This paper examines how init ial inequality and poverty rate are related to subsequent economic growth in the provincial level of Vietnam. The results show a robust negative relationship between initial poverty rate and subsequent economic growth. However, there is no link between initial inequality and s ubsequent economic growth. The results also show that lower inequality leads to lower pove rty rate and poverty reduction could help to reduce inequality. Other determ inants of inequality and po verty reduction include human capital, investment, GDP growth rate and trad e openness. The main policy implication that emerges from this paper is that concentrating on poverty elimination will help us to build a more equitable society without sacrificing economic growth.