Situation of income inequality in Vietnam

Abstract

The article uses secondary data sources collected from the General Statistics Office and utilizes qualitative research methods through descriptive statistics, analysis, evaluation and comparison. At the same time, the article based on the indicators to measure income inequality in Vietnam to assess the reality of income inequality in Vietnam since the beginning of the economic reform till now. Research results show that although per capita income in Vietnam tends to increase, the level of income inequality in Vietnam increased until 2019, while in 2020 and 2021, income equality in Vietnam decreased due to the Government implementing many supportive policies for people and businesses. The study also shows that income inequality is lower in urban areas than in rural areas and there is a difference in income inequality across regions in the country. In general, income inequality in Vietnam was moderate over the period from 2010 to 2019. Particularly by 2020 and 2021, the level of income inequality in Vietnam had reached a low level. Besides that, the article also analyzed the main causes of income inequality in our country. Based on the analysis, the study proposes a number of solutions to reduce income inequality in Vietnam, raise income, thus improving living standards and income equity in society.