HCMC – Vietnam is forecast to record the fastest wage growth in Southeast Asia in 2025 and 2026, according to Aon plc’s latest Southeast Asia Salary Increase and Turnover Study 2025, cited by the Vietnam News Agency.
Average salaries in Vietnam are expected to rise 7.7% next year and 7.1% in 2026, well above the respective regional averages of 5.4% and 5.3%. Indonesia ranks second, with projected increases of 5.7% and 5.9%, followed by the Philippines at 5.3% and 5.2%. Malaysia, Singapore, and Thailand are expected to see more modest wage growth, ranging from 4.3% to 4.8%.
The survey, conducted between July and September this year with over 700 companies across six Southeast Asian countries, highlights Vietnam as the region’s most dynamic market for income adjustments. The report attributes this momentum to the recovery of manufacturing, stronger exports, and rapid digital transformation.
By industry, information technology is forecast to post the highest salary growth in Vietnam at 7.1%, followed by Indonesia at 5.9%. In Singapore, the life sciences and medical device sector is expected to lead with a 4.6% increase, while in Malaysia, consulting and business services are projected to rise by 4.8%.
Wage growth is likely to remain strongest in technology, digital finance, electronics, and logistics as companies compete to attract high-skilled talent.
The report also notes that double-digit turnover rates remain common across the region. The Philippines and Singapore are expected to see the highest rates next year—20% and 19.3%, respectively—while Vietnam, Malaysia, Thailand, and Indonesia are projected to range between 15% and 18.2%.
Evon Lock, head of data solutions for Southeast Asia at Aon, said businesses across the region are grappling with skill shortages and challenges in retaining talent.
Despite this, most employers are adopting a cautious approach, focusing on improving productivity, streamlining operations, and offering selective pay raises to retain key employees as they prepare for the next growth cycle.
