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 Level C |
45 - 75 35 - 40 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 |