Wage increases should go hand in hand with market price controls.
(Baonghean.vn) - From tomorrow (July 1, 2023), the regulation on the basic salary of 1.8 million VND/month will be applied to civil servants, public employees, and the armed forces. This brings excitement along with concerns about rising prices for the groups receiving the salary.
Here are some comments from civil servants and public employees in Nghe An province ahead of the salary increase:
Mr. Tran Dan Dau – Head of Administration and General Affairs Department, Provincial Cultural Center:
“Upon learning about the increase in the basic salary to 1.8 million VND/month, we were extremely excited. Because, working in administrative and public service agencies, we have no other sources of income besides our salaries, so any increase is a welcome boost. Moreover, this increase is quite substantial (310,000 VND), providing civil servants and public employees with a significant additional source of income to cover their living expenses.”

For my family, the salary increase is truly significant in improving our lives. We will save up to buy more daily necessities and more food to improve our health. In particular, the cost of our children's education is quite high these days, and the increased salary will help my wife and I balance this expense.
However, this excitement is accompanied by concerns about market fluctuations and rising prices. Almost every previous salary increase has been followed by a rise in consumer goods prices, establishing a new price level that renders the salary increase less meaningful. Therefore, alongside salary increases, the government needs to implement price control measures to ensure a decent standard of living for salaried civil servants.
Mr. Tran Hung Thai – Principal of Luong Minh Semi-Boarding Junior High School (Tuong Duong):
"Information about the increase in the basic salary from 1.49 million VND/month to 1.8 million VND/month has been available since the beginning of the year and has been eagerly awaited by many, especially teachers in mountainous areas like us. The regulation on increasing the basic salary, effective from July 1st, has met the expectations of myself as well as many other civil servants and public employees."

With the increased salaries, our family has more savings to pay off the bank loan, easing some of the pressure from interest rates, as we had to borrow a large sum when buying a house. Both my wife and I are teachers, so the increase in the base salary provides a significant additional source of income to cover our family's living expenses and our children's education.
"We earnestly hope that the State and relevant sectors will quickly implement the new salary increase so that eligible groups can receive their salaries soon. We also hope that after this salary increase, market prices will remain stable and not experience major fluctuations that would affect the lives of workers."
Ms. Nguyen Thi Ha Phuong – Administrative Staff, Nghe An Library:
“For librarians like us, besides our salaries, we have no other sources of income. Therefore, when we heard the news that the basic salary would increase to 1.8 million VND from July 1st, we were extremely happy, excited, and eagerly awaited the day. This salary adjustment is quite significant compared to previous adjustments, bringing even greater joy to me and my colleagues at the agency.”

The basic salary of 1.49 million VND has remained at that level for quite some time, due to the impact of the Covid-19 pandemic on the economy, which forced a temporary postponement of salary increases. Raising the basic salary at this time is entirely reasonable, as the old salary no longer meets the needs of daily life. Consumer goods and necessities have increased significantly since the salary increase, making it difficult to manage family expenses.
With the increase in the minimum wage to 1.8 million VND, I will have nearly 1 million VND more each month. This amount will help me feel more comfortable in solving the problem of living expenses, and I won't have to worry so much about buying rice, cooking oil, and other necessities. Besides that, my colleagues and I are also worried about the possibility of rising market prices, as previous wage increases have always led to price increases. Hopefully, the government will make a reasonable adjustment this time.”
Ms. Hoang Kim Ngan – a cultural officer of Tuong Son commune (Anh Son district):
“Like many other civil servants, I am very happy that the basic salary will increase to 1.8 million VND from July 1st. I'm happy because I will have more than 1 million VND extra each month to cover my family's living expenses. For some people, this amount is not large, but for families in rural areas like ours, it is a significant sum.”

After a rather long period affected by the pandemic, and with recent price increases, the significant increase in the basic salary at this time has met the expectations of myself and my family. In the countryside, we can grow our own vegetables and fruits, ensuring our daily needs are met, so I will use the increased salary to pay for my children's education.
"And I also hope that along with raising salaries, the Government and relevant sectors and localities will implement solutions to control and stabilize market prices, preventing goods from rising too high, so that the salary increase will be meaningful."