Vietnam’s Rising Purchasing Power: 2024 Living Standards Survey

Vietnam’s 2024 Household Living Standards Survey highlights significant improvements in household incomes and spending habits, reflecting better living standards across both urban and rural populations.

The World Bank has revised its global growth projections for 2025 downward to 2.3 percent, nearly half a percentage point below initial expectations, yet Vietnam’s economy continues to demonstrate remarkable resilience.

Despite escalating trade tensions and policy uncertainty affecting markets worldwide, Vietnam maintains robust momentum with GDP growth projected at 6.2 percent in 2025 and 6.0 percent in 2026, according to OECD forecasts.

This economic stability rests on solid fundamentals and the country’s expanding domestic consumption. The 2024 Vietnam Household Living Standards Survey (VHLSS), conducted by the National Statistics Office (NSO), supports this positive trend by showing notable improvements in household income and spending habits. Growing earnings among both urban and rural populations, along with increased consumer spending, suggest better living standards and the emergence of a more diverse and sophisticated consumer base.

National income continues to grow

The country’s average monthly income per capita in 2024 reached VND 5.4 million (approximately US$213), a 9.1 percent increase from 2023. This growth rate was higher than the 6.2 percent increase recorded between 2022 and 2023.

By area, the average monthly income per person in urban areas was VND 6.9 million (US$272), up 10.1 percent from 2023, and more than 1.5 times that of rural areas, which stood at VND 4.5 million (US$177), up eight percent.

Among regions, the Southeast recorded the highest average monthly income per person at nearly VND 7.1 million (US$280), while the Northern midlands and mountainous areas reported the lowest, at just under VND 3.8 million (US$150).

Also read: Vietnam Wages in 2025: Overview, Trends and Implications for Investors

Expenditure recovery, especially in urban areas

In 2024, household expenditure rebounded, mainly in the urban areas. The average spending per capita reached almost VND 3 million (US$120), an increase of 6.5 percent compared to 2022, equivalent to an average annual growth of 3.2 percent during 2022-2024. In urban areas, the average expenditure per capita was almost VND 3.8 million (US$152) (up 15.4 percent from 2022). By contrast, in rural areas, the average spending remained virtually unchanged at around VND 2.5 million (US$100), showing a slight decline of 0.3 percent compared to 2022.

This divergence in expenditure recovery reflects deeper structural gaps, which are also evident in trends in education, healthcare, and housing.

Shifts in education, healthcare, housing, and inequality

The 2024 survey reveals significant shifts in how Vietnamese households allocate resources across core spending categories, reflecting both recovery from pandemic disruptions and evolving consumer priorities.

Education investment

Education investment has rebounded strongly, with average annual spending per student reaching VND 9.5 million (US$380), a 36.3 percent increase from VND 7 million (US$280) in 2022. This recovery signals renewed household confidence in long-term human capital investment after the COVID-19 pandemic’s temporary setback.

Healthcare spending

Healthcare spending has also increased by 41.9 percent, reaching VND 3.5 million (US$140) per person seeking medical care in 2024. The data highlights notable differences between inpatient care, which costs VND 10.2 million (US$408) per person, and outpatient services at VND 1.8 million (US$72). Additionally, urban households consistently spend more on healthcare than rural households, with VND 3.7 million (US$148) compared to VND 3.4 million (US$136).

Housing and durable goods

Housing and durable goods present a more nuanced picture. Nearly universal ownership of durable goods (99.9 percent nationwide) reflects improved living standards. Vietnam’s average household asset values reached VND 86.9 million (US$3,476), more than double the 2014 figure.

However, while 24.6 percent of households purchased new durables in 2024, the average value of new purchases dropped to VND 25.2 million (US$1,008), down VND 20.9 million (US$836) from 2022, suggesting more cautious spending on high-value items despite overall wealth accumulation.

Inequality remains a persistent challenge

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Despite improvements in income and expenditure nationwide, inequality persists. Vietnam’s Gini coefficient remained steady at 0.372 in 2024, indicating moderate levels of inequality. The Gini coefficient, which ranges from 0 (perfect equality) to 1 (perfect inequality), is a common measure used to capture income distribution within a country.

According to the survey, rural areas continue experiencing higher income disparities than urban centers (0.369 versus 0.339), with the Northern Mountains and Central Highlands being regions with the highest poverty rates and also showing the most significant inequality (0.401 and 0.405, respectively). Meanwhile, the Red River Delta exhibits the most equitable income distribution, with a Gini coefficient of 0.336.

Purchasing power implications

Higher earnings unlock demand for goods and services

Vietnam’s monthly average income per capita surged to VND 5.4 million (US$216) in 2024, representing a substantial 9.1 percent increase that underscores the country’s rapid income growth trajectory. This acceleration in household earnings, coupled with corresponding increases in consumer expenditure, demonstrates robust domestic demand expansion across key sectors.

The income growth momentum creates significant opportunities for market expansion, particularly in essential categories where Vietnamese households are prioritizing increased investment. Healthcare, education, and housing emerge as primary beneficiaries of this enhanced purchasing power, with spending patterns indicating sustained consumer confidence and willingness to invest in quality-of-life improvements. This convergence of rising incomes and targeted spending creates a favorable environment for businesses operating in these high-priority sectors.

Urban households as consumption drivers

Urban households consistently outpace their rural counterparts across income and spending metrics, with Vietnam’s expanding middle class primarily concentrated in major metropolitan areas, such as Hanoi and Ho Chi Minh City. This geographic concentration generates substantial demand for a diverse range of goods and services, creating distinct market dynamics and investment opportunities.

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The driving force behind this consumption growth is Vietnam’s rapidly expanding middle class, which is now the engine of the economy’s new consumption. PwC Vietnam projects that middle-class households will comprise over 55 percent of the population by 2030, fundamentally reshaping the domestic market landscape.

This demographic shift carries profound implications for market development. Higher disposable incomes within middle-class segments translate to increased consumption capacity, particularly benefiting retail, real estate, and service sectors. The 2024 survey data already reflects these emerging patterns, providing early evidence of the consumption transformation that will define Vietnam’s economic trajectory through the decade.

Also read: Vietnam’s Middle Class: Size, Consumer Trends, & Business Opportunities

Shifts in spending patterns

Vietnamese households are demonstrating increased spending capacity across multiple categories, with higher incomes directly translating into enhanced investment in family welfare and improvements in quality of life. Higher income enables households to invest more in their children’s education, demand higher-quality healthcare, and seek improved housing conditions.

The expanding middle class is fundamentally reshaping consumption patterns, driving a notable shift from necessities toward wellness and lifestyle enhancement categories. This transition from survival-focused spending to quality-of-life investments signals Vietnam’s progression up the economic development curve, creating substantial opportunities for businesses targeting aspirational consumers seeking improved living standards and comprehensive family well-being.

US$1 = VND 25,000