Proposed base salary increase to about 2.65–2.70 million VND per month as a starting threshold to raise governance quality

Base salary increases are once again on the agenda at the First Session of the 16th National Assembly. If previously the question was 'whether there would be an increase', the more important question now is by how much to set the raise to bring about a qualitative change in governance. The proposal to raise the base salary to about 2.65–2.70 million VND per month, higher than the proposed 2.53 million, is a notable development. This reflects a different approach by the National Assembly deputies toward pay, viewing wages as a policy tool capable of determining the effectiveness of the entire public-sector reform process. The clearest point of contention is the gap between pay and living standards. Currently the base salary stands at 2.34 million VND per month, with a planned increase to 2.53 million from July 1, 2026 (an 8.12% rise, surpassing 2025 inflation of 3.63%). Accordingly, a new civil servant entering the job with that index would earn about 4.7 million per month before deductions. Meanwhile, essential living costs have risen faster than the CPI (housing/electricity/water 8.3%; health care 12.92% in 2025), so the basic cost of living is now 6–7 million per month. From 4.7 million to 7 million per month is not just a numeric difference; it reflects a structural misalignment between wage policy and the living conditions of public servants. As a result, wage recipients do not perceive a 'clear improvement', but rather 'somewhat less pressure.' In this context, the 2.53 million level may be technically reasonable to maintain macro balance and avoid a budget shock, but it clearly does not solve the core problem of living standards. Moreover, wages currently still play a role in 'keeping pace' rather than 'creating motivation'. Thus, if policy only 'keeps pace' to sustain the system, it will be difficult to drive reforms to the end. MP Thach Phuoc Bình – from the Đoàn ĐBQH tỉnh Vĩnh Long – argues that 2.53 million only achieves stability, not living standards. When income is not enough to meet basic needs, workers are forced to seek additional income sources. This not only affects living standards but also directly impacts work quality and loyalty to the public sector. The State is pushing to streamline staffing and reorganize the machinery; with rising workload but insufficient pay, a paradox arises: the organization may be leaner but motivation erodes. In the long run, if the wage foundation cannot be improved, the public sector will struggle to compete with the private sector in attracting and retaining high-quality talent. Consequently, reforms in organization, processes, or decentralization may be constrained by human factors. From a long-term perspective, wage improvements are not necessarily perfect, but they represent a step toward balancing budget capacity with living standards; and they send a message that reforms are meaningful only if those implementing reforms can live and work stably. The proposal to raise base pay to 2.65–2.70 million is not a perfect solution, but a reasonable step given the current context. It reflects an effort to balance budget capacity with living standards; and it sends a message that reforms only matter when the people implementing reforms can live and work stably. If wages are not enough to provide a living wage, reforms will not go all the way. 11:54, 21/04/2026 Supplementary program of the First Session, Parliament considers amending 4 tax laws. 16:04, 21/04/2026 Two-digit growth: The path to meeting 100-year development targets. 15:41, 21/04/2026