But on a salary of VND15 million ($672) per month, many public officials still have nice houses and cars. Vietnamese government officials are currently paid half of what they need to live on, and that is limiting the quality of public services and leading to corruption, experts said at a conference. Thang Van Phuc, former vice minister of interior, said at a conference on Wednesday that public servant salaries in Vietnam only cover at best 60 percent of basic living costs. Tran Xuan Cau, a professor from the National Economics University, said under current payment policies, Vietnam’s President and Party Secretary earn around VND15 million ($672) a month, equal to a chief accountant at a small company. “That is under the rules, but not the reality,” Cau said. No official survey has been conducted of Vietnam’s government officials' assets, but insiders say they are substantial, despite the poor official income. Le Hong Huyen, director of the Social Affairs … [Read more...] about Corruption inevitable as Vietnam’s civil servants barely make ends meet
Civil servant wages
Easier access to loans for low-income civil servants to buy homes Manh Tung By Manh Tung - The Saigon Times Daily HCMC – The HCMC Housing Development Fund (HOF) is expected to propose allowing low-income civil servants to borrow more than the current ceiling of VND400 million to buy homes in the coming time, the fund’s chairwoman said. Dao Thi Huong Lan, who also director of the HCMC Department of Finance, told a ceremony to celebrate the tenth anniversary of the fund last week that HOF has disbursed more than VND610 billion for nearly 2,000 low-income earners in the past decade. Speaking to the Daily on the sidelines of the event, Lan acknowledged that the amount remains modest, partly because the fund is intended for the civil servants who get wages from the State budget and are permitted to borrow no more than VND400 million and no higher than 70% of the total value of a home they want to buy. Lan said HOF would soon seek approval from the city government to … [Read more...] about Easier access to loans for low-income civil servants to buy homes
The Prime Minister has signed a Decision to give VND 360,000 every four months to civil servants, officials and army cadres who currently earn salaries under VND 1.62 million per month. The beneficiaries will include officials paid by the Central budget, specialized cadres and communal officials, pre-school teachers, communal medical workers, and soldiers and workers enjoying salaries from the Vietnamese People's Army and the Police. According to the Ministry of Labor, War-Invalids and Social Affairs (MOLISA), by late 2007, the number of cadres, officials and civil servants was around 2 million; however, only people with an incomes below VND 1.62 million per month will enjoy the salary subsidies. Earlier, on September 15th, due to the inflationary price hikes, the Prime Minister also signed a Decision granting an allowance worth VND 270,000 every three months for people with an income of below VND 1.62 million per month. According to the roadmap for salary reform, the legal minimum … [Read more...] about Low-Income Civil Servants and Soldiers to Enjoy Wage Subsidies
Civil servants benefit more from social insurance Thuy Trieu The current social insurance in Vietnam is having a big discrimination where military personnel and civil servants are having an advantage over workers from the private sector, according to labor experts. This is the main reason why the coverage is only 20% of the total labor force, especially the large percentage of evasion in the private sector. Carlos Galian, Social Protection specialist with the International Labor Organization (ILO) in Vietnam, talked to The Saigon Times Daily on the unequal benefits and related issues in the social insurance system. The Saigon Times Daily: Some people say that the State sector is benefiting more from social insurance because there exists a difference between the pension calculation ways for the State and private sectors. What do you think? - Carlos Galian: Inequality is a worrying feature of the Vietnamese pension system. Different workers are treated differently: military, civil … [Read more...] about Civil servants benefit more from social insurance
With $1 billion, Vietnam can change its system of bureaucratic civil servants into a contingent of enthusiastic and qualified people, said a senior expert from the Central Institute for Economic Management (CIEM). The comprehensive administrative reform program was implemented in 2001-2010. During this period, the government's number of agencies reduced from 48 to 30, including 22 ministries and ministerial-level agencies. The number of departments felt by 28, but the number of general departments rose by 18 and the number of bureaus increased by 22. Le Viet Thai, head of the CIEM's Economic Institution Department, who chairs the research project entitled "Strategic vision on governmental institute and implementation roadmap", says that the administrative apparatus is cumbersome and ineffective because tasks and responsibility are not clearly defined. Thai tells Tien Phong Daily about the project. What does your group discover after researching the government apparatus? … [Read more...] about US$1 billion enough to renovate Vietnam’s civil servants?