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You are here: Investors » Business Environment » Business Costs » Business Costs in Ho Chi Minh City
Business Costs in Ho Chi Minh City

1.     Labor Costs

1.1. Entry-level salaries for selected job positions

 

Position

US$/month

1

Workers (General Industry)

69.8 – 125.6

2

Engineers (Mid-level engineers)

88.3 – 208.5

3

Mid-level managers

335.5 – 736.1

4

Legal minimum wage

70/month

5

Bonus payments

(fixed bonuses + variable bonuses)

Basic wage x 1 - 3 months

6

Social security burden ratio

(Employer,‚Employee)

 17% (social insurance: 15%, health insurance: 2%)

‚ 6% (social insurance: 5%, health insurance: 1%)

1.2. Overtime Regulations

Overtime working payment is compared to basic salary rate

1

Overtime on weekdays

150%

2

Overtime on weekend

200%

3

Overtime on holidays

300%

4

Working time (night shift) from 10pm to 6am or from 09pm to 5am

130%

2.     Telecommunication Expenses

 

 

US$

Remarks

1

Telephone installation fee

33.87-45.16

 

2

Telephone charge

Monthly basic charge

‚Call charge per min.

 

1.68

‚0.002 - 0.007

‚Up to 200 min. a month: US$0.007, from 201 to 1,000 min.: US$0.005, 1,001 min. or more: US$0.002

3

International call charge (per min.)

1.21-1.44

‚0.85-1.0

Mon. – Sat.: 7:00 - 23:00

‚Otherwise

4

Mobile phone subscription fee

7.45

 

5

Mobile phone charge

Monthly basic charge

‚Call charge per min.

 

4.10

‚0.075

120 dong for the first 6 sec. then 20 dong per sec.

6

Internet connection fee

Initial installation fee

‚Monthly basic charge

 

149.04

‚186.30

Maximum speed download 3072kbps, upload 640kbps

Including 10% VAT

3.     Transportation Costs

 

 

US$

Remarks

1

Container transport (40 feet container)

Export to Japan: Nearest port → Yokohama Port

‚Export to U.S.: Nearest port → Los Angeles Port

 

853.5

‚3,027

 

Nearest port: Saigon Port

2

Taxi fare (per km)

0.74

 

3

Regular gasoline price (1 liter)

0.81

US$0.03 traffic tax included

4

Diesel oil price (1 liter)

0.64

US$0.03 traffic tax included

4.     Public Utilities Cost

 

 

US$

Remarks

1

Electricity rate for business use

Manufacturing industry

‚Service industry

Rate per kWh

0.049-0.056

‚0.088-0.098

 

2

Electricity rate for general use Monthly basic charge

‚Rate per kWh

 

N/A

‚0.034 – 0.011

 

3

Water rate for business use

Manufacturing industry

‚Service industry

Rate per cu. m

0.28

‚0.47

 

4

Water rate for general use

Monthly basic charge

‚Rate per cu. m

 

N/A

‚0.17 – 0.47

 

5

Gas rate for business use

1.18/kg

 

6

Gas rate for general use

1.31/kg

 

5.     Land and Office Space Rental

 

 

US$

Remarks

1

Industrial estate rents (monthly) (per sq. m)

0.24

Hiep Phuoc Industrial Park: US$105/40 years

2

Office rent (monthly) (per sq. m)

 Level A

‚ Level B

ƒ Level C

 

 45 - 75

‚ 35 - 40

ƒ 15 - 20

10% tax, maintenance fee included

3

Housing rent for foreigners (monthly)

2,600

Sky Garden Serviced apartment with furniture, 2LDK, 96 sq. m, swimming pool, tennis court, tax and other expenses included

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