Early base salary hike to hamper inflation control: finance ministry
The increase of base salary for civil servants and public employees from January 1, 2023 instead of July 1, 2023 as proposed by legislators will hamper the government’s inflation control efforts, says the Ministry of Finance.
Under Vietnam’s current regulations, the base wage is the reference for calculating the total salary for civil servants, public employees and armed forces by multiplying it with corresponding coefficient.
The latest hike in base monthly salary was conducted on July 1, 2019, with an increase from VND1.39 million ($56) to VND1.49 million ($60). As a result, new graduates entering the state sector enjoy salary level 1 with a coefficient of 2.34, equivalent to a monthly salary of VND3.48 million ($140).
Earlier, on October 20, the first day of the ongoing National Assembly (NA) session, Finance Minister Ho Duc Phoc presented the government's proposal on a 20.8% increase in the base wage from VND1.49 million to VND1.8 million ($73) from July 1, 2023.

Finance Minister Ho Duc Phoc at the ongoing National Assembly session, October 28, 2022. Photo courtesy of the legislative body.
At later group discussions, NA delegates called for the base salary hike from January 1, six months ahead of the proposed schedule.
In response, the finance ministry said the early base salary increase will make the government’s inflation control difficult as purchasing demand among people and businesses often soar before and during the Calendar and Lunar New Year holidays.
The base salary hike in the outset of the year will put more pressure on official price control efforts, it added.
According to the ministry, amid a risk of rising inflation, salary policy reforms must be conducted in harmony with the realization of socio-economic management goals.
Therefore, the government continued to propose postponing the implementation of salary reforms under Resolution No. 27-NQ/TW issued by the Party Central Committee in 2018, it stated.
The resolution targeted the adoption of a new salary regime for cadres, civil servants, public employees and armed forces as of 2021. Under which, the regional minimum wage will be adjusted regularly based on recommendations of the National Salary Council. Enterprises will be allowed to decide salary policies based on negotiation and agreement between employers and employees and representatives of labor collectives. The state will not directly intervene in enterprise salary policies.
At a group discussion on October 22, Minister of Home Affairs Pham Thi Thanh Tra said that it was reasonable to increase the monthly base wage from VND1.49 million to VND1.8 million as it would help create new work motivation for civil servants and public employees.
She said that during the Covid-19 pandemic, public employees, particularly health care workers, faced high work pressures and rising living costs while their salaries remained the same.
It was reported that during last year and the first half of this year, about 39,552 public employees in the education and health care sectors left their jobs, mostly in big cities like Ho Chi Minh City, Hanoi and Can Tho as well as the industrial hubs of Dong Nai, Binh Duong and Ba Ria-Vung Tau.
- Read More
Vietnam plans to spend over $2 bln on US agri imports
Vietnam’s Ministry of Agriculture and Environment is expected to sign MoUs to purchase over $2 billion worth of U.S. agricultural, forestry, and fishery products.
Economy - Tue, June 3, 2025 | 10:01 pm GMT+7
New flight route to help Danang attract more wealthy tourists from Middle East
The new Dubai-Danang flight route has been launched, paving the way for an influx of high-spending travelers from the Middle East and Europe to the central Vietnam city, one of the country's top tourist attractions.
Companies - Tue, June 3, 2025 | 9:13 pm GMT+7
Food giant C.P. Vietnam’s 'diseased' pigs improperly quarantine-stamped: authorities
The widely circulated images of diseased pigs from C.P. Vietnam, a subsidiary of Thailand’s food giant Charoen Pokphand Foods Public Company Limited (CPF), date back to 2022, but the pigs were improperly stamped, Vietnamese authorities stated on Tuesday.
Companies - Tue, June 3, 2025 | 5:36 pm GMT+7
Son Hai Group proposes expanding 263km stretch of Vietnam's North-South Expressway
Vietnam’s Son Hai Group is seeking Prime Minister Pham Minh Chinh's approval to invest in the expansion of a 263-kilometer stretch of the eastern section of the North-South Expressway.
