Living Wage Series - Vietnam October 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 uses prices from the Cost of Living Survey to calculate Living Wage for 60 countries. The Living Wage is an approximate income needed to meet a family’s basic needs including food, housing, transport, health, education, tax deductions and other necessities.

The following table summarises the varying expenditure and income needs for the three commonly occurring family household compositions.

Expenditure and Living Wage calculation (monthly rates in Dong)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 3797600 5156700 3797600 5156700 949400 1289200
Housing 2500000 3500000 2500000 3500000 1331300 1831300
Transport 200000 285000 200000 285000 100000 142500
Health 500000 1000000 500000 1000000 125000 250000
Education 1000000 1500000 1000000 1500000 0 0
Other costs 399900 572100 399900 572100 125300 175700
Total Expenditure 8397500 12013800 8397500 12013800 2631000 3688700
Net Living Wage 4665278 6674334 4665278 6674334 2631000 3688700
Gross Living Wage 5225100 7475300 5225100 7475300 2946700 4131400

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in Dong)

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 most common family household compositions and under different assumptions about working hours.

  from to
Typical family (two parents + 2 children, 1.8 working) 5225100 7475300
Standard family (two parents + 2 children, 1.8 working) 5225100 7475300
Two parents and two children, 2 working 4702600 6727700
Two parents and two children, 1.5 working 6270100 8970300
Two parents and two children, 1 working 9405200 13455500
Two parents and three children, 1.8 working 5845400 8317600
Two parents and four children, 1.8 working 6465600 9159800
Single-adult without children, 1 working 2946700 4131400

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in Dong)

The Minimum Wage is a national legally binding obligation on employers which often make no reference to a living standard. Living Wage describes the adequate living standard. The common goal of the many living wage campaigns currently taking place all over the world is to lift Minimum Wages levels to those of the Living Wages. WageIndicator presents Living Wages jointly with Minimum Wages, aiming to raise awareness concerning the remaining differences in levels. Living Wages are presented in context with other wage indicators including prevailing wages of workers over recent years.

  2014 . 2015 . 2016 . 2017 .
  from to from to from to from to
Minimum wage 1900000 1900000 2150000 2150000 2400000 2400000 2580000 2580000
Living Wage - Single Adult . . . . . . 2946700 4131400
Living Wage - Typical Family . . . . . . 5225100 7475300
Real wage of low-skilled worker 6578100 7386200 5806100 6788900 4943800 5498500 4175500 4851300
Real wage of medium-skilled worker 5475100 6926300 5620000 7648500 5536400 7795700 5536100 7457800
Real wage of high-skilled worker 7458700 1.02e+07 7901900 1.15e+07 8150100 1.23e+07 7969000 1.14e+07

Note: Table shows the lowest monthly Minimum Wage in a country, when available. Reported monthly earnings of workers in low-, medium-, and high-skilled occupations are obtained from the voluntary WageIndicator web survey on work and wages. Results in the table are rounded.


Food basket and food prices in Dong

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 12000 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 27500 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

WageIndicator Living Wage background:

The WageIndicator Living Wage is set to provide acceptable living standard to a family of a particular size. WageIndicator presents Living Wages for several household types and working hours which reflect the most frequently found real situations in which people have to make a living: 1. Typical family Living Wage is a baseline estimate that respects the country specific conditions. Typical family is comprised of two adults and the number of children is given by country specific fertility rate (the average number of children a woman is expected to have during her lifespan). One adult is working full-time and the working hours of second adult are approximated by national employment rate. The total income earned by two adults paid living wage is sufficient to reach adequate living standard. 2. Standard family Living Wage is estimated for a family composed of two adults and two children (referred to as family 2+2). Living wage is calculated under different assumptions about working hours. These include that both adults work full-time (family employment rate is 2), or at least one adult works part-time or half-time (family employment rate is 1.8 and 1.5), or one adult does not work at all (i.e. patriarchal model with family employment 1). Alternatives refer to trade-offs between leisure and work and define what living wage represents. In every case the total income earned by two adults paid living wage is sufficient to reach adequate living standard. 3. Extended family Living Wage includes family with three or four children. One adult works full-time and the work intensity of second parent is approximated by national employment rate. 4. Individual Living Wage represents an acceptable standard of living for a single individual working full-time.

Data sources: WageIndicator Cost of Living Survey, World Bank Databank Fertility rate 2010-2014, ILO Estimated participation rate in 2017, FAO Food balance sheet in 2013.

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