Living Wage Series - Vietnam August 2017 - In VND per Month

Living wages, Wages in context - Vietnam

The Living Wage is based on the concept that work should provide an adequate income to cover the necessary living costs of a family. WageIndicator calculates Living Wage for around 50 countries based on prices collected within the WageIndicator Cost of Living Survey. The Living Wage calculated by WageIndicator is composed of seven parts: food, housing, transport, health, education, tax and other costs.

WageIndicator presents Living Wages for several household types and working hours to respond to different demands for living wage information: Typical family Living Wage is a baseline estimate that respects the country specific conditions. Family includes two adults and the number of children is given by country specific fertility rate (2 children per woman). One parent is working full-time and the working hours of second parent are approximated by national employment rate (83% in 2017). Standard family Living Wage is estimated for a family composed of two adults and two children. One parent is employed full-time and the second parent works 4 days a week it means family employment rate is 1.8. Single-adult Living Wage represents an acceptable standard of living for a single individual working full-time with no dependents.

Expenditure and Living Wage calculation (monthly rates in VND)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 3380100 4779400 3380000 4779200 845000 1194800
Housing 2000000 3000000 2000000 3000000 1500000 2000000
Transport 200000 300000 200000 300000 100000 150000
Health 500000 1000000 500000 1000000 125000 250000
Education 1000000 1500000 1000000 1500000 0 0
Other costs 354000 529000 354000 529000 128500 179700
Total Expenditure 7434100 11108400 7434000 11108200 2698500 3774500
Net Living Wage 4130056 6171334 4130000 6171222 2698500 3774500
Gross Living Wage 4584362 6850181 4584300 6850057 2995335 4189695

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in VND)

There is not a single answer to what is the adequate cost of living. The result is complex, as the cost of living varies by household composition, location, and employment pattern. The following table presents the Living Wage estimates for a set of common household compositions and under different assumptions about working hours.

  from to
Typical family (two parents + 2 children, 1.8 working) 4584400 6850200
Standard family (two parents + 2 children, 1.8 working) 4584300 6850100
Two parents and two children, 2 working 4125900 6165100
Two parents and two children, 1.5 working 5501200 8220100
Two parents and two children, 1 working 8251700 12330100
Two parents and three children, 1.8 working 5131500 7623700
Two parents and four children, 1.8 working 5678600 8397300
Single-adult without children, 1 working 2995300 4189700

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in VND)

Living Wages are presented in context with other wage indicators including minimum wage, poverty line, and various prevailing wages of workers. Table shows the development of income levels over two years.

7-12/20151-6/20167-12/20161-6/2017
  from to from to from to from to
Minimum wage 2150000 . 2400000 . 2400000 . 2580000 .
Living Wage - Typical Family 6575700 9045600 4671300 6951200 4712300 6979500 4584400 6850200
Living Wage - Single Adult 4953400 6386000 3337000 4532800 3530800 4666300 2995300 4189700
Real wage of low-skilled worker 6504700 7545900 4729900 5057100 3855400 5045600 4178700 4638800
Real wage of medium-skilled worker 5461900 7065000 5451900 7547700 5509100 7862800 5613600 7135000
Real wage of high-skilled worker 7923100 10457300 8818200 12726100 7669700 11405300 7860400 10688100

Note: Reported monthly earnings of workers in low-, medium-, and high-skilled occupations are obtained from the voluntary WageIndicator web surveys on work and wages over the last 36 months. Results in the table are rounded.

Living Wage model diet and food prices in VND

The food expenditure is the main component of Living Wage and it is determined by the price of food basket. The food prices are taken from WageIndicator Cost of Living Survey which collects the actual prices of all items necessary to calculate the Living Wage. The composition of the food basket is taken from the national food balance sheets published by the UN Food and Agriculture Organization (FAO). The food basket is scaled to 2,100 calories per person per day that is the nutritional requirement for good health proposed by World Bank (Handbook on poverty and inequality, 2009).

Food itemGrams per dayEnergy (kcal)Price per kilo fromto
Wheat, barley and cereals 23 63 12800 20000
Rice 313 1098 12000 16000
Meat (beef, pork, poultry) 129 342 82000 120000
Oils (soyabean, olive, palm) 6 56 35000 40000
Sugar (Raw Equivalent) 44 77 9000 18000
Maize and products 21 65 11000 20000
Milk - Excluding Butter 35 21 25000 30000
Vegetables, Other 308 71 14000 20000
Potatoes and products 8 6 15000 17500
Butter, Ghee 5 38 78000 78000
Groundnuts (Shelled Eq) 22 59 24000 40000
Pulses, Other and products 3 9 22000 50000
Cassava and products 18 17 10000 11000
Egg (price per 10 eggs) 8 12 550000 30000
Sunflowerseed Oil 0 0 50000 70000
Fish products 71 41 50000 70000
Beer 28 13 16000 30000
Sweeteners, Other 1 2 17000 18000
Beans 4 12 15000 15000
Sweet potatoes 11 10 13000 17000
Bananas 40 25 10000 15000
Soyabeans 12 48 11000 20000
Apples and products 2 1 20000 35000
Onions 11 4 12000 20000
Oranges, Mandarines 12 3 22000 30000
Wine 0 0 133300 160000
Pineapples and products 12 3 12000 20000
Cream 0 0 25000 45000
Olives (including preserved) 0 0 85000 85000
Honey 0 0 160000 200000
Lemons, Limes and products 0 0 15000 15000
Tea (including mate) 2 1 100000 100000
Grapefruit and products 10 2 22000 40000
Coffee and products 0 0 90000 120000

Data sources:

Living Wage FAQ.

WageIndicator Cost of Living Survey

World Bank Databank, Fertility rate – average births per woman in years 2010-2014

ILO, Estimated participation rate in 2017

FAO, Food balance sheet in 2013 

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