Income Distribution in a Socialist-Oriented Market Economy Needs Special Attention to Low-Income Populations and Underdeveloped Areas

same profession and between professions with different job characteristics. The higher the complexity of the work, the higher the level of labor, the higher the salary. Salary must be linked to productivity, quality and efficiency to create stimulation for workers.

In addition to the wage policy, it is necessary to study the enterprise profit sharing regime and implement the sharing of a portion of profits to employees in the enterprise. In our country today, profit sharing to employees has only been initially applied in joint stock enterprises. In the coming time, it is necessary to expand this form of income distribution because on the one hand, it increases the income of employees, on the other hand, it is also a form of stimulating employees to be more enthusiastic and responsible in their work. It is necessary to gradually institutionalize the profit sharing regime to ensure a harmonious combination of the interests of employees and enterprises, ensuring a reasonable relationship between accumulation and consumption, thereby creating a basis for the development of enterprises.

Personal income tax policy plays an important role in income distribution, contributing to social equity. Income tax reflects the interest relationship of all three subjects: individuals, enterprises and the State, has a strong impact on income regulation among the population and is an important source of revenue for the budget. Therefore, the State needs to build an effective and fair income tax system for all taxpayers to not only harmonize the economic interests of the subjects but also encourage production development. The direction to perfect the income tax policy is to reduce tax rates and expand the taxable area, thereby stimulating economic activities. Specifically, most types of personal income are subject to personal income tax, reduce the maximum tax rate and restructure the ladder between tax rates.

The system of social security policies also needs to be focused on building to create a social safety net, ensuring that people with the lowest incomes in society also have access to minimum social services such as health, education, sanitation, etc. Social policies such as employment policies, social insurance policies, health insurance policies, and poverty reduction policies play a very important role in creating

create social equality between people with different incomes, contributing to narrowing the development gap between social classes.

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3.1.3. Income distribution in a socialist-oriented market economy needs to reasonably resolve the relationship between economic growth and social progress in the direction of economic growth associated with ensuring social progress and equity in each step of development.

The unity between economic growth and social equity is an objective requirement of a socialist-oriented market economy. The general goal of the operation of a socialist-oriented market economy is to continuously increase social wealth to increasingly satisfy the material and spiritual needs of the people. That requires unity between economic growth and equity in distribution. If one side is biased, the operation of the economy will not achieve the desired results. Economic growth creates material conditions for social equity and progress. Only by continuously increasing economic growth and increasing the amount of material wealth can equitable distribution be achieved. Conversely, equitable distribution will arouse and stimulate people's positivity and creativity, thereby promoting economic growth.

Along with the development of the market economy, the formation of income gap is inevitable. The problem is to keep the income gap at a moderate level to ensure the driving force for economic growth. If the income gap is unreasonable, it will lead to the expansion of the contradiction between growth and equity. Experience in income distribution in many countries around the world shows that if the income of the richest 10% of the population compared to the income of the poorest 10% of the population has a difference index of 6 to 9 times, it is a reasonable, safe and fair framework, which has the effect of stimulating economic growth. In addition to limiting the excessive expansion of the income gap, it is also necessary to eliminate the egalitarian distribution regime. No income gap is a distribution mechanism that eliminates the driving force for development.

To realize this point of view, it is necessary to pay attention to the following aspects:

- In the initial distribution, it is necessary to pay attention to efficiency, promote the effectiveness of the market mechanism to aim at growth; with redistribution, it is necessary to pay attention to equity, associated with improving the State's regulatory capacity in income distribution; regulate the large difference in development level and income, especially in monopoly areas such as electricity, gasoline, etc.

- Economic equity needs to emphasize the creation and maintenance of conditions and opportunities for fair production development and economic growth between regions and economic areas (between mountainous areas and plains, between rural areas and urban areas, between key economic regions and other regions, between industrial development regions and agricultural development regions...), business components and entities (between state-owned enterprises and other types of enterprises, between domestic economy and foreign-invested economy). Here, social equity is understood in both aspects: equity in basic human rights and equity in development opportunities.

