1 INTRODUCTION 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? 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 Data in 2016 will be collected to pilot calculate the composite index of quality of life at national level Research methodology As quality of life is one of new issues that have not been much studied in Viet Nam, qualitative research methodology consisting of literature review and in-depth interview with experts are used throughout the research in order to study and find out issues such as research approach and measurement of quality of life, components of quality of life; system of Reasons for choosing theme Quality of Life and improving the quality of people’s life are key contents in the human development strategy This objective is put at the forefront in the socio-economic development strategy of every nation and gets much attention from many countries in the world as well as Viet Nam In the last years, on the basis of the previous studies on quality of life of scholars worldwide, many international organizations and countries have raised different viewpoints and concepts on quality of life, depending on the extent of development, socio - cultural notions, and traditions of each nation and region Along with the development of concept of quality of life, international organizations and nations have also studied and developed systems of indicators measuring quality of life, satisfaction and well-being with life On the basis of these indicators, international organizations and nations have calculated composite index in order to evaluate quality of people’s life, changes in quality of life over time or compare among nations, regions, or inhabitant communities However, such academic researches on this theme are relatively limited in Viet Nam The quality of life of Viet Nam is just only internationally evaluated and compared in the aspect of the world At national level, we just standstill at discussions, exchanges of concept but not clarify rationale or background of constituting concept Some other 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 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 - Methodology of building and calculating composite index of quality of life in Viet Nam - Additionally, the thesis also contributes to practical aspect when pilot calculating composite index of quality of life in Viet Nam in 2016 This is a useful reference for making policies to improve quality of people’s life Thesis structure Apart from Introduction and Conclusion, the thesis consists of chapters: Chapter Theoretical basis on quality of life Chapter System of statistical indicators measuring quality of life in Viet Nam Chapter Developing calculation method of quality of life index in Viet Nam CHAPTER THEORETICAL BASIS ON QUALITY OF LIFE 1.1 General theoretical issues on quality of life 1.1.1 Research approaches to quality of life Literature review shows that there are some approaches to determine the quality of life Initially, quality of life is evaluated by purely economic approach basing utility theory and through a unique indicator as GDP per capita However, this notion has been gradually changed since many theories mentioned quality of life as a multi-dimensional cross-sectoral concept In the 1960s, there were two oppositely traditional approaches in measuring quality of life, i.e objective and subjective approaches Objective approach based on the resources focuses on measuring people’s objective circumstances Meanwhile, subjective approach based on utility theory is the measurement of subjective wellbeing In the 1970s, the utility 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 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 personal assessments on those conditions According to Borthwick-Duffy (1992) (quoted in Felce & Perry, 1995, 54), there are perspectives on this issue, including: (1) by objective approach, consider quality of life as quality of living conditions; (2) by subjective approach, quality of life is considered as satisfaction with life; (3) a combination of two subjective and objective approaches in measuring quality of life based on conceding their strengths and weaknesses Then, the quality of life is considered as a combination between living conditions and satisfaction with life According to Cummins (2000), Hagerty et al (2001), Costanza et al (2007), Stiglitz et al (2009), etc, many researchers agree with the third perspective In the viewpoint of social research, quality of life is an abstract concept, accordingly it is often considered with different components (dimensions) Nowaday, there is a high concurrence in considering quality of life as a multidimensional concept (Cummins, 1997; Felce, 1997; Snoek, 2000; Hagerty et all, 2001; …) Along with this concurrence, many researchers found out the way to determine dimensions or components of quality of life However, they still did not reach consistency on how many dimensions as well as which dimensions they are (Alkire, 2008) Generally, three aspects of physical, psychology and society are considered when studying quality of life 1.1.3 Some measurements of quality of life of international organizations and nations worldwide In the last years, on the basis of the previous studies on quality of life of scholars worldwide, many international organizations and countries have conducted different studies on measuring and assessing the changes in quality of life among nations, cities, communities, etc Accordingly, many composite indices measuring the quality of life have been widely published such as United Nations’ World Happiness index (WHI), Better Life Index of the Organization for Economic Cooperation and Development (OECD), Where-to-be-born