1

2

INTRODUCTION

2. Research purpose
Research purpose of the thesis is to develop a system of statistical
indicators measuring quality of life and calculation method of quality of life
index on the basis of determining concept framework of quality of life in
order to serve for the work of socio-economic macro management and
activity of comparability and assessment of quality of life in Viet Nam.
To obtain the aforementioned purposes, the thesis must answer the
following research questions:
Which direction should the study on quality of life in Viet Nam
be implemented?
How is the concept of quality of life in Viet Nam understood?
Which components does structure of concept of quality of life
include?
How is system of statistical indicators measuring quality of life
in Viet Nam developed and which indicators are included?
Which methodology is quality of life index developed by? How
are weights and method of aggregation determined?
3. Subjects and research scope
Objects and research coverage of the thesis are quality of life in Viet
Nam, system of statistical indicators measuring quality of life and
composite index of quality of life in Viet Nam.
However, quality of life is a huge research theme meanwhile data
sources are limited, the thesis only focuses on measuring objective aspect
but temporarily does not consider about measuring subjective aspect of
quality of life.

researches only consider partly quality of life as satisfaction with life or
measurement of quality of life of each specific group such as children,
elderly persons in the aspect of psychology, health, etc. The concept itself
and insight of concept of quality of life in Viet Nam are not currently
apparent. Indicators measuring quality of life are dispersed and
unsystematic, so it hardly evaluates comprehensively quality of life. This is
a research gap in the quality of life in Viet Nam.
Having originated from practical basis in term of existing policy and
research gap, it is absolutely necessary to carry out the thesis “Method of
developing and calculating composite index to measuring the quality of life
in Viet Nam”.


3

statistical indicators measuring quality of life; calculation method of
composite index; etc.
In addition, to pilot calculate composite index of quality of life, the
thesis uses method of collecting secondary data from available sources;
method of collecting primary data by interviewing experts in order to
determine weights of component indices; method of processing and
analyzing data; method of comparison, assessment on the influence of the
components on quality of life in general in the study.
5. New contributions of the thesis
The thesis has new theoretical knowledge contributions as follows:
- Rationale of the research and measuring concept of the quality of
life in Viet Nam, of which determining study approach and developing
theoretical framework on the quality of life including concept and structure
of the concept.
- System of statistical indicators measuring quality of life in Viet Nam.

theory was replaced by the basic needs approach. The basic needs theory
stated that quality of life was defined as the level of satisfaction of most
members in the given society with the hierarchical needs (Sirgy, 1986).
Capability approach to the quality of life was established in the
1980s and became popular in the 1990s. According to Stiglitz et al.
(2009:42), “this approach conceives a person’s life as a combination of
various ‘doings and beings’ (functioning) and of his or her freedom to
choose among these functioning (capabilities)”. This approach is
considered to have covered both the objective approach based on resources
and the basic needs approach. At present, this approach is one of the most
influential theories and is the premise for the Human Development Index,
the Millennium Development Goals, and many other development issues at
the global level.
1.1.2. Some debates related to concept of quality of life
Due to heterogeneous approaches as well as personal perceptions,
different concepts of the quality of life were mentioned but no widely
accepted concept exists. This leads to many debates related to concept of
the quality of life and how to measure quality of life.
However, in the social science researches, there were two approaches
in measuring quality of life which are discussed the most, including


5

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objective or subjective approaches and concept of quality of life whether as
uni-dimension or multi-dimension and which dimensions are concerned.
The objective measurements on quality of life are presented by
evaluating external living conditions while subjective measurements consider

New Economics Foundation (NEF), etc.
Not only international organizations but also many countries
worldwide have studied, developed a system of indicators measuring
quality of life and calculating composite index reflecting quality of life or
similar concepts. Many countries such as England, France, New Zealand,
and Canada conducted periodical surveys to collect information for
research on quality of life in their nations. Some countries in the same
region with Viet Nam have spent many years studying this theme such as
Malaysia Quality of Life (MQL) of Malaysia, Green and Happiness Index
(GHI) of Thailand, etc.
The common point of these studies is that the majority of them
evaluate quality of life in a multi-dimensional manner. Rationale of concept
and structure of the concept of quality of life or similar concepts are always
determined on the basis of theoretical cornerstone or certain philosophies.
In order to measure quality of life, depending on its construct, criteria of
indicator selection and data collection ability, each research determines its
certain indicators. However, many researches combined considering
objective and subjective indicators in measuring and assessing quality of
life. Of which, objective indicators often reflect people’s living conditions
which are easily collected by different sources, particularly from available
and official statistics sources. The most discussed objective aspects in the
assessment on quality of life include: economic conditions, housing
conditions, education, health, environment, family life and community,
people’s safety and participation. The subjective indicators reflecting
people’s perception of life are collected by social surveys.
1.2. Theoretical framework on quality of life in Viet Nam
1.2.1. Socio-economic viewpoints and objectives in Viet Nam
In spite of existing many issues need solving, development
perception of Viet Nam is comprehensive-oriented development for every
aspect of socio-economic life, of which focusing on human rights

