The article is organized as follows. Section II describes the data and the methodology used to estimate the changes in poverty in Vietnam between 1992-93 and 1997-98. It also constructs a poverty profile in these two time periods and briefly outlines the observed changes in inequality. Sections III and IV use two different multivariate regression methods to explore some of the forces driving the change in poverty over these years. The first method decomposes the change in mean per capita consumption into changes in household characteristics and changes in the "returns" to these characteristics. The second method uses multinomial regression techniques on the panel sample to assess the features that affect a household moving into and out of poverty. Section V summarizes the findings and draws some policy implications.