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CIEM, Trung tâm Thông tin – Tư liu 7 - First, the poverty rate has declined substantially but living quality in some places is somewhat declined. Incomde disparity, the division between rich and poor, and between regions have not been narrowed but tend to widen. - Second, income disparity in the country has become more and more noteworthy and more acute. A large share of poor households concentrates in difficult areas where having many disadvantages such as harsh natural conditions, poor infrastructure, low educational level, fragment and primitive production. - Third, the income gap has been happening in Vietnam, such current differentiation can profoundly affect the social life. IV.2. Recommendations for the years to come IV.2.1. The disadvantages to be solved It is possible to see that, the existence in reducing the income gap in Vietnam as described above stems from limitations and shortcomings needed to be addressed. Thereby, the working-paper figures out some points that need further attention, including: • In economic term - Growth patterns and resource allocation mechanisms - Industrialization and urbanization - The process of economic transformation • In social terms - Shortcomings and existing problems regarding culture and society. - Management mechanisms, business environment and information system. IV.2.2. Recommendations for the years to come Basing on analyses on above matters, several recommendations are proposed, which divided into two groups - The urgent measures to limit the income gap include: to moderate income for the poorer; to provide proper labor and employment policy; to provide appropriate treatement to preferential groups; to increase investment in human capital; to establish a broad middle class in the society; to increase public investment in underdeveloped areas.

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CIEM, Trung tm Thng tin T liu 7 -First,thepovertyratehasdeclinedsubstantiallybutlivingqualityinsome placesissomewhatdeclined.Incomdedisparity,thedivisionbetweenrichand poor, and between regions have not been narrowed but tend to widen. -Second,incomedisparityinthecountryhasbecomemoreandmore noteworthyandmoreacute.Alargeshareofpoorhouseholdsconcentratesin difficult areas where having many disadvantages such as harsh natural conditions, poor infrastructure, low educational level, fragment and primitive production. -Third,theincomegaphasbeenhappeninginVietnam,suchcurrent differentiation can profoundly affect the social life. IV.2. Recommendations for the years to come IV.2.1. The disadvantages to be solved It is possible to see that, the existence in reducing the income gap in Vietnam asdescribedabovestemsfromlimitationsandshortcomingsneededtobe addressed.Thereby,theworking-paperfiguresoutsomepointsthatneedfurther attention, including: In economic term - Growth patterns and resource allocation mechanisms - Industrialization and urbanization - The process of economic transformation In social terms- Shortcomings and existing problems regarding culture and society. - Management mechanisms, business environment and information system. IV.2.2. Recommendations for the years to come Basing on analyses on above matters, several recommendations are proposed, which divided into two groups -Theurgentmeasurestolimittheincomegapinclude:tomoderateincome forthepoorer;toprovideproperlaborandemploymentpolicy;toprovide appropriatetreatementtopreferentialgroups;toincreaseinvestmentinhuman capital;toestablishabroadmiddleclassinthesociety;toincreasepublic investment in underdeveloped areas.