In the fourth quarter of 2021, paid workers and employees in rural Vietnam earned on average around 5.7 million Vietnamese dong per month. Meanwhile, the average monthly salary for paid workers and employees in urban Vietnam was slightly higher, at approximately 6.7 million Vietnamese dong.
Regional income disparity
Income inequality in Vietnam is reflected in the noticeable pay gap between urban and rural areas. This urban-rural disparity can be attributed to various determinants, including the salary gap between agricultural and non-farm sectors in Vietnam, as agriculture remains the backbone of the Vietnamese rural economy. Although the country has experienced positive economic growth and decreasing poverty rate within the last few years, the higher poverty rate in rural areas suggests that more can be done to tackle inequality between rural and urban Vietnam.
COVID-19 and the Vietnamese labor market
Vietnam’s effective response and success in the fight against the coronavirus came at the expense of its economy. In 2021, Vietnam’s unemployment rate reached 2.3 percent, being the highest value recorded within the last decade, with many companies forced to lay off employees during the outbreak. Nevertheless, the labor market in Vietnam is expected to recover, as the Vietnamese economy remains resilient and is expected to grow again post COVID-19.
