Housing, electricity, water, fuel, and construction material costs in Vietnam increased by 0.35 percent in January, contributing 0.07 percentage points to the Vietnam’s Consumer Price Index. House rentals saw the highest increase at 0.84 percent, while home repair services rose by 0.74 percent.
Housing-related services increased by 0.27 percent, and housing maintenance materials rose by 0.17 percent, with cement and steel prices rising due to higher demand. However, household electricity costs fell by 0.51 percent, household water prices decreased by 0.29 percent, and gas prices dropped by 1.26 percent due to a VND 7,200 per 12 kg cylinder price reduction, reflecting a US$12.5 per ton decline in global prices.
The costs of housing, electricity, water, fuel, and construction materials in Vietnam vary depending on factors like location, the type of property, and the level of consumption. These are essential expenses that have seen gradual changes in recent years due to the country’s ongoing economic development and rising urbanisation.
Housing costs in Vietnam can differ significantly between major cities like Hanoi, Ho Chi Minh City, and smaller towns. In large cities, rental prices for apartments and homes can range from VND 5,000,000 to VND 20,000,000 (around US$200 to US$800) per month, depending on the location, size, and quality of the property. In more rural areas, housing costs tend to be more affordable. Additionally, real estate prices have been rising, especially in urban areas, due to increased demand for residential and commercial properties.
Electricity and water costs are generally affordable but can increase with usage, particularly in urban areas with higher living standards. On average, electricity prices range from VND 2,000 to VND 3,500 per kWh (US$0.08 to US$0.14). Water prices vary, but most households pay around VND 10,000 to VND 20,000 per cubic meter (US$0.40 to US$0.80). However, these costs can rise if consumption is above average, especially in larger households or businesses.
Fuel prices in Vietnam fluctuate based on global oil prices, but they remain relatively low compared to many other countries. Gasoline prices are typically between VND 22,000 and VND 25,000 per liter (about US$0.90 to US$1), which makes transport quite affordable for most people. Diesel fuel costs slightly less, offering even more affordable options for vehicles.
The cost of construction materials, particularly cement, steel, and other building supplies, has seen gradual increases in line with global price trends. For example, cement prices range from VND 70,000 to VND 120,000 per bag (US$3 to US$5), while the cost of steel has risen due to global supply chain pressures. Construction projects in cities can be more expensive compared to rural areas due to higher labor and material costs.
Given the context of your interest in economic trends and development, the steady changes in these costs could have an impact on both daily life and broader investment decisions, especially with the ongoing growth and urban expansion in Vietnam’s key cities.
See also: Construction Industry in Vietnam