Is there still a phenomenon of "following the crowd" when salaries increase?

In reality, it seems to be a long-standing rule that as soon as the government has a policy of increasing wages, the price of goods will start to increase. And is that happening?

This is the question many reporters raised at the press conference announcing the socio-economic situation for the second quarter and the first 6 months of 2024 held by the General Statistics Office on the morning of June 29, when the salary reform will be implemented on July 1.

There is still a phenomenon of "following the crowd" when wages increase.

According to the General Statistics Office, the average CPI in the first 6 months of the year increased by 4.08% compared to the same period last year. This agency assessed that this is an appropriate inflation rate to support economic growth, still within the target set by the National Assembly for this year from 4 - 4.5%.

Regarding this issue, Ms. Nguyen Thu Oanh - Director of the Price Statistics Department (General Statistics Office) explained that from 2009 to July 1 this year, the basic salary increased by about 280%. The regional minimum wage increased by about 480%, while the consumer price index (CPI) increased by about 108%. "So after 15 years, the salary increase rate is much higher than the CPI increase rate," Ms. Oanh emphasized.

According to Ms. Oanh, this shows that the Government always aims for wages to truly be the main source of income to ensure the lives of workers and their families, creating motivation to improve labor productivity.

In fact, according to information provided by the General Statistics Office, the increase in pork prices due to African swine fever in some localities is one of the main reasons for the CPI increase in the past 6 months.

In addition, some essential and consumer goods also increased. Explaining the reason, Ms. Oanh said that it was due to the law of supply and demand. Increasing wages contributes to improving people's lives, contributing to economic growth, increasing people's purchasing power, when the supply and demand relationship changes, it will affect prices.

"In recent years, the Government, people and the market have adapted and have not been affected much, so wage increases rarely lead to price increases but mainly create inflationary expectations. However, it must be admitted that there is still a phenomenon of "following the flow" when wages increase," Ms. Oanh added.

The gold price index in June 2024 decreased by 2.64% compared to the previous month; increased by 18.26% compared to December 2023; increased by 29.51% compared to the same period last year. On average, in the first 6 months of 2024, the gold price index still increased by 24.02% compared to the same period last year.

The USD price index in June 2024 decreased by 0.04% compared to the previous month; increased by 4.17% compared to December 2023; increased by 7.66% compared to the same period last year. The average increase in the first 6 months of 2024 was 5.64%.

Businesses need to actively participate in stabilizing the market.

Faced with the data on the situation in the first 6 months of the year, the General Statistics Office has proposed a number of solutions to control the market, in order to limit price increases and stabilize inflation, such as strengthening supervision of the implementation of price declaration and posting measures, publicizing price information; organizing inspections and checks on compliance with price laws and strictly handling violations...

In particular, the General Statistics Office highlighted the role of the business community. "The participation of businesses in price stabilization programs is extremely important, especially large-scale businesses, reputable brands, high market share and the focal point of supply chains in the market," Ms. Oanh emphasized.

In fact, the current potential of the economy has developed remarkably, production and supply of goods have changed a lot in recent times, ensuring abundant supply of goods for the market. Especially in big cities, where many large enterprises and brands are concentrated. In addition to production and business activities, Vietnamese enterprises have been increasingly paying attention to community activities, including the market stabilization program through the coordination of the Industry and Trade sector.

"We have actively participated in market stabilization programs over the years and have increasingly expanded the scale of promotions. Participating in this activity not only helps businesses boost product consumption but also enjoy many other benefits such as creating marketing effects, being known and supported by more consumers. Through that, businesses increasingly promote and position their brands," Ms. Nguyen Lan Huong - Director of Tuan Huong Company Limited (Hanoi) shared with VTVTimes reporter.

Speaking to reporters, a representative of the Hanoi Department of Industry and Trade said that currently, most of the large consumer goods manufacturing enterprises operating in Vietnam are FDI enterprises. They are very interested in practicing social responsibility and when there is a request to stabilize prices, choose a plan that is suitable for profits, and ensure the harmony of interests, they are always enthusiastic to participate.

Regarding this story, economic experts believe that it is not only the efforts of enterprises but also the Government, ministries and sectors need to support enterprises to expand production and business, increase capacity to ensure production, storage and supply of goods in the best way.

At the same time, the industry and trade sector needs to step up support for businesses to invest in raw material areas, technology, and supporting services such as premises support, information promotion, and logistics solutions; build supply chains and price chains, from production to distribution.

According to VTV

Source: https://doanhnghiepvn.vn/kinh-te/co-con-hien-tuong-te-nuoc-theo-mua-khi-luong-tang/20240701084725279