with small children or those who have to support parents back home.

In the North, provinces like Hà Nội, Bắc Giang, and Bắc Ninh are actively seeking workers with education levels ranging from general to intermediate and college. At a job fair organized by the Hà Nội Employment Service Center in April, businesses from seven northern provinces announced a need to hire up to 29,195 workers. For example, Bắc Giang was looking to fill more than 14,000 positions, Bắc Ninh needed 5,399, and Hà Nội had 1,177 openings.

Notably, 37.2% of these jobs required a college or university degree, 40.1% needed technical/vocational training, and 22.7% were for unskilled labor. More than half prioritized applicants aged 18 to 25. A survey at the Thạch Thất industrial zone in Hà Nội found wages ranging widely, with Meiko Electronics Vietnam offering 7 to 11 million dong/month and Sejong Vina paying 8 to 12 million dong/month for garment workers. Many companies said they recruit year-round but are "desperately searching" for workers.

On the job website Việc Làm Tốt, there are thousands of job listings for unskilled labor in Hà Nội with salaries ranging from 8 to 12 million dong/month.

The Central region has also seen a significant increase in hiring demand, particularly in industrial zones like Tam Hiệp–Chu Lai and Điện Nam–Điện Ngọc in Quảng Nam. However, these areas are experiencing labor shortages as well.

Why Businesses Struggle to Find Unskilled Workers The reverse "mass migration" from cities back to the countryside, coupled with a shift in workers' employment preferences, is creating a challenging human resources landscape for employers—especially FDI enterprises that have long relied on a "cheap labor" workforce.

According to a survey by the Hồ Chí Minh City Department of Labor, Invalids and Social Affairs, after the Lunar New Year 2024, around 18.67% of businesses (from a sample of 300) reported difficulties in recruiting. The main reasons cited were: workers not meeting company requirements (68.66%), low benefits like salary and bonuses (20.9%), and unfavorable working conditions including environment, safety, and management practices (5.97%).

The survey suggests that the shortage of "cheap labor" can be explained by a few key factors.

First, workers now have more flexible job options, and the trend of "leaving the factory" is becoming more common. Instead of working long hours in an industrial setting and frequently putting in overtime to earn more, today's workers can switch to roles like ride-hailing drivers, online sellers, and freelance delivery workers. Although these new jobs may not offer the same stable incomes, they provide workers with greater control over their time and work environment.

A prime example is Trần Thế Sang, who quit his factory job in 2023 to become a ride-hailing driver. While his monthly earnings of around 7 million dong are similar to his previous factory work, he now enjoys more flexibility and autonomy in his schedule and workspace.

The second factor contributing to the labor shortage is the "returning home" phenomenon that occurred after the COVID-19 pandemic. The pandemic created a profound psychological shift for migrant workers in Việt Nam’s big cities. In the past, many had left their rural farmlands, accepted being separated from family and children, and moved to the cities in search of a better life. Their livelihoods became entirely dependent on factory jobs, and they worked tirelessly as a way to show gratitude to their employers for providing employment.

However, when the pandemic hit, followed by widespread job cuts, these workers suddenly found themselves without jobs, income, or support. The government's COVID-19 aid packages, even when available, were extremely difficult for workers to access. As a result, many had no choice but to return to their hometowns empty-handed.

The mass "reverse migration" scene witnessed after the 2021 social distancing orders is a prime example of this phenomenon. This experience fundamentally changed workers' perceptions of "going to the city to earn money." Many realized that although life in the countryside brings lower incomes, it also comes with lower costs, less stress, and the comfort of being close to family.

A third factor contributing to the labor shortage is the concerns around social insurance (SI) and unemployment policies. Many workers today are hesitant to sign official employment contracts due to the regulations in the revised Employment Law.

According to the new draft legislation, workers who have paid unemployment insurance for more than 144 months (12 years) will not have their extra contributions carried forward. As a result, many choose to quit their jobs right after reaching the 144-month threshold in order to receive the maximum unemployment benefits. After that, they may apply for a one-time SI payout, which they then use as startup capital to transition into freelance or informal work.

Compounding this issue is the widespread problem of businesses failing to pay the required social insurance contributions. Nationwide statistics show tens of trillions of dong in unpaid SI debt each year, directly affecting the rights and benefits of millions of workers. However, the authorities have yet to develop any concrete solutions to ensure participants' rights are protected.

This lack of trust in the government's social welfare system makes workers increasingly concerned about their long-term benefits when working in the formal sector. This is one of the factors pushing them towards the informal job market instead.

Fourth is the development of local industrial zones across the country. The industrial development strategy has fundamentally changed the labor landscape in Việt Nam. Industrial zones are no longer concentrated mainly in major cities, but have expanded to many provinces and smaller towns. As a result, numerous factories have been built near rural areas, allowing workers to find employment without having to leave their hometowns.

This has enabled workers to save on rental and living expenses while maintaining their family and community relationships. With wage levels not varying significantly between industrial zones nationwide, workers no longer feel as compelled to migrate to the big cities in search of higher salaries.

As Nguyễn Thị Hải (age 38, from Nam Đàn, Nghệ An) explained to Tuổi Trẻ Newspaper: "The garment factory is near my home. If I work overtime, my monthly salary and bonuses can reach 8 to 10 million dong. This income is lower than in southern companies, but in return, my husband and I don't have to pay for rent and we get to stay close to our parents."

The fifth contributing factor is that wages are not considered attractive enough compared to the rising cost of living, especially in Việt Nam’s major cities. According to 2025 statistics from Indeed, the average monthly salary for Vietnamese workers is currently 7.8 million dong.

Additionally, most FDI businesses still offer low starting salaries, only slightly above the regional minimum wage. At the same time, wage increases tend to be very slow, leaving workers unmotivated to remain in these positions long-term.

Even after working hard for an entire month, workers are often left with little to no savings once deducting expenses like rent, food, and transportation. Meanwhile, the overall cost of living continues to rise steadily, further eroding the purchasing power of these wages.

Sixth, the Vietnamese government's shift in FDI policy and economic development structure is also a contributing factor. Currently, Việt Nam is changing its FDI strategy by prioritizing high-tech, environmentally-friendly, and low-labor industries, often referred to as "green FDI." Labor-intensive industries like textiles and footwear are no longer receiving the same strong incentives as before.

With binding international conditions related to supply chains, FDI enterprises are having to change their operating models, improve production lines, and adopt more automation. All these changes are indirectly affecting the jobs of many unskilled workers in the country's major cities.

It can be said that the shortage of unskilled labor is not just a temporary issue, but rather the result of various structural factors within the labor market. It can also be confirmed that whether or not companies are still chasing "cheap labor," workers' mindsets have already undergone a significant shift, becoming more direct and pragmatic in their employment choices.

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To assess whether this wage level is sufficient for living in large metropolitan areas like Hà Nội or Hồ Chí Minh City, the "Living on a Wage" series published by the Luật Khoa Magazine team may be consulted.