Because of a decrease in the State budget revenue, the Government finds it difficult to arrange a financial source to raise the minimum wage to VND1.3 million (US$62) per month as of May 1 next year as earlier planned, said Finance Minister Vuong Dinh Hue. The minister made the statement at yesterday’s meeting held by the National Assembly to discuss the Government’s review of social and economic performances in 2012 and its plans for 2013. According to the roadmap for the Government’s minimum wage reform plan, the minimum wage will be increased to VND1.3 million per month as of May 1, 2013, compared to the present VND1.05 million, and such an increase in minimum wage will cost the State budget VND60-65 trillion ($3.12 billion) in 2013, Hue said. However, a reduction in State budget revenue has been recorded in the past months and the situation is likely to continue for the rest of this year and even in 2013, Hue said. “Based on the State budget balance, the Government cannot arrange a source that will pay for the intended increase in minimum wage,” Hue told the meeting. Phung Quoc Hien, chairman of the NA’s Committee for Budget and Finance, said there were different opinions among the committee’s members about this issue. “Some members agreed with the Government not to increase the minimum wage next May but some others requested that the minimum wage be raised partially, for example from VND1.05 million to VND1.15 million,” Hien said. Hien also voiced his opinions that a financial source should be sought to ensure the increase in the minimum wage as planned, since it is an important measure to promote consumer spending, thereby contributing to boosting the country’s economic growth. With the same view, National Assembly’s chairman Nguyen Sinh Hung said, “It is advisable to curb other State budget expenses so that we can create a source to increase the minimum wage, at least for employees with low salary rates.

“We often call for boosting consumer spending, but how can people go to the market when they have no money?” Hung said. About 22 million people, including 7 million paid by the State, will be affected if the minimum wage is not increased as planned, said Truong Thi Mai, chairwoman of the NA’s Committee for Social Affairs. Therefore, the government should come to a final decision soon about whether the minimum wage is raised or not. In case the wage cannot be increased, the Government should make it known to wage earners soon so that they can make preparations to cope with it, Mai said.