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Hiếu Mạnh wrote this article in Vietnamese, published in Luat Khoa Magazine on April 11, 2025. Đàm Vĩnh Hằng translated it into English for The Vietnamese Magazine.

An analysis of labor data from Việt Nam's General Statistics Office (GSO) reveals the stark reality of the nation's post-pandemic economic landscape. From 2020 to 2024, Vietnamese workers navigated the severe impacts of the COVID-19 crisis, followed by a period of inflationary pressure and uneven recovery. This report breaks down the wage data from this turbulent period.

2020: The Pandemic's Economic Shock The year 2020 was defined by the economic shock of the COVID-19 pandemic, which saw more than 32 million workers aged 15 and above have their hours cut, suffer income loss, or lose their jobs entirely. According to the GSO, the average monthly income of all workers fell to 5.5 million đồng, down from 2019 levels. The average for salaried employees specifically dropped to 6.6 million đồng per month.

The service sector was hit hardest, with average incomes dropping by 215,000 đồng per person. In the second quarter of 2020 alone, the arts and entertainment sector saw a 14% year-over-year income decline, while hospitality and food services dropped by 11%. The industrial and agricultural sectors were not spared either, with incomes decreasing by 100,000 đồng and 156,000 đồng, respectively. The GSO data also highlighted a significant urban-rural divide, with urban workers earning an average of 7 million đồng per month, 1.5 times more than their rural counterparts.

Despite this grim reality on the ground, then-Prime Minister Nguyễn Xuân Phúc stated in November 2020 that Việt Nam's per capita income had actually increased by nearly 145% to about $9,000 per year, citing World Bank standards. However, the GSO’s own projections painted a much more depressing picture, estimating that even with a strong 7% average growth rate, the country's income would only reach $7,500 per year by 2030.

The Rural Struggle: Low Productivity and No Savings The economic hardship of 2020 was particularly acute in rural areas, exacerbating long-standing issues with low agricultural productivity. That year, Việt Nam’s farmers had among the lowest productivity levels in Asia—for example, 2.1 times lower than Thailand, a staggering 11.9 times lower than Malaysia, and 1.8 times lower than the Philippines. This has long been attributed to a combination of small-scale farming operations, low professional skills, and an aging rural workforce.

This productivity gap translated directly into a significant income and savings crisis. While farmers' incomes had grown slowly from 2002 to 2016 by an average of 5.75% per year, they still lagged far behind the national average. The result was that rural households had extremely limited savings, with the highest annual savings per household being around 22 million đồng—less than half of what an urban household saved. Most alarmingly, 40% of all rural households had no savings at all, and 84% of agricultural workers had no money set aside for the future.

2021: A Shrinking Labor Force and Plummeting Incomes The pandemic's disruption of Việt Nam’s labor market continued into 2021, with both the workforce and incomes contracting further. The national labor force aged 15 and over dropped by 791,600 people from the previous year to 50.5 million. Of these, only 49 million were employed, as both unemployment and underemployment reached record highs.

This contraction was accompanied by a sharp decline in wages. The average monthly income for all workers fell to just over 4.2 million đồng, a significant drop from 2020. The service sector was particularly devastated. In the third quarter of 2021 alone, average incomes in the transport and warehousing sector plummeted by 20.3% (about 1.6 million đồng), while the accommodation and food service sector saw a 21.2% decline (about 1.2 million đồng). Even salaried employees, a more stable group, saw their average monthly pay drop to around 6 million đồng.

Meanwhile, the number of self-employed and subsistence workers surged, rising by 600,000 people from 2020 to a total of 4.3 million. A staggering 90.4% of these precarious workers were based in rural areas. Notably, the GSO did not release income data for this large and growing segment of the workforce, leaving their full economic reality undocumented.

According to the 2021 Labor Force Survey report of the National Statistics Office (formerly the General Statistics Office). Graphics: Hieu Manh. 2022: A Fragile Recovery As Việt Nam emerged from the pandemic in 2022, the labor market showed signs of recovery. The labor force grew by 1.2 million people to 51.7 million, and the average monthly income for workers rose significantly to 6.7 million đồng. The average for salaried employees reached about 7.5 million đồng per month, though a gender gap persisted, with men earning nearly 1 million đồng more than women on average.

