Low-income households are the first to feel the effects of price hikes, but they are now causing the middle-class to have to tighten their belts.
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| Ms. Truong Thi Mai |
Truong Thi Mai, Chairwoman of the National Assembly’s Committee for Social Affairs, spoke with Dantri/DTiNews about the impact of increasing prices.
Price increases in Vietnam have been a much talked about issue in recent months. How do they affect people?
The impact on people\'s lives are becoming more obvious by the day. It is an issue discussed in meetings between the Government and the National Assembly.
After high inflation was forecast at the beginning of the year, the Government issued Resolution No. 11, which introduced monetary-tightening policies aimed at stabilising the economy, curbing inflation and providing relief for low-income people.
With the National Assembly\'s target for the consumer price index (CPI) at 15-17%, people\'s lives will become more difficult.
Vietnam has issued a new policy which raises the rate of households considered poor to 13% this year, instead of previous 10%. This will increase the number of people who can benefit from assistance.
Besides that, the Government issued policies to provide power price subsidy for the poor and decided on an early salary increase for workers at enterprises of all economic sectors on October 1 this year. Earlier, the government planned to raise the minimum wage to an equal level across the board starting next year.
The CPI remains high, and that affects people in all walks of life.
Workers in industrial parks have been especially hard hit, leading to a higher number of strikes so far this year. How could this situation be improved?
These are people making low salaries, so the minimum wage increase beginning on October 1 this year could not do a lot to improve their living conditions.
The underlying cause for these strikes is low salaries, so this group of low-income workers must be given more attention. A policy on reducing or exempting taxes for owners of guest houses and nursery schools could also help to ease the burden of these workers.
The salary increase you\'re talking about will come in October, yet many labourers are facing difficulties now. What do you think about this?
This is an unavoidable fact. Enterprises need some time to prepare for salary increases, particularly those with thousands of workers. Companies will have to both raise workers salaries and share the burden of high inflation.
The Ministry of Labour, Invalids and Social Affairs has proposed a new minimum salary level for businesses at VND1.4 - VND1.9 million (USD67.9-USD92.2) per month. However, according to the Vietnam General Confederation of Labour, the salary rise should be higher. Can you comment on this?
The reality of the situation is that proposed salary rise cannot to meet workers’ demand. But the Government should consider higher increases as the economic situation changes.
In my opinion, in the future, salaries should be adjusted based on the market, and employers should negotiate with employees to come to an agreement on the issue. The National Assembly’s Committee for Social Affairs will revisit the Labour Code for possible revisions.
We must consider carefully before announcing changes in the minimum wage for labourers, who may face negative consequences from such announcements.
A comprehensive study about the living condition of labourers should be carried out, and should form the foundation for the disbursement of subsidies, including health and social insurance.