Vietnamese engineers get lower pay than regional peers

As viewed by Japanese firms in the report, Vietnam’s advantage is cheap labor.

In the manufacturing sector, the average wage for Singaporean engineers is 6.3 times higher than that for Vietnamese engineers. Besides, the figures are US$14,903 in China, US$12,599 in Thailand, US$12,179 in Malaysia, US$8,453 in India, and US$8,066 in Indonesia.

Meanwhile, pay for a Vietnamese worker is US$3,673 a year, compared to Singapore’s US$26,516, China’s US$10,131, Thailand’s US$6,997, Malaysia’s US$5,900, Indonesia’s US$5,421, the Philippines’ US$4,102, and India’s US$3,982.

With managerial posts, a Vietnamese is paid US$15,218, whereas the amount a Singaporean receives is 4.6 times higher, US$70,387. Other countries also record higher figures, with US$26,304 in Thailand, US$25,093 in China and US$24,174 in Malaysia.

As for the non-manufacturing sector, a Vietnamese employee earns US$8,487 a year, much lower than US$38,234 in Singapore, US$17,674 in China, US$13,709 in Malaysia, and US$11,880 in Thailand.

Despite Vietnam’s low labor costs, the report pointed out that increasing labor costs are a major risk, following a rise of 8.4% last year, ranking third among the 12 surveyed countries. 

According to Japanese businesses, the incomplete legal system, vague law interpretations, complicated administrative procedures are what Vietnam needs to work on.