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CIEM, Trung tâm Thông tin – Tư liu 4 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 Vietnam’s 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, Vietnam’s 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.

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CIEM, Trung tm Thng tin T liu 4 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 reducedisparityandpoverty.However,intermsofcapacity,thepossibilityfor Vietnamssustainabledevelopmentisabigquestion,giventheperspectiveof rapideconomicgrowthbasingonreducingtheincomegapbetweenindividuals and regions across the country. ThecontradicpictureoftherichandthepoorinVietnamshowsanother perspectiveofeconomicgrowthprocess,andthattheincomegapinVietnamis widening.ThisfactisconsistentwiththeassessmentoftheWorldBankthatthe richandpoorgapinVietnamismovingawayfromrelativelyequalin2002to ratherdifferencebecausetheincomegapkeepsgrowingamongcurrentresident groups. This remark is no surprise as according to the Ministry of Labour - Invalids andSocialAffairs,thegapbetweenincomelevelsofdifferentlaborgroupsis widening, especially in large cities. Compared toothercountries having thesamedevelopmentlevel(inincome percapita)aroundtheworld,Vietnamsincomedisparityremainsatamoderate level,approximately0.45in2010.However,itisnoteworthythatthedifference 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. Insummary,inVietnam,theGiniindexIndexisaround0.4.Accordingtothe internationalorganizations,distributionofincomeinVietnamisstillatasafe level.Socially,thoughpeople'sliveshavebeenimproved,povertyhasreduced, GiniindexinVietnamishigh,andkeepsincreasingovertheyears(theindexin 2004 was 0.423,and in 2006 the number reached 0.425).HighGiniindexshowsthedisparityofincomeaswellastherichandpoor gapamongdifferentresidentgroups.AccordingtotheWorldBank,before1990, countrieswithlowincomeexperiencedGinicoefficientfrom0.389(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), ofsocialism countries (before 1990) was from 0.284 to0.317.Thereby,incomegapinVietnamisrelativelyhighcomparedtothe world,andisnoteworthythatthisgaphasbeengrowinginrecentyearsas described in the working-paper.