Street Cleaner in Hue, Vietnam

Although the countries of Vietnam, Cambodia and Laos are statistically among the most undeveloped countries in Southeast Asia, their major cities are significantly more developed and are increasingly becoming viable destinations for international living and retirement. There is a significant amount of foreign investment and development taking place in these countries, much of it focused in the major urban areas.

Thus although the nations appear to be behind the curve with respect to economic development, the major cities of Vietnam, Cambodia and Laos are developing at a rapid rate and offer an alternative to Bangkok, Jakarta, Manila and Kuala Lumpur.

Major Metropolitan Centers of Vietnam, Cambodia and Laos for International Living

Ho Chi Minh City, Vietnam: formerly known as Saigon, Ho Chi Minh City is the most populated metropolitan center in Vietnam with about 9 million inhabitants. The city is located in a savannah type of climatic region with a distinctive rainy and dry season. Today, the city reflects a long and diverse history under Khmer, Vietnamese, French with a hint of Chinese from in migration. Buddhism is the major religion (80%) followed by Catholicism (11%).

Due to the long Vietnam War, Ho Chi Minh City and the rest of the country are playing economic catch up with much of the rest of Southeast Asia. Despite ‘communist rule’ the country is making great leaps and strides in catching up, and is likely to emerge as one of the economic leaders in the region in the not too distant future. Partly due to the American influence during the war, English is somewhat used as a second language by many in Ho Chi Minh City.

If there is one thing admirable about Ho Chi Minh City is that despite its difficult recent history, the city is now moving forward at an extremely rapid clip. New satellite cities and city centers are being built, infrastructure is being improved, billions of dollars of foreign money is being invested annually to build up export processing zones, industrial zones, high technology ventures, a stock exchange, financial services, and tourism. Health care is based on French accreditation standards and the city has a few good hospitals that rise to those standards.

Given its large size, the expatriate will find that Ho Chi Minh City offers a variety of lifestyle options – from intense immersion in a crowded Vietnamese urban culture to a more ‘suburban and upscale’ lifestyle in developments catering to Japanese, Korean and Western expatriates.

Although the country may still be behind compared to other Southeast Asian countries, the city of Ho Chi Minh will most likely pass other national capitals in the near future and emerge as one of the best cities for international living and retirement in the Southeast Asia region. Mega city oriented retirees are likely to find the new city centers to their liking with a broad range of social amenities in place.

Phnom Penh, Cambodia: with a metropolitan population of about 2 million, Phnom Penh seems diminutive compared to Ho Chi Minh City. However, it is the capital and the major economic, political and cultural center of Cambodia. The city dates back to 1372 and has seen rule by the Khmers, the French and the Khmer Rouge before the current state was established. The post-Vietnam War era was particularly devastating to the capital, but it is now in a stable period where foreign aid, foreign investment and foreign loans are underwriting the reconstruction of the country.

As a result, the Phnom Penh has been experiencing an economic boom and is being ‘born again’ as a modern metropolis with the kinds of social amenities sought after by typical American tourists and expatriates. For better or worse (depending on your point of view), this includes high rise properties, modern malls, an international airport, and American food franchises.

The city hosts many cultural festivals and events, has a number of museums documenting the country’s diverse and sometimes turbulent history. Like Ho Chi Minh City, Phnom Penh is a city in transformation and has the potential to develop into a global city in the future.

Major Mid-Sized Cities of Vietnam, Cambodia and Laos for International Living

Hue, Vietnam: with a population of under a million, Hue was the old imperial capital of Vietnam until 1945. The city’s unique history has made it one of UNESCO’s world heritage sites. Despite damage received during the Vietnam War, today efforts are being undertaken to restore much of the old city.

Unlike Ho Chi Minh City, the development of Hue is not proceeding at break neck speeds and efforts are being undertaken to preserve its past. Hue is probably more suitable for the retired expatriate who can ‘rough it’ with fewer social amenities as a trade-off for a glimpse into Vietnam’s history.

Hue has a tropical monsoon climate with a very distinct wet and dry season. The city is served by an airport and a decent bus and rail system. Major tourist sites include Vietnam’s ‘Forbidden City’ and the Tomb of the Emperors. Hue offers a scaled back and more historical city than Ho Chi Minh City for retirees desiring something less than a super city for retirement.

