The present paper analyzes the incidence and progressivity of Vietnamese state income transfers
using survey data from the Vietnamese Household Living Standards Survey 2004. Data quality
and sample selection issues are highlighted, especially in the coverage of rural-urban migrants. Simple
income-based profiles of incidence are matched to several influences that confound and complicate
the measurement of progressivity. The issue of the informal economy is highlighted through
analysis of both the extent of private inter-household transfers and remittances and their relationship
with state transfers, and in the informal charges that accompany uptake of state services and
other petty corruption. Second, the issue of user-charges for health and education services is considered,
as a considerable portion of state transfers are related to the take up of schooling and
health care. Third, the issue of behavioral effects is also considered, concentrating on private interhousehold
transfers. The paper concludes by drawing together the evidence and the obstacles
to measurement and progressivity to argue a range of data collection, methodological and policy
recommendations.