With GDP per capita 25 times smaller than that of America, Vietnam still pays more for gas

On 2nd May, 2019, an increase in gas price in Vietnam was announced, an 8th time such a development took place in 2019. Here is a chart that illustrates the gas price in 2019 so far. The number is in VND, our national currency. The exchange rate is at 23,314 VND for $1

Source: Le Nguyen Huong Tra

Those are the two types of gas we use in Vietnam with the green one as the more popular choice and we measure it in liter, not gallon. With the exchange rate of 23,314 VND for $1, Vietnamese pay approximately $0.95 for a liter (22,190 divided by 23,314).

According to gasprices.aaa, the national average gas price in the US is $2.888 per gallon. As a gallon is worth 3.785 liters, on average Americans pay $0.76 per liter for gas. Given that GDP per capita in the US and Vietnam in 2017 is $59,532 and $2,343 respectively, according to WorldBank, it’s extraordinary that we pay more per liter in the poorer country.

I am not a chemical expert and the gas used in each country may be different in essence, but it serves the same function and the living costs in both countries are affected by gas prices.

The difference is even worse when you compare the gas price in Vietnam to affluent states in America. Keep in mind that different in America, where gas price varies from one state to another, Vietnam has universal gas price regardless of where you live in the country. Take Massachusetts as an example. GDP per capita in the state in 2017 is $64,507, but the gas price in the state is just $0.75 liter, compared to $0.95 in Vietnam.

Unless I am missing something terribly important in my assumptions, the expensive gas price that we have to pay in Vietnam is ridiculous and ludicrous. And how many companies would give employees a raise 8 times in a span of 5 months to keep up with the increasing living costs? Exactly!

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