Vientiane, Laos: the capital and economic center of Laos, this city has a population of about 700,000 inhabitants. Although medium sized, as the capital of Laos, Vientiane has received a significant amount of foreign investment to drive its development. The city has the feel of a small town that is on the verge of developing into a mainstream city.

The social amenities in Vientiane are somewhat limited, but will provide an expatriate retiree with access to basic services such as healthcare, malls and markets. Currently, it might make a decent choice for someone wanting an escape from western living with enough basic infrastructure to provide a reasonable quality of life. There is every reason to believe however, that the city will evolve over the next decade or two into a more modern metropolitan center.

Major Emerging Tourist/Resort Towns of Vietnam, Cambodia and Laos for International Living

Danang, Vietnam: with a population just under a million, Danang is another smaller city worthy of mention. It is the major industrial city in central Vietnam and has a decent infrastructure in place for international living. Industry is highly diversified and in recent years tourism has begun to grow in importance. A number of beachfront resorts are being developed as well as the development of a new city center that is likely to appeal to expatriates in Vietnam with a broad range of social amenities and housing options planned.

Expatriates will find a decent range of international schools, universities and hospitals available for a Vietnam retirement. The transportation infrastructure is well developed – with an international airport, a train system, and a port. Nearby to Danang are a number of UNESCO World Heritage sites that offer a deeper insight into Vietnam’s history and culture.

Expatriates will find Danang offers a relatively modern industrial city, access to cultural sites outside of the city, and upscale resorts along white sandy beaches for a pleasant international retirement. Danang may lack the glitter and the hustle and bustle of Vietnam’s capital, but provides quiet and luxury retirement living options without the maddening crowd.

Siem Reap, Cambodia: with a population of under 200,000 Siem Reap attributes much of its current growth and development to tourism. Despite the importance of tourism, Siem Reap is not yet of the same character of other tourist towns in the region (for example – Phuket, Thailand). Siem Reap is essentially the gateway to Angkor Wat, the ancient temples of the Khmer Empire.

The city thus retains more of an older, cultural and smaller town lifestyle than most heavily trafficked tourist towns. There are museums, temples and cultural parks to visit. The social amenities are available, but relatively modest even for a tourist town. Of course, the most popular tourist attraction is Angkor Archaeological Park, the 400 square kilometer ancient city that houses Angkor Wat and many other ruins for visiting.

Small Cities and Towns of Vietnam, Cambodia and Laos for International Living

Sihanoukville, Cambodia: the city is small (under 200,000 inhabitants) but is a relatively new city that was founded in 1960 after independence from France was achieved. The city was planned around Sihanoukville becoming a port city – the only deep water port in Cambodia.

Although today foreign investment continues to grow the port, tourism has developed along the many white beaches that offer guests everything from beach houses to world class luxury hotels. There are also a number of small islands off the Sihanoukville coast that can offer a get away from it all ecotourist experience or a lay on the beach resort experience. All in all, Sihanoukville offers the retired expatriate an opportunity for very laid back beachside living that is not as developed (overdeveloped) as other beachside cities in Southeast Asia.

Luang Prabang, Laos: a city of about 100,000, Luang Prabang is not really ready for prime time. It is a UNESCO World Heritage site and is likely to develop considerably over the next couple of decades. Much of the growth is likely to be driven by a growing tourist economy – particularly from China. The city is served by an international airport. Major attractions to this small town are its historic temples, natural features (waterfalls, caves, and elephant riding), and Royal Palace museum.

Vang Vieng, Laos: much of what is the city was developed back during the Vietnam War when the US maintained an air force base in this town. The population of Vang Vieng is under 30,000 but it is a popular location for backpackers around the world – a more rugged brand of youthful ecotourism. As such there are some basic social amenities (bars, guest houses, and restaurants) that is probably adequate for the younger crowd. For a young at heart type of retiree who really wants to get away from the large city and hang out with younger backpacker types, Vang Vieng may prove suitable for international living.

Summary of Major Cities of Vietnam, Cambodia and Laos for International Living

Vietnam, Cambodia and Laos are towards the back of the economic development curve in Southeast Asia. This is changing rapidly however, with a considerable amount of foreign investments pouring into these three countries. It is likely that within the next decade, the capitals of these three countries will have developed into reasonably modern urban centers for international living with all the basic amenities needed.