is a multi-dimensional concept. Of which, objective quality of life is
measured by socio-economic indicators in order to reflect at extent to what
the needs of people’s living conditions are met or can be met; subjective
quality of life is measured by the extent of happiness, wellbeing,
satisfaction or similar states of each individual. Therefore, from the author's
point of view, the quality of life in Vietnam should be interpreted as
follows: "Quality of life is the extent to which objective human needs of
living condition are fulfilled in relation to personal perceptions of
subjective wellbeing”.
Structure of this concept will be defined on the basis of top-down
approach. Additionally, it should be based on theory in combination with
using selected available list and based on availability of data. These

components must be not only compliance with the context of Viet Nam but
also appropriate with international practice.
The objective dimensions of quality of life in Vietnam were
identified based on Allardt (1993) and Stiglitz et al. (2009), according to
the capability approach. Meanwhile, personal perceptions - the subjective
dimension of quality of life in Vietnam- are considered based on theory of
subjective wellbeing. Experiences of international organizations and
countries worldwide as well as real situation in Viet Nam currently are
practical basis.
Then, the theoretical framework of the quality of life in Vietnam is
proposed in Figure 1 below.
Objective dimensions:
Economic conditions
Housing conditions
Education
Health
Family relationship

on the quality of life in Viet Nam is theories on the quality of life in the
world. Generally, quality of life is approached in the tendency of multidimension and multidisciplinary. Theories on quality of life can be
developed by different approaches such as objective approach focused on
the resources and living conditions; subjective approach based on personal
well-being; basic needs approach or capability approach. The
heterogeneous approaches lead to different perceptions on quality of life.
However, not any concepts are widely accepted.
Practical basis for the development of theoretical framework on the
quality of life in Viet Nam is development perspective, socio-economic
development objectives as well as current socio-economic background in
Viet Nam and experience of international organizations, nations in studying
quality of life. The analysis shows that the quality of life in Viet Nam
closely associates with human development, economic development,
cultural development, social equity and development of safety and healthy
living environment.
Accordingly, the thesis goes to conclusion that quality of life in Viet
Nam is a multi-dimensional concept which should be considered in line
with capability approach in combination with subjective well-being
approach. Therefore, the quality of life in Viet Nam must be measured by
both subjective and objective indicators. The structure of concept of the
quality of life in Viet Nam is divided by 11 components, of which 10
components reflect the needs of objective living condition that should be
met, including: (1) economic conditions, (2) housing conditions, (3)
education, (4) health, (5) family relationship, (6) participating in
community, (7) natural environment, (8) social environment, (9)
governance and (10) political voice; component (11) reflects people’s
subjective perception to life through their satisfaction with life.

CHAPTER 2. SYSTEM OF STATISTICAL INDICATORS
MEASURING QUALITY OF LIFE IN VIET NAM

systematization; (3) concretization; (4) accuracy; (5) feasibility; (6)
international comparability; (7) adaptation; (8) efficiency.


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Criteria to select statistical indicators measuring quality of life
The thesis uses both direct and indirect indicators (proxy) to measure
quality of life. Besides, types of indicator - input, output or outcome can be
used simultaneously, in which, the output indicators and outcome indicators
are preferred.
The thesis uses 14 criteria used by Jacksonville Community Council,
Incorporated (Florida, United States) when selecting quality of life indicators.
These criteria include: (1) purposefulness, (2) importance, (3) validity and
accuracy, (4) relevance, (5) responsiveness, (6) anticipation, (7)
understandability, (8) availability and timeliness, (9) stability and reliability,
(10) outcome orientation, (11) asset orientation, (12) scale, (13) clarity, and
(14) representativeness.
2.1.4. Process of developing system of statistical indicators measuring
quality of life
As mentioned above, contents of subjective measurement of quality of
life exceed over the coverage of the thesis. With the components of
measuring the extent of fulfilling the needs of objective living conditions,
determining indicators is carried out by the following steps:
Step 1: Literature review, study international experience in the
development of system of statistical indicators measuring quality of life;
considering national development goals; study related statistical indicator systems.
Step 2: Make the list of indicators and develop a summary of their

