This paper implements the conceptual framework of Carter and Barrett (2001, 2006) that identifies the
link between assets and household well-being transitions. I employ household panel data from
Vietnam collected in two years 2007 and 2008 as foreign investment boomed and inflation rose.
Poverty dynamics are modeled using changes in consumption expenditure and poverty transition
models. The transition effect is captured by a set of variables such as household assets (including
household and individual characteristics, household dynamics and its social assets) and shocks. The
result shows that changes in household assets and shocks affect poverty transition.