Why is Vietnam is So Cheap?

chicken sandwich bon appetit A haircut costs one dollar and thirty cents. the sum of three dollars One dollar thirty cents plus five or ten dollars for lunch on the street You can easily spend a day in Vietnam, so why is it so inexpensive?

Vietnam is open again, and prices have gradually increased over the last decade. With the US currency, euro, and British pound, it’s still one of the cheapest destinations to visit.

You have a lot of purchasing power in comparison to the Vietnamese dong. It’s the currency in Vietnam, and to break it down for a second, one thousand dong equals around four cents.

In the United States, four cents for a thousand dong 2 000 would be equal to of course eight cents

Why is Vietnam so cheap?

(1) Poverty Rates are High

You have two hundred thousand, which is equal to eight dollars and eighty cents, and then the largest banknote is half a million, or five hundred thousand Vietnamese dongs, which is roughly twenty-two dollars for everything from meals to hotels to transportation and sightseeing.

Even a backpacker’s budget of about half a million Vietnamese dong (roughly 22 dollars) will get you a long way, but if you want to stay in a higher-quality hotel, you’ll need about 80-100 to be comfortable, which is still a good deal.

But hear me out, Vietnam is not like any other cheap country because it is still underdeveloped, but you rarely see people in poor living conditions or beggars see the poverty rate here is just about five percent even though the u.s has an 11 poverty rate. 

(2) Poor Economy

Although this country is a one-party communist regime, it also possesses one of Asia’s fastest-growing economies.

See, historically, it hasn’t been a good area to do business, which could explain why its currency is deemed weak in comparison to the value of all these t-shirts.

You may acquire which are obviously not genuine Nikes, but they sell for around two dollars and twenty cents.

The same can be said for these Adidas shorts, which cost $50,000. Vietnamese longs are now worth two dollars and twenty cents. Next, they adore the North Face and Louis Vuitton.

So a fake Louis Vuitton costs roughly $55 for this, but fast forward to today when the country’s flourishing economy is lowering the cost of living and pulling many of its residents middle class so on average most items.

Here will cost you less than half of what you might pay in the west and maybe around 25 less than the rest of southeast Asia like Thailand or Bali. 

(3) Food is Quite Cheaper

The number of people who come is limited, and merchants have a lot of demand for cheap food because, let’s face it, if you don’t make more than $200 a month, you can’t afford to eat out.

You won’t spend more than four or five dollars per day on food, and raw ingredient prices are also very low for most Vietnamese people. Food is inexpensive.

A Vietnamese’s basic meal consists of rice, vegetables, sometimes fish, and pig, all of which are grown locally in paddy fields.

Almost every farmer’s household has its own chickens and pigs, resulting in great production thanks to fertilizers.

Because of the minimal treatment, tap water in Vietnam is inexpensive, and individuals do not have to pay for the recovery and treatment of used water when it comes to taxes it’s believed that income taxes are largely low because small businesses can bribe a tax officer to endorse it the price of this hotel is about 100. 

Final Conclusion on Why is Vietnam is So Cheap

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