In line with the market-oriented socialist economy, the Party and the State have issued various legal documents to adjust, supplement, and gradually improve wage policies. These include mechanisms for setting regional minimum wages and wage regimes in enterprises, aligning with the development of a state-regulated market economy. The principle of adjusting the base salary and introducing new wage policies in the public sector only when sufficient resources are available has been upheld. Additionally, efforts have been made to develop a job position classification system as a foundation for salary payments. In the public sector, wages have gradually improved, contributing to a better quality of life for salaried workers. In the business sector, wage policies have been progressively market-driven, with the government reducing direct administrative intervention and instead managing wages through regional minimum wage regulations to protect vulnerable workers.

According to Minister Đào Ngọc Dung, 2024 marks a significant shift in wage policies, bringing optimism to workers, retirees, and social welfare beneficiaries. Although comprehensive public sector wage reform has yet to be realized, there has been an unprecedented 30% increase in the base salary, rising from 1.8 million VND/month to 2.34 million VND/month. Additionally, allowances for people with meritorious services have increased by 35.7%, pensions by 15%, and regional minimum wages by 6%. These synchronized adjustments directly benefit millions of people.

In the business sector, Vietnam has successfully developed a market-driven wage system, ensuring labor market stability and efficiency. The minimum wage has been in place for years and has been refined through successive versions of the Labor Code, particularly the 2019 revision. It now encompasses four wage regions and operates under a tripartite wage negotiation mechanism involving the government (represented by the Ministry of Labor, Invalids, and Social Affairs), employers (represented by VCCI, the Cooperative Alliance, and major industry associations), and workers (represented by the Vietnam General Confederation of Labor).

The 6% increase in regional minimum wages in 2024 has contributed to improving workers' living standards while aligning with businesses' operational conditions. It has also enhanced wage mechanisms in state-owned enterprises, supporting restructuring and improving operational efficiency. While concerns have been raised about minimum wages potentially slowing wage growth in enterprises where salaries are already higher than the minimum, the annual announcement of minimum wage levels serves as a foundation for labor negotiations, ensuring fairness in labor relations and reflecting the true value of labor.

Regarding the goals outlined in Party Central Committee’s Resolution 27, ensuring wages reflect the actual cost of labor and being paid in line with market labor value is a key objective. The Minister emphasized that this principle has been embedded in the 2019 Labor Code. Article 91 of the Code clearly states that "the minimum wage is the lowest amount paid to workers performing the simplest jobs under normal working conditions, ensuring a minimum standard of living for workers and their families in accordance with socio-economic conditions." While the current system has not fully kept pace with rapid market fluctuations, it has nonetheless enabled enterprise wages to align more closely with market conditions. The growing financial pressures on workers are well understood, yet public sector employees still aspire for salaries comparable to those in the business sector.

Additionally, Minister Đào Ngọc Dung highlighted that in 2024, policies for people with meritorious services were a major highlight, alongside sustainable poverty reduction policies aimed at vulnerable groups. These initiatives follow the principle of ensuring minimum social security while gradually increasing social assistance levels.

Vietnam has achieved a 1% reduction in the poverty rate, keeping the multidimensional poverty rate at a low 1.93%, despite ongoing natural disasters and economic challenges. Remarkably, 2024 was also the first year that labor productivity growth (5.56%) exceeded the set target.

Vietnam stands out as one of the best-performing countries in social policy implementation, especially compared to nations with similar economic conditions. In late October 2024, Vietnam was the only Asian country invited by the G7 to present a case study on social policy implementation and the empowerment of disadvantaged groups. Similarly, at the G20 summit in Brazil in December, Vietnam was invited to share its experience in sustainable poverty reduction and to join the Global Alliance against Poverty.

Clearly, to realize the strategic vision of making Vietnam a resilient, developed, and prosperous nation by 2045— as outlined in the 13th National Party Congress Resolution— human capital remains the most critical factor. Investing in people is, therefore, an investment in national development. Wage policy reform is a key long-term investment in human resources and the country's future.

Wage reform is now an urgent and necessary demand. This series of articles by the People's Army Online Newspaper aims to help the Government and National Assembly gain a clearer perspective and take decisive action in implementing comprehensive and feasible wage reforms as soon as possible.