This paper investigates the relationship between non-farm employment and household income in Hanoi's periurban areas. The findings showed that the vast majority of the sample households participate in non-farm activities and income from these sources mainly contributes to total household income. Factors affecting household income were examined using multiple regression models and the findings confirm the important role of non-farm employment in improving household income. In addition, some other asset-variables such as education, access to credit, farmland and productive assets were found to have positive effects on household income. Based on the empirical results, this paper proposes some policy implications that may help households improve their income.