Life in the country’s northernmost mountainous areas is the most expensive in the country because of transportation costs according to a report from the General Statistics Office published on March 24.

Lai Chau Province

The Spatial Cost of Living Index last year showed that mountainous Lai Chau Province was 0.3% more expensive than the base city, Hanoi, whose index was expressed as 100. Other mountainous provinces include Son La, Lai Chau and Dien Bien were only 1.15% to 0.73% less expensive than the capital.

HCM City ranked sixth thanks to recent price stabilisation programmes. Only transportation and education costs were 0.8% and 15% more expensive than the capital.

The northern midland and mountainous topped the chart of most expensive regions to live in Vietnam, 4.77% more expensive than Red River Delta. The costs for construction materials, transportation and household appliances were 3% to 8% higher.

Last year, 10 provinces in the northern midlands and mountainous areas increased education fees by 0.52% to 19.05%. Meanwhile, only three provinces in the southeast region increased the fees by 1.64% to 8.26%.

The main reason for expensive living costs in mountainous area is because of difficult location and transport cost for many products that are not produced directly in the region. In addition, logistics weaknesses and other the lack of services mean maintenance fees are also higher.

Even though the government subsidises several products such as salt, fertilizer, medicine and school supplies, the costs of various other necessities are still high.

Dtinews