This paper investigates associations between trade liberalization and labor allocations as well as income differentials across types of employments in Vietnam. Data is sourced from five Viet Nam Household Living Standard Surveys from 2002 to 2010 and available measures of opening up the domestic market in Viet Nam. The results indicate that opening up the domestic market does not have significant impacts on labor allocation as well as income differentials between wage workers in different sectors. Meanwhile, the impact on income differentials between self-employers and wage workers in the formal sectors is not clear
