A new report has identified the most cost-effective nation for expats in 2024.
Moving to a foreign country can be a dream come true without breaking the bank.
Considering personal finances is one of the largest factors when deciding whether to relocate abroad for work or life.
For the fourth year in a row, Vietnam has been ranked as the most affordable country for expats in terms of personal finances, with a score of 1 out of 53 destinations, according to a 2024 InterNations study.
Out of 53 cities, it ranked 40th for quality of life, 29th for expat essentials such as digital life, housing, and language, and 14th for working abroad, taking into account factors like career prospects, salary, and job security.
Over 12,000 expats from 174 countries took part in the Expat Insider 2024 survey, which revealed the best and worst places to live, as well as information on quality of life, working abroad, and personal finance.
Survey respondents ranked their personal satisfaction levels in three areas related to personal finance, including general cost of living, financial situation, and whether their disposable income was sufficient for a comfortable life.
The report, which was compiled using this data, has remained mostly unchanged from the previous year, except for the addition of Brazil (9th) and the removal of Malaysia (5th in 2023 to 11th this year).
The top 10 destinations for expats' personal finances, according to their recommendations, are:
- Vietnam
- Colombia
- Indonesia
- Panama
- Philippines
- India
- Mexico
- Thailand
- Brazil
- China
This year, the top 10 positions were dominated by Asian countries, with Southeast Asia leading the way. Vietnam, Indonesia, Philippines, and Thailand all made it to the top 10.
"According to Kathrin Chudoba, chief marketing officer for InterNations, who spoke to CNBC Make It, all four countries - Thailand, Vietnam, Philippines, and Indonesia - have excellent housing options. Thailand ranks first, Vietnam comes in second, the Philippines is in fifth place, and Indonesia is in eighth. Expats in these countries find it easy to find housing and are satisfied with its affordability."
The report shows that 86% of expats living in Vietnam rate the cost of living favorably, which is more than twice the global average of 40%. Additionally, 65% of respondents in Vietnam are satisfied with their financial situation compared to 54% globally.
According to the survey, 68% of respondents have a disposable household income that is sufficient for a comfortable lifestyle, compared to the global average of 41%.
In Vietnam, not only are living expenses low, but expats are typically paid higher salaries.
According to InterNations, 19% of respondents worldwide report a gross yearly income of 150k USD or more, which is close to double the global average.
The country has seen a significant increase in job satisfaction among expats, with Vietnam moving from 24th place to 3rd in 2024 in the "Work Culture & Satisfaction" subcategory, according to Chudoba.
In Vietnam, the report suggests that work-life balance is more important than career advancement. Specifically, less than half (46%) of the country's expat population works full time, which is lower than the global average of 57%. Additionally, about one in five expats (21%) works part-time, and about 18% of expats are retired.
"My work life was very consuming and hectic, but life here is stress-free and a wonderful change," said a British expat in the report.
The InterNations Expat Insider study not only assessed expats' satisfaction with their personal finances but also determined the top destinations for expats worldwide.
The broader list examines how expats experience various aspects of life abroad, as determined by 5 indices: general happiness, quality of life, ease of settling in, working abroad, and their "expat essentials" index, which encompasses administration, housing, digital life, and language.
This year, four Asian countries ranked among the top 10 destinations globally, with Indonesia (3rd), Thailand (6th), Vietnam (8th), and the Philippines (9th).
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