The spatial and regional dimensions of inequality and economic development have been gaining more attention in the past few years. What have been the spatial ramifications of Vietnam's recent reforms — the geographies of socio-economic transition? Are the benefits of doi moi's economic success being experienced equally in regions around Vietnam, or concentrated in a few core areas? How can rural inter-regional inequality in Vietnam be characterized, and why have some areas and some people benefited more than others? These are some of the questions considered in this chapter. The doi moi economic reforms introduced since the late 1980s in Vietnam implied a shift away from collective agriculture, the endorsement of private economic activity, and the legalization of foreign investment. The growing market economy is leading the population out of the shared poverty that characterized the period of subsidies and collectivization. But the process is also producing greater degrees of socio-economic differentiation at multiple scales: between households, ethnic groups, villages, and regions. This chapter outlines the emerging socio-economic trends in regional disparities and the multiple mechanisms at work in shaping these disparities in Vietnam.

Some economic analyses consider rises in inequality (or divergence in regional development measures) as inevitable outcomes of economic growth at certain stages in the development process. Other theories predict convergence, suggesting that over time the inequalities will lessen. One problem with such theories is that they do not consider non-economic determinants of regional inequality. Vietnam has an extremely diverse physical geography, which has shaped the evolution of its human geography as well. Natural resources, soil fertility, and being located in areas prone to floods or storms, or in mountainous and remote areas are all factors that contribute to regional disparities in income. However, as opportunities for off-farm income rise, these physical geography factors are less important than socio-economic variables in explaining regional inequalities. Location has an important effect on the economic strength of some regions over others.