VietNamNet Bridge – The information that basic wage will increase by VND100,000 ($5) a month as of May 1 2011 doesn’t please government employees, but it makes them worried because goods prices will also rise.

“Before the wage increases, the prices for gas, food, etc. had already risen, reasoning that the price of petrol increased. If the basic wage increases, it has enough reason for prices to escalate further,” said Ms. Hoa from Cau Giay district, Hanoi.

The information about the increase of fundamental wages has heated up online forums. Most forum members shared the worry with Ms. Hoa.

“It is a nightmare that when the basic wage increases a little, we will have to stretch our back to pay higher school fees for our children, higher prices for food, gas, water and electricity, etc. It is better to maintain the basic salary (because the rise is little). If wages increase in total, prices will escalate in multiplier,” a member of webtretho forum wrote.

“It is very sad to read the news about the pay rise. The prices for all kinds of goods have increased several times, but basic wage will rise until May; just VND100,000. It is better that wages don’t rise, to keep others stable,” another member commented.

“Everyone has said when they get high pay. That’s paradox!” one wrote.

The “storm price” has happened for nearly a month and it has hit the normal life. Many low income earners say that they were trying to survive in this difficult time, when the prices for all kinds of good strongly increase.

“Previously, eggplant was priced VND9000/kilo. In early April, it increased to VND18,000 a kilo. Previously, I paid VND75,000 to have my motorbike fuel tank full. Now I have to pay VND100,000, but the tank is not full yet. Just a half of a month before I bought a fresh milk bottle at the price of VND25,000, but now I have to pay VND28,000,” wrote a member named Thuan, from Long Bien district, Hanoi.

Thuan also complained that she had to pay more for her room and power bill. “I plan to send my eldest child to my parents in the countryside. I and my husband cannot cover spending for the whole four member family in Hanoi,” Thuan said.

In the price storm, people have to cut down spending on clothes and others. Trung, who owns a clothing shop on Nguyen Luong Bang street, said that “the shop’s daily revenue has fell from VND6-7 million ($200-300) a day to only VND2-3 million at present.”

At big supermarkets in Hanoi and HCM City, like Big C and Maximark, only sales of food increased.

N.Anh