The author of the story spent time this morning wandering in Hang Be market, a big traditional market in the centre of Hanoi, and found out that the prices of vegetables and meat had increased further. Owners of vegetable, fruit and dried products shops complain that they cannot earn much these days, since hearing the news about the increase of the minimum salary.

Meanwhile, state authorities stressed that the new policy on minimum salary would not have any impacts on the real income of labourers. In fact, the decision will lead to changes in social insurance payment only, since enterprises now pay their labourers much higher than the minimum salary.

With the increase of the minimum salary, enterprises will have to pay higher levels of social insurance for labourers, which will make the enterprises’ expenses increase by 0.25%-0.5%.

However, sellers still have decided to raise selling prices despite the explanations. On October 24, a 12kg gas tank of Shell Gas retailed at VND234,000/tank, an increase of VND20,000 over the beginning of October. Meanwhile, Petrolimex is selling at VND225,000/12kg tank.

A staff from Petrolimex said that the gas price offered in the Middle East market had increased by $80/tonne over the previous month. If the Ministry of Finance cuts the gas tax from 5% to 2%, gas prices will still go up by $60/tonne, therefore, consumers should not expect gas prices to decrease.

The price storms have forced millions of Vietnamese families to cut spending and tighten their belts.

Hong Hai, a state employee, said that she and her husband earned VND5mil a month, which is not enough to feed four mouths.

The government has decided to cut the import tax on milk by half; however, selling prices remain unchanged. The owner of a dairy shop on Hang Buom street said that in October Mead Johnson announced it would cut the price of Enfa trademark milk from VND408,000 to VND324,000/unit, and Abbot said it would cut the price of Ensure. However, the price cuts have been applied to slow-selling products only.

Source: Dan tri.