- When planning economic and social development policies and strategies, it is necessary to ensure close linkage between economic policies and social policies in an organic manner; allocate development resources reasonably between economic and social goals and tasks in a unified whole. When building an economic development program, it is necessary to pay attention from the beginning to the social impacts that the implementation of that policy may cause, anticipate possible consequences in the future, and from there plan appropriate solutions (financial, technical, etc.) to handle problems if they arise. The State implements policies to redistribute national income reasonably, ensuring fairness and limiting the gap between rich and poor; at the same time, issues of job creation, hunger eradication, poverty reduction, and social relief need to be resolved in the spirit of socialization.

3.1.4. Income distribution in a socialist-oriented market economy needs to pay special attention to low-income groups and underdeveloped regions.

Along with the development of market economy, there is also social stratification according to living standards, the gap between rich and poor; the development opportunities of the rich will be more.

than the poor. Such differences occur first in the economic sphere, then spread to other areas such as education, health care, housing and other basic services. A part of the population falls into poverty, and vulnerable groups appear in the market mechanism.

The national renovation has improved the living standards of farmers, making their lives better than before, but now the gap, first of all the income gap between urban and rural areas, has deepened, and the economic growth rate of urban areas is still much higher than that of rural areas. The poor are still mainly concentrated in rural areas, with over 90% of poor households concentrated in rural areas, the vast majority of whom are purely agricultural households. Mountainous, remote, isolated, and ethnic minority areas are still the areas with the highest poverty rates (see Chapter 2, section 2.2).

Developing a socialist-oriented market economy is to develop productive forces, build socialism, and realize a rich people, a strong country, and a fair, democratic, and civilized society. Therefore, one of the key tasks that needs to be solved in the process of building a socialist-oriented market economy is to improve the material and spiritual life of the people, especially the low-income population, to implement social justice, and to reduce the gap in development levels between urban and rural areas, and between regions.

From the redistribution perspective, the State needs to focus on implementing social policies such as education and training policies, health and healthcare policies, social insurance policies, employment policies, poverty reduction policies, and social incentive policies to improve and enhance people's lives, especially those with low incomes.

3.2. Solutions to improve personal income distribution policy in the coming time

3.2.1. Reforming wage policy

Wage policy is of particular importance in the distribution of personal income. We know that wages are a regular source of income to ensure

ensuring personal spending needs, it directly and immediately affects the lives of every individual. Therefore, reforming personal income distribution policy in any country, wage policy is always the first concern. Vietnam is no exception.

In the process of reforming wage policy, it is necessary to thoroughly grasp the following viewpoints:

after:

- Wage policy reform must be linked to economic development and stability.

The country's economic, political and social development must ensure macro balances. Wages depend on the level of economic and social development. Economic development creates material conditions for wage increases, and conversely, reasonable wage increases will promote economic and social development. Therefore, based on the economic growth rate in each period, the wage level must be adjusted appropriately. It is necessary to overcome the previous situation, where the prescribed wage level was low but was slow to adjust while the economy grew continuously at a high rate, the prices of goods and services increased, causing real wages to decrease. Wages are not simply a distribution for personal consumption, but a part of production costs, so they need to be fully calculated to ensure the reproduction of labor as a factor in the production process, so the cost of wages is the cost of investment and development.

Wage policy is related to many macroeconomic issues such as accumulation and consumption, state budget revenue and expenditure, employment and income; it affects the interests of all people, all classes in society, and is related to the issue of social justice. Therefore, wage reform must ensure the principles of macroeconomic balance of the economy, especially the balance between accumulation and consumption, the balance between wages and labor productivity, and national income, avoiding major imbalances or inequalities that cause social tension.

- Wage policy must be consistent with the socialist-oriented market economy. Our country's current wage policy is still a transformation of the previous subsidized wage in kind and is still heavily egalitarian. The egalitarian nature of wages is clearly reflected in the system of scales and salary tables between sectors, regions, and working hours.

wage increase period, in the gap between wage levels. Average wages are not only inconsistent with the principle of distribution according to labor, but also inconsistent with the principle of distribution in the market economy. Therefore, it is necessary to renew thinking about wages and develop wage policies. The development of wage policies must be consistent with the socialist-oriented market economy institution, fully monetize wages, the remaining subsidy factors (housing, transportation, medical examination and treatment, etc.) must be eliminated, overcoming the average nature of wages.

