Vietnam salary guide for the IT industry: What you should be paid in 2019?

 

In general, the Vietnam labor market has changed dramatically in recent years. Moreover, the information technology industry pays the highest for experienced staff than other industries.

Below are 3 main factors impact Vietnam’s labor market in 2019:

  1. CPTPP trade agreement

With the effectiveness of the CPTPP trade agreement, Vietnam is expected to gain many benefits such as GPD growth, FDI increase thanks to the reduction of tariffs and non-tariff barriers to trade. It is predicted to have a higher demand for Vietnam labor to adapt to the trend of more international companies come to the Vietnam market.

  1. Industrial Revolution 4.0

The Industrial Revolution 4.0 has pushed higher productivity and efficiency and replacing repetitive tasks. Thus, it has also pushing the country to transform into high-tech production and service. Come along with that trend, workers with enough digital and technological skills are becoming more and more attractive, especially toward foreign companies.

  1. US-China trade war

The trade war between the US and China make many international enterprises to reconsider their supply chain. As a consequence, Vietnam seems to be the country gain a lot of attention from these enterprises thanks to its stable political situation, low labor cost, and various labor supply. Which also means that there are more opportunities for Vietnam’s workforce in 2019.

It can be seen from the above trend, IT has become an attractive field and IT workers are having more and more opportunities to find a better job in the market. Specialized occupations have high recruitment demand and income levels in 2019.

It is obvious that Industry 4.0 created many cooperation opportunities as well as increase employment to the Vietnam labor market. Although Vietnamese workers are famous for their quick learning, hard work, and adaptability, many of them still do not meet international standards due to poor foreign language skills and lack of technical knowledge.

In the meantime, according to Navigos Search, 73% of interview respondents think that professional skills are the most essential criteria for recruitment in Industry 4.0, following by technical knowledge or skills with 67%. Problem-solving skills are also in the top 3 with 42%. These numbers can reflect the high demand for specialized occupations. Together with that, the income level for specialized occupations is also expected to increase significantly in 2019. The market trend can expand the gap in salary between low-level workers with specialized workers. So, in order to get a higher salary, unskilled workers need to make themselves upskilled.

 

Average Salaries & Cities with the highest average salaries

According to Navigos Search – Vietnam salary guide in 2019, the average salary in the IT field has increased significantly compared with 2018. Some average salaries in IT positions as following for your reference:

-                 Software development: 1,459$

-                 IT infrastructure: 1,201$

-                 QA / QC: 1,079$

-                 Project / Non - development: 1,594$

-                 Design: 1,121$

The job level is obviously making the gap between senior and junior. In the IT industry, according to Navigos Search, manager level salary is 3 times higher than the junior. The salary by year of experience is as below:

-        Under 2 years: 539$

-        2 to under 5 years: 811$

-        5 to under 7 years: 1,105$

-        7 to under 10 years: 1,253$

-        Above 10 years: 1,534$


The salary range can be different among cities in Vietnam. According to First Alliances – Vietnam salary guide 2019, Ho Chi Minh is the city offering the highest average salaries in the IT field in 2019, following by Hanoi. It is not surprising because these are the 2 biggest cities in Vietnam and also the most developed cities which will require a higher requirement for IT jobs.

In order to remain to be attractive in the eyes of the foreign, it’s better to take action to accelerate the technological transition. Workers have to find a way to adapt to this quick change. Education and training can be the solution for both workers and enterprises to move to a higher level.


For more information, visit the author’s publisher, Navigos Search.

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