This paper quanties the impact of trade liberalization at the household level using data from the Vietnam Household Living Standard Survey from 2002 to 2016. Household welfare is measured by income, expenditure, and vulnerability to poverty. Unlike previous studies, we address potential endogeneity at the household level by constructing household exposure-to-trade indices as a proxy for trade liberalization. The advantages of these indices are that they capture the in uence of trade liberalization at the national level and households' ability to respond to new opportunities. The results suggest that trade liberalization improves Vietnamese household income and expenditure via the export channel or the expansion of labor demand. Tari reduction for exported goods is less favorable to household welfare. The impact of trade liberalization became smaller and less signicant after the global downturn in 2008. Rural households suered more vulnerability from trade, and the poor gained fewer benets after the nancial…