Government Ensures Funding for Minimum Wage Increase Starting July 1
The Vietnamese government has mandated the allocation of funds to support the increase of the minimum wage

The Ministry of Finance has put forth a proposal for the Ministry of Home Affairs to continue implementing wage reform policies, emphasizing this as a critical task for the second half of the year. During a recent government meeting held on July 4, 2026, Finance Minister Ngo Van Tuan highlighted the impressive economic growth, with GDP in the second quarter expected to rise by 8.39% compared to the same period last year, and an overall growth of 8.18% for the first six months.
Notably, nine provinces have reported double-digit growth, with major cities like Hanoi and Ho Chi Minh City showing positive trends compared to May. The number of new businesses entering the market has reached 169,800, marking an 11.2% increase, surpassing the number of businesses exiting the market.
Despite these achievements, Minister Tuan acknowledged several challenges, including the need for improved public investment disbursement and addressing the mismatch in labor supply and demand across regions. The ministry's proposals also include measures to stabilize monetary policy, manage inflation, and ensure energy security.
Furthermore, the Ministry of Education and Training is tasked with preparing for the new academic year, ensuring that 100 schools in border areas are operational by the start of the term. The Ministry of Health aims to provide free health check-ups for all citizens by the end of 2026.
In addition to these initiatives, the Ministry of Home Affairs is expected to focus on enhancing public administration efficiency and combating corruption and wastefulness. The continued implementation of wage reform policies is seen as vital to support the workforce and improve public service delivery.