This paper investigates socio-economic factors affecting household income among ethnic minorities in North-West Mountains – the poorest region of Vietnam. The findings revealed that the vast majority of the sample households heavily depended on agricultural activities, with very limitted access to nonfarm employment. Factors affecting household income were analyzed using multiple regression models and the results confirm the crucial role of education, non-farm employment and fixed assets in improving household income. Also, some community characteristics such as the presence of means of transportation, post offices and nonfarm job opportunities were found to have a significantly positive impact on household income. The findings imply that policies for poverty reduction should aim at both commune and household levels in the study area.