Vietnam Economy and Cost

The economy of Vietnam is a developing mixed economy. Over the past 20 years, Vietnam has made a shift from a centrally planned economy to a market-oriented socialist economy. Over that period, the economy has experienced rapid growth. Nowadays, Vietnam is in the period of integrating into world's economy, as a part of globalization and is in transition from a planned economy to a market-oriented mixed economy. Although, almost all Vietnamese enterprises are SMEs with some nationwide trademarks such as VNPT, Vinamilk, Trung Nguyen, Khanh Do and others, Vietnam has been rising as a leading agricultural exporter and an attractive foreign investment destination in East and Southeast Asia. Throughout history, Vietnam was among agricultural centers of the world and soon had some commercial port such as Phố Hiến and Hội An.

Travel in Vietnam, the cost varies from next to nothing to the sky is the limit, depending on taste and comfort.

Ascetic travelers can get by on US$10 a day in Vietnam, while a conventional budget traveler can live it up on US$20 to US$25. Mid-range travelers can have a ball with US$75 to US$100 a day, staying comfortably, eating well and travelling in style. At the top end, spending US$200 or more a day, anything is possible in this country.

Foreigners are frequently overcharged, particularly when buying souvenirs and occasionally in restaurants. Rapacious bus and taxi drivers will often bump up their rates to several times the Vietnamese price. However, don't assume that everyone is trying to rip you off. Despite severe poverty, many Vietnamese will only ask the local price for most goods and services to travelers.

Rooms start from as little as US$3 to US$5 in busy tourist centers. Spending US$10 to US$20 will boost the comforts quickly, and rooms will generally include air-con, satellite TV, a fridge and hot water. Make the step up to US$50 and three- star standards are available. At US$100 and above it's five-star territory. Don't be afraid to negotiate for a discount if it is low season or if traffic is down.

Dining out is where Vietnam comes into its own. Surfing the street stalls and markets, meals can be found for between US$0.35 and US$0.70. You can eat well for between US$1 and US$3.50 at local restaurants, they are more comfortable compare with the street stalls and markets. Then there are the Vietnamese gourmet restaurants, where you can still only spend around US$10 with drinks; with the right wines you could easily spend US$50.

Domestic flights in Vietnam are relatively expensive compared with some other countries in Southeast Asia. A one- way ticket from Hanoi to Ho Chi Minh City (HCMC) is around US$100. On the other hand, trains are of great value, and overnight sleepers are a good way to cover long distances like Hanoi to Hue' or HCMC to Nha Trang, and to save money on accommodations.

Bus travel is a bargain. Public buses between major destinations have fixed fares, but when travelling by bus in remote areas, overcharging is the rule to foreign travelers. For maximum flexibility, many travelers prefer to rent a car or 4WD to explore with a Vietnamese guide. Costs run from about US$25 around town to as much as US$70 a day upcountry (including the driver's food and lodging). A local guide costs from US$20 to US$40, depending on the destination the travelers are going to.

Whatever your budget might be, Vietnam is a dream deal. Live it up while you can.