Infrastructure - Tue, June 3, 2025 | 3:53 pm GMT+7
FedEx establishes direct serve in Vietnam on surging demand
FedEx Express Corporation, one of the world’s largest express transportation companies, has transitioned to a direct-serve presence in Vietnam amid the Southeast Asian country’s growing international shipping demand.
Industries - Tue, June 3, 2025 | 2:55 pm GMT+7
Vietnam’s steel giant Hoa Phat to deliver thousands of containers to domestic shipping lines
Vietnam’s largest steelmaker, Hoa Phat Group, will supply thousands of containers to VIMC Container Transport JSC (VIMC Lines) and Vinafco Shipping JSC under recently signed contracts.
Companies - Tue, June 3, 2025 | 12:16 pm GMT+7
Shinhan Bank receives 'Fastest growing SME bank Vietnam 2025' award
South Korea’s Shinhan Bank Vietnam Limited has been named the “Fastest Growing SME Bank Vietnam 2025” by World Economic Magazine (UK).
Companies - Tue, June 3, 2025 | 10:19 am GMT+7
Vietnam’s ‘shrimp king' Minh Phu expects to return to profit in 2025
Minh Phu Seafood Corporation (UPCoM: MPC), Vietnam’s leading shrimp exporter, expects net profit to reach VND997 billion ($38.03 million) this year, reversing the loss in 2024.
Companies - Tue, June 3, 2025 | 8:38 am GMT+7
CMC Corporation breaks ground on $300 mln technology hub in Hanoi
Vietnam's leading technology firm CMC Corporation on Monday broke ground on its $300 million Hanoi CMC Creative Space (CCS Hanoi) project.
Industries - Mon, June 2, 2025 | 11:19 pm GMT+7
Thailand’s industrial output up after 9-month decline
Thailand’s industrial output has turned positive for the first time in nine months, with the automotive sector rebounding after a 21-month slump, said Thai Deputy Finance Minister Paopoom Rojanasakul.
Southeast Asia - Mon, June 2, 2025 | 10:48 pm GMT+7
Singapore, France to expand cooperation in civil nuclear energy, defence technology, AI research
Singapore and France have upgraded their Strategic Partnership signed in 2012 to a Comprehensive Strategic Partnership (CSP), marking Singapore's first CSP with a European country.
Southeast Asia - Mon, June 2, 2025 | 10:47 pm GMT+7
Masan MEATLife stock jumps on continued profit momentum
The ticker of Masan MEATLife (MML), a subsidiary of Vietnamese consumer retail giant Masan Group, jumped by 8.71% to VND31,200 ($1.2) per share on Monday, after it reported profit for the third consecutive quarter in Q1/2025.
Companies - Mon, June 2, 2025 | 10:34 pm GMT+7
Vietnam's VSIP Binh Dinh industrial park seeks to become 'golden destination' for Thai firms
The Becamex VSIP Binh Dinh service-urban-industrial complex in the central province of Binh Dinh is emerging as a promising destination for Thai enterprises, said its developer Becamex Binh Dinh JSC.
Industrial real estate - Mon, June 2, 2025 | 10:24 pm GMT+7
Termination of feed-in-tariff mechanism a major bottleneck in Vietnam’s electricity transition: expert
A major bottleneck in Vietnam’s electricity transition has been the termination of the feed-in-tariff (FIT) mechanism in 2021, with no suitable replacement mechanism in place, according to the director of Hanoi-based Institute of Energy Technology.
Economy - Mon, June 2, 2025 | 4:56 pm GMT+7
Vietnam Vaccine JSC launches high-quality healthcare shop chain
Vietnam Vaccine JSC (VNVC), well known for its vacciation services, on Saturday launched its VNVC Shop, a chain offering safe, high-quality healthcare products from globally recognized brands.
Companies - Mon, June 2, 2025 | 4:05 pm GMT+7
Vietnam heavyweight PV Gas plans $3 bln investment over next 5 years
PV Gas, a subsidiary of state-owned giant Petrovietnam, plans to make "strong investment" over the next five years in areas such as infrastructure and import-distribution of LNG.
Energy - Mon, June 2, 2025 | 2:01 pm GMT+7