Enterprises restructure Salary&Hary in 2026: Powerful Internal Transformation

Workforce & Compensation Restructuring: No Longer an Option, but a Mandatory Requirement

The year 2026 marks a pivotal moment in the restructuring strategies of many businesses in Vietnam. Facing the dual challenges of post-pandemic economic recovery and intensifying global talent competition under digital transformation, companies are compelled to reassess organizational models, HR expenses, and salary–bonus frameworks.

A survey conducted by Navigos Group in early 2026 showed that more than 61% of Vietnamese enterprises are undergoing or have already implemented workforce restructuring, with 37% focusing on adjusting compensation policies to better match employee capability, performance, and financial realities.

1. Minimum Wage Increase and Substantive Salary Reform

According to the National Wage Council, effective January 1, 2026, regional minimum wages will increase by an average of 7.2%. Specifically: Region I rises from VND 4.96 to 5.31 million; Region II from VND 4.41 to 4.72 million; Region III from VND 3.91 to 4.20 million; Region IV from VND 3.45 to 3.70 million.

This increase is part of a roadmap to abolish the base salary and coefficient system, replacing it with five new salary tables aligned with job positions and titles. The National Assembly has allocated more than VND 76 trillion to implement this reform initially in the public sector, and gradually extending to the private sector.

Nguyen Thi Lan Huong, former Director of the Institute of Labor Science and Social Affairs, noted:
“This wage reform will create short-term pressure on enterprises, but in the long run, it will make Vietnam’s labor market more transparent, fair, and competitive.”

Regional Minimum Wage 2025 – 2026

2. Enterprises Restructuring Workforce Models

The Navigos survey highlights that 61% of businesses are restructuring, with 37% specifically revising salary–bonus mechanisms to better reflect performance and capabilities.

Key highlights of this trend:

• Lean organizations: Cutting middle-management layers, shifting to agile teams.
• Multi-skilled employees: Training staff to handle multiple roles.
• Technology adoption: AI and Big Data are increasingly applied in KPI evaluation and compensation design. According to Talentnet–Mercer 2026, 58% of companies are using AI in HR management, up from 34% in 2025.

Phan Van Hung, HR Director at a manufacturing firm in Hiep Phuoc Industrial Park, shared:
“We cut 15% of managerial staff in 2025 and an additional 8% in Q1/2026. Instead of reducing operational quality, this model has made our organization more agile and responsive.”

3. ESOP Revival with Long-term Orientation

Employee Stock Ownership Plans (ESOP) are regaining popularity at listed enterprises and medium-sized startups, serving as a tool to retain key employees and foster long-term commitment.

For example, in 2026, VinFast announced a new ESOP plan, granting up to 3% of its charter capital to senior managers and strategic engineers.

4. Performance-based Rewards Linked to Employee Experience (EX)

Global corporations such as Nestlé, Shopee, and Unilever are implementing reward mechanisms based on the Employee Experience (EX) Index—measuring not only performance but also collaboration, creativity, and cultural contribution.

Impacts on Businesses and Employees

For businesses:

• Strong investments in HR technology and management training.
• Clear internal communication strategies to prevent conflicts or misunderstandings.
• Risk of losing talent if evaluation–reward systems lack transparency.

For employees:

• Greater income opportunities if performance is strong.
• Higher pressure to sustain productivity and adapt to data-driven evaluations.
• Need to proactively upgrade skills and understand entitlements.

Key Figures (2026)

• Enterprises restructuring workforce: 61%
• Enterprises applying flexible pay: 42%
• Enterprises using AI in KPI evaluation: 58%
• Enterprises adopting ESOP: 27%

Outlook

Experts predict this restructuring trend will continue strongly over the next three years, as the labor market grows more competitive and technology penetrates deeper into HR management.

Enterprises should:

• Reassess organizational structures and eliminate inefficiencies.
• Invest in smart HR technologies.
• Build transparent, flexible, and accessible compensation policies.
• Strengthen sustainable internal culture.

Employees should:

• Continuously update skills relevant to future trends (AI, data, languages, etc.).
• Clearly understand their organization’s compensation mechanisms.
• Focus on performance and cross-functional contributions.
• Maintain adaptability and lifelong learning.

Workforce and compensation restructuring in Vietnam in 2026 reflects not only the necessity of cost optimization but also a broader shift toward modernized and strategic human resource management. In an era of uncertainty and competition, organizations that balance efficiency with a people-centered approach will be the frontrunners in the global race.