index of the Economist Intelligence Unit (EIU), the Happy Planet Index (HPI) of the 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 guarantee; satisfying people’s needs for human development, improve quality of life The socio-economic development objectives of Viet Nam as well as international commitments have clearly indicated that 7 Article of the Constitution of the Socialist Republic of Viet Nam 2013 stated: “The State guarantees and promotes the people's mastery; acknowledges, respects, and protects human rights and citizens’ rights; implements the objectives of affluent people, powerful state, democracy, justice, civilization, and that all people enjoy abundant, free, and happy life and are given conditions for all-sided development” The socio - economic development strategy for the period of 2011- 2020 clearly states that commitment of Viet Nam Government: “Economic growth should be combined with cultural development, implementation of social advance and equality, continuous improvement of people’s life quality,…” 1.2.2 Approaches to measuring quality of life in Viet Nam From the aforementioned analysis, the author suggests that the quality of life in Vietnam should be considered in the capability approach, also known as human development approach (Cobb, 2000), in combination with the subjective wellbeing approach This means that the quality of life in Vietnam needs to be measured by both objective and subjective factors This combination in the measurement of quality of life in Vietnam is both methodological and in line with the general trend of the world All experts who took part in the in-depth interview agree with this suggestion 1.2.3 Propose theoretical framework on quality of life in Viet Nam With the aforementioned approaches, the quality of life in Viet Nam 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 below Objective dimensions: Economic conditions Housing conditions Education Health Family relationship Participating community Nature environment Social environment Governance Political voice QUALITY OF LIFE Subjective dimension: Satisfaction with Life Figure Theoretical framework of Quality of Life in Vietnam Source: Author’s suggestion This theoretical framework is the basis for practicing measurement and assessment of the quality of life in Viet Nam in a systematic and scientific manner 9 10 CONCLUSION FOR CHAPTER The objective of chapter is to develop theoretical framework on the quality of life in Viet Nam, which consists of concept and its construct This theoretical framework must be developed on the basis of robust rationale and practice Fundamental rationale for the development of theoretical framework 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 SYSTEM OF STATISTICAL INDICATORS MEASURING QUALITY OF LIFE IN VIET NAM 2.1 General issues on the development of indicator system measuring quality of life 2.1.1 Method of developing indicator system measuring quality of life The thesis uses the top-down approach (theoretical approach) to develop indicator system measuring quality of life The thesis applies hierarchical design by Maggino & Zumbo (2012), starting from concept model, identifying components of the concept, determining variables, basic indicators, finally these indicators are arranged in an appropriate manner in the indicator system By this approach, the process of measuring quality of life requests for a sound theoretical framework Then, these indicators not only simply provide information but also present relationship with concept model 2.1.2 Requirements and principles of the development of system of statistical indicators measuring quality of life in Viet Nam According to Noll (2004), a system of indicators must satisfy general requirements, including: (1) being developed on the scientific basis with theoretical approach and apparent concept; (2) as a comprehensive and integrated system; (3) using the most appropriate indicators (valuable and reliable); and (4) using the best available database and guarantee comparability among nations (or localities) Apart from the aforementioned requirements, a system of statistical indicators measuring quality of life in Viet Nam must cover completely key aspects of the quality of life, meet requirements of measuring quality of life in Viet Nam in conformity with certain historic background; indicators are strictly regulated in term of content, coverage, calculation method and guarantee legality and consistency; make sure of stability in a relatively long time but being changeable in conformity with conditions in each period; In order to meet the aforementioned requirements, the development of system of statistical indicators measuring quality of life must comply with the following principles to assure: (1) targeted orientation; (2) systematization; (3) concretization; (4) accuracy; (5) feasibility; (6) international comparability; (7) adaptation; (8) efficiency 11 12 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 properties Step 3: Select indicators in line with mentioned criteria and guarantee requirements of indicator system as well as comply with principles of developing indicator system Step 4: Consult with experts about the list of indicators proposed in step Step 5: Sum up experts’ ideas, study again data properties and selection criteria to make the final indicator system 2.2 Propose a system of statistical indicators measuring quality of life in Viet Nam The system of statistical indicators measuring quality of life in Viet Nam is divided by 12 groups, of which the first 10 groups reflect objective aspects of the quality of life, group 11 reflects subjective aspect of the quality of life and the group 12 reflects the overall quality