Transformations  in
Business & Economics

EXAMINING INCOME INEQUALITY IN VIETNAM: THE ROLE OF ODA, ECONOMIC GROWTH, AND UNEMPLOYMENT⁵
Huong Lien Ho, Irena Benesova, Lenka Rumankova

ABSTRACT: The paper aims to assess the impact of Official Development Assistance (ODA) and the unemployment rate on income inequality in Vietnam from 1992 to 2022. Drawing on theoretical and empirical synthesis, the authors constructed regression models and employed vector autoregression to analyze the data. The study reveals several significant findings regarding income inequality in Vietnam. There is a complex relationship between income inequality and income per capita, with a positive correlation in the initial three years of the forecast and a negative one from the fourth year onwards. Income inequality increases as per capita income rises, particularly among the middle class. Furthermore, there is a negative correlation between income inequality and unemployment. On the other hand, Official Development Assistance positively correlates with income inequality, per capita income, and unemployment.

KEYWORDS:  economic growth, income inequality, official development assistance (ODA), unemployment

JEL classification:  O47, O53, D63

⁵Acknowledgments:  This paper was supported by the Grant Agency of the Faculty of Economics and Management, Czech University of Life Sciences Prague: The relationship between income inequality and Vietnam’s economic growth: A case study in the Northern Midlands and Mountains region [nr. 2022A0004]. I would like to express my deep respect and gratitude to the provincial leaders and officials in the provinces who have always cared for, encouraged, and created conditions for me in the research process. Disclosure statement. Authors declare that they do not have any competing financial, professional, or personal interests from other parties.