The study looked at income inequality in Vietnam, focusing on urban and rural areas. They found that income differences within sectors are bigger than spending differences. Urban areas have higher income inequality than rural areas because urban incomes come mainly from wages and non-farm work, which are unevenly distributed. Surprisingly, wages help equalize income in both urban and rural areas. Agriculture income helps reduce inequality. To reduce income inequality, the study suggests diversifying income sources, supporting the private sector, promoting rural-urban migration, and increasing trade.