of life 2.2.1 Indicators for measuring the economic conditions Indicator 1.1: Employment rate (aged 15 and over) (%) Indicator 1.2: Monthly average income per capita (VND) Indicator 1.3: Poverty rate (%) Indicator 1.4: Percentage of respondents reporting that their economic condition has improved in the past years (%) Indicator 1.5: Percentage of laborers having social insurance (%) 2.2.2 Indicators for measuring the housing conditions Indicator 2.1: Percentage of households having permanent house (%) Indicator 2.2: Average dwelling area per capita (m2) Indicator 2.3: Percentage of households using hygienic water (%) Indicator 2.4: Percentage of households using electricity (%) Indicator 2.5: Percentage of households using hygienic toilet (%) Indicator 2.6: Percentage of households having or using at least one of the information and communication equipments (%) 2.2.3 Indicators for measuring the education 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 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 13 Indicator 4.5: Percentage of children under year old immunized fully vaccinations (%) Indicator 4.6: Percentage of children under 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 2.2.6 Indicators for measuring the participating community Indicator 6.1: Percentage of villages having cultural house (%) Indicator 6.2: Percentage of villages having a cultural village certificate (%) Indicator 6.3: Percentage of respondents having voluntary contribution to local projects (%) 2.2.7 Indicators for measuring the nature environment Indicator 7.1: Percentage of respondents reporting that the water quality has declined in the past three years (%) Indicator 7.2: Percentage of respondents reporting that the air quality has declined in the past three years (%) Indicator 7.3: Forest area (% of land area) Indicator 7.4: Living solid waste collection rate (%) 2.2.8 Indicators for measuring the social environment Indicator 8.1: Criminal rate (per 10000 people) Indicator 8.2: Percentage of respondents reported they were victims of one of the four types of crime (%) Indicator 8.3: Percentage of respondents said they felt safe walking alone around the area they live during the night (%) Indicator 8.4: Safety levels in localities Indicator 8.5: Road traffic death rate (per 100000 people) 2.2.9 Indicators for measuring the governance Indicator 9.1: Transparency of local decision-making index Indicator 9.2: Control of corruption index Indicator 9.3: Public administrative procedures index 14 2.2.10 Indicators for measuring the political voice Indicator 10.1: Percentage of people voted in the National Assembly election (%) Indicator 10.2: Percentage of people voted in the Commune People’s 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 of this thesis 15 CONCLUSION FOR CHAPTER The objective of chapter 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, available data and guarantee spatial comparability Besides that, in order to measure quality of life, this system must cover completely key aspects of the quality of life; make sure of stability in a long time but being changeable to be appropriate in line with each period The process of developing indicator system for measuring quality of life must comply with the principles such as: targeted orientation; systematization; concretization; accuracy; feasibility; international comparability; adaptation; and efficiency Indicators are selected according to these criteria, include: purposefulness, importance, validity and accuracy, relevance, responsiveness, anticipation, understandability, availability and timeliness, stability and reliability, outcome orientation, asset orientation, scale, clarity, and representativeness Fundamentally, system of indicators measuring quality of life is developed by hierarchical design in relation with theoretical approach This process results in a system of statistical indicators divided by 12 groups, of which the 10 first groups measure 10 components of objective quality of life, consisting of 48 indicators; group 11 measures subjective quality of life and group 12 measures overall quality of life Each indicator in the system is presented comprehensively with content, meaning, calculation method and data sources The indicator measuring subjective quality of life is not studied in the coverage of this thesis 16 CHAPTER DEVELOPING CALCULATION METHOD OF QUALITY OF LIFE INDEX IN VIET NAM 3.1 Overview of methods of developing composite index 3.1.1 Concept and strengths, weaknesses of composite index According to OECD (2008), composite index is an index which is 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 17 18 According to Mazziotta & Pareto (2013), main factors to take into account in the choice of the best method for calculating composite index are as follows: (1) type of indicator (substitutable/non-substitutable); (2) type of aggregation (simple/complex); (3) type of comparison (absolute/ relative); and (4) type of weights (subjective/objective) It depends on each assumption, requirement and real condition to select appropriate solutions 3.2 Propose calculation method of quality of life index in Viet Nam The thesis proposes the composing of Vietnam quality of life index including the following steps: (1) Developing the theoretical framework; (2) Selecting indicators; (3) Normalization of data; (4) Determining weights; and (5) Calculating component indices and the composite index Steps and have been solved in detail in the first two chapters of the thesis The methods in steps 3, and will be selected based on suggestions of Mazziotta & Pareto (2013), available data and the ability to apply in practice 3.2.1 Normalization of Data Normalization to ensure