Vietnam's Southeast Region Tops Average Salary Rankings

Vietnam's state budget revenue for the first nine months of the year was estimated to be over VNĐ1.2 quadrillion (US$50.8 billion), marking an 8.3% decrease compared to the previous year. The domestic revenue managed by the tax authorities in September reached VNĐ75.6 trillion, bringing the nine-month total to over VNĐ1 quadrillion, a 3.2% decrease year-on-year. To address the challenges faced in the final quarter, the sector will focus on increasing state budget collection, ensuring accurate and timely collection, and enhancing the recovery of overdue debts [3ea1bd3f]. Vietnamese state-owned enterprises invested over US$6.6 billion in foreign ventures in 2022, while Vietnamese businesses prioritize diversifying their supply sources [d89b28a1]. The ASEAN+3 Macroeconomic Research Office (AMRO) has revised Vietnam's economic growth forecast for 2023 to 4.7% from the previous 4.4% [1dd69d68].

Businesses in Vietnam are hoping for a recovery in 2024, but concerns remain about low demand both domestically and internationally. The owner of a wood processing firm expressed that while there are currently enough orders to work through this month, the market is still frozen and global demand is decreasing. Representatives from business associations in Ho Chi Minh City and Hanoi also shared similar sentiments, stating that orders and demand are still at a very low level. The European Business Association in Vietnam reported that the Business Confidence Index increased slightly in the third quarter but remained below the average threshold, indicating a lack of optimism among European companies operating in Vietnam. Despite the challenges, business leaders are hopeful for improvement in 2024, with expectations of a new cycle in the housing market and positive outcomes in the tourism industry due to new policies such as the easing of visa rules [12081f07].

China suffered direct economic losses of 308.29 billion yuan ($42 billion) over the first nine months of 2023, the government said, from natural disasters such as torrential rains, deadly landslides, freakish hailstorms and a string of typhoons. Officials said 499 people were reported dead and missing in natural disasters during the nine-month period, with more than 89 million affected, while over 2.75 million had to be evacuated and resettled. China's crops of rice, soy and corn were also battered, triggering larger inflation worries at a time when the government is battling to stabilize the economy [f0bc252d].

In the first 10 months of 2023, 142,700 people in Ho Chi Minh City applied for unemployment benefits, up 11% year-on-year. The average unemployment cash support was VND5.5 million (US$224), and the average time an applicant received this sum was six months. The layoff wave has been increasing non-stop since around April and will likely continue. The number of workers in HCMC dropped 2.5% year-on-year, with major declines in leather production, metal and mineral mining, and water treatment. Over half of the laid-off people have no degrees, and 36% of them have a university degree. Most of them are aged 25-40 [6c22be39].

China's job market continues to face challenges, with the average monthly salary in 38 major Chinese cities dropping by 1.3% in Q4 2023, the biggest quarterly drop since 2016. The decline in wages is attributed to regulatory crackdowns, strained public finances, and weak domestic and overseas demand. Entry-level salaries in new-economy sectors, including electric vehicles, batteries, and solar and wind power, have also been falling. The high youth unemployment rate and low consumer confidence further contribute to the challenging economic conditions. The pressure on the job market is expected to worsen in 2024, with no apparent solution in sight. Analysts are calling for more aggressive stimulus measures, including property-purchasing relaxation and interest rate cuts. The number of newly established HR and headhunting companies in China has significantly decreased, and prospective employees are increasingly seeking flexible and gig work. A record-high 11.79 million college students are expected to graduate this year, adding to the crowded job market. Chinese companies going global have also led to more jobseekers looking for work abroad [292b4f11] [8abd41bc].

The average annual salary of top executives at Chinese listed companies fell for the first time in two decades last year, according to a study by Shanghai Rongzheng Enterprise Consulting Service Group. The average last year stood at 1.66 million yuan (US$229,000), representing a 3.27% decrease from 2022. The study also showed the average annual pay for chairmen fell by 3.32% from 2022 to 1.32 million yuan last year, while salaries for general managers, board secretaries, and chief financial officers declined by 3.46%, 1.12%, and 3.82% respectively. The decline in pay reflects broader patterns of stagnating or falling wages in China as companies navigated the third year of an economic downturn and turbulent market conditions [91c24757].

Workers in the southeastern region of Vietnam received an average monthly salary of VND9.3 million (US$366) in the second quarter, the highest among Vietnam’s six distinct economic regions. This represents an 8.1% growth over the same period last year. Ho Chi Minh City, the country’s biggest city, had an average salary of VND9.7 million, up 7.8%. The Red River Delta region, where Hanoi is located, was second with an average salary of VND8.6 million, up 6.2%. Overall, workers in the country earned an average of VND7.5 million, up 7%. Sectors with notable average salary growth included water supply and waste management (17.4%), mining (12.5%), and finance, banking, and insurance (10.6%). The unemployment rate was 2.29%, down 0.01 percentage points [8b7847c1].

China’s rapidly expanding artificial intelligence (AI) sector has surpassed finance as the top earner in the country's salary rankings for the second quarter of 2024. The average monthly pay for AI jobs grew by 5.3% to 13,594 yuan (US$1,868) compared to the previous year. This shift reflects China's push for self-sufficiency in tech and the increasing global popularity of the AI industry. The changing fortunes of AI and financial jobs also reflect a shift in national priorities, with Beijing diverting resources to boost its tech capacity. AI engineers and chip engineers are among the best-paid jobs, with average monthly pay exceeding 22,000 yuan. Meanwhile, the financial sector has experienced widespread pay cuts and bonus retractions. However, financial sector jobs still offer competitive salaries relative to most industries. This is the first time AI has been categorized separately in the quarterly survey, previously being lumped in with technology and semiconductors [903d8f43].