DETERMINANTS OF INCOME DISTRIBUTION INEQUALITY IN VIETNAM

FOREIGN TRADE UNIVERSITY
Faculty of Economics and International Business

Topic:
Determinants of Income Distribution Inequality in Vietnam
Group 5B:
Lê Thị Hồng Hạnh

Lê Huy Hoàng

Đỗ Trung Kiên

Mai Diệu Ly

Đặng Thị Thúy Vân

Lecturer : Nguyễn Thị Hải Yến

TABLE OF CONTENT
INTRODUCTION 1
1. Literature review of determinants of income inequality 2
2. Income distribution inequality in Vietnam 7
2.1. Situation .. 7
2.1.1. Gini index 8
2.1.2. Income by quintile 9
2.1.3. Income by region 10
2.2. Causes .. 10
2.2.1 Economic restructuring and globalization 11
2.2.2 Inequality of services access 12
2.2.3 Asset inequality 13
2.3. Impacts .. 13
2.3.1. Economic impacts 13
2.3.2. Health and social impacts 15
2.3.3. Political impacts 16
2.3.4. Comments 17
3. Regression model 17
3.1. Model specification 17
3.2. Econometrics models 19
3.3. Interpretation 23
4. Government policies 24
Conclusion 29
Reference 30
INTRODUCTION
Usually, during the long way to become developed countries, developing and emerging nations have been trading off many things, industry expansion versus environment purity, international integration versus cultural maintenance and improvement, etc. Among them, there always exists a problem that all developing countries like Vietnam are facing with, income distribution inequality. Vietnam has seen a continuous growth in recent years and moved from low income class to lower middle income country. That is a huge effort of Vietnamese economy and policy makers. However, we are coping with disparity in income distribution and this problem tends to non-stop exacerbate over time. We are wondering the causes lying behind income inequality in Vietnam and what determine its changes. By that way, we would like to do this small research on such issue, figuring out its trend, causes and effects, giving comments on Vietnamese

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