comparability across indicators is required prior to data aggregation The thesis chooses Min-Max to normalize data for its simplest and most common normalization procedure Then, all normalized indicators have the same range of variation (0.1), but not necessarily the same variance The higher normalized indicator is, the better quality of life is ܺே௢௥௠௔௟௜௭௘ௗ = ܺோ௘௔௟ − ܺெ௜௡ ܺெ௔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௘ௗ = − |ܺோ௘௔௟ − ܺ஼௘௡௧௥௔௟ | ܺெ௔௫ − ܺெ௜௡ (3.4) For indicators which have absolute value/or ratio value/or value per capita, the minimum and maximum values are determined based on the respective minimum and maximum values in practice; or the actual values achieved in units (i.e provinces) for many years (it is advisable to widen the achievement gap); or the minimum and maximum values established by international organizations for published indicators For indicators which have percentage value, the thesis chooses the minimum value as and the maximum value as 100 3.2.2 Weighting Determining weights is a source of contention In general, weights should be selected in connection with both the theoretical framework and the data properties Weights can be defined objectively or subjectively Objective weights are determined by statistical methods based on mathematical models, therefore, they are more objective and less controversial However, due to lack of accordant data, it is impossible for the thesis to use these methods to determine the objective weights The subjective weights will be used to calculate the quality of life index in Vietnam Since the structure of the quality of life concept is composed of several dimensions, we must calculate the component indices before calculating the composite index Based on the results of in-depth expert interviews and available data, the thesis chooses equal weights for individual indicators in calculating component indices but unequal weights for components in calculating the composite index The budget allocation approach (BAP) is used to determine unequal 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, ݉); and m is the number of indicators in each component However, with a view of partially compensation, that the quality of life index should be calculated by geometric mean will encourage the equal development of all quality of life’s components in Vietnam Because of unequal weights among components, the quality of life index is calculated by weighted geometrics mean, as follow: ‫=ܫ‬ ∑ ೑೔ ௡ ඩෑ ‫ܫ‬௜ ௙೔ ௜ୀଵ (3.5) (3.6) where I is the quality of life index; Ii is the component index I; fi is weight of the component index i According to the United Nations’s experience when developing the Human Development Index, the author proposes to evaluate the quality of life in Vietnam depending on the index’s value as follows Table 3.1 Value framework of the quality of life index in Viet Nam Value of the quality of life index I < 0,3 0,3 ≤ I < 0,5 0,5 ≤ I < 0,7 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 groups Then, weight of each dimension in each group is calculated by simple mean of mean scores of all dimensions in that group dividing by 10 Hence, sum of weights is 10 As a result, weight of each component in group (economic conditions) is 1.9; group (housing conditions, education, health and family relationship) is 1.2; group (nature environment and social environment) is 0.9; and group (participating community, governance and political voice) is 0.5 Component indices are calculated according to formula 3.5, which is the simple mean of normalized indicators Table 3.7 Results of calculating component indices No 10 Component Economic conditions Housing conditions Education Health Family relationship Participating community Natural environment Social environment 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 Vietnam is at medium level 21 22 Issues raised from results of pilot calculation Based on the results of pilot calculation, the thesis finds out some issues as follows: (1) data used for calculating composite index is relatively plentiful and available from official sources; (2) applying the aforementioned methodology to calculate the quality of life index in Viet Nam guarantees science and feasibility; (3) expert method, particularly BAP is relatively easy to apply with low cost but brings relatively accurate results when determining weights; (4) calculated results are relatively conformity with currently real situation However, results from pilot calculation still reveal some limitations, mainly due to lack of data Therefore, calculated quality of life index only consists of 10 components measuring objective quality of life The relationship between subjective and objective quality of life is not mentioned yet In addition, pilot calculation is only fulfilled at national level in one year so it limits comparability and assessment of quality of life over time and space Results from pilot calculation are not compared, checked correlation to indicators, indices reflecting similar concepts 3.4 Recommendations to improve method of developing and calculating the quality of life index in Viet Nam The thesis exists some limitations as follows: (1) indicator system measuring quality of life is not really complete, needs supplementing and more improving; (2) subjective quality of life is not measured; (3) relationship between subjective and objective quality of life is not 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 3.3.2 The objective of chapter 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 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 steps of the process are presented in the chapter and chapter of the thesis The last steps are discussed in chapter The author