According to the 2022 Labor Force Survey report of the General Statistics Office. Graphics: Hieu Manh. Low Productivity in Southeast Asia Despite the recovery, the workforce remained dominated by informal labor. The share of informal workers dropped to 65.6% or 68.5%, around a 2.9-point decline from 2021.

The GSO defines these informal workers as those without labor contracts, legal protections, or benefits like social insurance and sick leave. While these jobs can serve as a crucial safety net during economic crises, the prevalence of informal labor leaves millions of workers vulnerable and is a primary reason why Việt Nam’s overall national productivity remains among the lowest in Southeast Asia.

2023: Rising Wages, Deepening Struggles In 2023, the average monthly income for workers in Việt Nam rose to 7.1 million đồng, with salaried employees earning an average of 8 million đồng. According to GSO data, the urban-rural income gap remained significant, with city dwellers earning 1.4 times more than their rural counterparts (8.7 million đồng vs. 6.2 million đồng). However, the Ministry of Labor acknowledged that despite a rising employment rate in the post-pandemic recovery, the quality of labor remained low, with most people holding unstable, non-permanent jobs.

According to the 2023 Labor Force Survey report . Graphics: Hieu Manh. Only 24.5% Say Income Covers Basic Needs A 2023 survey by the Vietnam General Confederation of Labor starkly illustrated the harsh reality. Covering over 3,000 workers, the survey revealed that only 24.5% reported having enough income to cover basic living expenses. To make ends meet, 76% were willing to work overtime—averaging more than 47 hours per month—while over 17% had to frequently borrow money.

These low wages had a profound impact on major life decisions, with about 53.7% of workers delaying marriage due to financial concerns and 72% stating it influenced their decision to have children. Healthcare was also a luxury many could not afford; only 46.5% could cover the cost of basic medicine when sick, and over 6% could not afford any healthcare at all. This desperation led 12.3% of workers to withdraw their social insurance benefits early.

The stories of individual workers paint an even grimmer picture. Nguyễn Duy Phương, a worker in Hà Nội, said that after losing his overtime shifts, his income dropped from 10 million to under 5.7 million đồng per month, forcing him and his wife to send their child to live with grandparents in the countryside. Similarly, Nguyễn Thị Lý, a worker at a Japanese joint-venture in Hà Nội's Đông Anh district, shared that with her salary of 7-8 million đồng, her living conditions remained precarious after paying for rent and utilities, with little time for rest or leisure.

2024: A Widening Gap Between Wages and Reality In 2024, the average worker's income in Việt Nam rose to 7.7 million đồng per month, an 8.6% increase from the previous year. The urban-rural divide persisted, with city workers earning 9.3 million đồng compared to 6.7 million đồng in rural areas. The year also saw a continued increase in freelance workers, with their numbers growing to 3.8 million.

But this raises the critical question that has run through the entire post-pandemic period: Is this average income enough to actually live on?

Year

Average Monthly Income of Workers Nationwide (Million VND)

2020

5.5

2021

4.2

2022

6.7

2023

7.1

2024

7.7

For those in major urban centers like Hà Nội and Hồ Chí Minh City, the answer is a clear "no." Despite the regional minimum wage for these areas being raised to 4.96 million đồng per month as of July 1, 2024, this figure still falls far short of the estimated living wage of over 8.6 million đồng needed to afford a decent standard of living.

In reality, this gap means that many workers must take on additional jobs simply to make ends meet. Even then, they often only manage to sustain a basic standard of living, with little to no ability to save, invest, or improve their quality of life. As the costs for essentials like food, housing, and healthcare continue to rise, Việt Nam’s working class remains under immense financial pressure, trapped in a cycle where rising wages are immediately consumed by the ever-increasing cost of survival.

Living on a Salary– Part 3: Income of Vietnamese Workers from 2020 to 2024

Hiếu Mạnh

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