Prices keep pace with minimum wage rise

The prices of many consumer goods began to rise even before the 12 per cent hike in minimum wage announced by the Government took effect on May 1.

An expert from a market research company in HCM City, who wished to remain unnamed, said prices have risen by at least 5 per cent in anticipation of the wage increase.

Under a decree issued on March 25, the minimum wage for employees in State agencies, the armed forces, political organisations, socio-political organisations, State-owned companies, and other government bodies has gone up by VND80,000 to VND730,000 a month.

Allowances and other benefits will also increase proportionately.

But a few days earlier, in late April, the prices of vegetables shot up at most HCM City markets.

The owner of a vegetable shop in Thanh Da Market in Binh Thanh District said salad vegetables have doubled to VND25,000 a kilogramme while tomatoes have gone up by half to VND12,000.

Nguyen Tan Tai, a worker at the Tan Thuan Export Processing Zone in District 7, said his house rent was set to go up to VND850,000 month from VND600,000.

Electricity and water charges followed suit, he said.

Nguyen Thi Sang, a retired worker living in Tan Binh District, said her pension increased by 12.3 per cent, or VND200,000 a month, to more than VND2.2 million.

“With the additional amount, I cannot afford to pay the increase in the prices of electricity, water, food, and services,” Sang said.

Independent analysts said the VND80,000 hike failed to keep pace with the rising prices.

Since the beginning of the year the prices of many items have shot up by 20 per cent.

According to the HCM City Statistics Office, prices rose by 0.23 per cent in April and 4.02 per cent so far this year.

Viet Nam News

Tags: Vietnam minimum wage, Vietnam prices