chooses Min-Max transformation to normalize data The minimum and maximum values are defined based on the properties of the indicator The subjective weight is the same for each individual indicator when calculating the component index and different for each component when calculating the quality of life index by method of budget allocation process With the viewpoint of allowing compensability among indicators in one component, thus arithmetic mean is used to calculate component indices; but it only allows partly compensability among components so geometric mean is used to calculate composite index of quality of life The result of pilot calculation with data in 2016 shows that the quality of life in Viet Nam is at medium level with the value of 0.671 On the basis of analysis, the thesis points out some limitations of the research and proposes some recommendations to improve contents of the research in the future 23 24 CONCLUSION Over the past years, the quality of life has been a subject attracting the attention of many researchers, policy makers, and people all over the world In Viet Nam, although quality of life is an issue that has been raised in national agendas, research on quality of life is still limited In fact, the quality of life of the Vietnamese people is improving relatively slowly and being evaluated by many international organizations at low level in comparison with other countries in the world 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 index in Vietnam on the basis of studying the method of calculating the composite index in general and the world’s quality of life index in particular In general, this index is calculated by the methodology proposed by OECD (2008) but with a simpler process The methods used in this process are selected to suit each other, in accordance with the data conditions as well as the practical application With the proposed method, the thesis has calculated quality of life index for 2016 at the national level Since there are no data reflecting satisfaction with life, the quality of life index includes only 10 components that measure the objective aspect of quality of life in Viet Nam The value of the composite index calculated by 0.671 shows that, quality of life in Viet Nam is only at medium level Although the goal has been achieved, but because this is a new research topic, moreover, the limitation of qualifications, resources and time, the research results are still limited, such as: the indicator system measuring quality of life also lack many indicators to reflect the ‘real’ quality of life; the subjective quality of life is not measured; the relationship between objective and subjective quality of life is not studied; the robustness and sensitivity of the index is not evaluated yet, the subjectivity in the selection of indicators and methods, etc Therefore, the thesis proposes to continue to develop studies on quality of life and similar theme such as happiness, satisfaction with life, etc in the future Studies should focus on improving the theoretical framework of quality of life; developing a satisfaction with life scale; studying the relationship between subjective and objective quality of life, especially in calculating quality of life index; studying the factors which affect quality of life; expanding the research to regional and province, completing the method of calculating quality of life index, etc In addition, the thesis also recommends that data production agencies need to comply with regulations on production and publication of data under their rights 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 25 LIST OF PUBLISHED WORKS 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 Nguyễn Thị Xuân Mai (2018) ‘Kiểm định thang đo hài lòng với sống Việt Nam’ Tạp chí Kinh tế Phát triển, số 252 (II), tháng 6/2018 ISSN: 1859-0012 Trang 11-19 Nguyễn Thị Xuân Mai (2018) ‘Một số phương pháp xác định trọng số tính số tổng hợp đo lường tượng kinh tế, xã hội’ Tạp chí Con số Sự kiện, số 533, tháng 4/2018 ISNN 0866-7322 Trang 48-49 Nguyễn Thị Xuân Mai (2017), 'Nghiên cứu khía cạnh chủ quan khái niệm chất lượng sống’ Kỷ yếu Hội thảo khoa học quốc gia: Các vấn đề kinh tế-xã hội thực Mục tiêu phát triển bền vững (SDG) 2030 Việt Nam Đại học Kinh tế quốc dân, Viện Dân số vấn đề xã hội NXB Lao động Xã hội, 6/2017 Trang 100-108 Nguyễn Thị Xuân Mai (2016), ‘Đo lường chất lượng sống Việt Nam: cách tiếp cận chủ quan hay khách quan’ Tạp chí Kinh tế Phát triển, số 232 (II), tháng 10/2016 ISSN: 1859-0012 Trang 15-22 Nguyễn Thị Xuân Mai (2016), ‘Quality of Life dimensions in Viet Nam’ International Conference Proceedings: Emerging issues in Economics and Business in the context of international intergration (EIEB 2016), Volume 02, Hanoi, November 4, 2016 National Economics University Press Trang 54-68 Nguyễn Thị Xuân Mai, Nguyễn Đăng Khoa (2015), ‘Hệ thống tiêu thống kê phản ánh chất lượng sống Việt Nam’ Kỷ yếu Hội thảo khoa học quốc tế: Hoàn thiện hệ thống tiêu Kế hoạch phát triển Kinh tế - Xã hội Ban Kinh tế Trung ương, Đại học Kinh tế quốc dân, Ngân hàng giới, Ủy ban kinh tế Quốc hội, Hà Nội, 6/2015, trang 103-113  ... lòng với sống Việt Nam Tạp chí Kinh tế Phát triển, số 252 (II), tháng 6/2018 ISSN: 1859-0012 Trang 11-19 Nguyễn Thị Xuân Mai (2018) ‘Một số phương pháp xác định trọng số tính số tổng hợp đo lường... vững (SDG) 2030 Việt Nam Đại học Kinh tế quốc dân, Viện Dân số vấn đề xã hội NXB Lao động Xã hội, 6/2017 Trang 100-108 Nguyễn Thị Xuân Mai (2016), ‘Đo lường chất lượng sống Việt Nam: cách tiếp... kinh tế, xã hội’ Tạp chí Con số Sự kiện, số 533, tháng 4/2018 ISNN 0866-7322 Trang 48-49 Nguyễn Thị Xuân Mai (2017), 'Nghiên cứu khía cạnh chủ quan khái niệm chất lượng sống Kỷ yếu Hội thảo khoa