CaliToday (13/11/2025): Vietnam's National Assembly took a decisive step today to bolster the nation's public workforce, passing a key resolution that unlocks nearly 24,000 billion VND (approximately $960 million USD) to fund a scheduled base salary increase in 2026.
This significant financial maneuver is not a new expenditure but a strategic reallocation. The resolution specifically authorizes the government to draw these funds from the national salary reform fund a dedicated, ring-fenced budget accumulated over recent years precisely for this purpose.
This move provides the financial certainty needed to implement the next stage of Vietnam's ambitious, multi-year National Salary Reform (known in Vietnamese as Cải cách tiền lương).
Why This Matters: Beyond a Simple Raise
The base salary, or lương cơ sở, is a foundational metric in Vietnam's public sector. It serves as the multiplier for a complex system of coefficients and allowances that determines the final take-home pay for millions of public employees.
This group includes a vast range of essential personnel:
Civil servants and government officials
Public school teachers and university lecturers
Doctors and nurses in state-run hospitals
Members of the armed forces and public security
Today's resolution is critical because it secures the funding for an increase that aims to achieve several key government objectives:
Boosting Living Standards: The hike is designed to help public employees keep pace with inflation and the rising cost of living, particularly in major urban centers.
Attracting and Retaining Talent: By making public sector compensation more competitive, the government aims to reduce "brain drain" to the private sector and attract high-quality candidates to public service.
Driving Reform: This move is a cornerstone of the broader salary reform agenda, which seeks to simplify the complex pay structure, move towards a merit-based system, and gradually eliminate non-transparent allowances.
A Strategic Move, Not a Short-Term Fix
By tapping the dedicated salary reform fund, the government is signaling its long-term planning and fiscal prudence. This ensures that the 2026 pay raise is fully funded without diverting resources from other critical state budget items like infrastructure, healthcare, or education.
The National Assembly's approval provides a clear runway for the government to execute the policy, bringing much-anticipated financial relief to millions of families and reaffirming Vietnam's commitment to modernizing its public administration.