In 2021, Vietnam’s GDP per capita will reach USD 3,743/person/year. Currently, the price of RON 95 gasoline in Vietnam does not exceed 26,830 VND/litre. So, compared to Vietnam’s income, will the gasoline price be high or low for other countries in South Asia?
The GDP per capita will reflect the relative income level and quality of life of the people in each country. Looking at the GDP per capita data of countries in Southeast Asia, Singapore has the highest GDP per capita and the best quality of life for its people.
In 2021, Vietnam’s GDP per capita will reach USD 3,743/person/year. In Southeast Asia, Vietnam’s GDP per capita is higher than that of Laos (US$2,718/person/year), the Philippines ($3,438/person/year) and Cambodia ($1,730/person/year). In addition, Vietnam’s GDP per capita is much lower than Singapore’s at USD 62,113/person/year; Brunei costs USD 32,100/person/year, Malaysia USD 11,056/person/year; Thailand is USD 7,030/person/year and Indonesia is USD 4,349/person/year.
According to international statistical data, gasoline prices in Vietnam are cheap compared to many countries and areas around the world. In Southeast Asia, Malaysia, Indonesia and Cambodia are three countries with lower gasoline prices than Vietnam. Particularly in Vietnam, the price of E5RON92 gasoline does not exceed VND 26,077 / liter and the price of RON 95 gasoline does not exceed VND 26,830 / liter ($1,197). For Malaysia, Indonesia and Cambodia, gasoline prices are $0.491/litre, $0.895/litre and $1157/litre, respectively.
Countries like Singapore, Brunei, Thailand, Philippines, Laos and Myanmar have higher gasoline prices than Vietnam. Specifically, the price of gasoline RON95 in Singapore is USD 2,194/liter, Brown Egg is USD 1.5/liter, Thailand is USD 1,444/liter, Philippines is USD 1,261/liter, Laos is USD 1,482/liter and Myanmar is USD 1,296. /litre.
Based on GDP per capita data from Southeast Asian countries, Vietnamese people have an income of about USD 10.25/day, Singaporeans about USD 170.2/day, Bruneians about USD 97.95/day, Malaysians about USD 30.29/day, Thai about USD 19.26/day, Indonesian about USD 11.91/day, Filipino about USD 9.42/day, Cambodian about USD 4.74/day, Lao people 7.45 USD/day and Myanmar people about USD 4.47/day.
Therefore, 1 liter of gasoline accounts for about 11.66% of the daily income of Vietnamese people. Compared to some other countries in the region, this percentage is not high. Typically, in the Philippines, Cambodia, Laos and Myanmar, people of these countries have to pay 13.4%, 22.41%, 19.89% and 29% of their daily income for 1 liter of gasoline respectively.
In Vietnam, the basic price structure of gasoline and oil, for every liter of gasoline and oil sold, there are 4 types of taxes: value added (VAT, 10%), import (10%), special consumption (10), and environmental protection (for E5RON92 is gasoline 3,800 VND, RON95 gasoline is 4,000 VND, diesel is 2,000 VND…).
Recently, the Ministry of Finance has decided to reduce the environmental protection tax rate for gasoline 2,000 VND/liter, diesel oil, heating oil, lubricants 1,000 VND/liter; fat 1,000 VND/kg; kerosene 700 VND/litre from April 1, 2022 to the end of December 31, 2022. This tax cut will help lower gasoline prices, thereby supporting people and businesses.