During a National Assembly group discussion on socio-economic issues on 18/10, Representative Chau Quynh Dao, principal of Ngo Si Lien High School in An Giang, acknowledged the government's efforts to improve citizens' lives, particularly in education and healthcare policies for disadvantaged areas. However, she expressed concern about the disparity between salary increases and the actual cost of living for workers, public servants, and officials.

Citing the saying, "prices lead, salaries follow," Dao argued that salary increases do not necessarily improve living standards if the prices of essential goods rise faster than income. Although the average consumer price index (CPI) for the first nine months of 2026 increased by 4.52%, remaining within the target range, this index does not fully reflect the spending pressures faced by low- and middle-income families.

Dao explained that the CPI basket comprises over 750 items, including products rarely purchased or used long-term. In contrast, many public servants, officials, and workers dedicate about 80% of their income to four essential needs: food, housing, education, and healthcare. While food and foodstuffs reportedly increased by 3.9%, Dao noted that prices at traditional and temporary markets might have surged by 10-15%. For a family of four, the cost of each meal could increase by an additional 30,000-50,000 dong, depending on spending habits.

Housing rental costs in some industrial zones and major urban areas also reportedly increased by 12-18%, while education and healthcare services rose by about 7.5%. Despite the state waiving tuition fees and supporting health insurance for students, many families still incur additional expenses. University tuition and related costs also tend to increase.

"Thus, when salaries increase by about 1.5 to 2 million dong, the additional costs for people's essential needs rise by about 2 to 3 million dong. Clearly, the joy of a salary increase is incomplete when market prices significantly impact people's income and lives, especially for disadvantaged workers," she stated.

Representative Chau Quynh Dao. Photo: National Assembly's E-portal

According to the representative, one cause is the price increase of goods and services either before or concurrently with salary adjustments. Some businesses, small traders, and landlords exploit salary increase announcements to raise selling and rental prices. Fluctuations in petrol prices also drive up transportation and living costs. In some areas, landlords charge tenants 3,500 to 4,500 dong/kWh for electricity and 25,000-30,000 dong/m3 for water, further burdening workers and low-income individuals.

The representative observed that the government and the Ministry of Industry and Trade have focused on price stabilization efforts, but control at traditional, temporary, and residential markets remains inconsistent. These are the places where workers and low-income individuals frequently purchase food and essential goods.

Another cause of rising goods prices is logistics costs and intermediate stages. According to figures cited by Dao from the industry and trade sector, Vietnam's logistics costs account for about 16-17%, higher than the approximately 12% in Singapore and Malaysia. Agricultural products can pass through three to four intermediaries from production to consumers, increasing the selling price.

Drawing from her experience managing schools, she recounted that her unit could previously organize meals for students at a cost of about 15,000 dong, while some nearby schools had to spend 25,000-30,000 dong. This difference was partly due to the school proactively purchasing food directly at ports and fishing harbors, reducing intermediary costs.

To ensure salary increases genuinely improve living standards, Dao proposed that the Ministry of Finance further research a cost of living index based on four essential needs—food, housing, education, and healthcare—in addition to the CPI. This could serve as a reference for adjusting salaries and family deductions for personal income tax.

She also proposed not adjusting public service prices concurrently with salary increases, suggesting a delay of at least six months to limit the cumulative impact on prices. Price stabilization efforts should extend to residential markets and industrial zones, areas with large concentrations of workers. Additionally, the government needs to accelerate the program to build one million social housing units, increasing the supply of affordable homes to reduce the rental burden on workers.

Representative Hoang Quoc Khanh. Photo: National Assembly's E-portal

Proposal to increase allowances for grassroots officials

Also discussing the income of those receiving salaries from the state budget, Representative Hoang Quoc Khanh, Deputy Head of the Lai Chau Provincial National Assembly Delegation, stated that commune-level cadres and public servants were pleased with the increase in civil service allowances from 25% to 55% starting from 1/7. However, officials working at commune-level general service centers do not receive this benefit.

According to Khanh, despite being public non-business units, centers in mountainous areas find it difficult to generate revenue. Their officials primarily perform duties at the grassroots level, supporting public servants. Some centers have only 8-10 people and must cover work across large areas. In Lai Chau, some communes span over 200 km2, with many hamlets located far apart, making travel and task execution challenging.

Khanh also noted that the position allowances for heads and deputy heads of commune-level specialized departments are currently 0.25 and 0.15, respectively, equivalent to 632,500 dong and 379,500 dong per month. Some officials report these amounts are low compared to their responsibilities and workload.

The representative proposed that the Ministry of Home Affairs consider policies to support officials at commune-level general service centers and research increasing position allowances for grassroots cadres, especially in mountainous and difficult-to-access areas.

Vu Tuan