Hanoi and Ho Chi Minh City remain on the low end of Mercer's annual Quality of Living ranking.
Ho Chi Minh City ranks 152nd and Hanoi 156th out of 231 global cities considered in the London-based human resources consultancy's annual ranking on Tuesday.
Hanoi’s ranking slides slightly from 153rd last year, putting the city well below other regional capitals.
Singapore remains the most livable city in Asia (25th globally) followed by Tokyo at 47th, according to Mercer's most recent rankings.
Kuala Lumpur ranks 86th (the second best performer in Southeast Asia) followed by Bangkok, Manila, and Jakarta in 131st, 135th and 143rd places respectively.
The rankings measure the cities' political, social, economic environments against medical and health considerations. The agency also considers schools, public services and transportation, recreation, consumer goods and housing..
It is meant to help businesses, especially multinational companies, compensate employees sent to work overseas, Mercer said.
European cities dominate the list; Vienna retains the top position followed by Zurich and Munich.
Global centers London, Paris and New York City do not make the top 30.
Baghdad is again ranked lowest in the world. Waves of sectarian violence have swept through the Iraqi capital since the U.S.-led invasion in 2003.
Six years into Syria's bloody war, Damascus was ranked seventh from bottom, with Bangui in the Central African Republic, Yemeni capital Sanaa, Haiti's Port-au-Prince, Sudan's Khartoum and Chad's N'Djamena filling out the end of the list.