Business Expenses in Vietnam

Electric price:

• For industrial manufacturing:

Voltage (kV)	Normal hours (04h-18h) – VND/kWh	Rushing hours (18h-22h) – VND/kWh	Low hours (22h-04h) – VND/kWh
< 6 6 – <22 22 – <110 >110	895 860 815 785	1,775 1,715 1,645 1,590	505 480 445 425

• For business and services :

Voltage (kV)	Normal hours (04h-18h) – VND/kWh	Rushing hours (18h-22h) – VND/kWh	Low hours (22h-04h) – VND/kWh
< 6 6 – <22 22 – <110	1,580 1,510 1,410	2,885 2,715 2,615	915 885 770

Water prices:

• For industrial manufacturing: 4,000 VND/m³
• For business and services: 7,500 VND/m³

Petrol price:

• A92:  14,500 VND/litre
• A95:  14,800 VND/litre
• diesel: 13,700 VND/litre

Telecommunication prices: (excluding VAT)

• Fixed line: 200 first minutes: 120VND/minute; minutes of 201 to 1,000: 80VND/minute; minutes of 1,001 upwards: 40VND/minute
• Mobile phone: 6 first minutes: 98.16VND/second; following seconds: 16.36VND
• Internet: Monthly charges from 28,000VND -2,000,000VND/month; package from 250,000-10,000,000 VND/month depending on services.
• International calling: 6 first seconds: $0.48USD/s; next seconds: $0.08USD

Labour force expenses

Local areas	Ha Noi	Dà Nang	Ho Chi Minh City
Minimum worker salary Average worker salary Medium level engineer salary Medium level manager salary	0.9 mil VND/month 1.2 ~ 3 mil VND/month 3.5 ~ 5.5 mil VND/month 6 ~ 10 mil VND/month	0.8 mil VND/month 0.9 ~ 1.5 mil VND/month 2 ~ 3.5 mil VND/month 4 ~ 5 mil VND/month	0.9 mil VND/month 1.8 ~ 3.5 mil VND/month 3.8 ~ 6 mil VND/month >8 mil VND/month

Transportation expenses

Via roads and by airlines:

• Transportation expenses via roads from Hanoi – Ho Chi Minh city is  2.5 ~ 3 mil VND/tons on average
• Transportation by airlines from Hanoi – Ho Chi Minh city is 6 ~ 6.5 mil VND/ton on average

• Mail express from Hanoi to Ho Chi Minh city is 30.000 VND/kilos on average

Shipping:

Departure Destination	Hanoi (USD/container 40ft)	VNDà Nẵng (USD/container 40ft)	Ho Chi Minh city (USD/container 40ft)
Singapore Hong Kong Korea Japan The US EU	400 300 600 1,110 2,900 2,200	450 1,400 950 1,400 2,800 2,400	200 300 550 750 2,450 2,000

Land lease

Office lease prices:

• Hanoi : Type A: 50 ~ 60 USD/m²/month; Type B: 30 ~ 40 USD/m²/month; Type C: under 30 USD/m2/month.
• Da Nang: 12 ~ 20 USD/m²/month
• Ho Chi Minh city: Type A: 70 ~ 100 USD/m²/month. Type B: 40 ~ 60 USD/m²/month. Type C:
• under 40 USD/m²/month.

Land lease prices in industrial and export processing zones:

• Hanoi : 65 ~ 100 USD/m²/ projectlife (50 years)
• Bac Ninh/Hai Duong: 35 ~ 60 USD/m²/project life
• Hai Phong: 45 ~ 90 USD/m²/project life
• Dà Nang: 25 ~ 40 USD/m²/project life
• Ho Chi Minh city: 55 ~ 100 USD/m²/project life
• Dong Nai/Binh Duong: 50 ~ 90 USD/m²/project life
• Ba Rịa-Vung Tau: 35 ~ 50 USD/m²/project life

Costs for industrial workshop construction:

• Domestic bidders: 140 USD ~ 170 USD/m²
• Foreign bidders: 250 USD ~ 350 USD/m²

Financial and insurance expenses

Bank interests: (by 30/5/2008)

• Interest rates for loans from commercial banks in Vietnamese currency: 20 ~ 24% (including all charges)
• Interest rates for loans from commercial banks in US dollars: 13,5 ~ 15% (including all charges)

Social and medical insurances:

23% of employees’ basic salary, of which employee contribute 6% ( 5%: social insurance and 1%: medical insurance); and employers pay 17%. (15%: social insurance, 2%: medical insurance).

Tags: Business Expenses in Vietnam, Vietnam investment consulting, Vietnam investment process