Vietnam is not only the best idea country that attracts many foreign investors but also for those who want to come to work and live here. For expatriates, finding a suitable job in Vietnam could be easy if they connect with a recruitment firm or job agency. But how about the salary benchmarking in this country? Is the Vietnam salary that you receive reasonable or not? In this article, Navigos Search will show you more about some factors that could affect the employee's salary in Vietnam and how to deal with it.
Overview of the average salary in Vietnam
As we can see, the growing trend of integration in science and technology will change the Vietnam labor markets day by day. In particular, many occupations, traditional or manual jobs are replaced by high skills technology and modern jobs. This also means that in the next few years, Vietnamese workers will find it hard to find a low skills job while there are many opportunities in new and modern industries such as IT, financial...
According to a survey recently released by HSBC in 2019 published on the Tuoi Tre News Vietnam, the average annual salary for a foreign expert who moves to Vietnam is $78,750USD, higher than the global average of $75,966USD. Most foreign experts think that their disposable income is higher when they move to Vietnam, answering the interview of HSBC research.
How about the factors that affect the salaries of employees in Vietnam?
There are many factors that affect employees' salaries nowaday. These factors will be divided into the following groups:
1. Group of factors that belong to the position or job requirements
This group of factors is not only affecting the salary of employees in Vietnam but also the same in other countries. The more complex requirements of the job, the more salary you could earn. Complex jobs that require high levels of skills and ability to handle will bring high wages. The complexity of the work is reflected in the following aspects such as the requirements on academic and professional qualifications to meet current job requirements; the required skills necessary to complete the work effectively; the ethical working ethic of each individual should be in the enterprise; the sense of responsibility of the employee for the job, etc.
2. Group of factors of demands in the labor market
When the labor supply is greater than the demand, the average salary will tend to decrease, while the supply of labor is smaller than the demand, the salary will tend to increase, and when the supply of labor is equal to the demand, then the labor market reaches equilibrium.
Besides, when the cost of living changes, due to the change in prices of goods and services, the real salary of the country will change. Specifically, when the cost of living increases, real wages will decrease. Thus forcing units and businesses to increase nominal wages for workers to ensure a stable life for employees, ensuring real wages are not reduced.
In the market, there is always a difference in salary between the business segment, the difference between industries, between jobs with different levels of attractiveness, and requirements on labor qualifications. also different.
3. Group of factors belongs to the company environment
The Vietnam salary policy of the company like salary, insurance ... is applied thoroughly to improve the employee's productivity and efficiency.
Financial ability of the company - The salary of employees is also affected by the financial capacity of the company. With a big company, the ability to pay salaries for employees will be easy and convenient. In contrast, for the SME business, the salary of the employee will be very precarious.
4. Group of factors belonging to employees
For highly qualified hiring positions, the employees will get a higher income than lower-level positions because to achieve that level, employees need to own enough experience, skill, and knowledge. A person through many years of work will gain a lot of experience, limit the risks that may occur in the job, improve his sense of responsibility before the work to achieve high-quality products.
There are also other factors that directly affect the salary of foreign when working in Vietnam. To understand more about the labor market as well as get your right job at suitable prices, you can ask for help from the recruiters or recruitment firm. In Navigos Search, our recruitment consultant not only helps businesses in finding talented candidates but also connects high-level employees with their next businesses. For further more information about Vietnam salary guide, or set up a meeting with Navigos Search, a leading executive search firm in Vietnam, please feel free to get in touch with us by filling the form in the contact page or visit us on floor 20, e.town Central Tower, 11 Doan Van Bo, Ward 12, District 4, Ho Chi Minh