The smaller towns and cities can be expected to grow more slowly however, making it possible for an expatriate to find more quiet and out of the way cities in Vietnam, Cambodia or Laos for international living.

Map of Cambodia, Laos and Vietnam

(photo by: Vu Pham, map by: Google Maps)

References and Bibliography

Danang City, Vietnam Tourism

Ho Chi Minh City, Vietnam Online

Hue, Vietscape

Luang Prabang, Ecotourism Laos

Phnom Penh, government website

Siem Reap

Sihanoukville

Vang Vieng, Tubing Laos

Vientiane Times

Geographically, half of the Southeast Asian region is a continental landmass which includes the countries of Cambodia, Laos, Myanmar, Thailand, Singapore and Vietnam. The other half of Southeast Asia is an archipelago and consists of the island nations of Brunei, West Timor, Indonesia and the Philippines. Southeast Asia’s unique geography makes it a culturally diverse region with a wide range of cultures, languages, religions and histories.

The Southeast Asian region underwent two major traumas throughout the late 1900’s. The first trauma was a series of international wars associated with independence movements combined with conflict associated with the two superpowers of the time: the USA and Soviet Union. The second major trauma was more of an internal one. Following independence, many countries experienced a great deal of political instability as various internal factions vied for political power. These growing pains devastated the economies, environments and populations of many Southeast Asian countries.

Despite the trauma of the latter half of the 1900’s, some of the Southeast Asian countries have now begun to spring ahead with amazing economic growth and development. In this period of rebirth and rebuilding, Southeast Asia is emerging as one of the best places to retire abroad.

Southeast Asia Retirement – Overview of the Physical Landscape

Geology of Southeast Asia for Retirement:  Southeast Asia consists of two distinct sub-regions. There is a geologically stable continental region that is part of the larger Asian continent and a separate, more geologically unstable archipelago region. The instability of Southeast Asia’s archipelago is caused by geologically active tectonic plate boundaries that underly the region. At these tectonic boundaries, intense geologic pressures result in frequent volcanic and earthquake activity.

Whenever a severe geologic event occurs, the region also becomes vulnerable to tsunamis that have the potential to affect the coastal areas of all the countries in the region. Most of the major urban centers in this region lie in these coastal areas.  Although the risks are no greater than say, western California, it is something for retirees to consider should they decide on a Southeast Asian retirement.

Climate of Southeast Asia for Retirement: The climate of Southeast Asia is tropical and strongly influenced by the monsoon – a seasonal shift of winds. This seasonal shift in wind direction produces a distinct rainy and dry season in the region. During the rainy season (October to February) winds tend to blow inland from the sea and the moist maritime air bring intense rains to the region. From May through September, the wind shifts direction and blows out to sea, resulting in a drier season.

In the highland areas of these countries, the climate becomes much cooler and more like a temperate climate. Many expatriates favor this cooler highland climate areas for their Southeast Asia retirement.

Location of Southeast Asia for Retirement: Geographically, the region lies on a major transportation route that has made it a strategic control point for centuries. Combined with major mineral deposits, the region attracted the interests of the world’s superpowers who shaped the politics and cultures of the area.

Today, the tropical climate combined with many beaches has attracted many to the region and Southeast Asia has emerged as one of the most popular tourist and retirement destinations in the world over the last few decades. Although it is located far from the United States, Southeast Asia is somewhat of a hub between the economic superpowers of Japan and Korea, an emerging China, and Australia/New Zealand.

Southeast Asia Retirement – Overview of the Cultural Landscape

Southeast Asia Prior to 1500: The nearby giants of China and India played a great role in  shaping the history and culture of Southeast Asia. Although the people and cultures of the region were not been absorbed into either of these giants both China and India left its marked on Southeast Asia’s religions (Buddhism and Islam). In part, the mountainous and island nature of the region has fostered regional isolationism and Southeast Asia evolved into a diverse cultural region with many different ethnic groups, religions, languages and political systems. This regional isolationism also lead to the development of a number of independent kingdoms in the region.
Although most Southeast Asian countries are relatively peaceful today, it is not unusual for ethnic, cultural or religious unrest to surface sporadically as a result of the history and cultural diversity of the region.

Southeast Asia After 1500: After the 1500’s, Europe began to exert its influence on the region and much of Southeast Asia was colonized. European nations such as the Netherlands, Great Britain, Spain, and France brought most of the region under their control. Later, in the 1900’s new colonial powers began to leave their imprint as both the United States and Japan brought various countries under their rule.

