Hanoi is the most expensive city in the country.

A local market in Thanh Xuan (Hanoi), March 2023. Photo: Ngoc Thanh — A local market in Thanh Xuan ( Hanoi ), March 2023

The General Statistics Office has just published the 2023 SCOLI (Surplus Cost of Living Index). This is a measure reflecting the trend and level of change in the cost of living in 63 provinces and cities across 6 socio-economic regions on an annual basis. When considering provinces and cities, Hanoi is used as the baseline for comparison and is calculated at 100%.

According to the announcement, Ho Chi Minh City's SCOLI index is 98.44% compared to Hanoi due to lower average prices in several product groups, such as clothing, hats, and footwear at approximately 82%; culture, entertainment, and tourism at 91.8%; food and catering services at 94.1%; and household equipment and appliances at 94.9%.

The General Statistics Office explained that, in addition to abundant supply of goods, Ho Chi Minh City has strengthened the organization of supply and demand connections in retail, so the prices of essential consumer goods tend to be lower than in Hanoi. However, the city has some groups of goods with higher average prices than the capital, such as education at 116.8%; beverages and tobacco at 114.5%; and other goods and services at 120.5%.

Quang Ninh ranked third with an index of 97.9% compared to Hanoi. In the 11 main consumer goods and services groups, Quang Ninh had six groups with lower average prices, including: culture, entertainment, and tourism; postal and telecommunications services; household equipment and appliances; transportation; clothing, hats, and footwear; and food and beverage services. Five groups had higher prices than the capital city: medicine and medical services; housing, electricity, water, fuel, and building materials; beverages and tobacco; education; and other goods and services.

Quang Ninh has the third highest cost of living in the country because it is a tourism and marine economic center, a gateway to the key economic region of Northern Vietnam and the whole country. Its vibrant economic development leads to higher prices for some goods and services compared to other localities.

Hai Phong ranks fourth with an index exceeding 96% compared to Hanoi. The port city has a diverse commercial system with the active participation of all economic sectors. Some product groups have lower average prices than the capital, such as education; culture, entertainment and tourism; clothing, hats, and footwear; food and catering services; medicine and medical services, while others have higher prices, such as postal and telecommunications services; and household equipment and appliances.

Binh Duong ranked fifth with an index of 94.2% compared to Hanoi, an increase of 3 positions in terms of cost of living compared to 2022. Most commodity groups in Binh Duong are lower than in Hanoi, but housing, electricity, water, fuel, and construction materials are higher due to the concentration of many industrial zones and a large workforce.

The five localities with the lowest prices nationwide are Ben Tre at 85.9%; Nam Dinh at 86.3%, Quang Tri at 86.6%; Soc Trang at 87.8%; and Gia Lai at 87.9% compared to Hanoi. This is due to the low prices of goods and services in this group, including food, clothing, housing, transportation, education, and entertainment.

Ben Tre maintains the lowest cost of living in the country, with average prices for various goods ranging from 72% to 101% compared to the capital city. The province has a network of waterways and floating markets, promoting the consumption of goods and services, along with the development of agriculture and livestock farming to meet the demand for essential goods in the area.

In terms of economic regions, the Red River Delta has the highest cost of living in the country, while the Mekong Delta has the lowest. Last year, 32 provinces and cities saw a decrease in cost of living, while 28 localities experienced an increase, and 3 provinces remained unchanged compared to 2022. Lai Chau saw the largest change, dropping 15 ranks in terms of cost of living. Centrally-governed cities have higher costs of living than mountainous provinces, mainly in the service sectors of education, housing, entertainment, and tourism.

According to the General Statistics Office, in 2023 the domestic economy continued to be significantly impacted by global factors, including a decline in aggregate demand and extreme weather conditions. Domestically, the government implemented numerous measures to manage and regulate prices, helping to keep inflation at 3.25%. With abundant consumer goods, prices in various localities did not fluctuate significantly.

First published in 2015, SCOLI is significant in socio-economic development policy planning, evaluating poverty reduction results, wage subsidies, and serves as the basis for calculating the Human Development Index (HDI) and Gross Regional Domestic Product (GRDP). Businesses can use this index to assess competitiveness related to price, market share, product costs, etc.

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