In a market economy, wages are the price of labor formed in the market, reflecting the relationship between supply and demand of labor, with a competitive element. Therefore, wages must be linked to the labor market, not just adjusting wage policies based on price indexes. However, wages in our country today are not really the price of labor, they do not reflect the value of labor and the correlation between supply and demand of labor. Labor contracts represent labor relations in the labor market, are only mandatory for organizations outside the state sector, and in the state sector, they are only implemented for newly recruited employees, but the salary regime is still mostly based on the system of scales and salary tables prescribed by the State. The signed labor contract is not yet the real result of the agreement between the employee and the employer, because under the conditions of too much pressure on employment for employees, they are forced to accept the salary and conditions set by the employer. Therefore, in order for wages to truly be the price of labor, it is necessary to form and develop a labor market with State supervision and inspection of the hiring, use and payment of labor on the basis of applying the objective laws of the market to determine wages.

In a market economy, wages and employment are closely related, so when building a wage policy, it is necessary to take into account the current employment aspect in our country. The wage scale, salary level, and salary increase mechanism need to be determined reasonably to ensure attracting high-quality workers to important areas of the State, encouraging workers to improve their professional qualifications. The unreasonable wage policy and inadequate salary payment to workers are among the

important causes (besides causes such as working environment, promotion opportunities...) leading to the brain drain in the state sector to other sectors. Therefore, reforming the salary regime is the first important step to prevent the brain drain, gradually attracting talents to work in the state sector.

- Wage policy reform must be carried out step by step and synchronously with administrative reform, economic reform, and the establishment of a synchronous, healthy market system.

Wage policy is one of the important socio-economic policies, the focal point of all economic, political, social and equitable issues. Wage policy reform is related to the interests of all workers. On the other hand, building a reasonable wage policy that can perform its functions and is suitable for the level of socio-economic development is a difficult and complicated task. Therefore, wage policy reform needs to be carried out carefully step by step, not hastily, subjectively, or done all at once.

Currently, our country is carrying out administrative reform to build an effective and efficient administration, ensuring that the civil servants have the qualities and capacity to meet the requirements of socio-economic development. Salary policy reform cannot be separated from and must be implemented synchronously with administrative reform. Salary reform in the state sector requires a reasonable reorganization of labor, solving the problem of state apparatus payroll in an effective manner, on the basis of work needs to set payroll for each type of cadre and civil servant, considering the balance between ranks and levels of each industry and each locality. Implementing the enhancement of responsibility and authority for cadres in the state apparatus goes hand in hand with salary increases and staff replacement as is happening now, especially for grassroots cadres.

Salary reform must be based on reforming the management mechanism, overcoming the state's protectionism, separating the public service sector from the administrative sector, implementing the financial autonomy mechanism combined with socialization in the public service sector. Salary reform in the state sector must be considered from the perspective of division.

GDP distribution, not just state budget distribution. With the above thinking, the wage policy in this sector needs to be built in the following direction: in the administrative sector, the state budget ensures that all wage costs are higher than the average income of society and will increase according to the principle that the wage growth rate must not exceed the economic growth rate; in the career sector, there needs to be socialization to create a source of wage assurance with the State. In other words, wages and incomes of workers in the administrative sector must be taken from the state budget, and wages from the career sector need to be mobilized from society in the process of distributing and redistributing GDP.

For the business sector, wages are a part of production costs, if wages increase, profits decrease and vice versa. The only solution to handle this contradiction is to increase labor productivity, save costs, improve production efficiency, then create a source to increase both profits and wages.

- Reforming wage policy is closely linked to reforming social insurance policy . In reforming wage policy, it is necessary to completely separate the wage system from the social insurance system. Wages and social guarantees such as social insurance and social subsidies have completely different functions, source creation mechanisms and beneficiaries. Therefore, there should be no automatic binding between wages and social insurance. Wages are income for labor reproduction, they are a lever to stimulate workers to improve labor productivity and are regularly reviewed and adjusted appropriately. As for social guarantees, they are not linked to labor productivity, they are maintained at a satisfactory level even when wages fluctuate, and at the same time, it is necessary to maintain a reasonable correlation between the minimum living standard and the minimum subsidy level. Such a separation allows for wage policy reform without forcing corresponding changes in social security benefits, which makes practical sense in the long run as the number of people covered by social security increases significantly.

To implement the above principles, salary policy reform must also ensure that salaries perform their functions, which are:

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