Vietnam's Gig Drivers Trapped in High-Income Illusion

In Vietnam's major cities, particularly Ho Chi Minh City, ride-hailing app drivers are enduring harsh working conditions in pursuit of seemingly attractive monthly incomes of VND15-20 million (approximately $600-$800 USD). However, achieving this income target comes at a significant cost, including expenses for gasoline, vehicle maintenance, and, crucially, a lack of social security benefits. Furthermore, working double the usual hours is not uncommon. Nguyen Ngoc Luan, 32, previously worked in a cold storage warehouse but switched to driving for a ride-hailing app, finding it more lucrative and flexible. He has been in the profession for nearly three years. Luan starts his day at 5 AM and plans to work until 10 PM, aiming to earn over VND500,000, which would put him on track to reach his monthly goal of VND15 million. However, he admits that after deducting fuel costs, vehicle depreciation, and potential social insurance contributions, his actual net income would be significantly lower. Many drivers are attracted to the profession by the high earnings of other drivers, often shared on social media. However, Pham Mi Sen, Vice Chairman of the Binh Tan Ride-hailing Drivers' Union, notes that these online earnings often represent peak performance, not daily reality. When income targets are not met, many drivers opt to extend their working hours rather than quit, attempting to compensate for the shortfall. A study on over 200 motorbike taxi drivers in Ho Chi Minh City by the Institute for Social Life Research found that full-time drivers earn an average of VND11.07 million per month, with VND9.29 million remaining after expenses. To achieve this, they work an average of 11.1 hours a day, 28.03 days a month, totaling around 311 working hours, significantly more than formal sector employees. If their working hours were limited to 8 hours a day, 26 days a month, the income for this group would drop to approximately VND6.21 million. Another survey by the Ho Chi Minh City Trade Union's Center for Worker Consultation and Support found that 93.6% of respondents considered driving their primary job, with 35.5% working over 10 hours daily. To earn around VND15 million per month, many drivers reported working 13-15 hours daily with almost no days off. Experts suggest the issue lies not just in whether drivers earn income, but how that income is perceived. Associate Professor Dr. Nguyen Duc Loc, Director of the Institute for Social Life Research, explains that while a driver might aim for VND10-15 million monthly by working long hours, other common jobs offer starting salaries of VND7-8 million. This apparent difference incentivizes drivers to choose ride-hailing. However, when total hours, effort, and costs are factored in, the remaining amount may not be as high. Despite the challenges, many drivers feel trapped. The need to cover daily expenses for family, rent, tuition, and utilities makes them hesitant to risk a gap in income. The immediate visibility of daily earnings from ride-hailing also fosters a reliance on this cash flow, making it difficult to transition to other jobs. This cycle, coupled with the anxiety of income disruption, keeps many drivers caught in the 'income vortex.' Pham Mi Sen also observes that the ability to receive cash almost daily makes it harder for drivers to leave the profession, as this income directly meets immediate expenses. Once dependent on app-based earnings, they find it difficult to accept the income gap that would result from quitting. Bà Nguyễn Văn Hạnh Thục, Director of the Ho Chi Minh City Employment Service Center, notes that a segment of the labor force is moving from the formal sector to technology-based driving. In the initial years, this job offered clear advantages: low skill requirements, quick entry, flexible hours, and comparable or even higher incomes than some manual labor jobs. However, Thục points out that when comparing options, workers often focus on immediate monetary returns without fully considering long-term accumulated value. The "money first" mentality strongly influences employment decisions. A driver can see exactly how much they earn today, while the benefits of formal employment, such as salary increases based on skill, welfare, social insurance, or paid leave, are not immediately visible in cash. She emphasizes that over a 5-10 year horizon, workers should consider income growth and accompanying benefits. In the formal sector, salaries can increase over time with experience and position, and companies tend to improve wages and benefits to attract labor. Additionally, contract workers benefit from regulated working hours, rest periods, and social insurance, providing security against risks. Therefore, Thục advises that when choosing a career, individuals should consider both immediate gains and long-term prospects. The current system often incentivizes short-term financial gains over sustainable career development and social security, creating a cycle of overwork and precariousness for gig economy workers. In Vietnam's one-party system, the development of labor rights and social security systems often takes a backseat to economic growth priorities. The rise of the gig economy, exemplified by ride-hailing services, enhances economic flexibility but also creates new challenges related to precarious employment and inadequate social protection for workers.