In Vietnam, foreign manufacturers invest in worker housing to secure labor

Instead, the company and its labor union offered her a free place in a newly built dormitory, along with housing allowances typically reserved for full-time staff.

Pegatron, a Taiwan-headquartered firm, is among a growing number of foreign-invested manufacturers in Vietnam that are spending tens of millions of dollars on worker housing and welfare programs as part of their long-term investment strategies in the Southeast Asian country's industrial hubs.

The approach comes as Vietnam competes with regional rivals to attract foreign direct investment while facing persistent labor shortages in manufacturing zones.

Housing as part of investment strategy

Pegatron Vietnam has invested about US$800 million so far and is building additional factories and worker dormitories under a second-phase expansion, general director Huang Jen Chieh said.

Constructing dormitories is a consistent policy when the group invests overseas and reflects its long-term commitment to Vietnam, Huang said, adding that the company also furnishes the facilities and provides household appliances for workers.

"We focus on contributing to local social and economic stability and on supporting employees who have dedicated their efforts to the company," he said.

According to the company's labor union chairwoman, Vong Thanh Sang, all employees who pass their probation period join the union. 

Average monthly income at Pegatron ranges from VND10 million ($380) to VND13 million ($494), she said.

The union has negotiated with management to raise regional minimum wages starting January 1, and to expand benefits. 

In addition to wages and bonuses, Pegatron provides free dormitory housing and shuttle buses for workers.

As a foreign-owned firm, Pegatron also hopes local authorities will introduce more foreign-language training programs to help workers communicate with overseas managers and specialists, Sang added.

Retaining workers beyond wages

At TOTO Vietnam, a Japanese sanitary equipment manufacturer based in Hanoi, housing support has also become a priority, said general director Kyoji Asada.

Vietnam's social housing policies for workers help companies attract labor from other provinces, Asada said. 

For now, TOTO provides monthly housing allowances, but it is considering joint projects with other firms in its industrial park to build worker housing or dormitories in the future.

The company employs nearly 4,000 workers. 

According to Pham Thi Bich Hai, chairwoman of the TOTO Vietnam labor union, the firm announced Lunar New Year 2026 bonuses early to provide certainty for employees.

The union plans to distribute gifts to all members at the start of the new year and organize a Tet reunion program with traditional activities. 

After the holiday, workers will also receive lucky money, she said.

Union-backed housing projects expand

Vietnam's General Confederation of Labor (VGCL) affirmed playing an active role in shaping policies on social housing for workers and accelerating union-led housing developments.

The VGCL has begun construction of rental housing projects for workers in provinces including Dong Thap and Bac Ninh, and has added new projects in Ninh Binh, Da Nang, Quang Ngai, and Tay Ninh to its investment plans.

In late September 2025, the VGCL broke ground on a 10-story union social housing project in Viet Yen Ward, Bac Ninh Province, featuring 477 self-contained rental apartments.

The project is scheduled for completion in 2027.

VGCL president Nguyen Dinh Khang said the projects are intended to ease housing shortages for workers in industrial and export-processing zones, while supporting government policies on social housing and encouraging workers to participate in labor unions.

As Vietnam seeks to anchor foreign manufacturers for the long term, companies and unions alike say housing and welfare, not just wages, are becoming central to keeping factories staffed.