TO REDUCE INCOME GAP IN VIETNAM

Income distribution is a phase in the reproduction process, which is also a link

in the economic relation system. There are two groups of reasons for the disparity
in income distribution, as follows:
- Income distribution disparity from assets. This is a static reason, causing
disparity which is beyond individuals control and influence. Such income is
generated from sources including: asset inheritance, differences in consumption
and saving behaviours of different individuals which lead to different effects to
accumulated assets, and business performance.
- Income distribution disparity from labor. This group includes factors of
individuals talent, capacity, skills, working conditions and occupational
characteristics, those lead to differences in income, particularly, differences in
ability, leadership skills, intensity of work, occupation, and the nature of work ...
An economy with large income gap will experience other disparities of
opportunity and access to available resources, differences in level and living
standard, which leads to many consequences associated to economic development
results as well as welfare security and social evils.
In this context, the role of government is brought into play to make
appropriate interventions, in order to ensure social justice and to ensure that
achievements of economic growth and development can spread to poorer groups ,
disadvantaged and other vulnerable groups. Although the redistribution of income
through governments interventions does not increase overall wealth of the society,
it can help increase social welfare. To ensure fairness is to ensure access to basic
services that people are entitled to as citizens' rights. Therefore, reducing the
income gap creates a positive externality for the outcome of economic
development - society.
I.Current status of income disparity in Vietnam
Vietnam's economy is now entering a new phase of development. After more
than two decades of important socio-economic achievements, Vietnam has
identified the goal of sustainable development for the national economy in near
future. Sustainable development is no longer a new concept, which requires the
development process focuses on three pillars: economic, social and environmental.
For Vietnam, sustainable development, at least in terms of income distribution, is a
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