Evolution of inequality in Vietnam: Intertemporal changes from 1990s to 2000s

Income distribution in developing countries is changing dynamically due to changes in socioeconomic activities. For political analysis, it is necessary to ascertain the main factors influencing income distribution. This paper implements the decomposition methods of inequality in Vietnam and formulates three inequality indices to reflect the change of inequality in 1993-2002. In addition, under the market-oriented "Doi moi" economic reforms, the author proves that the household population distribution dynamically shifted and influenced the urban-rural inequality of household expenditure. By considering households' key characters that influence expenditure distribution, the author supports the formulation of a policy aimed at bridging the rich-poor divide in Vietnamese society and espouses the promotion of education from a long-term perspective.