This paper examines the impact of trade and investment liberalization on the wage skill premium between skilled and unskilled workers in Vietnamese manufacturing. The result from an econometric analysis using a firm-level dataset reveals the important role of trade liberalization as an impetus for narrowing the skill premium. There is also evidence that foreign investment has a significant effect on widening the wage skill premium. More importantly, export-oriented foreign investment is likely to play an important role in the determination of the wage skill premium in the Vietnamese manufacturing.