Proposed Policy Adjustment: Aligning Salaries with Market Rates

The Ministry of Finance has recently responded to a petition from constituents of Khanh Hoa province, submitted ahead of the 10th Session of the 15th National Assembly.

In their petition, constituents urged the government to implement policies aimed at stabilizing market prices or adjusting wages to align with market rates. They emphasized that current wages, particularly pensions, are insufficient to cover daily living expenses.

In response, Minister of Finance Nguyen Van Thang announced that on November 10, 2025, the government issued Decree No. 293/2025, which adjusts the minimum wage for employees under labor contracts starting January 1, 2026.

As per the government’s assigned responsibilities, the Ministry of Home Affairs oversees national wage management. Minister Thang noted that the Ministry of Home Affairs is currently developing a wage and allowance scheme for civil servants, public employees, and military personnel following the reorganization of local government structures. This proposal will be submitted to the appropriate authorities for review and approval.

Regarding price stabilization policies, the Ministry of Finance clarified that price management and regulation have consistently adhered to market principles, with state intervention as outlined in the Law on Prices and its guiding documents.

Minister Nguyen Van Thang explained that the state indirectly influences price formation and dynamics through macroeconomic measures. Price stabilization measures are employed only when prices of goods and services listed for stabilization fluctuate unusually or when overall price levels threaten socio-economic stability.

Over the past year, the Ministry of Finance has collaborated closely with sectoral ministries to advise the government, the Prime Minister, and the Price Management Steering Committee on price management scenarios and appropriate solutions. These efforts have contributed to stabilizing prices from the beginning of the year and expanding the scope for inflation control in the remainder of 2025.

Core inflation for the year is estimated to remain below 4%, meeting the inflation control targets set by the National Assembly and the government.

For essential goods and services that significantly impact citizens’ livelihoods and business operations, Minister Thang stated that the Prime Minister and the Price Management Steering Committee have consistently directed ministries, sectors, and localities to closely monitor market price dynamics. This includes overseeing the implementation of price regulations by businesses and individuals to ensure appropriate price stabilization measures.

Particular emphasis has been placed on enhancing inspections and enforcement of price laws, including price declaration and display requirements, with strict penalties for unjustified price increases.

Minister Thang also highlighted that the Ministry of Finance has proposed various support measures to competent authorities, including a 2% reduction in VAT for 2025 and 2026, an expanded scope of beneficiaries for this policy, a decrease in environmental protection taxes on gasoline, oil, and lubricants, preferential registration fees for electric vehicles, extended exemptions on agricultural land use taxes, and deferred payment deadlines for special consumption taxes on domestically produced or assembled vehicles, as well as value-added tax, corporate income tax, personal income tax, and land rent in 2025.

Additionally, the ministry continues to research and propose policies such as adjusting personal income tax deductions, exempting or reducing land use fees and rents for specific cases, and further reducing certain fees and charges. These measures aim to alleviate challenges in production, business, and daily life, support economic growth, and reduce inflationary pressures in 2025.

Moving forward, the Ministry of Finance will proactively collaborate with ministries, sectors, and localities to vigorously implement price management and market stabilization measures. This includes closely monitoring supply-demand dynamics and price fluctuations to promptly advise on suitable price management policies and scenarios, ensuring inflation control and preventing shortages or price surges.