This paper assesses the feasibility of simulating the distributional impacts produced by
various tax and transfer instruments in Viet Nam. Viet Nam’s system of tax and transfer policies
underwent frequent changes, in terms of diversity and adjustment scope. The most important
source of data is the Viet Nam Household Living Standards Survey. Investigation of the survey
data shows the wide-ranging feasibility of simulating tax and benefit instruments, though more
details are available for transfer instruments. The microsimulation should thus focus more on the
transfer instruments, which invites interests from a range of government agencies, international
organizations, and non-governmental organizations.