Indicator 3.1: Literacy rate in population aged 15 and over (%)
Indicator 3.2: Percentage of population with high school diploma or
higher (%)
Indicator 3.3: Number of pupils per teacher
Indicator 3.4: Net enrolment rates (%)
Indicator 3.5: Completion rate (primary, secondary and high school) (%)
Indicator 3.6: Percentage of children under 5 years who are
monitored for development in health, education and social psychology (%)
Indicator 3.7: Number of years of schooling for the population aged
15 and over
2.2.4. Indicators for measuring the health
Indicator 4.1: Life expectancy at birth
Indicator 4.2: Infant mortality rate (per 1000 live births)
Indicator 4.3: Number of doctors per 10000 people
Indicator 4.4: Number of patient beds per 10000 people

2.1.3.


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Indicator 4.5: Percentage of children under 1 year old immunized
fully vaccinations (%)
Indicator 4.6: Percentage of children under 5 years old malnutrition (%)
Indicator 4.7: Percentage of people having health insurance (%)
2.2.5. Indicators for measuring family relationships
Indicator 5.1: Percentage of household having a cultural family certificate (%)
Indicator 5.2: Divorce rate (per 1000 people)
Indicator 5.3: Percentage of household having family violence (%)
Indicator 5.4: Sex ratio at birth

Council Election (%)
Indicator 10.3: Percentage of people voted in the Village Head
Election (%)
Indicator 10.4: Percentage of respondent said that the Candidate was
not suggested (%)
2.2.11. Indicators for measuring the satisfaction with life
Indicator 11.1: Lever of satisfaction with life
2.2.12. Indicators for measuring the overall quality of life
Indicator 12.1: The quality of life index
In Viet Nam, at present, there are not any researches publishing data
on the satisfaction of the people with their life. Additionally, similarly to
the quality of life, satisfaction with life is an abstract concept that is often
measured by a multi-item scale. Developing this scale is a complex process
that needs implementing in a specific research project. This exceeds over
the author’s ability. Therefore, in the coverage of this thesis, the author
only raises issue: it needs to study on the satisfaction with life when
carrying out measurement of quality of life in Viet Nam. The contents and
measurement method of satisfaction with life will be continuously studied
in the future.
Contents related to composite index of quality of life will be
presented in the chapter 3 of this thesis.


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CONCLUSION FOR CHAPTER 2
The objective of chapter 2 is to develop system of statistical
indicators measuring quality of life in Viet Nam. This system must satisfy
general requirements of the indicator system such as scientific basis, a
comprehensive and integrated system includes appropriate indicators,

built on the basis of combining separated indicators based on basic model
of measured multi-dimensional concept.
Composite index is often used to explain about complex issues that
hardly grasp in large fields such as economics, society and environment. Its
strengths include: easy to explain, enable to have an overall look at
complex multi-dimensional issues to support decision makers; allow to
implement simple comparisons among nations, regions and localities, etc.
However, its weakness is to mislead easily policies if it is explained
incorrectly or process of developing composite index is not transparent or
not based on a sound conceptual framework. Besides that, high subjective
shown by selecting indicators and weights can be issue causing a lot of debates.
3.1.2. Calculation method of composite index
Currently, there are two methods of calculating composite index that
are paid much attention by researchers, particularly calculating composite
index of quality of life or similar indices. They are OECD’s method and
Alkire-Foster one. Generally, each method has its own strengths and
weaknesses. Selecting which method will depend mainly on data conditions
as well as socio-economic background of each nation.
However, the biggest challenge for Alkire-Forster method is to
require all data to be collected by the same survey to enable to identify
consistently missing objects in accordance with a certain criterion (Alkire
& Santos, 2011). Additionally, the lack of shortage thresholds of quality of
life in Viet Nam is also a big obstacle. Therefore, the author proposes to
develop the quality of life index in Viet Nam by method of OECD (2008).
3.1.3. Selection of calculation method for composite index
Method of developing composite index of OECD (2008) is relatively
complicated with different options in each step of the process, especially in
the contents of data standardization, determining weights and composite
method.


