Vietnam’s employment salaries are rising faster than employee wages in other Southeast Asian countries, with an average annual growth rate of 20 ~ 24% and salary increases for senior management and executive staff in Vietnam grew even faster. On average, senior managers had increases of 26% and those in the “C” suite of senior executives received increases of 35%.
Data on Vietnam and five other Southeast Asian countries came from recent salary surveys done by the website Jobstreet.com which surveyed workers in Indonesia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
The average salary increases for the individual countries was Indonesia – 18%; Myanmar – 17%; the Philippines – 20%; Singapore – 14% and Thailand – 14%.
Jobstreet also asked companies about their future growth and human talent plans, and found that 68% of companies that were surveyed want to expand their businesses in the future, and have high recruitment demands.
Based upon the demands of companies and the availability of workers, Jobstreet forecasts that salary growth in Vietnam will continue at similar rates in the future. Whether companies can expand their revenue base at a rate that allows them to factor in 20% salary and benefit increases each year remains to be seen and is one of the factors that is of key concern for corporate executives and business owners.
In a survey conducted earlier in the year, Jobstreet found that Vietnamese university graduates have salary expectations that are not in sync with local job market realities.
Jobstreet surveyed 1,600 recent graduates and found the following: 35% of new graduates expected a minimum monthly salary of 4 ~ 5 million VND ($175 ~ $220 USD) and 21% expected to be receive a minimum salary 6 million VND ($265) per month.
Vietnam’s average annual income in 2016 was 50 million VND ($2,200) and the average starting salaries of companies is only 4 million VND ($175). While new graduates can expect salaries to grow in the future in line with “averages”, many are frustrated in their employment searches and wondering if they are going to be able to reach their dreams.