Where is least expensive cities for
working and living in Vietnam?
The price indexes has always been on top
of information list which investors look for when making investment into a new
country. Beside various information i.e. GDP, Stock market, unemployment,
producer price, interest rate, balance of trade, the investors also check the
consumer price index and income to determine the attractiveness of market
entry. There are many attractiveness factors including the low cost of living
and low level of income in comparable with other neighboring countries, for
making investment in setting up company in Vietnam for
manufacturing purpose.
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Where in Vietnam is
cheapest city to live and work?
According to statistics of 2021,
taking Hanoi as the base indicator, the top 10 localities with the most
expensive cost of living include: Hanoi (100%), Quang Ninh (99.5%), Ho Chi Minh
City (98.98%), Da Nang (96.4%), Hai Phong (95.58%), Lao Cai (94.75%), Son La
(94.58%), Lang Son (94.55%) %), Khanh Hoa (94.55%) and Dien Bien (94.41%).
How it has changed
since 2015?
The top 10 provinces and cities with the
most expensive cost of living in the country in 2015 include: Lai Chau
(100.3%), Hanoi (100%), Son La (99.27%), Lao Cai (99.02%), Dien Bien (98.85%),
Ho Chi Minh City City (97.39%), Ha Tinh (97.14%), Ha Giang (96.5%), Da Nang
(96.44%) and Binh Phuoc (96.12%).
In 2021, Hanoi’s per capita income
reaches more than 6 million VND/month. Since 2016, Hanoi has always
been in the top 3 localities with the highest income in the country.
In 2015, Da Nang ranked 9/63 with a
price equal to 96.44% compared to Hanoi. By 2017, the city “jumped” to third
place, up 6 places compared to 2015. In 2021, Da Nang’s cost of living is 96.4%
of that of Hanoi and ranked 4th in the country in terms of expensiveness. In
2021, Da Nang has per capita income of more than 5.2 million VND/month, ranking
5th out of 63 provinces and cities. Previously, 2019 was the year the city had
the highest income in the past 10 years with more than 6 million
VND/person/month.
In 2021, Ho Chi Minh City reached 98.98%
and ranked 3rd out of 63 provinces and cities in cost of
living. From 2002 to 2016, the city has always been the place
with the highest income in the country. From 2018 to present, Ho Chi Minh City
maintains the “runner-up” position (behind Binh Duong), in which, 2019 is the
year with the highest income with 6.7 million VND/person/month.
Besides the three central cities that
are constantly in the top of the most expensive localities in the country, Lao
Cai is the only mountainous province.
In 2020, Lao Cai ranked 5th in terms of
the expensive level in consumption, equal to 96.52% compared to Hanoi. Lao Cai
is the most expensive province among 14 Northern Midlands and Mountainous
Provinces (the cheapest is Phu Tho, equal to 91.07% compared to Hanoi, ranked
56th nationwide). By 2021, Lao Cai’s index drop to 94.75%, the lowest level of
the place since 2015 until now. With this index, Lao Cai ranks 6th in the
country in terms of the expensiveness of the cost of living.
In particular, although the cost of
living is quite high, the income of people in Lao Cai is not high. The average
income of people in this locality was only 1.8 million VND/person/month in 2016
and ranked 53rd in the country. In 2021, people in Lao Cai earn an average of
2.51 million VND, ranking 55th in the country.
The low level of income and least living
cost make Vietnam a favourable destination for investment. Many
labour intensive manufacturers in garment, shoes, furniture… have long chosen
Vietnam as a place for establishing company in
manufacturing. There are growing number of companies in electronics also
manufacture in Vietnam to take advantage of the comparable low wage workforce.
With highly
professional staff and great experience in foreign investment, ANT Lawyers
- law firm in Vietnam would
like to support you to establish company in Vietnam.
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