Sunday, 08/04/2019 07:16

Expats in Vietnam earn higher than global average incomes

Average salary for expats working in Vietnam is $78,750 per year, slightly higher than the global mean of $75,966.

Although the average income for expats in Vietnam has fallen compared to the figure of $90,408 last year, 67 percent of expats agree that they have more disposable income when moving to Vietnam than they did in their home country, according to a recent HSBC survey.

The reasons for higher disposable income are lower cost of living (e.g. accommodation, schooling, transport, medical bills), increased earnings and expats’ employers covering some of their living costs and expenses, respondents said.

Up to 71 percent of expats who have located to Vietnam say they feel confident about the Vietnamese economy, while 76 percent said they felt secure about the political situation.

On top of all this, many visitors to Vietnam also find the working environment favourable, HSBC said. Vietnam is ranked 3rd after Switzerland and Poland in the Aspiring sub league table, which summarises expats views about the market’s economy, opportunities for career progression and its effect on people who moved to new country.

According the HSBC Expat’s Global Report 2019, the average earnings of people in the 18-34 age group rose 35 percent after relocating overseas, taking the average salary for someone their age from $40,358 to $54,484.

In certain markets, that increase was as high as 51 percent, the report said. This is a much higher increase than changes for those aged between 35 and 54, an average increase of 24 percent, or for those aged 55 or above, at 9 percent.

According to market research firm Trading Economics, Vietnam’s average annual salary at the end of 2018 was VND67.46 million ($2,920), much lower than what expats on average earn.

Ministry of Labor, Invalids and Social Affairs data show there are over 83,500 expats living and working in Vietnam.