really urgent need in the coming period as Vietnam is to maintain the growth rate

to escape the vicious cycle trap of low-income countries, and the prerequisite is to
reduce disparity and poverty. However, in terms of capacity, the possibility for
Vietnams sustainable development is a big question, given the perspective of
rapid economic growth basing on reducing the income gap between individuals
and regions across the country.
The contradic picture of the rich and the poor in Vietnam shows another
perspective of economic growth process, and that the income gap in Vietnam is
widening. This fact is consistent with the assessment of the World Bank that the
rich and poor gap in Vietnam is moving away from relatively equal in 2002 to
rather difference because the income gap keeps growing among current resident
groups. This remark is no surprise as according to the Ministry of Labour - Invalids
and Social Affairs, the gap between income levels of different labor groups is
widening, especially in large cities.
Compared to other countries having the same development level (in income
per capita) around the world, Vietnams income disparity remains at a moderate
level, approximately 0.45 in 2010. However, it is noteworthy that the difference
tends to increase and may reach alarming levels in the future if there is no attempt
to stop now. This fact is manifested in many different compared dimensions, such
as: the gap between the 20% of richest population and 20% of poorest population.
In summary, in Vietnam, the Gini index Index is around 0.4. According to the
international organizations, distribution of income in Vietnam is still at a safe
level. Socially, though people's lives have been improved, poverty has reduced,
Gini index in Vietnam is high, and keeps increasing over the years (the index in
2004 was 0.423,and in 2006 the number reached 0.425).
High Gini index shows the disparity of income as well as the rich and poor
gap among different resident groups. According to the World Bank, before 1990,
countries with low income experienced Gini coefficient from 0.389 (Bangladesh)
to 0.550 Kenya, the average income Gini coefficient was from 0.378 (South Korea)
to 0.605 (Brazil), the number in industrial market-oriented economy is from 0.285
(Japan) to 0.404 (Australia), of socialism countries (before 1990) was from 0.284
to 0.317. Thereby, income gap in Vietnam is relatively high compared to the
world, and is noteworthy that this gap has been growing in recent years as
described in the working-paper.

CIEM, Trung tm Thng tin T liu