After many decennaries lost to war and isolation – along with economic repression – the shutting decennary of the twentieth century was possibly the greatest in Vietnam ‘s history. Vietnam enjoyed an mean rate of economic growing of 7.6 per centum over the decennary, puting it among the fastest turning states in the universe, alongside its neighbour China.

Less remarked upon was the explosion of poorness decrease Vietnam experienced over this period, one that would, if sustained a farther 15 or 20 old ages, could travel it from the ranks of the poorest populations in the universe to one with lesser degrees of poorness ; due in portion because of the text edition execution in which the Vietnamese economic system responded to market-oriented reforms.

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The World Bank has described Vietnam as a instance survey of the promise of economic integrating and globalisation for hapless states ( World Bank, 2010 ) .

However, this growing has besides generated additions in income inequality which could endanger to give Vietnam one of the most unequal income distributions ( highest Gini coefficient ) in Southeast Asia ( Minot, Baulch, & A ; Epprecht, 2006 ) . Paradoxically, the growing of the Vietnamese economic system may hold been caused, in big step, by its comparatively colored distribution of instruction attainment at the clip of its economic passage from cardinal be aftering to a market economic system ( with socialist features ) .

This paper examines the correlativity between growing and instruction that causes income inequality. It besides explores the favourable distribution of instruction amongst the affluent at the clip of reunion that may hold contributed to the increasing degrees of income inequality which could endanger Vietnam ‘s attempts to cut down poorness. Finally, the paper will offer recommendations to equalise instruction attainment in hopes of shuting the inequality spread.


Poverty in Vietnam is arguably the most momentous socioeconomic issue confronting the state for a figure of grounds. To get down, the sheer figure of people populating in poorness is still high in Vietnam: about tierce of the population, or about 30 million people, autumn below the international poorness line ( World Bank, 2010 ) .

Furthermore, Vietnam does non closely resemble any of its Asiatic neighbours when comparing its comparative wealth to its instruction and other human development indexs. The World Bank ranks Vietnam at 157 out of 207 states in footings of GNP per person.

When analyzing the place of Vietnam at the same time on wealth and human development, it is perplexing to see that whereas the state is near the underside of the distribution in footings of wealth per capita, it is in the top tierce in relation to the HDI index – somewhat below the norm for average income states – due to a low school registration ratio in the grownup literacy rate ( CIA The World Factbook, 2010 ) .

The Journal of Asiatic Economics conducted a research on the equal distribution of instruction attainment among and within Vietnam ‘s 61 states. The research findings show that a considerable fluctuation exists among the states in footings of geographics, economic public presentation, mean wealth, the socioeconomic position of persons, and the proportion and concentration of cultural and spiritual minorities.

The instruction attainment for cultural minorities ( rural country ) is well lower than that of the cultural bulk ( urban country ) . Additionally, the difference in instruction attainment between these two groups is due to “ the fact that the minorities live in less productive countries, with hard terrain, hapless substructure, and lower handiness to the market economic system ” ( Fritzen, 2002 ) .

Typically, when a minority proportion of the population has the bulk portion of instruction attainment, this same minority proportion of the population besides has the bulk portion of income. Unfairnesss in instruction attainment and income inequality are positively correlated ( Minot, et al. , 2006 ) .

The inequality of instruction attainment reinforces income disparities ; likewise, the manner in which instruction is distributed will hold a profound impact on the distribution of income and the nature of growing. Education attainment inequality generates income inequality, and income inequality impedes economic growing.

Equalizing the distribution of instruction attainment and income produces a larger and more diversified population that participates in the economic system with entree to a larger portion of the entire wealth of the state. Thus, mass engagement in instruction is a stipulation for economic growing.


The unequal distribution of instruction has effects that are damaging to human public assistance and to economic growing. Although instruction for ages 6 to 11 is mandatory, there is no legislative act or inadvertence for absenteeism – the load is on the parents – therefore many low income households, peculiarly in the rural countries, do non go to school and take part in supplying for their ain household.

For illustration, it is really common for kids at a immature age to go fishing workers or farm workers, while others may take part in the household concern or keep odd-end occupations. Poor kids who leave school prematurely become unproductive, disgruntled grownups, and are uneconomical resources.

Furthermore, extremely unequal distributions of instruction are associated with low per capita wealth and ageless dependance on external assistance ( Fritzen, 2002 ) . Based on a survey conducted in the rural-suburb country utilizing a sample average age of 31, the mean figure of schooling completed is 7.9 old ages.

This sample population has an mean work experience of 17 old ages, of which the norm hours worked per hebdomad was 46. Almost a one-fourth of the sample has no instruction or uncomplete primary, and half have completed merely the primary rhythm ( Minot, et al. , 2006 ) .

The Vietnamese authorities should concentrate on public disbursement on primary and secondary instruction to better the opportunities that the hapless will profit. Additionally, puting to a great extent in states that are disadvantaged such as the rural and cragged parts would increase the equality of instruction distribution.

The authorities should besides promote misss or immature adult females to obtain an instruction which would increase their engagement in the work force, therefore leting for more economic equality and growing.

Harmonizing to The World Factbook, the Vietnamese authorities does non hold a feasible or sustainable plan for post-secondary school support. To increase the affordability and achievability of higher instruction, authorities outgo should concentrate more on public support or fiscal assistance plans for post-secondary pupils.

Additionally, since a big figure of universities are based in major metropoliss such as Hanoi and Ho Chi Minh City, more colleges or universities should be built in heavy rural countries to advance higher acquisition. This would let for addition productiveness and engineering in the rural countries, and besides decrease unemployment in urban countries in instances of migration from rural.

Another looming crisis in the Vietnamese instruction system is the deficit of instructors, specifically in the simple and high school degree. Harmonizing to a recent figure, there is a deficit of about 40,000 instructors because of the instruction costs and because the rewards of instructors are deficient ( Minot, et al. , 2006 ) .

Therefore, the pool of pupils doing up future instructors are less, taking of course to less pedagogues and a lessening in instruction achievability as a whole. To advance the instruction profession, the authorities should implement public grants to those desiring to come in instruction every bit good as pay reform or revenue enhancement inducements for instructors.

Vietnam ‘s economic system over the past decennary grew at one of the highest rates in the universe. However, income inequality and poorness has non decreased at a healthy rate. This job stems from an unequal instruction distribution of which the rich becomes more educated and the hapless can non achieve an instruction.

When instruction is unevenly distributed in a society, economic growing is lessened and human endowment is wasted – and the state ‘s most valuable [ human ] plus remains unproductive. There is a positive correlativity between growing and instruction that causes income inequality, hence, the Vietnamese authorities should present instruction reforms that would let equal handiness to instruction.