Report, March 2022

By Research Center for Employment Relations (ERC)

Abstract

This report estimates a living wage for minimum wage Region 3 of Vietnam using the Anker Methodology. Region 3 is one of four regions used by the Government of Vietnam for setting minimum wages and includes districts in three main areas: the Red River Delta in the north (around Hanoi), the Central Coast, and across the southeast and the Mekong River Delta in the south. It consists mostly of smaller size cities and towns. For Region 3, we estimate a living wage of VND 7,392,372 (USD 309) per month, as of March 2022. This is the gross wage required for a typical family of 2 adults (one in full-time employment and one in part-time employment) and 2 children to afford a nutritious, low-cost diet, healthy housing, adequate health care, education through secondary school, and all other expenses, plus a small margin for unexpected events. This value was calculated using secondary data on household expenditure, labor force activity, and population from the General Statistics Office of Vietnam combined with primary data on local costs of food, housing, health care, education, and transport for a sample of 6 districts in 6 provinces in Northern, Central, and Southern Vietnam. Our living wage estimate is around twice the minimum wage for Region 3 that was set in July 2022.

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