Hanoi was followed by Ho Chi Minh City, Quang Ninh, Hai Phong and Binh Duong, while top five localities with the lowest cost of living were Ben Tre, Nam Dinh, Quang Tri, Soc Trang and Gia Lai.

Nguyen Thu Oanh, Director of the GSO’s Price Statistics Department, the southern economic hub of Ho Chi Minh City had lower consumer prices of essential commodities than Hanoi, although that of some products and services such as education services, beverage and cigarettes was lower.

Meanwhile, Ben Tre recorded the lowest SCOLI last year which was equal to 85.93% of Hanoi’s index. The average price of product groups in Ben Tre compared to Hanoi ranged from 72.02%-101.22%.

According to Oanh, Ben Tre has favourable natural and geographical conditions, which enable the province to increasingly develop agriculture and livestock, meeting local people's needs for essential goods.

The official said that the SCOLI in 2023 of socio-economic regions saw minor changes compared to that of 2022.
She attributed the increasingly equal cost of living in regions to the increasing online shopping trend and expanding delivery services, allowing consumers to compare prices of commodities in the market, and the prices of goods become more open and transparent.

The SCOLI is a relative indicator that reflects the difference in consumer goods and service prices among localities and regions in a certain period. The index can be used as a reference for socioeconomic development policies to evaluate the results of poverty reduction and support policies.

It is also the basis for calculating the Human Development Index (HDI) and Gross Regional Domestic Product (GRDP) according to purchasing power parity.

Businesses can use the index to assess competitiveness in terms of prices, market share and product costs. In contrast, labourers can use it to negotiate wages and consider the possibility of migration between different regions. VNA