The Big Mac index: Vietnam

Macro

2026-03-02

Description

The big mac index was invented by The Economist in 1986 as a lighthearted guide to whether currencies are at their “correct” level. It is based on the theory of purchasing-power parity (PPP), the notion that in the long run exchange rates should move towards the rate that would equalise the prices of an identical basket of goods and services (in this case, a burger) in any two countries.

Published by
The Economist
Frequency
Aperiodically
Next Update
Hashtags
Big Mac index PPP

AI Data Insight

In Q1 2026, Vietnam's Big Mac Index fell to 2.8948, hitting a new recent low and sliding further from the previous value of 2.9088. Against the backdrop of the Vietnamese Dong depreciating to 26,300 against 1 USD and mild inflation (3.5%), the index indicates that the Vietnamese currency is undervalued by approximately 50% in purchasing power relative to the USD, which is beneficial for buffering external costs and boosting export performance.

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AI Data Insight

In Q1 2026, Vietnam's Big Mac Index fell to 2.8948, hitting a new recent low and sliding further from the previous value of 2.9088. Against the backdrop of the Vietnamese Dong depreciating to 26,300 against 1 USD and mild inflation (3.5%), the index indicates that the Vietnamese currency is undervalued by approximately 50% in purchasing power relative to the USD, which is beneficial for buffering external costs and boosting export performance.

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Macro
Description

The big mac index was invented by The Economist in 1986 as a lighthearted guide to whether currencies are at their “correct” level. It is based on the theory of purchasing-power parity (PPP), the notion that in the long run exchange rates should move towards the rate that would equalise the prices of an identical basket of goods and services (in this case, a burger) in any two countries.

Published by
The Economist
Frequency
Aperiodically
Next Update
Hashtags
Big Mac index PPP