Following the end of World War II, the influence of western colonialism began to wane and Southeast Asia began its march to independence. Independence was both a blessing and a bane to some nations as various ethnic, religious and political groups vied for power in the vacuum created by the demise of colonialism.

Today, Southeast Asia is a complex region reflecting the indigenous cultures and civilizations that emerged in the region, the influences of China and India, the subsequent influence of colonialism from the West and finally the struggle for independence, political control and economic development within these countries.

Despite the regions colonial past, most countries seem intent on entering the global economy to become economic partners with their former colonial masters. The major urban centers in this region have become highly urbanized and westernized in their outlook – making these countries worth considering for a retirement abroad.

Southeast Asia Retirement – Overview of the Economic Landscape

Highly Developed Economies: The countries of Brunei and Singapore represent two of the wealthier countries in the world. Both have gross domestic products that exceeds that of the United States on a per capita basis. Brunei’s development has been largely fueled by oil production, while Singapore is a modern city state that has aggressively pursued economic development through investment and trade.

Both these countries have modern infrastructures that can provide a retiree with world class healthcare systems that some might argue are better than those in the United States. These countries are politically stable and have modern transportation and communication systems.
Perhaps the major downside to these two countries is the relatively high cost of living associated with highly developed economies. But, for retirees with no economic constraints, these types of countries would be among the best places for a Southeast Asian retirement.

Newly Industrializing Countries: Indonesia, Malaysia, Thailand and more recently, the Philippines, represent the next tier of economically developed countries in the region. These countries are slowly following the pattern of economic development that other Asian countries such as Japan, Korea, and Singapore have already taken.

These newly industrializing countries are somewhat less developed than Singapore. However, a good part of that is tied to the much larger size of these nations and a significantly larger rural population.

For the most part, the Newly Industrializing Countries are characterized by fairly modern capital cities and less developed rural areas. Their capital cities offer a relatively modern infrastructure and in recent years, the quality of healthcare has gone up significantly due to the development of medical tourism – a multi-billion dollar industry in the region.

The per capita incomes of these countries are much lower than Singapore ($49,000) or the United States ($46,000) and range from $4,000-$13,000. This results in a much lower cost of living, and retirees with a more modest retirement budget will be able to stretch their dollars further in these countries. While costs of living are relatively low, retirees will find a modern infrastructure in place in the major urban centers of these countries.

These countries are also viable retirement destinations. Their lower cost of living may make them ideal for a Southeast Asian retirement.

Developing Countries: The remainder of the Southeast Asian countries are still in an early development phase. To a large degree, these countries experienced the greatest impact of the Indochina wars and the political turmoil that followed. Nevertheless, some appear to be making slow and gradual progress and in a few decades are likely to emerge as best places to retire assuming that they can remain politically stable.

Southeast Asia Retirement – Summary of the Retirement Landscape

Precautions: Despite progress among the newly industrialized countries, occasional incidents of political or ethnic unrest continue to surface in countries such as Indonesia, the Philippines, and Thailand. Retirees should keep up to date on the latest events and evaluate the risks. These incidents are intermittent and localized rather than representing any type of widespread general uprising.

It will be useful to familiarize yourself with any high risk areas should you decide to retire in Southeast Asia. Having said that, by using good judgment and avoiding risks, Southeast Asia can be one of the best places to retire during the next decade for those having to manage a modest income.

Advantages: Many Southeast Asian countries have adopted policies designed to attract retirees to the region. Malaysia might be the most progressive with policies designed to make the retiree feel that Malaysia is their ‘second home’.

Infrastructure in the capital cities is relatively decent. In particular, modern medical care can be obtained in those countries that have adopted medical tourism as part of their economic development strategy.

For the most part, these countries have been absorbed into the global economy, and the retiree can expect to find world class malls, a decent variety of western food products, a handful of modern hospitals, many western franchises, and generally a relatively low cost of living.

As these countries continue to modernize, they will increasingly prove viable for a Southeast Asian retirement.

(Photos by Danny Tan)

References and Bibliography:

History of Southeast Asia

Political and Cultural Geography of Southeast Asia

Southeast Asia: Culture and Heritage

The Economy of Southeast Asia

The Official Website of the Association of Southeast Asian Nations