In this paper, we have analyzed the recent trends in income inequality, internal and international migrations and investigated the impact of migration on income distribution in Vietnam. Our analysis shows that the effects of migration on income inequality vary with different types of migration, depending on who migrate and where they migrate. Foreign remittances tend to flow toward more affluent households, and they increase income inequality. By contrast, domestic remittances accrue more to low-income groups and this source of income has equalizing effects on income distribution. The major policy implication of our analysis is that migration can serve as a channel to distribute the benefits of economic growth to the poor and low-income groups.