Oct 23, 2006

Economies of scale

Previously pondering, I perceived a perculiar point pervading the particular price of products in Saigon. The P's? No idea.

Good Value:
Petrol -- Roughly 10,000d a litre.
Cable TV -- 60,000d per month
ADSL connection from 100,000 per month.
New inner tube after a punture -- maximum 50,000d
Puncture repair -- 5000d
Pair of sports shorts from the market -- 50 – 80,000d
Electricity -- $40-$60 a month for house running 2/3 aircon units, normal Vietnamese house bill probably $15-$20.
Mobile Phone -- a top up of 100,000 every 3 to 4 weeks.
Bowl of delicious noodle soup over the road -- 10,000 dong.
Mini Hotel -- $7-$12 a night.
20 odd litres of water -- 18,000d.

Other prices:
Orange juice -- 18,000d
Milk -- 18,000d
Beer at Level 23, The Sheraton -- 70,000d
Box ofKelloggs All Bran -- 91,000d
Sunday buffet lunch at 5 star hotel -- $20+

Therefore:
One carton of heat-treated milk costs two times the price of a hearty chicken noodle soup. A box of cereals is the same price as a basic ADSL connection for one month. Two beers on the balcony at the Sheraton would get you a reasonable room in a Pham Ngu Lao mini hotel. One beer would pay your cable TV for a month. My box of All Bran could pay my mobile phone for a few weeks, or two puncture repairs on the street. A buffet lunch on Sunday at a decent hotel pays your electricity for a month, a carton of orange juice costs the same as over 20 litres of mineral water. 30,000d fills up most bikes (3 litres), the same price as a small toblerone from the supermarket.

This lot costs a total of about 130,000d, equal to a full tank of petrol, a month of cable TV, your dinner, and some change.


Ouch! That's a kilo of apples, a kilo of pears, two grapefruits, a pineapple, a bunch of bananas and a massive bag of tomatoes from the market. Or two pairs of fake Nike shorts.

6 comments:

Anonymous said...

Are the high prices on western products due to import taxes the gov't imposes on them? If so what is the percentage on the foods pictured?

Jon Hoff said...

I've no idea to be honest - obviously the cereal is inflated due to import tax, but the orange juice is made in Vietnam. The milk says New Zealand on it, but again Vinamilk make a similar milk product which sells for the same price.

Anonymous said...

do you know how much for rent there?

An

Jon Hoff said...

Rent? $300-$500 a month will get you a 1/2 bedroom apartment or a 3/4 bedroom house. A lot of foriegners share a house so rent can work out quite cheap. $1000 - $2000 a month will get you a nice big house with garage, swimming pool, garden etc in Anh Phu or District 7, or a serviced apartment, of which there are plenty.

Anonymous said...

Where do the expats normally stay? Is it safe to stay out of District 1? Will be stationed in HCMC for 3 years!

Thanks!

Jon Hoff said...

Of course it's safe outside D1...! Depends what kind of 'expat' you are, but a lot live outside the busy districts of the city. Phu My Hung is a popular area (see my postings on Saigon South - A Developing City) and also Anh Phu, District 2, is an expat haven. There are serviced apartments and rented accomodation avaliable all over the place, so it's more a matter of where you're working/what's suitable for you.