If your bạc xỉu in Hanoi suddenly feels lighter or pricier than other parts of Vietnam, it’s not just your imagination – Hanoi is simply more expensive. Data from the General Statistics Office (GSO) showed Hanoi has topped the nation's cost‑of‑living index for the seventh time in a row, even outpacing the bustling financial hub of Ho Chi Minh City.
At the same time, Hanoi’s highest regional minimum wage stands at VND 5.31 million (US$201) per month. Ms Sinwon Park, Director of the International Labour Organisation (ILO) Vietnam Office, made a simple comparison: this income level is roughly equivalent to 100 bowls of phở per month (assuming an average price of 50,000 VND per bowl).
Double the minimum is still not enough
Expanding on the “100-bowl-of-pho” analogy, Ms Sinwon Park told VnExpress that this effectively means a worker’s salary buys only about three bowls of pho a day. In practical terms, once basic meals (priced at an ordinary street stall) are covered, there is virtually nothing left for any other essential needs, either for themselves or their family.
This calculation draws from Hanoi’s highest regional minimum wage, also the highest in Vietnam, set at VND 5.31 million per month, or roughly VND 25,500 an hour.
Yet even those earning double that amount still struggle to survive.
A 2025 Talentnet survey found that skilled workers in Hanoi earn an average of VND 9.8 million per month, above the national average. A separate survey by Hanoi’s Department of Home Affairs, covering 3,000 businesses in the city, showed most employees earning between VND 8.3 million and 10 million.
However, renting a 20–30 m² studio in central Hanoi now costs VND 3.5–7 million per month, rising 10–15% annually. Added to the growing costs of education, food, and basic groceries, workers earning the city’s average salaries often struggle just to get through the month, with little to no capacity to save.
“My office salary is VND 12 million, and I spend VND 8–9 million just on food,” one worker told Afamily.
Data by the General Statistics Office in 2026 showed Hanoi ranks as the most expensive city to live in Vietnam, with the cost of living standing at 3% higher than Ho Chi Minh City. Even though Ho Chi Minh City is a massive economic hub, its abundant supply of goods and strong market competition help keep overall prices lower than in Hanoi.
Not only Hanoi, but also the surrounding Red River Delta (including Quang Ninh, Hai Phong, Hung Yen, Bac Ninh and Ninh Binh) is the most expensive area to live in Vietnam.
The GSO explains that the area has a dense network of industrial parks, export-processing zones, and leading education and healthcare services, which attracted large inflows of people. This rapid urbanisation has put heavy pressure on an already limited land supply, driving up housing and accommodation costs.
Moreover, business operating costs, driven by steep commercial rents and labour costs, inevitably affect the final prices of goods and services for the consumer.
Minimum wage raises cannot alone solve the problem
In response, the government has repeatedly raised the minimum wage to keep pace with soaring living costs. From 2021 to 2026, national minimum wages climbed by about 8–10% annually.
However, the cost of living is increasing sharply in certain essential categories. Between 2024 and 2025, Hanoi’s consumer price index (CPI) fluctuated around 3–4% per year. However, prices for electricity, housing, and education saw a steeper increase.
In particular, within the housing and utilities category, Hanoi’s average CPI in 2025 rose by 8.3% compared to 2024, driven by a 2.42% increase in clean water prices, a 7.16% rise in electricity rates, an 11.65% rise in rental housing, and a 12.31% surge in construction materials.
In other words, people aren’t spending extra; the services they rely on are simply getting more expensive. Salaries simply aren’t rising fast enough to match the surge in essential services.
To address this issue, Ms Sinwon Park said Vietnam should begin considering a “living wage” in addition to the minimum wage.
According to the ILO, a living wage is calculated based on nine estimation principles that reflect the needs of workers and their families, including food, housing, transportation, education, healthcare, and other essential expenses.
They noted that a living wage cannot replace the minimum wage, but should exist alongside it to balance workers’ rights with employers’ payment ability.
The ILO representative also praised Vietnam’s efforts to protect workers’ rights through mechanisms such as the National Wage Council and the plan to develop and publish an annual minimum living standard starting in 2028.
“However, to narrow the gap between current wages and actual living costs, these institutions need to be further strengthened, particularly in terms of data, analytical capacity, and technical tools”, Ms. Park wrote on VnExpress.