ܺெ௔௫ − ܺெ௜௡

(3.1)

In case of highly skewed indicators, we should use the logarithmic
transformation, as follow.
ܺே௢௥௠௔௟௜௭௘ௗ =

ln(ܺோ௘௔௟ ) − ln(ܺெ௜௡ )
(3.2)
ln(ܺெ௔௫ ) − ln(ܺெ௜௡ )

In case of negative indicators, normalization is used to transform the value
into positive orientation. Then the normalized equation is defined as follows:
ܺே௢௥௠௔௟௜௭௘ௗ =

ܺெ௔௫ − ܺோ௘௔௟

ܺெ௔௫ − ܺெ௜௡

(3.3)

In case of indicators having optimal value, meaning that the value of
these indicators should be close to a certain central value (the optimal
threshold). The normalized equation is defined as follow:

ܺே௢௥௠௔௟௜௭௘ௗ = 1 −

|ܺோ௘௔௟ − ܺ஼௘௡௧௥௔௟ |
ܺெ௔௫ − ܺெ௜௡

weights for components of the quality of life. This is a method of
determining subjective weights based on expert interviews.
3.2.3. Aggregation
In general, the choice of how the index is aggregated depends on the
view about whether compensability between individual indicators or
dimensions is allowed.
In this thesis, the arithmetic mean should be used to calculate
components indices. It means that compensation among indicators in each
dimension is allowed. Because of equal weights among indicators in each
dimension, the component indices are calculated by simple mean formula:


‫ܫ‬௜ =

∑௠
௝ୀଵ ܺே௢௥௠௔௟௜௭௘ௗ ݆
݉

19

20



തതതതത
݊); n is the number
where ‫ܫ‬௜ is component index of dimension i (i=1,
of components; ܺே௢௥௠௔௟௜௭௘ௗ ݆ is value of individual indicator j after
തതതതതത
normalization in each component (j=1,

0,7 ≤ I < 0,8
0,8 ≤ I < 0,9
I ≥ 0,9

Conclusion
Very low quality of life
Low quality of life
Medium quality of life
Fairly high quality of life
High quality of life
Very high quality of life

Source: Author’s suggestion.
3.3. Pilot calculate the quality of life index in Viet Nam
3.3.1. Result of pilot calculating the quality of life index in Viet Nam
Due to the heterogeneous spatial and temporal data, the thesis only
calculates the quality of life index in Vietnam at the national level in 2016. In
addition, this composite index is calculated based on 10 groups of indicators

measuring the objective quality of life because of unavailable data on the
satisfaction with life.
48 individual indicators are normalized by the Min-Max
transformation with the minimum and maximum values determined as stated
in section 3.2.1.
The weightings of the component indices are determined by the BAP
method using the constant sum scaling. The mean score of each component is
the basis for determining the weight of that component. Besides, pair sample
t-test is useful to examine whether there is a significant difference in mean
scores among the quality of life’s dimensions. Results show that 10 quality of
life’s dimensions can be divided into 4 groups. Then, weight of each

Governance
Political voice

Symbol
I1
I2
I3
I4
I5
I6
I7
I8
I9
I10

Component index
0.617
0.791
0.608
0.695
0.864
0.574
0.601
0.733
0.572
0.564

Source: Author’s own calculation.
The composite index is calculated by using the formula 3.6. As a
result, with the value of 0.671, the achievement of quality of life in

mentioned yet; (4) inherent subjective in the process of developing and
calculating quality of life index is unavoidable; and (5) assessment on
robustness and sensitivity of index is not implemented as well as
connection between index and other related indicators, indices is not done.
Thus, the author suggests continuing to develop researches on
quality of life and similar themes in the future. Particularly: (1) improve
theoretical framework on quality of life in Viet Nam, especially by
developing quality of life scale; (2) study to develop satisfaction with life
scale; (3) agencies of data production should comply strictly with
regulations on production and dissemination of data; (4) expanding
research on quality of life in Viet Nam to provincial level to meet
requirements of comparing spatial quality of life; (5) study to better
improve calculation methodology of quality of life index in Viet Nam; and
(6) integrate quality of life index in the list of national statistical indicators
to be calculated annually.

