The base salary increase policy brings significant implications for the business landscape and the labor market. Dang Ngoc Thu Thao, Director of Outsourcing and Staffing Services at Manpower Vietnam, revealed that business sectors with a high proportion of high-earning employees are the most affected, particularly because the increase directly intersects with social security contribution ceilings.
Faced with rising operational expenses, businesses are currently looking at three main scenarios. First, companies tend to shift toward flexible working models such as outsourcing or project-based hiring. Talent acquisition strategies are also beginning to pivot, with enterprises now targeting regions with more competitive labor costs and adopting remote work systems to reduce fixed costs.
Second, rising personnel costs are accelerating digital transformation. Instead of massively expanding staff counts, companies are now prioritizing the integration of artificial intelligence (AI) and automation to boost productivity. This step is deemed effective for maintaining operational efficiency within a leaner organizational structure.
The third scenario involves comprehensive organizational restructuring. Hiring trend reports indicate a moderation in workforce expansion plans across various sectors. Companies now prefer to streamline operational roles and focus on upskilling existing talent rather than traditionally expanding personnel capacity.
Overall, this phenomenon reflects a more adaptive market dynamic. Although it triggers cost pressures for employers, the wage increase is viewed as a positive signal for economic recovery and worker welfare. Looking ahead, the labor market is predicted to become far more flexible, offering both companies and workers more varied options in establishing professional relationships.
