The paper examines the relationship between income sources and unequal income in Vietnam during the period from 2002 to 2012. With the data of household living standards in 2006-2012 and applying the method which separates the Gini coefficient of income inequality. The paper produces new empirical evidence on the contributions and impact of the income source to inequality in recent years. Based on the results of empirical research, the paper gives some policy suggestions that can help improve people's living standards while not significantly increase the inequality of income distribution in Vietnam. Through the separation of the Gini coefficient based on income sources with the use of survey data on household living standards in the years from 2006 to 2012, this paper provides new empirical evidence on the contribution and impact of each income source of total inequality in recent years. This study shows that income from daily work increasingly plays an important role in household livelihoods. Thus, the State's policy of encouraging job creation, especially jobs in general will help reduce poverty, improve the income of the household but cannot increase income inequality in Vietnam. The study results show that agriculture is the only source of reducing income inequality. Agricultural policies can help farmers increase income from agriculture through shifting to crops of high economic value.
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