CONCLUSION FOR CHAPTER 3

3.3.2.

The objective of chapter 3 is to propose method of calculating the
quality of life index in Viet Nam in a scientific and feasible manner.
On the basis of studying calculation method of composite index,
experience of the international organizations and nations in composing
composite index and similar indices, data condition and author’s research
capacity, the thesis propose calculation method of the quality of life index
in Viet Nam consisting of 5 steps: (1) develop theoretical framework on
quality of life; (2) select indicator system; (3) normalize data; (4) determine
weights and (5) calculate component indices and composite index. The first
2 steps of the process are presented in the chapter 1 and chapter 2 of the

The thesis is done with the desire to contribute to fill a small corner
of the large research gap in quality of life in Viet Nam. With the main
objective of proposing the method of developing and calculating composite
index to measure quality of life in Viet Nam, the thesis has in turn
answered the research questions.
Research results show that there are many different approaches to
studying and measuring quality of life. However, with Viet Nam’s current
development perspective, quality of life in Viet Nam is closely associated
with human development, economic development, cultural development,
social justice and building a healthy and safe living environment.
Therefore, the thesis has chosen to study and measure quality of life
according to a capability approach in combination with a subjective wellbeing approach. By this way, quality of life in Vietnam is interpreted as:
“Quality of life is the extent to which objective human needs of living condition
are fulfilled in relation to personal perceptions of subjective wellbeing.” In
particular, objective quality of life includes 10 components: economic
conditions; housing conditions; education; health; family relationship;
participating in community; natural environment; social environment;
governance; and political voice. Subjective quality of life is measured by
subjective well-being with the component of satisfaction with life.
Based on the concept of quality of life and its construct, the thesis
proposes a statistical indicator system to measure quality of life in Viet
Nam. The statistical indicator system to be built must meet the basic
requirements and ensure certain principles. Selected indicators for this
system are based on defined criteria. According to the hierarchical design,
the indicator system measuring quality of life includes 12 groups of
indicators, of which the first 10 groups include 48 individual indicators
measuring objective quality of life; the 11th group measures subjective
quality of life and the 12th group measures the composite index.

The thesis proposes the method of calculating the quality of life

and responsibilities; integrating quality of life index into the list of national
statistical indicators to be calculated and published annually.
Although there are many limitations, the author hopes that the thesis
will contribute to the development of relatively new research field in
quality of life in Viet Nam. The results of the thesis will help researchers
and policy makers get the overall "view" of quality of life as well as its
aspects. These are good scientific bases and evidences for policy making in
Viet Nam to improve quality of life of the people.


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LIST OF PUBLISHED WORKS
1. Nguyen Thi Xuan Mai (2018). ‘Measuring the quality of life in
Vietnam’. Eurasian Journal of Social Sciences, 6(4), 2018. DOI:
10.15604/ejss.2018.06.04.001. Online ISSN: 2148-0214. Trang 1-13.
2. Nguyễn Thị Xuân Mai (2018). ‘Kiểm định thang đo sự hài lòng với
cuộc sống ở Việt Nam’. Tạp chí Kinh tế và Phát triển, số 252 (II),
tháng 6/2018. ISSN: 1859-0012. Trang 11-19.
3. Nguyễn Thị Xuân Mai (2018). ‘Một số phương pháp xác định trọng số
khi tính chỉ số tổng hợp đo lường các hiện tượng kinh tế, xã hội’. Tạp
chí Con số và Sự kiện, số 533, tháng 4/2018. ISNN 0866-7322. Trang
48-49.
4. Nguyễn Thị Xuân Mai (2017), 'Nghiên cứu khía cạnh chủ quan trong
khái niệm chất lượng cuộc sống’. Kỷ yếu Hội thảo khoa học quốc gia:
Các vấn đề kinh tế-xã hội trong thực hiện các Mục tiêu phát triển bền
vững (SDG) 2030 của Việt Nam. Đại học Kinh tế quốc dân, Viện Dân
số và các vấn đề xã hội. NXB Lao động Xã hội, 6/2017. Trang 100-108.
5. Nguyễn Thị Xuân Mai (2016), ‘Đo lường chất lượng cuộc sống ở Việt
Nam: cách tiếp cận chủ quan hay khách quan’. Tạp chí Kinh tế và Phát